Division 2Automatic run-off
contracts
207Required insurance: section
109ZN
(cf clause 81O of EP&A Regulation
1994)
For the purposes of section 109ZN (2) of the
Act:
(a)
an insurance contract that an accredited
certifier is required to be indemnified by is an approved professional
indemnity contract, and
(b)
the liability against which an accredited
certifier is required to be indemnified by such a contract is the accredited
certifier’s statutory liability for the whole of the period during which
he or she has been an accredited certifier.
cll 207–210: Am
13.12.2002.
208Individual
contracts
(cf clause 81P of EP&A Regulation
1994)
(1)
An approved professional indemnity contract may
provide indemnity to an individual accredited certifier.
(2)
The indemnity provided by an individual contract
must extend to all acts and omissions of the person covered by the contract
that have occurred at any time since the insured first became an accredited
certifier.
(3)
The indemnity provided by an individual contract
may be limited to those acts and omissions in respect of which a claim is made
against the insured, and notified to the insurer, before the contract’s
expiry date.
(4)
Nothing in this clause requires an individual
contract to provide indemnity for acts or omissions that occur after the
contract’s expiry date.
(5)
(6)
The requirements of this clause are subject to
the exceptions and exclusions allowed by the other provisions of this
Part.
cll 207–210: Am
13.12.2002.
209Company
contracts
(cf clause 81Q of EP&A Regulation
1994)
(1)
An approved professional indemnity contract may
provide indemnity to a company, including such of the directors or employees
of the company as are accredited certifiers.
(2)
The indemnity provided by a company contract must
extend to:
(a)
all persons who, at any time during the term of
the contract, are or become:
(i)
accredited certifiers, and
(ii)
directors or employees of the
company,
whether or not they cease to be accredited certifiers,
or cease to be directors or employees of the company, during the term of the
contract, and
(b)
all persons who, at any time before the beginning
of the term of the contract, had been:
(i)
accredited certifiers, and
(ii)
directors or employees of the
company,
but who had ceased to be accredited certifiers, or had
ceased to be directors or employees of the company, before the beginning of
that term.
(3)
Each person covered by a company contract must be
named in the contract.
(4)
The indemnity provided by a company contract must
extend to all acts and omissions of the persons covered by the contract that
have occurred, while those persons were directors or employees of the company,
in the course of work carried out on behalf of the company.
Note—
A company contract does not cover an accredited
certifier for any period before he or she became a director or employee of the
company. Consequently the person will need to obtain separate indemnity for
that period in order to comply with the requirements of section 109ZN of the
Act.
(5)
The indemnity provided by a company contract may
be limited to those acts and omissions in respect of which a claim is made
against the insured, and notified to the insurer, before the contract’s
expiry date.
(6)
Nothing in this clause requires a company
contract to provide indemnity for acts or omissions that occur after the
contract’s expiry date.
(7)
(8)
The requirements of this clause are subject to
the exceptions and exclusions allowed by the other provisions of this
Part.
cll 207–210: Am
13.12.2002.
210Partnership
contracts
(cf clause 81R of EP&A Regulation
1994)
(1)
An approved professional indemnity contract may
provide indemnity to a partnership, including such of the partners or
employees of the partnership as are accredited
certifiers.
(2)
The indemnity provided by a partnership contract
must extend to:
(a)
all persons who, at any time during the term of
the contract, are or become:
(i)
accredited certifiers, and
(ii)
partners or employees of the
partnership,
whether or not they cease to be accredited certifiers,
or cease to be partners or employees of the partnership, during the term of
the contract, and
(b)
all persons who, at any time before the beginning
of the term of the contract, had been:
(i)
accredited certifiers, and
(ii)
partners or employees of the
partnership,
but who had ceased to be accredited certifiers, or had
ceased to be partners or employees of the partnership, before the beginning of
that term.
(3)
Each person covered by a partnership contract
must be named in the contract.
(4)
The indemnity provided by a partnership contract
must extend to all acts and omissions of the persons covered by the contract
that have occurred, since those persons first became partners or employees of
the partnership, in the course of work carried out on behalf of the
partnership.
Note—
A company contract does not cover an accredited
certifier for any period before he or she became a director or employee of the
company. Consequently the person will need to obtain separate indemnity for
that period in order to comply with the requirements of section 109ZN of the
Act.
(5)
The indemnity provided by a partnership contract
may be limited to those acts and omissions in respect of which a claim is made
against the insured, and notified to the insurer, before the contract’s
expiry date.
(6)
Nothing in this clause requires a partnership
contract to provide indemnity for acts or omissions that occur after the
contract’s expiry date.
(7)
(8)
The requirements of this clause are subject to
the exceptions and exclusions allowed by the other provisions of this
Part.
cll 207–210: Am
13.12.2002.
211–213
cll 211–213:
Rep 13.12.2002.
214Limit of indemnity as to
compensation
(cf clause 81V of EP&A Regulation
1994)
(1)
An approved professional indemnity contract may
limit the indemnity provided to an insured (being an individual), with respect
to all claims made by the insured under the contract in any one year, to an
amount of at least $1,000,000.
(2)
For an insured that is a company, an approved
professional indemnity contract must indemnify the company, with respect to
all claims made by the company under the contract in any one year, for not
less than the amount calculated by multiplying $1,000,000 by:
(a)
the number of accredited certifiers who are
directors or employees of the company as at the date on which the contract is
issued, or
(b)
if the contract is the fourth or subsequent
contract issued to the company, whether by the same or by another insurer, the
average number of accredited certifiers who have been directors or employees
of the company at any one time during the previous 3
years.
(3)
For an insured that is a partnership, an approved
professional indemnity contract must indemnify the partnership, with respect
to all claims made by the partnership in any one year under the contract, for
not less than the amount calculated by multiplying $1,000,000 by:
(a)
the number or accredited certifiers who are
partners or employees of the partnership as at the date on which the contract
is issued, or
(b)
if the contract is the fourth or subsequent
contract issued to the partnership, whether by the same or by another insurer,
the average number of accredited certifiers who have been partners or
employees of the partnership at any one time during the previous 3
years.
(4)
Nothing in subclause (2) or (3) requires the
indemnity provided by an approved professional indemnity contract, with
respect to all claims made by a company or partnership in any one year under
the contract, to be for an amount greater than
$10,000,000.
(5)
An approved professional indemnity contract must
contain at least one automatic reinstatement of the indemnity provided by
it.
cl 214: Am
13.12.2002.
215
cll 215–217:
Rep 13.12.2002.