Document ID: chunk:federal_register_of_legislation:C2025C00126:section:4:p33
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 4 (pt 33/42)
Character Range: 505699–508486

treated as *consideration for a supply by the *managing operator, or for an acquisition by the *contributing operator.
 (2) This section has effect despite section 9‑15 (which is about consideration) and section 11‑5 (which is about what is a creditable acquisition).

80‑20  Managing operator's payments or supplies
 (1) For the purposes of Divisions 78 and 79, a *managing operator's payment or supply is treated as follows.
 (2) If the *managing operator is a party to the *insurance policy settlement sharing arrangement because it issued only one *insurance policy, the *managing operator's payment or supply is treated as a payment or supply, made by the managing operator, in settlement of a claim relating to the accidents or incidents, under that insurance policy.
 (3) If the *managing operator is a party to the *insurance policy settlement sharing arrangement because it issued 2 or more *insurance policies, the *managing operator's payment or supply is treated as a payment or supply made by the managing operator, in settlement of a claim relating to the accidents or incidents, under the insurance policies, and for that purpose is divided among the policies in equal proportions.
Example: 3 vehicles are involved in an accident, 2 of which are covered by insurance policies issued by the managing operator and the other by a policy issued by a contributing operator. The managing operator makes a payment in settlement of a claim by an insured person in respect of the accident.
 For the purposes of Division 78 or 79, half of the payment will be treated as being made under each of the policies issued by the managing operator.

80‑25  Contributing operator's payment
 (1) For the purposes of Divisions 78 and 79, a *contributing operator's payment is treated as follows.
 (2) If the *contributing operator is a party to the *insurance policy settlement sharing arrangement because it issued only one *insurance policy, the *contributing operator's payment is treated as a payment or supply, made by the contributing operator, in settlement of a claim relating to the accidents or incidents, under that insurance policy.
Example: Assume the same facts as in the example in section 80‑20. The contributing operator who issued 1 of the 3 policies covering the vehicles in the accident makes a payment to the managing operator.
 For the purposes of Division 78 or 79, the payment (except to the extent that it represents a managing operator's fee) will be treated as being made by the contributing operator under the insurance policy that it issued.
 (3) If the *contributing operator is a party to the *insurance policy settlement sharing arrangement because it issued 2 or more *insurance policies, the *contributing operator's payment is treated as a payment or supply,