New South Wales Consolidated Acts New South Wales Consolidated Acts(cf s 168 MACA)
(1) In this section--
"insurer" means a licensed insurer, and includes a person whose licence has been cancelled or has otherwise ceased to be in force.
(2) The Authority may assign the third-party policies of an insurer to another insurer if--(a) the licence of the insurer is cancelled or otherwise ceases to be in force, or(b) the Authority is satisfied that it is necessary to do so to ensure compliance with any conditions to which a licence is subject.
(3) Policies may be assigned under this section by notice served by the Authority on the insurers concerned.
(4) On the service of any such notice--(a) the policies of insurance to which it relates are cancelled as from the date and time specified in the notice, and(b) the insurer to whom those policies are assigned is taken (as from the time and date of cancellation) to have issued third-party policies on the same terms as, and for the balance of the periods of, those policies.
(5) On the cancellation of a third-party policy under subsection (4) (a), the insurer whose policy is cancelled must pay to the insurer to whom the policy is assigned--(a) the same proportion of the premium paid or to be paid in respect of the policy as the balance of the indemnity period of the policy bears to the whole indemnity period of the policy, and(b) such additional amount as the Authority directs relating to the income from investment and the management fee with respect to the premium.
(6) Any amount payable under subsection (5) to an insurer may be recovered by the insurer as a debt in a court of competent jurisdiction.
(7) The effect of the cancellation of a third-party policy under this section is to terminate the indemnity period of the policy but, subject to this section, without affecting any right, obligation or liability acquired, accrued or incurred under the policy in respect of that period before its termination.