(1)

This subsection applies to a person if, on or after 1 July 2003:

(a) the person:
(i) offers to enter into; or
(ii) invites an offer to enter into;
an arrangement under which the person would provide medical indemnity cover for a health care professional; or
(b) the person enters into an arrangement under which the person provides medical indemnity cover for a health care professional; or
(c) an arrangement under which the person provides medical indemnity cover for a health care professional comes into effect; or
(d) the person offers to renew an arrangement under which a person provides medical indemnity cover for a health care professional; or
(e) an arrangement under which the person provides medical indemnity cover for a health care professional is renewed.

The relevant medical indemnity cover is the cover referred to in paragraph (a), (b), (c), (d), or (e).

(2)

A person (the cover provider ) commits an offence if:

(a) subsection (1) applies to the cover provider; and
(b) either:
(i) the cover provider is a constitutional corporation; or
(ii) the cover provider is not a constitutional corporation but the arrangement has, or would have, a relevant constitutional connection; and
(c) either:
(i) the cover provider is not a general insurer; or
(ii) the relevant medical indemnity cover is not, or would not be, effected by means of a contract of insurance.

Penalty: Imprisonment for 12 months.

(3)

To avoid doubt:

(a) paragraph (1)(a) applies to offers or invitations that are received in Australia or the external Territories:
(i) regardless of where any resulting arrangement is entered into; and
(ii) whether or not any resulting arrangement is governed by the laws of a State or Territory; and
(b) paragraph (1)(d) applies to offers that are received in Australia or the external Territories:
(i) regardless of where any resulting renewal takes place; and
(ii) whether or not the arrangement is governed by the laws of a State or Territory.