Commonwealth Numbered Acts

PRIVATE HEALTH INSURANCE ACT 2007 (NO. 31, 2007) - SECT 137.10

             (1)  A private health insurer must not apply, or deal with, * assets of a * health benefits fund, whether directly or indirectly, except in accordance with this Division.

             (2)  The * assets of a * health benefits fund must not be applied:

                     (a)  for any purpose other than:

                              (i)  meeting * policy liabilities and other liabilities, or expenses, incurred for the purposes of the business of the fund (including policy liabilities and other liabilities that are treated, in accordance with a restructure or arrangement approved under Division 146, as policy liabilities and other liabilities incurred for the purposes of the fund); or

                             (ii)  making investments in accordance with section 137‑20; or

                            (iii)  making a distribution under Division 149; or

                            (iv)  a purpose specified in the Private Health Insurance (Health Benefits Fund Policy) Rules for the purposes of this subparagraph; or

                     (b)  for a purpose specified in the Private Health Insurance (Health Benefits Fund Policy) Rules for the purposes of this paragraph.

             (3)  A private health insurer must not mortgage or charge any of the * assets of a * health benefits fund except:

                     (a)  to secure a bank overdraft; or

                     (b)  for such other purposes, and subject to such conditions, as are specified in the Private Health Insurance (Health Benefits Fund Administration) Rules for the purposes of this paragraph.

             (4)  A private health insurer must not borrow money for the purposes of the business of a * health benefits fund except in accordance with the Private Health Insurance (Health Benefits Fund Administration) Rules.

             (5)  Despite subsection (2), if a private health insurer is * registered as a for profit insurer, the * assets of a * health benefits fund conducted by the insurer may be applied for any purpose, except an application of the assets that is inconsistent with:

                     (a)  the * solvency standard; or

                     (b)  the * capital adequacy standard; or

                     (c)  a * solvency direction or * capital adequacy direction given to the insurer.

             (6)  This section does not apply to the transfer of * assets:

                     (a)  from one * health benefits fund to another in accordance with Division 146; or

                     (b)  in accordance with a direction under subsection 134‑10(2).