90Complying residential building work insurance

90 Complying residential building work insurance (1) An insurance policy issued for insurable residential building work complies with this section if— (a) it is issued by an authorised insurer; and (b) it provides for a total amount of insurance cover of at least the amount prescribed under the regulations, or the cost of the work, whichever is less, for each dwelling that forms part of the work; and (c) if the builder is not the owner of the land where the work is to be carried out—it insures the owner and the owner’s successors in title for the period beginning on the day the certifier for the work issues a building commencement notice under section 37 for the work and ending at the end of the period prescribed under the regulations after the day a certificate of occupancy is issued for the work; and (d) if the builder is the owner of the land where the work is to be carried out—it insures the builder’s successors in title for the period beginning on the day the title in the land is transferred to someone else and ending at the end of the period prescribed under the regulations after the day a certificate of occupancy is issued for the work; and (e) the whole of the premium payable for the period has been paid; and (f) it insures the owner (if the builder is not the owner) and the owner’s successors in title against the risk of being unable to enforce or recover under the contract under which the work has been, is being or is to be carried out because of the insolvency, disappearance or death of the builder; and (g) it insures the owner (if the builder is not the owner) and the owner’s successors in title against the risk of loss resulting from a breach of a statutory warranty; and (h) it insures the owner (if the owner is not the builder) and the owner’s successors in title against the risk of loss resulting, because of the builder’s negligence, from subsidence of the land; and (i) it provides that a claim under it may only be made within the period prescribed under the regulations, or a stated longer period after the claimant becomes aware of the existence of grounds for the claim; and (j) the form of the policy has been approved in writing by the construction occupations registrar. (2) However, if the owner is a developer, the insurance is taken to comply with subsection (1) (c), (f), (g) or (h) if it insures the owner’s successors in title, even though it does not insure the owner. (3) To remove any doubt, an insurance policy issued in relation to insurable residential building work may exclude claims other than those in circumstances in which the builder is insolvent, dead or has disappeared. (4) For subsections (1) (f) and (3), a builder is taken to have disappeared if the builder, after proper search and inquiry, cannot be found in Australia. developer, for insurable residential building work, means a person for whom the work is done in a building or residential development where 4 or more of the existing or proposed dwellings are or will be owned by the person. insolvent—a builder is taken to be insolvent if— (a) for a builder who is an individual—the builder is bankrupt or personally insolvent; or (b) for a builder who is a corporation—the builder is being wound up, has had a receiver or other controller appointed, has entered into a deed of company arrangement with its creditors or is otherwise under external administration under the Corporations Act, chapter 5. Note Bankrupt or personally insolvent—see the Legislation Act, dictionary, pt 1.