180Power of Supreme Court to deal with insurers unable to meet liabilities

180 Power of Supreme Court to deal with insurers unable to meet liabilities

180 Power of Supreme Court to deal with insurers unable to meet liabilities

(cf s 116 MAA)

(1) The Supreme Court may, on the application of the Authority, make such orders as the Supreme Court considers necessary or desirable for the purpose of protecting the interests of the holders of third-party policies taken to have been issued by a licensed insurer or a former licensed insurer.

(2) The Supreme Court may make such an order if it is satisfied that the licensed insurer or former licensed insurer—

(a) is not able to meet the insurer’s liabilities under the third-party policies or may not be able to do so, or

(b) has acted or may act in a manner that is prejudicial to the interests of the holders of the third-party policies.

(3) Without limiting the generality of subsection (1), the Supreme Court may make the following orders—

(a) an order regulating the administration and payment of claims under the third-party policies,

(b) an order prohibiting or regulating the transfer or disposal of, or other dealing in, the assets of the licensed insurer or former licensed insurer,

(c) an order requiring the licensed insurer or former licensed insurer to discharge its liabilities under the third-party policies out of its assets and the assets of any related body corporate (within the meaning of the Corporations Act 2001 of the Commonwealth),

(d) an order appointing a receiver or receiver and manager, having such powers as the Supreme Court orders, of the property or part of the property of the licensed insurer or former licensed insurer or of any such related body corporate.

(4) If an application is made to the Supreme Court for an order under subsection (1), the Supreme Court may, if in its opinion it is desirable to do so, before considering the application, grant an interim order, being an order of the kind applied for that is expressed to have effect pending the determination of the application.

(5) If an application is made to the Supreme Court for an order under subsection (1), the Supreme Court is not to require the Authority, as a condition of granting an interim order, to give any undertaking as to damages.