398MAI insurer licence—transfer

398 MAI insurer licence—transfer (1) A licensed insurer (the old insurer) may, with the approval of the MAI commission, transfer the insurer’s MAI insurer licence to— (a) another licensed insurer (the new insurer); or (b) a corporation to whom the MAI commission proposes to issue an MAI insurer licence (the new insurer). Note A decision by the MAI commission to refuse to transfer an MAI insurer licence to the new insurer is a reviewable decision (see ch 10 and sch 2). (2) The MAI commission must not approve the transfer of an MAI insurer licence unless satisfied that the new insurer is able to meet the past, present and future liabilities of the old insurer— (a) under any MAI policy for which the old insurer is the insurer; and (b) to the nominal defendant fund; and (c) to any other licensed insurer. (3) If the MAI commission approves the transfer of the old insurer’s MAI insurer licence to the new insurer— (a) the old insurer must surrender the insurer’s MAI insurer licence to the MAI commission; and (b) all rights and liabilities subject to the transfer are transferred to, and become rights and liabilities of, the new insurer; and (c) this Act operates as if the new insurer had been selected as the insurer under the MAI policies subject to the transfer. Note If the MAI commission approves the transfer of the old insurer’s licence under this section, the MAI commission must cancel the old insurer’s licence on surrender of the licence to the MAI commission (see pt 7.7).