Document ID: chunk:federal_register_of_legislation:F2015L01036:body:0:p2
Version: federal_register_of_legislation:F2015L01036
Segment Type: other
Provision Reference: 
Character Range: 2460–5484

After subsection 129 (6)
70. After section 129
Part 6 – Transition arrangements

Part 1 – Preliminary

1.             Name of Rules
These Rules are the Private Health Insurance (Health Benefits Fund Enforcement) Rules 2015.

2.             Commencement
These Rules commence on the day the Private Health Insurance (Prudential Supervision) Act 2015 commences.

3.             Definitions
Note: Terms used in these Rules have the same meaning as in the Act – see section 13 of the Legislative Instruments Act 2003.  These terms include:
applied Corporations Act provision
APRA
external manager
health benefits fund
private health insurer
responsible insurer
voluntary deed of arrangement
In these Rules:
Act means the Private Health Insurance (Prudential Supervision) Act 2015.
Corporations Act means the Corporations Act 2001.
PHIAC means the Private Health Insurance Administration Council.

Part 2 – Procedure relating to voluntary deeds of arrangement

4.             Interpretation
In this Part, a reference to a creditor of a health benefits fund includes a policy holder of the fund.

5.             Convening of meetings
The external manager of a health benefits fund may convene a meeting of the creditors of the fund to consider the possibility of the responsible insurer executing a deed of arrangement proposed by the external manager.

6.             Procedure for convening of the meeting
(1)   If the external manager decides to convene a meeting to consider the possibility of the responsible insurer executing a deed of arrangement proposed by the external manager, the external manager must:
           (a)          give notice to APRA at the same time that the manager gives notice to the creditors; and
           (b)          give written notice of the meeting to as many of the creditors as reasonably practicable; and
           (c)          cause notice of the meeting to be published:
              (i)            in a national newspaper; or

              (ii)         in each jurisdiction in which the business of the fund is carried on – in a daily newspaper that circulates generally in that jurisdiction;

at least 14 business days before the meeting.
(2)   The notice given to creditors and APRA under subrule (1) must be accompanied by:
           (a)          a report by the external manager about the business, property, affairs and financial circumstances of the fund; and
           (b)          a statement setting out details of the proposed deed of arrangement; and
           (c)          a statement setting out the external manager's opinion as to why it would be in the interests of the creditors of the fund for the responsible insurer to execute such a deed of arrangement.
(3)   If:
(a)          telephone or electronic conference facilities are expected to be available at the place where the meeting is to be held; and

(b)          the external manager considers that, having regard to all the circumstances, it will be appropriate to use those facilities, the notice of