Commonwealth Numbered Acts

MEDICAL INDEMNITY (PRUDENTIAL SUPERVISION AND PRODUCT STANDARDS) (CONSEQUENTIAL AMENDMENTS) ACT 2003 NO. 36, 2003 - SCHEDULE 1

Australian Prudential Regulation Authority Act 1998

Insert:

(fa) the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003 ;

Financial Sector (Collection of Data) Act 2001

Repeal the subsection, substitute:

(2)

A financial sector entity is:

(a) a registered entity; or
(b) a regulated entity; or
(c) a corporation to which section 5A applies.

Insert:

This section applies to a corporation at a particular time if:

(a) the corporation is a financial corporation formed within the limits of Australia; and
(b) an arrangement under which medical indemnity cover is provided for a health care professional was entered into before 1 July 2003; and
(c) the arrangement was not effected by means of a contract of insurance; and
(d) the corporation may pay, or may have to pay, an amount under the arrangement at some time after that time.

Expressions used in paragraph (b) have the same meaning as they have in the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003 .

Insurance Act 1973

Insert:

(3A)

Without limiting the circumstances in which APRA may refuse an application, APRA must refuse an application if:

(a) an arrangement under which medical indemnity cover is provided for a health care professional was entered into before 1 July 2003; and
(b) the arrangement was not effected by means of a contract of insurance; and
(c) the applicant may pay, or may have to pay, an amount under the arrangement at some time after the time when the application is made.

Expressions used in paragraph (a) have the same meaning as they have in the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003 .

Note 1: This means that an applicant that is an MDO (medical defence organisation) that entered into discretionary medical indemnity arrangements before 1 July 2003 cannot be granted an authorisation under this section while amounts remain potentially payable by the applicant under those arrangements.

Note 2: All medical indemnity arrangements (arrangements under which medical indemnity cover is provided for health care professionals) that are entered into, come into effect or are renewed on or after 1 July 2003 must be by way of contracts of insurance (see section 10 of the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003 ).

Omit "this Act", substitute "the relevant legislation".

Insert:

(1A)

In subsection (1):