34ZDMDOs and medical indemnity insurers that are Chapter 5 bodies corporate

34ZD MDOs and medical indemnity insurers that are Chapter 5 bodies corporate

(1) If an MDO is a Chapter 5 body corporate: (a) the reference in paragraph 34ZC(1)(b) to a payment that the MDO is able to make under an arrangement to indemnify a person is a reference to an amount that: (i) the MDO is liable to make under the arrangement to indemnify the person; and (ii) is a provable amount; and (b) the reference in that paragraph to a payment that the MDO is able to make in the ordinary course of the MDO’s business is a reference to an amount that the MDO: (i) is liable to pay; and (ii) would be able to pay in the ordinary course of the MDO’s business if it were not a Chapter 5 body corporate. (2) If a medical indemnity insurer is a Chapter 5 body corporate, the reference in paragraph 34ZC(1)(c) to a payment that the medical indemnity insurer makes or is liable to make under a contract of insurance to indemnify a person is a reference to an amount that: (a) the medical indemnity insurer pays or is liable to pay under the contract to indemnify the person; and (b) is a provable amount. (3) If a run‑off cover indemnity is paid to an MDO or medical indemnity insurer that is a Chapter 5 body corporate, the indemnity is, to the extent to which it is attributable to an amount that the MDO or medical indemnity insurer is liable to pay to a person, paid on trust for the benefit of that person.