172ASecurity deposit or guarantee for payment of premium

172A Security deposit or guarantee for payment of premium

172A Security deposit or guarantee for payment of premium

(1) The Nominal Insurer may require an employer who is or was insured under a policy of insurance to have on deposit with the Nominal Insurer the employer’s required deposit in respect of the policy, and the employer must—

(a) deposit with the Nominal Insurer such amount as the Nominal Insurer determines and notifies the employer to be the employer’s required deposit in respect of the policy of insurance concerned, and

(b) deposit with the Nominal Insurer, at such time or times as the Nominal Insurer may direct by notice to the employer, such additional amount or amounts as the Nominal Insurer determines to be necessary to ensure that the amount the employer has on deposit under this section is the employer’s required deposit for the time being.

Maximum penalty—100 penalty units.

(2) The Nominal Insurer is to hold money on deposit under this section on trust for the payment and satisfaction of the employer’s liability to pay any premium (including any adjustment of premium) payable in respect of the policy of insurance to which the money held on deposit relates.

(3) An amount of money deposited with the Nominal Insurer under this section is not liable to be attached or levied on or made subject to any debts of or claims against the employer making the deposit, except as provided by subsection (2).

(4) The Nominal Insurer may at any time refund to an employer who has money on deposit under this section any amount by which the employer’s deposit exceeds the employer’s required deposit for the time being.

(5) An employer must comply with any written direction of the Nominal Insurer to provide the Nominal Insurer with specified information (including actuarial information) for the purpose of enabling the Nominal Insurer to determine the employer’s required deposit in respect of a policy of insurance from time to time.

Maximum penalty—50 penalty units.

(6) Sections 214–215B apply to and in respect of an amount of money deposited or required to be deposited with the Nominal Insurer under this section as if—

(a) the amount deposited or required were deposited or required pursuant to an obligation imposed under Division 5 (Self-insurers), and

(b) the employer were a self-insurer while the employer holds a policy of insurance in respect of which the amount is held or required to be held on deposit, and