Private Health Insurance (Prudential Supervision) (Consequential Amendments and Transitional Provisions) Act 2015 (87 of 2015)

Schedule 1   Consequential amendments

Part 1   Amendments

Division 1   Main amendments

Australian Prudential Regulation Authority Act 1998

8   After Division 2 of Part 5

Insert:

Division 2A - Collapsed insurer special account

54F Private Health Insurance Collapsed Insurer Special Account

(1) The Private Health Insurance Collapsed Insurer Special Account (the Collapsed Insurer Special Account ) is established by this section.

(2) The Collapsed Insurer Special Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.

54G Credits to the Collapsed Insurer Special Account

There must be credited to the Collapsed Insurer Special Account amounts equal to amounts received by APRA, under Part 3B of the Financial Institutions Supervisory Levies Collection Act 1998, by way of:

(a) collapsed insurer levy; or

(b) late payment penalty in respect of unpaid amounts of collapsed insurer levy.

Note: An Appropriation Act may contain a provision to the effect that, if any of the purposes of a special account is a purpose that is covered by an item in the Appropriation Act (whether or not the item expressly refers to the special account), then amounts may be debited against the appropriation for that item and credited to that special account.

54H Purposes of the Collapsed Insurer Special Account

(1) The purposes of the Collapsed Insurer Special Account are as follows:

(a) APRA making payments ( collapsed insurer assistance payments ) to help meet a collapsed insurer's liabilities to the people insured under its complying health insurance policies that the collapsed insurer is unable to meet itself;

(b) APRA making payments by way of refund, in accordance with regulations made for the purpose of this paragraph, of amounts paid (or purportedly paid) by way of:

(i) collapsed insurer levy; or

(ii) late payment penalty in respect of unpaid amounts of collapsed insurer levy;

(c) meeting APRA's administrative costs associated with APRA making payments referred to in paragraph (a) or (b).

Note: See section 80 of the Public Governance, Performance and Accountability Act 2013 (which deals with special accounts).

(2) The Minister may, by written notice to a collapsed insurer (or to an external manager or terminating manager of a collapsed insurer), determine conditions on which collapsed insurer assistance payments in respect of the insurer are made. The conditions may include conditions under which the insurer is liable to repay such payments to APRA.

Note: Repayments of collapsed insurer assistance payments are required to be credited to the Risk Equalisation Special Account: see section 318-5 of the Private Health Insurance Act 2007.

(3) A notice under subsection (2) is not a legislative instrument.

(4) In this section:

collapsed insurer has the same meaning as in the Private Health Insurance (Collapsed Insurer Levy) Act 2003.

complying health insurance policy has the same meaning as in the Private Health Insurance Act 2007.