62ZARejection of contributions or membership payments by Authority

62ZA Rejection of contributions or membership payments by Authority

62ZA Rejection of contributions or membership payments by Authority

(1) The Authority may reject a contribution or membership payment filed with it under this Division if it is of the opinion that—

(a) the amount of the contribution or membership payment is, having regard to actuarial advice and to other relevant financial information available to the Authority, excessive or inadequate, or

(b) the amount of the contribution or membership payment does not conform to the relevant provisions of the Insurance Guidelines.

(2) Written notice of the Authority’s rejection of a contribution or membership payment, and the reasons for the rejection, must be given to the provider.

(3) If the Authority rejects a contribution or membership payment proposed by a provider, the provider may request the Authority to reconsider the rejection.

(4) Pending its reconsideration, the Authority may request an actuary to determine a provisional contribution or membership payment.

(5) A provisional contribution or membership payment so determined has effect, pending the Authority’s reconsideration, as if it were a contribution or membership payment that may lawfully be collected by the provider concerned.

(6) If the Authority has not withdrawn its rejection of a contribution or membership payment within 4 weeks after a request to reconsider the rejection, the matter is to be arbitrated under this clause. The following provisions have effect—

(a) The Commercial Arbitration Act 2010 applies to an arbitration under this clause, subject to this Regulation. The Authority and the provider concerned may by agreement appoint a person to act as arbitrator in connection with the matter. Failing agreement within 7 days, paragraphs (b) and (c) apply.

(b) The Independent Pricing and Regulatory Tribunal (established by the Independent Pricing and Regulatory Tribunal Act 1992) may act as arbitrator to hear and determine the matter.

(c) Alternatively, that Tribunal may appoint a person to act as arbitrator in connection with the matter. The person is to be appointed from a panel constituted by the Minister and consisting of persons who have appropriate knowledge and understanding of actuarial science, general alternative indemnity product cover and the interests of home owners and beneficiaries under the Act and this Regulation.