62ZZCAssignment of alternative indemnity contracts following cancellation of licence and in other cases

#### 62ZZC Assignment of alternative indemnity contracts following cancellation of licence and in other cases 62ZZC Assignment of alternative indemnity contracts following cancellation of licence and in other cases > > (1) In this clause— > > > > licensed provider includes a provider whose licence has been cancelled or has otherwise ceased to be in force. > > > (2) The Authority may assign the alternative indemnity contracts of a licensed provider to another licensed provider with the agreement of that other provider if— > > > > > (a) the licence of the licensed provider is cancelled or otherwise ceases to be in force, or > > > > > (b) the Authority is satisfied that it is necessary to do so to ensure compliance with any conditions to which a licence is subject. > > > (3) An alternative indemnity contract may be assigned under this clause by notice served by the Authority on the providers concerned. > > > (4) On the service of the notice— > > > > > (a) the alternative indemnity contracts to which it relates are cancelled as from the date and time specified in the notice, and > > > > > (b) the licensed provider to whom those alternative indemnity contracts are assigned is taken (as from the time and date of cancellation) to have entered into alternative indemnity contracts with those covered under the assigned alternative indemnity contracts on the same terms as, and for the balance of the periods of, those alternative indemnity contracts, and > > > > > (c) the licensed provider whose alternative indemnity contracts are assigned must provide the provider’s records relating to the assigned alternative indemnity contracts to the provider to whom the alternative indemnity contracts are assigned. > > > (5) On the cancellation of an alternative indemnity contract under subclause (4) (a), the provider whose alternative indemnity contract is cancelled must pay to the provider to whom the alternative indemnity contract is assigned— > > > > > (a) the same proportion of the charge paid or to be paid in respect of the alternative indemnity contract as the balance of the indemnity period of the alternative indemnity contract bears to the whole indemnity period of the alternative indemnity contract, and > > > > > (b) any additional amount that the Authority directs relating to the income from investment and the management fee with respect to the charge. > > > (6) Any amount payable under subclause (5) to a licensed provider may be recovered by the provider as a debt in a court of competent jurisdiction. > > > (7) The effect of the cancellation of an alternative indemnity contract under this clause is to terminate the indemnity period of the alternative indemnity contract but, subject to this clause, without affecting any right, obligation or liability acquired, accrued or incurred under the alternative indemnity contract in respect of that period before its termination. > > **Parts 6B (cll 62A–62ZZC):** Ins 2017 (705), Sch 1 \[18\].