12.2.1. Application

PINS 12.2.2 (Insurers to give notice of decision to cease business) and PINS 12.2.3 (Insurers in run-off not to effect certain contracts) apply to an Insurer that ceases or decides to cease to effect new Contracts of Insurance or to renew Contracts of Insurance:

• (a) in a category in which the Insurer has previously effected Insurance Business; or
• (b) in respect of a Long-Term Insurance Fund, in a category in which the Insurer has previously effected Insurance Business through that Long-Term Insurance Fund.

12.2.2 Insurers to give notice of decision to cease business

An Insurer to which this Rule applies must, within 28 days of a decision to cease to effect new Contracts of Insurance in a category, notify the AFSA of its decision, in a notice specifying the following details:

• (a) the effective date of the decision to cease effecting Contracts of Insurance;
• (b) the category to which the decision relates; and
• (c) where relevant, the Long-Term Insurance Fund to which the decision relates.

12.2.3 Insurers in run-off not to effect certain contracts

(1) An Insurer who has provided a notice to the AFSA in accordance with PINS 12.2.2 must not effect any Contracts of Insurance in that category without the written permission of the AFSA.

(2) Where the notice referred to in PINS 12.2.2 relates to a Long-Term Insurance Fund of the Insurer, the restriction set out in this rule applies only to that Long-Term Insurance Fund.