13AAdditional criteria for approving or refusing a merger or acquisition

13A Additional criteria for approving or refusing a merger or acquisition

(1) For the purposes of subsection 146‑5(5), additional criteria for refusing to approve applications under section 146‑5 are specified in this rule. (2) If the application is in respect of an arrangement which involves the transfer of policies referable to the health benefits fund of a not‑for‑profit insurer and there is any financial benefit to any person, the criteria for refusal are that the arrangement would result in a financial benefit: (a) to any person who is not a policy holder of, or another person insured through, the health benefits fund conducted by the transferor insurer; or (b) being distributed inequitably between policy holders, or another person insured through, the health benefits fund conducted by the transferor insurer; or (c) not being distributed at all to policy holders of the health benefits fund conducted by the transferor insurer. (3) If the application is in respect of an arrangement of a kind referred to in subrule 11(6), the criteria for refusal are that: (a) the transferee insurer has not paid the market value for the transferor insurer's health insurance business; or (b) if subrule (2) also applies to the transfer, the financial benefit in respect of the transfer does not represent the market value for the transferor insurer's health insurance business. (4) In considering the market value of the transferor private health insurer’s health insurance business, the Council may have regard to the statement referred to in subrule 11(6) and any other information it thinks fit. (5) If the Council requests the applicants to amend in a particular way the arrangement that is the subject of the application, it is a criterion for refusal that the applicants fail to amend the arrangement within a time specified by the Council in writing to the applicants.