12.4. Provisions in respect of contracts relating to Insurance Business in run-off

PINS 12.4.2 (Insurer with business in run-off to notify AFSA of certain contracts) applies only to an Insurer that:

(a) is in run-off as regards its entire Insurance Business or the entire Insurance Business of a Long-Term Insurance Fund;
(b) has provided a notice to the AFSA in accordance with PINS 12.2.2 (Insurers to give notice of decision to cease business) in respect of its entire Insurance Business or the entire Insurance Business of a Long-Term Insurance Fund; or
(c) has received a written notice from the AFSA withdrawing the Insurer’s Licence to effect Contracts of Insurance in respect of its entire Insurance Business or the entire Insurance Business of a Long-Term Insurance Fund.

(1) An Insurer to which this rule applies must:

(a) within 10 business days after the day its Insurance Business enters into run-off, tell the AFSA about the existence and principal features of any notifiable contract that existed at the time the business entered into run-off; and
(b) within 10 business days after the day it enters into a notifiable contract in relation to its Insurance Business in runoff, tell the AFSA about the existence and principal features of the contract.

(2) To remove any doubt, subrule (1) (b) applies whether or not the Insurance Business is conducted through a Long-Term Insurance Fund that is in run-off.

(3) In this rule: notifiable contract means:

(a) a contract with a person related to the Insurer, other than a Contract of Insurance effected by the Insurer before going into run-off;
(b) a contract with any person relating to the management of all or any of the Insurance Business in run-off;
(c) a contract with any person for reinsurance of all or any of the Insurance Business in run-off; or
(d) any other contract with a person mentioned in paragraph (b) or (c) or a person related to such a person.

About