397Licence cancellation

397 Licence cancellation (1) If the MAI commission believes on reasonable grounds that a ground for cancelling a licensed insurer’s MAI insurer licence exists, the MAI commission may cancel the licence by giving the licensed insurer written notice of the cancellation (a cancellation notice). Note A decision by the MAI commission to cancel an MAI insurer licence is a reviewable decision (see ch 10 and sch 2). (2) The cancellation notice must state— (a) that the licence is cancelled on— (i) the day the insurer is given the notice; or (ii) if the cancellation notice states a later date—the day stated in the notice; and (b) the ground for the cancellation. Note A decision to cancel an MAI insurer licence is a reviewable decision (see ch 10 and sch 2). (3) However, the MAI commission must not cancel an MAI insurer licence unless satisfied that the licensed insurer has— (a) discharged all of its past, present and future liabilities— (i) under any MAI policy for which it is the insurer; and (ii) to the nominal defendant fund; and (iii) to any other licensed insurer; or (b) provided security, or entered into other arrangements satisfactory to the MAI commission, for the liabilities.

(4) If the MAI commission is unable to cancel a licensed insurer’s MAI insurer licence because of subsection (3), the MAI commission may instead impose a condition on the licence that prohibits the insurer from issuing any further MAI policies. Note A decision to impose a condition on an MAI insurer licence is a reviewable decision (see ch 10 and sch 2).

MAI insurer licences—transfer Part 7.8