Financial System Legislation Amendment (Financial Claims Scheme and Other Measures) Act 2008 (105 of 2008)

Schedule 3   Other measures: general insurance

Part 1   Main amendments

Insurance Act 1973

13   Subsection 105(1)

Repeal the subsection, substitute:

(1) This section applies if a general insurer, authorised NOHC or subsidiary of a general insurer or authorised NOHC is party to a contract, whether the proper law of the contract is Australian law (including the law of a State or Territory) or law of a foreign country (including the law of part of a foreign country).

(1A) The fact that the general insurer or authorised NOHC is subject to a direction by APRA under section 104 does not allow the contract, or a party to the contract, other than the general insurer, NOHC or subsidiary, to do any of the following:

(a) deny any obligations under that contract;

(b) accelerate any debt under that contract;

(c) close out any transaction relating to that contract.

This subsection has effect subject to subsections (2) and (3).