Private Health Insurance Act 2007

Ch 4 heading substituted by No 87 of 2015, s 3 and Sch 1 item 54, effective 1 July 2015. For transitional provisions, see note under s 3-15 . The heading formerly read:

CHAPTER 4 - PRIVATE HEALTH INSURERS

Div 137 repealed by No 87 of 2015, s 3 and Sch 1 item 65, effective 1 July 2015. For transitional provisions, see note under s 3-15 .

S 137-10 repealed by No 87 of 2015, s 3 and Sch 1 item 65, effective 1 July 2015. For transitional provisions, see note under s 3-15 . S 137-10 formerly read:

SECTION 137-10 EXPENDITURE AND APPLICATION OF HEALTH BENEFITS FUNDS  
137-10(1)
A private health insurer must not apply, or deal with, *assets of a *health benefits fund, whether directly or indirectly, except in accordance with this Division.

137-10(2)
The *assets of a *health benefits fund must not be applied:
(a) for any purpose other than:

(i) meeting *policy liabilities and other liabilities, or expenses, incurred for the purposes of the business of the fund (including policy liabilities and other liabilities that are treated, in accordance with a restructure or arrangement approved under Division 146, as policy liabilities and other liabilities incurred for the purposes of the fund); or

(ii) making investments in accordance with section 137-20; or

(iii) making a distribution under Division 149; or

(iv) a purpose specified in the Private Health Insurance (Health Benefits Fund Policy) Rules for the purposes of this subparagraph; or

(b) for a purpose specified in the Private Health Insurance (Health Benefits Fund Policy) Rules for the purposes of this paragraph.

137-10(3)
A private health insurer must not mortgage or charge any of the *assets of a *health benefits fund except:
(a) to secure a bank overdraft; or
(b) for such other purposes, and subject to such conditions, as are specified in the Private Health Insurance (Health Benefits Fund Administration) Rules for the purposes of this paragraph.

137-10(4)
A private health insurer must not borrow money for the purposes of the business of a *health benefits fund except in accordance with the Private Health Insurance (Health Benefits Fund Administration) Rules.

137-10(5)
Despite subsection (2), if a private health insurer is *registered as a for profit insurer, the *assets of a *health benefits fund conducted by the insurer may be applied for any purpose, except an application of the assets that is inconsistent with:
(a) the *solvency standard; or
(b) the *capital adequacy standard; or
(c) a *solvency direction or *capital adequacy direction given to the insurer.

137-10(6)
This section does not apply to the transfer of *assets:
(a) from one *health benefits fund to another in accordance with Division 146; or
(b) in accordance with a direction under subsection 134-10(2).