Western Australian Numbered Acts Western Australian Numbered Acts (1) In this
section —
reinsurance payment means an amount paid by a
reinsurer under a contract of reinsurance that insures a defaulting insurer
against liability in respect of a workers compensation policy issued by the
defaulting insurer.
(2) For the purposes
of this section, an insurer or self-insurer is a defaulting insurer if any
liability of the insurer under a workers compensation policy or any
self-insurer liability of the self-insurer has been met by a payment (a
defaulting insurer payment ) by WorkCover WA pursuant to a claim under this
Division.
(3) The liquidator of
a defaulting insurer must pay to WorkCover WA for payment into the DI
Fund —
(a) any
reinsurance payment received by the liquidator in respect of a liability of
the defaulting insurer that has been met by a defaulting insurer payment; and
(b) any
amount recovered by the liquidator that is due to the defaulting insurer as a
consequence of a liability of the defaulting insurer under a workers
compensation policy or any self-insurer liability of the defaulting insurer
having been met by a defaulting insurer payment.
(4) The reinsurance
payment or amount that a liquidator is required to pay to WorkCover WA
under subsection (3) is reduced by the amount of any expenses of or
incidental to the recovery of the reinsurance payment or amount.
(5) A payment required
by subsection (3) is in priority to all payments in respect of the debts
referred to in the Corporations Act 2001 (Commonwealth)
section 556.
(6) The payment of an
amount required by subsection (3) is declared to be an excluded
matter for the purposes of the Corporations Act 2001 (Commonwealth)
section 5F in relation to that Act to the extent to which the payment of
the amount is governed by this section.
(7) This
section has effect despite any agreement to the contrary other than an
agreement under section 284.