15Contravention notices—price exploitation

15 Contravention notices—price exploitation

15 Contravention notices—price exploitation

(1) The Monitor may give an insurance company a written notice (a contravention notice) if the Monitor considers the insurance company has engaged in price exploitation.

(2) A contravention notice must—

(a) state the notice is given under this section, and

(b) specify the name of the insurance company that issued the regulated contract of insurance the subject of the notice and the details of the regulated contract of insurance, and

(c) state that in the Monitor’s opinion the price for the issue of the regulated contract of insurance was unreasonably high having regard to the matters specified in section 13(1)(b), and

(d) specify the detailed reasons for the opinion and the matters to which the Monitor had regard in forming the opinion.

(3) The Monitor must have regard to the following in deciding whether to give a contravention notice—

(a) guidelines issued under section 20 in relation to price exploitation,

(b) if a prevention notice had been given in relation to the regulated contract of insurance—a response from the insurance company to the prevention notice.

(4) The Monitor may vary or revoke a contravention notice on—

(a) the Monitor’s own initiative, or

(b) the application of the insurance company to which the notice was given.

(5) The Monitor must, within 3 days after varying or revoking a contravention notice, give written notice to the insurance company of the variation or revocation.

(6) A contravention notice given under this section is admissible in proceedings for an order under section 17 and, in the absence of evidence to the contrary, is evidence that the price for the issue of the regulated contract of insurance was unreasonably high having regard to the matters specified in section 13(1)(b).