Document ID: chunk:federal_register_of_legislation:C2008A00105:clause:3_62m
Version: federal_register_of_legislation:C2008A00105
Segment Type: clause
Provision Reference: sch 3 cl 62M
Character Range: 113347–114680

62M  Order for judicial management on other grounds

  On an application under section 62K, the Federal Court may make an order that a general insurer be placed under judicial management if the Federal Court is satisfied:
 (a) that:
 (i) the general insurer is, or is likely to become, unable to meet its policy or other liabilities as they become due; or
 (ii) the general insurer is a foreign general insurer and is, or is likely to become, unable to meet, from its assets in Australia, its liabilities in Australia other than pre‑authorisation liabilities as they become due; or
 (iii) the general insurer has failed to comply with a prudential standard; or
 (iv) the general insurer has failed to comply with a direction under section 104; or
 (v) there are reasonable grounds for believing that the financial position or management of the general insurer may be unsatisfactory; and
 (b) that the time needed to make or complete an investigation of the insurance business of the general insurer under Part V would be likely to be such as to prejudice the interests of policyholders of the general insurer.

Note 1: This Division does not apply to management of insurance business carried on outside Australia by a foreign general insurer: see section 62ZO.

Note 2: Section 116A deals with assets and liabilities in Australia.