New South Wales Consolidated Acts

LEGAL PROFESSION UNIFORM LAW APPLICATION ACT 2014 - SCHEDULE 7

SCHEDULE 7 – Professional indemnity insurance--provisions relating to HIH insurance

1 Interpretation and construction

(1) In this Schedule--

"HIH group member" means--

(a) HIH Casualty and General Insurance Limited, FAI General Insurance Company Limited or CIC Insurance Limited, or

(b) any corporation that is, with respect to one of the corporations referred to in paragraph (a), a related body corporate within the meaning of section 50 of the Corporations Act 2001 of the Commonwealth.

"Lawcover Insurance" means Lawcover Insurance Pty Limited (ABN 15 095 082 509).

2 Payments relating to HIH group insurance policies

(1) Payments must be made by Lawcover Insurance for the purpose of indemnifying any person who is insured under an approved insurance policy that was issued or renewed by an HIH group member, to the extent of the indemnity provided by the approved insurance policy.

Note : HIH Casualty and General Insurance Limited (HIH) was the insurer under the approved insurance policy for the period from 1 July 1998 to 1 July 2001. HIH, together with other HIH group members, were also insurers under approved policies that pre-date that period. A provisional liquidator was appointed in respect of the HIH and other HIH group members on 15 March 2001.

(2) On the making of such a payment, Lawcover Insurance is subrogated to the rights and remedies of the insured person under the approved insurance policy, in connection with the subject matter of the payment, subject to the terms of any agreement entered into under this clause.

(3) Subclause (2) extends, but is not limited to, a right or remedy against any of the following--

(a) an HIH group member,

(b) any insurer or re-insurer of an HIH group member,

(c) any person who, under any Act or other law, is liable for a failure of an HIH group member to satisfy its obligations under or in connection with an approved insurance policy.

(4) Lawcover Insurance may exercise its rights and remedies under this clause in its own name or in the name of an insured person.

(5) If Lawcover Insurance exercises its rights and remedies under this clause in the name of an insured person, Lawcover Insurance is to indemnify the insured person against any liability incurred by the insured person as a result of the exercise of those rights and remedies.

(6) The Law Society and Lawcover Insurance may enter into an agreement with an HIH group member (including a provisional liquidator or liquidator of an HIH group member), or with any insured person, in connection with the payment of amounts under this clause.

(7) In particular, any such agreement may provide for the following--

(a) the assignment or subrogation to Lawcover Insurance of the rights and remedies of an HIH group member or the insured person (or both) under or in connection with the approved insurance policy,

(b) the recovery by Lawcover Insurance from an HIH group member of any amount paid under this clause.

(8) Any payment made by Lawcover Insurance under this clause, and any agreement entered into with an insured person under this clause, does not prevent the recovery by Lawcover Insurance from an HIH group member of any amount that would have been recoverable by the insured person under or in connection with the approved insurance policy had the payment not been made or the agreement not been entered into.