New South Wales Consolidated Acts

MOTOR ACCIDENTS COMPENSATION ACT 1999 - SECT 29

29 Premium risk adjustment

(1) The Authority may enter into any one or more of the following arrangements with licensed insurers (whether by means of the Insurance Industry Deed or otherwise)--

(a) an arrangement for allocating high risk third-party policies among insurers,

(b) an arrangement for the pooling of premiums collected from the issue of third-party policies and for the allocation of the premiums among insurers,

(c) an arrangement for the pooling of the costs of claims for motor accidents covered by high risk third-party policies and for the allocation of those costs among insurers.

Any such allocation may be made among insurers generally in accordance with the market share of each insurer or in any other appropriate manner.

(2) The regulations may make provision for giving effect to any such arrangement.

(3) High risk third-party policies are policies of a kind that the Authority determines incur a disproportionate share of liability for the total cost of claims for motor accidents.

(4) The Authority may, with the approval of the Minister, make such an arrangement a condition of the licence of each insurer if the Minister is satisfied that licensed insurers, or any of them, have refused to enter into the arrangement with the Authority and the arrangement is appropriate having regard to the objects of this Act.