38Refund undertakings by insurance companies

38 Refund undertakings by insurance companies

38 Refund undertakings by insurance companies

(1) If an insurance company is liable for an over-collection amount, the Monitor may accept a refund undertaking from the insurance company in relation to the over-collection amount.

(2) A refund undertaking is an undertaking under Part 5, Division 2 under which an insurance company that is liable for an over-collection amount agrees to refund the whole or part of the over-collection amount to relevant policy holders or to pay the over-collection amount or part of it to the Chief Commissioner.

(3) The Monitor is not to accept a refund undertaking that provides for the payment of an over-collection amount or part of an over-collection amount to the Chief Commissioner unless the Monitor is satisfied it is impracticable for the insurance company to refund the over-collection amount or part of it to relevant policy holders.

(4) The Monitor must advise the Chief Commissioner of a refund undertaking that provides for the payment of an amount to the Chief Commissioner.

(5) An amount paid to the Chief Commissioner under a refund undertaking must be paid into the Consolidated Fund.

Note—

A refund undertaking is enforceable by proceedings in the Supreme Court.