Commonwealth Consolidated Acts Commonwealth Consolidated Acts(a) a private health insurer contravenes this Act in relation to a health benefits fund that it conducts; and
(b) the contravention results in a loss to the fund; and
(c) the termination of the fund is completed;
the persons who were officers of the insurer when the contravention occurred are jointly and severally liable to pay to APRA an amount equal to the amount of the loss.
Note: For relief from liability, see section 166.
(2) A person is not liable under subsection (1) if the person proves that he or she used due diligence to prevent the occurrence of such a contravention.
(3) On application by APRA, the Federal Court may order any person liable under subsection (1) to pay to APRA the whole or any part of the loss.
Note: Amounts received by APRA under this section are required to be
credited to the Risk Equalisation Special Account (see section 318 - 5
of the Private Health Insurance Act 2007 ).