Document ID: chunk:federal_register_of_legislation:C2005C00502:clause:2_7
Version: federal_register_of_legislation:C2005C00502
Segment Type: clause
Provision Reference: sch 2 cl 7
Character Range: 101500–102974

7  Direction to assign liabilities

(1) This item applies to a body corporate if:
 (a) during the transition period, the body corporate is authorised under the old Act to carry on insurance business because of a determination under item 4; and
 (b) APRA considers it appropriate to vary or revoke the determination so that the body corporate will no longer be so authorised; and
 (c) the body corporate is not a general insurer under the new Act; and
 (d) the body corporate has liabilities in respect of insurance business carried on by it in Australia.

(2) This item also applies to a body corporate if:
 (a) during the transition period, the body corporate is authorised under the old Act to carry on insurance business because of a determination under item 4; and
 (b) as at 3 months before the end of the transition period, the body corporate is not a general insurer under the new Act; and
 (c) the body corporate has liabilities in respect of insurance business carried on by it in Australia.

(3) Section 17 of the new Act (which allows APRA to direct the assignment of liabilities) is taken to apply to the body corporate as though:
 (a) the body corporate's authorisation under the old Act to carry on insurance business were an authorisation under the new Act to carry on insurance business; and
 (b) APRA considered that it would revoke the authorisation if the body corporate had no liabilities in respect of insurance business carried on by it in Australia.