388Effect of suspension on existing liabilities—suspended

388 Effect of suspension on existing liabilities—suspended (1) The suspension of an insurer’s MAI insurance licence does not affect— (a) liabilities incurred, or accruing, before the date of suspension; or (b) the suspended insurer’s liabilities under MAI policies that came into force before the date of suspension.

(2) The suspended insurer is subject to this Act and the insurance industry deed in the same way, and to the same extent, as a licensed insurer until all the suspended insurer’s liabilities for MAI insurance business have been fully satisfied.