62ZZBRejection of charges by Authority

62ZZB Rejection of charges by Authority

62ZZB Rejection of charges by Authority

(1) The Authority may reject a proposed charge filed with it under this Division if it is of the opinion that—

(a) the amount to be charged is, having regard to actuarial advice and to other relevant financial information available to the Authority, excessive or inadequate, or

(b) the amount to be charged does not conform to the relevant provisions of the Insurance Guidelines.

(2) Written notice of the Authority’s rejection of a proposed charge, and the reasons for the rejection, must be given to the licensed provider.

(3) If the Authority rejects a charge proposed by a licensed 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 charge.

(5) A provisional charge so determined has effect, pending the Authority’s reconsideration, as if it were an amount that may lawfully be charged or collected for alternative indemnity product cover by the provider concerned.

(6) If the Authority has not withdrawn its rejection of a charge within 4 weeks after a request to reconsider the rejection, the matter is to be arbitrated under this clause.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.