14How a merger or acquisition takes effect

14 How a merger or acquisition takes effect

If, on the transfer date: (a) the Council has approved an arrangement; and (b) the transferor and transferee insurer(s) have: (i) complied with rules 11 and 12 including, without limitation, subrules 12(2) and 12(3); and (ii) taken the actions referred to in Schedule 1, then: (c) each transferee insurer is substituted for the transferor insurer as the private health insurer for each policy identified in the arrangement as a policy which is to become referable to a receiving fund of the transferee insurer; and (d) the policy operates on and from the transfer date as if all references in the policy to the transferor insurer were references to the transferee insurer; and (e) policies referable to the transferring fund(s) become referable to the receiving fund(s) in accordance with the arrangement; and (f) the liabilities incurred for the purposes of the transferring fund(s), including without limitation the policy liabilities, become treated as incurred for the purposes of the receiving fund(s) in accordance with the arrangement; and (g) the assets of the transferring fund(s) become assets of the receiving fund(s) in accordance with the arrangements.

Note: Subsection 146‑5(7) of the Act provides that, for the purposes of the Act, an insurance policy that becomes referable to a health benefits fund of the transferee insurer as a result of the arrangement is treated, after the arrangement takes effect, as if it were an insurance policy issued by the transferee insurer.