S 140-20 repealed by No 87 of 2015, s 3 and Sch 1 item 65, effective 1 July 2015.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 140-20 formerly read:
SECTION 140-20 SOLVENCY DIRECTIONS
Council may give solvency directions
140-20(1)
The Council may give written directions (
solvency directions
) to a private health insurer if, having regard to:
(a)
the nature and value of the *assets of a *health benefits fund conducted by the insurer; or
(b)
the nature and extent of the liabilities that are referable to the business of the fund; or
(c)
any other matters that the Council considers relevant;
the Council is satisfied that there are reasonable grounds for believing that the insurer might not be able to meet, out of the assets of the fund, all liabilities referable to the business of the fund as they become due.
140-20(2)
*Solvency directions are directions that, in the Council
'
s opinion, are reasonably necessary to ensure, as far as practicable, that a private health insurer will be able to meet the liabilities of a *health benefits fund conducted by the insurer out of the *assets of the fund as they become due.
140-20(3)
The Council may give a *solvency direction to a private health insurer even if, when the direction is given:
(a)
the insurer meets the requirements of the *solvency standard applicable to that insurer in respect of the fund; and
(b)
there are reasonable grounds to believe that the insurer will meet that standard at all times while the direction is in force.
Compliance with solvency directions
140-20(4)
A private health insurer must comply with a *solvency direction given to it under subsection (1).
Duration of solvency directions
140-20(5)
Subject to subsections (7) and (8), a *solvency direction remains in force for a period specified in the direction, not exceeding 3 years, commencing on the day when the direction is given.
140-20(6)
Subsection (5) does not prevent the Council from giving a further *solvency direction in the same terms to take effect immediately after the expiry of a previous direction.
Revoking or varying solvency directions
140-20(7)
If the Council is satisfied that a particular *solvency direction is no longer required or should be varied, the Council must, by written notice given to the private health insurer, revoke or vary the direction accordingly.
140-20(8)
If a private health insurer to which a *solvency direction has been given requests the Council, in writing, to revoke or vary the direction, the Council must, within 28 days after receiving the request:
(a)
if the Council is satisfied that the direction is no longer necessary or should be varied
-
revoke or vary the direction; or
(b)
in any other case
-
refuse to revoke or vary the direction.
Note:
Refusals to revoke or vary solvency directions are reviewable under Part 6-9.
140-20(9)
If the Council does not, within the 28 days referred to in subsection (8), either revoke or vary or refuse to revoke or vary the *solvency direction concerned, the Council is to be taken, for the purposes of this Act, to have refused to revoke or vary the direction at the end of that period.
Note:
Decisions that the Council is taken under this subsection to have made are reviewable under Part 6-9.
140-20(10)
The Council must give to the private health insurer written notice of a decision made under subsection (8) and, if the Council refuses to revoke or vary the *solvency direction concerned, provide a statement of reasons for refusing.
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