Document ID: chunk:federal_register_of_legislation:C2025C00173:section:40
Version: federal_register_of_legislation:C2025C00173
Segment Type: section
Provision Reference: s 40
Character Range: 64718–66945

40  Conduct of funds during termination process
 (1) A private health insurer must not, after being notified under subsection 37(2) that termination of its health benefits funds has been approved:
 (a) enter into an insurance policy that is referable to any of its funds with a person who is not already a holder of such a policy; or
 (b) if the insurer is a for profit insurer—apply the assets of any of the funds except in accordance with subsection 28(2) (unless this paragraph has ceased to apply to the insurer because of section 45); or
 (c) if the insurer is not a for profit insurer—become a for profit insurer.
 (2) The insurer must, within 60 days after being notified under subsection 37(2) that termination of its health benefits funds has been approved:
 (a) give a written notice, stating the day (the termination day) from which it will not renew insurance policies that are referable to any of its funds, to:
 (i) each policy holder of any of its funds; and
 (ii) APRA; and
 (b) notify the termination day by publishing a notice:
 (i) unless subparagraph (ii) applies—in a manner that results in the notice being accessible to the public and reasonably prominent; or
 (ii) if a determination under subsection (2A) is in force—in a manner specified in the determination.
The termination day must not be earlier than 90 days after the insurer finishes giving notices under this subsection.
 (2A) For the purposes of subparagraph (2)(b)(ii), APRA may, by legislative instrument, make a determination specifying one or more manners in which a notice mentioned in paragraph (2)(b) may be published.
 (2B) A manner of publication may be specified in the determination only if APRA considers that the manner of publication would result in such a notice being accessible to the public and reasonably prominent.
 (3) The insurer must not, on or after the termination day, renew any insurance policies that are referable to any of those funds.
 (4) The insurer must accept any valid claim for benefits under an insurance policy that is or was referable to any of those funds if the claim is made before the end of the period of 12 months following the expiry of the last policy that was referable to any of those funds.