Document ID: chunk:federal_register_of_legislation:F2019L00398:schedule:1:p15
Version: federal_register_of_legislation:F2019L00398
Segment Type: schedule
Provision Reference: sch 1 (pt 15/18)
Character Range: 41006–44144

criteria for approving or refusing a merger or acquisition

       (1)                   For the purposes of subsection 33(5), additional criteria for refusing to approve applications under section 33 are specified in this rule.
       (2)                   If the application is in respect of an arrangement which involves the transfer of policies referable to the health benefits fund of a not‑for‑profit insurer and there is any financial benefit to any person, the criteria for refusal are that the arrangement would result in a financial benefit:
           (a)          to any person who is not a policy holder of, or another person insured through, the health benefits fund conducted by the transferor insurer; or
           (b)          being distributed inequitably between policy holders, or another person insured through, the health benefits fund conducted by the transferor insurer; or
           (c)          not being distributed at all to policy holders of the health benefits fund conducted by the transferor insurer.
       (3)                   If the application is in respect of an arrangement of a kind referred to in subrule 12(6), the criteria for refusal are that:
           (a)          the transferee insurer has not paid the market value for the transferor insurer's health insurance business; or
           (b)          if subrule (2) also applies to the transfer, the financial benefit in respect of the transfer does not represent the market value for the transferor insurer's health insurance business.
       (4)                   In considering the market value of the transferor private health insurer's health insurance business, APRA may have regard to the statement referred to in subrule 12(6) and any other information it thinks fit.
       (5)                   If APRA requests the applicants to amend in a particular way the arrangement that is the subject of the application, it is a criterion for refusal that the applicants fail to amend the arrangement within a time specified by APRA in writing to the applicants.
15.                  How a merger or acquisition takes effect
       (1)                   If, on the transfer date:
           (a)          APRA has approved an arrangement; and
           (b)          the transferor and transferee insurer(s) have:
(i)            complied with rules 12 and 13 including, without limitation, subrules 13(2) and 13(3); and
(ii)         taken the actions referred to in Schedule 1,
then:
(c)          each transferee insurer is substituted for the transferor insurer as the private health insurer for each policy identified in the arrangement as a policy which is to become referable to a receiving fund of the transferee insurer; and
(d)          the policy operates on and from the transfer date as if all references in the policy to the transferor insurer were references to the transferee insurer; and
(e)          policies referable to the transferring fund(s) become referable to the receiving fund(s) in accordance with the arrangement; and
(f)           the liabilities incurred for the purposes of the transferring fund(s), including