Document ID: chunk:federal_register_of_legislation:C2004A01310:clause:1_34zd
Version: federal_register_of_legislation:C2004A01310
Segment Type: clause
Provision Reference: sch 1 cl 34ZD
Character Range: 20974–22464

34ZD  MDOs and medical indemnity insurers that are externally‑administered bodies corporate

 (1) If an MDO is an externally‑administered body corporate:
 (a) the reference in paragraph 34ZC(b) to a payment that the MDO is able to make under an arrangement to indemnify a person is a reference to an amount that:
 (i) the MDO is liable to make under the arrangement to indemnify the person; and
 (ii) is a provable amount; and
 (b) the reference in that paragraph to a payment that the MDO is able to make in the ordinary course of the MDO's business is a reference to an amount that the MDO:
 (i) is liable to pay; and
 (ii) would be able to pay in the ordinary course of the MDO's business if it were not an externally‑administered body corporate.

 (2) If a medical indemnity insurer is an externally‑administered body corporate, the reference in paragraph 34ZC(c) to a payment that the medical indemnity insurer makes or is liable to make under a contract of insurance to indemnify a person is a reference to an amount that:
 (a) the medical indemnity insurer pays or is liable to pay under the contract to indemnify the person; and
 (b) is a provable amount.

 (3) If a run‑off cover indemnity is paid to an MDO or medical indemnity insurer that is an externally‑administered body corporate, the indemnity is, to the extent to which it is attributable to an amount that the MDO or medical indemnity insurer is liable to pay to a person, paid on trust for the benefit of that person.