89Liability of directors in relation to non‑compliance with notices

#### 89 Liability of directors in relation to non‑compliance with notices (1) If: (a) APRA has given a notice to a private health insurer under section 88 in respect of a contravention of this Part; and (b) the contravention has resulted in a loss to a health benefits fund; and (c) the insurer has failed to comply with the notice within the period specified in it, or within that period as extended under subsection 88(2); the persons who were the directors of the insurer when the contravention occurred are jointly and severally liable to pay the insurer an amount equal to the amount of the loss. (2) A person is not liable under subsection (1) if the person proves that he or she used due diligence to ensure that the insurer complied with the notice. (3) An action to recover an amount for which a person is liable under subsection (1) may be brought: (a) by the insurer; or (b) with the written approval of APRA, by a policy holder of the health benefits fund involved. > Note: For relief from liability, see section 166. (4) An approval under subsection (3) may be given subject to conditions relating to the persons, or the number of persons, who may join in the action as plaintiffs. (5) An approval under subsection (3) is not a legislative instrument.