A person (the practitioner ) has a qualifying liability in relation to a claim made against the person if:
(a) one of the following applies:
(i) the liability is under a judgment or order of a court in relation to the claim, being a judgment or order that is not stayed and is not subject to appeal;
(ii) the liability is under a settlement of the claim that takes the form of a written agreement between the parties to the claim;
(iii) the liability is some other kind of liability of the practitioner (for example, a liability to legal costs) that relates to the claim; and
(b) the defence of the claim against the practitioner was conducted appropriately up to the time when:
(i) if the liability is under a judgment or order of a court--the date on which the judgment or order became a judgment or order that is not stayed and is not subject to appeal; or
(ii) if the liability is under a settlement of the claim--the date on which the settlement agreement was entered into; or
(iii) if the liability is some other kind of liability--the date on which the liability was incurred; and
(c) if the liability is under a settlement of the claim, or is under a consent order made by a court--a legal practitioner has given a statutory declaration certifying that the amount of the liability is reasonable.
Note: For paragraph (b), see the definitions of defence and conducted appropriately in subsection 4(1).