(1) An insurer must
not cancel a workers compensation policy without the permission in writing of
WorkCover WA.
(2) WorkCover WA may
determine whether an insurer should be permitted to cancel a workers
compensation policy and the terms on which a workers compensation policy may
be cancelled.
(3) WorkCover WA must
not permit cancellation of a workers compensation policy for non-payment of a
premium unless WorkCover WA is satisfied that —
(a) the
insurer has given the employer adequate notice of the amount of the premium
due; and
(b) the
premium due has remained unpaid for the period prescribed by the regulations.
(4) The cancellation
of a workers compensation policy with the permission of WorkCover WA is
effective as between the parties to the policy irrespective of any term or
condition of the policy.
(5) If WorkCover WA
permits an insurer to cancel a workers compensation policy, the insurer must
notify the employer of the cancellation within 14 days after the
cancellation has effect.
Penalty for this subsection: a fine of
$5 000.