Approved Summary[8]

12. An application to the Court for confirmation of a scheme cannot be made unless, amongst other things, a summary of the scheme, approved by APRA (the approved summary), has been given to every affected policyholder.

13. The approved summary need not be a stand-alone document and the required information may be included in a document, sent directly to the policyholder, that contains other information in relation to the transfer, provided that the required information is prominently featured so that it is obvious to the policyholder.

14. The format and content of the approved summary will depend on the circumstances of the transfer, however, the insurer should, at a minimum, advise affected policyholders:

(a) that the insurer proposes to transfer the policyholder’s policy or policies to another insurer, on or after a specified date;

(b) of the full name and contact details of the other insurer;

(c) of the effect of the transfer (this explanation may be brief and may, for example, explain that from the date of the transfer all rights and liabilities under the policies will be transferred to the other insurer, so that premiums will have to be paid to, and claims will have to be lodged with, that insurer);

(d) of any action the policyholder will need to take before or as a result of the transfer (for example, any changes in arrangements relating to paying premiums or lodging claims);

(e) if the policyholder does not need to take any action before or as a result of the transfer - advise the policyholder accordingly;

(f) how the policyholder can obtain further information and inspect relevant documents as may be available for public inspection; and

(g) that the policyholder has the right to attend the Federal Court.

15. The approved summary must be sent to affected policyholders before the scheme is released for public inspection under paragraph 16.