394IDirections to licensed insurers—remediation plans

394I Directions to licensed insurers—remediation plans (1) The MAI commission may direct a licensed insurer to give the commission a proposed remediation plan if the commission believes on reasonable grounds that the insurer is contravening, has contravened or is likely to contravene—

Part 7.6B MAI insurer licences—directions to licensed insurers (2) A direction must be in writing and include the following: (a) details of the licensed insurer’s contravention or likely contravention (the identified contravention); (b) a statement that the licensed insurer must give the MAI commission a proposed remediation plan; (c) the day by which the licensed insurer must give the MAI commission the proposed remediation plan. (3) The licensed insurer must give the MAI commission the proposed remediation plan by the later of— (a) 15 business days after the day the direction is given to the (b) if a later day is agreed between the MAI commission and the insurer—that day. (4) A licensed insurer must include the following details in a proposed remediation plan: (a) the nature and extent of— (i) the identified contravention mentioned in the direction given to the insurer; and (ii) any other contravention or likely contravention (a further contravention) that is the same as or similar to the identified contravention mentioned in the direction; and (b) any action the insurer has taken, or proposes to take, to remediate the identified contravention and further contravention; (c) the insurer’s assessment of the risk of the further contravention happening; (d) any action the insurer has taken, or proposes to take, to remove or minimise the risk of the further contravention happening;

(e) the timeframes for the insurer taking the actions mentioned in paragraph (b) and (d). (5) If a licensed insurer gives the MAI commission a proposed remediation plan (including an amended proposed remediation plan), the commission must— (a) approve the proposed plan; or (b) require the insurer to amend the proposed plan. (6) However, the MAI commission must not approve a proposed remediation plan unless the proposed plan— (a) complies with subsection (4); and (b) identifies appropriate actions and timeframes for responding to the risks identified in the proposed plan. (7) If the MAI commission approves a proposed remediation plan, the commission must give the insurer a written notice stating— (a) that the proposed plan has been approved; and (b) that the insurer must comply with the approved remediation plan. (8) If the MAI commission requires the licensed insurer to amend a proposed remediation plan, the commission must give the insurer a written notice stating— (a) what amendments the commission requires the insurer to make to the proposed plan; and (b) the day by which the insurer must submit the amended proposed remediation plan.

Part 7.7 MAI insurer licences— cancellation