Document ID: chunk:federal_register_of_legislation:C2004A01206:clause:2_34f
Version: federal_register_of_legislation:C2004A01206
Segment Type: clause
Provision Reference: sch 2 cl 34F
Character Range: 26636–28242

34F  What is the relevant threshold?

The relevant threshold

 (1) For the purposes of subparagraph 34E(1)(e)(ii), the relevant threshold is:
 (a) if the insurer was first notified of the claim, or of facts that might give rise to the claim, on or after 1 January 2003 and before 1 July 2003—$15 million; or
 (b) if the insurer is or was first notified of the claim, or of facts that might give rise to the claim, on or after 1 July 2003—$20 million, or such other amount as is specified in the regulations as the threshold.

Threshold specified in regulations only applies to contracts entered into after the regulations take effect

 (2) A regulation specifying an amount as the threshold (or changing the amount previously so specified) only applies in relation to contracts of insurance entered into after the regulation takes effect.

When regulations reducing the threshold take effect

 (3) A regulation reducing the threshold (which could be the threshold originally applicable under subsection (1), or that threshold as already changed by regulations) takes effect on the date specified in the regulations, which must be the date on which the regulations are notified in the Gazette or a later day.

When regulations increasing the threshold take effect

 (4) A regulation increasing the threshold (which could be the threshold originally applicable under subsection (1), or that threshold as already changed by regulations), takes effect on the date specified in the regulations, which must be at least 3 calendar months after the date on which the regulations are notified in the Gazette.