6Definition of adequately insured

6  Definition of adequately insured

  Where an arrangement has been entered into in respect of a relevant property, the property is adequately insured at a particular time if:

 (a) the arrangement specifies insurance requirements; and

 (b) those requirements are met at that time.

Note 1: Housing Australia cannot enter into an arrangement in respect of a relevant property unless it is satisfied that the property, once purchased, will be adequately insured: see paragraph 14(4)(g).

Note 2: A participant must keep the relevant property adequately insured across the life of an arrangement: see section 28 and clause 1.11 of Schedule 1.