46Liability of officers of insurers for loss to terminated funds

#### 46 Liability of officers of insurers for loss to terminated funds (1) If: (a) a private health insurer contravenes this Act in relation to a health benefits fund that it conducts; and (b) the contravention results in a loss to the fund; and (c) the termination of the fund is completed; the persons who were officers of the insurer when the contravention occurred are jointly and severally liable to pay to APRA an amount equal to the amount of the loss. > Note: For relief from liability, see section 166. (2) A person is not liable under subsection (1) if the person proves that he or she used due diligence to prevent the occurrence of such a contravention. (3) On application by APRA, the Federal Court may order any person liable under subsection (1) to pay to APRA the whole or any part of the loss. > Note: Amounts received by APRA under this section are required to be credited to the Risk Equalisation Special Account (see section 318‑5 of the Private Health Insurance Act 2007).