180Power of Supreme Court to deal
with insurers unable to meet liabilities
(cf s 116 MAA)
(1)
The Supreme Court may, on the application of the
Authority, make such orders as the Supreme Court considers necessary or
desirable for the purpose of protecting the interests of the holders of
third-party policies taken to have been issued by a licensed insurer or a
former licensed insurer.
(2)
The Supreme Court may make such an order if it is
satisfied that the licensed insurer or former licensed insurer:
(a)
is not able to meet the insurer’s
liabilities under the third-party policies or may not be able to do so,
or
(b)
has acted or may act in a manner that is
prejudicial to the interests of the holders of the third-party
policies.
(3)
Without limiting the generality of subsection
(1), the Supreme Court may make the following orders:
(a)
an order regulating the administration and
payment of claims under the third-party policies,
(b)
an order prohibiting or regulating the transfer
or disposal of, or other dealing in, the assets of the licensed insurer or
former licensed insurer,
(c)
an order requiring the licensed insurer or former
licensed insurer to discharge its liabilities under the third-party policies
out of its assets and the assets of any related body corporate (within the
meaning of the Corporations Act 2001 of the
Commonwealth),
(d)
an order appointing a receiver or receiver and
manager, having such powers as the Supreme Court orders, of the property or
part of the property of the licensed insurer or former licensed insurer or of
any such related body corporate.
(4)
If an application is made to the Supreme Court
for an order under subsection (1), the Supreme Court may, if in its opinion it
is desirable to do so, before considering the application, grant an interim
order, being an order of the kind applied for that is expressed to have effect
pending the determination of the application.
(5)
If an application is made to the Supreme Court
for an order under subsection (1), the Supreme Court is not to require the
Authority, as a condition of granting an interim order, to give any
undertaking as to damages.
(6)
The Authority is to give the Australian
Prudential Regulation Authority and the Australian Securities and Investments
Commission notice of its intention to apply for an order under this
section.
(7)
The Australian Prudential Regulation Authority
and the Australian Securities and Investments Commission each has a right to
appear and be heard in proceedings for an order under this
section.
(8)
If the Supreme Court has made an order under this
section, the Supreme Court may, on application by the Authority or by any
person affected by the order, make a further order rescinding or varying the
first mentioned order.
(9)
A person who contravenes, whether by act or
omission, an order made by the Supreme Court under this section that is
applicable to the person is guilty of an offence.
Maximum penalty: 20 penalty units or imprisonment
for 6 months, or both.
(10)
The Supreme Court is not to exercise its powers
under this section in respect of a corporation which is in the course of being
wound up.
(11)
The powers of the Supreme Court under this
section are in addition to any other powers of the Supreme
Court.
s 180: Am 2001 No 34,
Sch 4.37 [6] [7].