22Additional offer of retroactive cover when regulated insurance contract entered into, comes into effect or is renewed

22 Additional offer of retroactive cover when regulated insurance contract entered into, comes into effect or is renewed

Offence—compulsory offer (1) A person (the insurer) commits an offence if: (a) a regulated insurance contract is entered into, comes into effect or is renewed; and (b) the insurer provides medical indemnity cover for a health care professional under the regulated insurance contract; and (c) the insurer does not make an offer (the compulsory offer) to the client that satisfies all of the following subparagraphs: (i) the offer is an offer to provide medical indemnity cover for the health care professional in relation to all compensation claims that are made against the health care professional, during a period that includes the whole of the claims period for the regulated insurance contract, in relation to the health care professional’s otherwise uncovered prior incidents; (ii) the offer is made at the same time as the insurer makes the offer or the invitation that leads to the regulated insurance contract or the renewal; (iii) the offer is a complying offer.

Note 1: For complying offer, see section 24.

Note 2: Subparagraph (c)(i)—subsection 4(9) operates on the reference in this subparagraph to the claims being made during a period.

Penalty: Imprisonment for 12 months.

(1A) In determining whether an offer made by an insurer to provide medical indemnity cover for a health care professional satisfies subparagraph (1)(c)(i), disregard: (a) an otherwise uncovered prior incident of the health care professional; or (b) a compensation claim in relation to an incident of that kind; if it is reasonable and appropriate for the insurer to exclude the incident or claim from the cover being offered, having regard to: (c) the nature of the health care provided by the health care professional during the period during which the otherwise uncovered prior incident occurred; and (d) the kinds of exclusions that are usually provided for in contracts of insurance that provide similar cover to the cover being offered; and (e) any other relevant consideration. (1B) Strict liability applies to subparagraph (1)(c)(iii) to the extent that it relates to whether the premium referred to in paragraph 24(2)(f) is reasonable.

Note: For strict liability, see section 6.1 of the Criminal Code.

Offence—entering into regulated insurance contract etc. before response to compulsory offer received (2) A person (the insurer) commits an offence if: (a) a regulated insurance contract is entered into, comes into effect or is renewed; and (b) the insurer provides medical indemnity cover for a health care professional under the regulated insurance contract; and (c) the regulated insurance contract is entered into, comes into effect or is renewed before the client has given the insurer a written response to the compulsory offer; and (d) the medical indemnity cover does not relate to all compensation claims that are made against the health care professional, during a period that includes the whole of the claims period for the regulated insurance contract, in relation to the health care professional’s otherwise uncovered prior incidents.