sec.281AOrder approving alternative insurance

sec.281A Order approving alternative insurance

This section applies if a body corporate for a community titles scheme makes an adjudication application for an alternative insurance order. An adjudicator may make an alternative insurance order only if the adjudicator is satisfied— the body corporate can not comply with the requirement under the regulation module applying to the scheme to put in place insurance for the scheme that insures for the full replacement value of— to the extent that a building is scheme land—each building in which is located a lot created under a building format plan of subdivision or a volumetric format plan of subdivision; or each building on a lot, created under a standard format plan of subdivision, that has a common wall with a building on an adjoining lot; and the insurance cover under the alternative insurance is as similar as practicable to the insurance cover required under the regulation module applying to the scheme. Without limiting subsection (2) , in deciding whether to make an alternative insurance order, the adjudicator may consider any of the following matters— the number of insurers the body corporate attempted to take out insurance with; the reasons the body corporate was not insured by the insurers it attempted to take out insurance with; the cost of complying with the requirement to insure under the regulation module applying to the scheme. Subsection (5) applies if— for a community titles scheme other than a specified two-lot scheme—the alternative insurance the body corporate proposes to put in place was not approved at a general meeting; or for a specified two-lot scheme—the alternative insurance the body corporate proposes to put in place was not authorised under a lot owner agreement for the scheme. The adjudicator may make an alternative insurance order on the condition that— if subsection (4) (a) applies—the alternative insurance is approved at a general meeting within the period stated in the order; or if subsection (4) (b) applies—the alternative insurance is confirmed under a lot owner agreement within the period stated in the order. s 281A ins 2023 No. 29 s 36 (sec.281A-ssec.1) This section applies if a body corporate for a community titles scheme makes an adjudication application for an alternative insurance order. (sec.281A-ssec.2) An adjudicator may make an alternative insurance order only if the adjudicator is satisfied— the body corporate can not comply with the requirement under the regulation module applying to the scheme to put in place insurance for the scheme that insures for the full replacement value of— to the extent that a building is scheme land—each building in which is located a lot created under a building format plan of subdivision or a volumetric format plan of subdivision; or each building on a lot, created under a standard format plan of subdivision, that has a common wall with a building on an adjoining lot; and the insurance cover under the alternative insurance is as similar as practicable to the insurance cover required under the regulation module applying to the scheme. (sec.281A-ssec.3) Without limiting subsection (2) , in deciding whether to make an alternative insurance order, the adjudicator may consider any of the following matters— the number of insurers the body corporate attempted to take out insurance with; the reasons the body corporate was not insured by the insurers it attempted to take out insurance with; the cost of complying with the requirement to insure under the regulation module applying to the scheme. (sec.281A-ssec.4) Subsection (5) applies if— for a community titles scheme other than a specified two-lot scheme—the alternative insurance the body corporate proposes to put in place was not approved at a general meeting; or for a specified two-lot scheme—the alternative insurance the body corporate proposes to put in place was not authorised under a lot owner agreement for the scheme. (sec.281A-ssec.5) The adjudicator may make an alternative insurance order on the condition that— if subsection (4) (a) applies—the alternative insurance is approved at a general meeting within the period stated in the order; or if subsection (4) (b) applies—the alternative insurance is confirmed under a lot owner agreement within the period stated in the order.