Approved Summary[8]

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.
Where a scheme summary is accompanied by a letter from the insurer including other information relating to the scheme, the accompanying letter must highlight that the APRA approved summary sets out essential information in relation to the scheme and should be read carefully by affected policyholders.
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:
that the insurer proposes to transfer the policyholder’s policy or policies to another insurer, on or after a specified date;
of the full name and contact details of the other insurer;
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);
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);
if the policyholder does not need to take any action before or as a result of the transfer - advise the policyholder accordingly;
how the policyholder can obtain further information relating to the scheme;
that the policyholder has the right to attend the Federal Court and request to be heard by the Court if they believe the scheme may have a detrimental impact on the interests of policyholders as a whole; and
of any proposed changes to the terms and conditions of transferring policies.
The approved summary must be sent to affected policyholders before or at the same time the scheme is published under paragraph 16.

Approved Summary[8]Approved Summary[8]

Get a plain-English read of Approved Summary[8]

Approved Summary[8]