184Cancellation of policies following cancellation or suspension of insurer’s licence

184 Cancellation of policies following cancellation or suspension of insurer’s licence

184 Cancellation of policies following cancellation or suspension of insurer’s licence

(cf former s 30F)

(1) In this section—

insurer means a former licensed insurer.

period means, in relation to a policy of insurance—

(a) the period in respect of which the insurer has by the terms of the policy, or

(b) if the policy has been renewed, the further period in respect of which the insurer has, by the terms of the renewal,

accepted liability to indemnify, in respect of any matters, the employer who obtained the policy.

prescribed day means the day on which the licence of the insurer ceases to be in force.

(2) This section applies where the licence of an insurer ceases to be in force.

(3) In any case where this section applies, the employer who obtained a policy of insurance may, by notice in writing given on or after the prescribed day to the insurer from whom the employer obtained the policy, cancel the policy as from a date and time specified in the notice.

(4) In any case where this section applies, the insurer who issued a policy of insurance shall, within 14 days after the prescribed day, post to the employer who obtained the policy, at the address of the employer last known to the insurer, a notice of cancellation of the policy.

Maximum penalty—20 penalty units.

(5) Such a notice of cancellation by the insurer must state that the cancellation of the policy of insurance will take effect at 4 pm on a date specified in the notice (being a date that is the twenty-eighth day after the day on which the notice is posted), and the effect of the notice is to cancel the policy accordingly.

(6) The Authority may, by notice to an insurer, or by order, and in relation to all the policies or any policies or classes of policies issued by the insurer, shorten or extend the time prescribed by subsection (4) or advance or defer the date to be stated in a notice pursuant to subsection (5), or both.

(7) The power conferred by subsection (6) to extend a time prescribed by subsection (4) may be exercised before or after that time has expired.

(8) In any case where this section applies, the Authority may, by notice to the insurer and employer, cancel a policy of insurance as from a date and time specified in the notice.