8Relevant circumstances for making claim under policy or

8 Relevant circumstances for making claim under policy or certificate (1) The relevant circumstances that entitle a beneficiary to make a claim for financial loss incurred in relation to guaranteed work are as follows: (a) under a policy – the failure or contravention of the builder mentioned in section 54C(a) of the Act and the occurrence of an event mentioned in section 54C(b) of the Act; (b) under a certificate – the failure or contravention of the builder mentioned in section 54D(2)(a) of the Act and the occurrence of an event mentioned in section 54D(2)(b) of the Act. (2) For sections 54C(b)(i) and 54D(2)(b)(i) of the Act: (a) a builder is taken to have disappeared if the builder cannot be located after all reasonable inquiries have been made into the builder's whereabouts; and (b) a builder is taken to be bankrupt if the builder has: (i) applied to take the benefit of a law for the relief of bankrupt or insolvent debtors; or (ii) compounded with creditors or made an assignment of the builder's remuneration for their benefit; and (c) a builder has become insolvent if the builder is unable to pay all the builder's debts as and when they become due and payable. (3) For sections 54C(b)(ii) and 54D(2)(b)(ii) of the Act, the reason for cessation of the builder's registration is that it has been suspended or cancelled: (a) by the Practitioners Board under Part 3, Division 3B or 3C of the Act; or

Chapter 2 Authorised RBI policies Part 2.1 Matters to be included in policy Building (RBI and Fidelity Fund Schemes) Regulations 2012 8 (b) by an order of the Local Court under Part 3, Division 4 of the Act.