71Commonwealth contributions disregarded for purposes of reinsurance contracts

71 Commonwealth contributions disregarded for purposes of reinsurance contracts

(1) If: (a) a contract is a contract of insurance between 2 insurers; and (b) the contract is governed by the laws of a State or Territory; the contract has effect as if the contract provided, and had at all times provided, that: (c) Commonwealth contributions; and (d) insurers’ rights to Commonwealth contributions; were to be disregarded for all purposes and, without limiting this, were to have no effect on the amounts payable under the contract by the insurer providing the insurance. (2) By force of this subsection, subsection (1) applies to a contract if it is entered into on or after the commencement of this Act. (3) By force of this subsection, subsection (1) applies to a contract if it was entered into before the commencement of this Act.