Document ID: chunk:federal_register_of_legislation:C2004A01120:clause:1_4
Version: federal_register_of_legislation:C2004A01120
Segment Type: clause
Provision Reference: sch 1 cl 4
Character Range: 2574–3896

4  After subsection 12(3)
Insert:

 (3A) Without limiting the circumstances in which APRA may refuse an application, APRA must refuse an application if:
 (a) an arrangement under which medical indemnity cover is provided for a health care professional was entered into before 1 July 2003; and
 (b) the arrangement was not effected by means of a contract of insurance; and
 (c) the applicant may pay, or may have to pay, an amount under the arrangement at some time after the time when the application is made.
Expressions used in paragraph (a) have the same meaning as they have in the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003.

Note 1: This means that an applicant that is an MDO (medical defence organisation) that entered into discretionary medical indemnity arrangements before 1 July 2003 cannot be granted an authorisation under this section while amounts remain potentially payable by the applicant under those arrangements.

Note 2: All medical indemnity arrangements (arrangements under which medical indemnity cover is provided for health care professionals) that are entered into, come into effect or are renewed on or after 1 July 2003 must be by way of contracts of insurance (see section 10 of the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003).