Commonwealth Numbered Acts

PRIVATE HEALTH INSURANCE (PRUDENTIAL SUPERVISION) ACT 2015 (NO. 85, 2015) - SECT 26

Assets of a health benefits fund to be kept separate from other assets

             (1)  A private health insurer must keep assets of a health benefits fund distinct and separate from assets of other health benefits funds and from all other money, assets or investments of the insurer.

             (2)  A private health insurer must maintain a separate account with an ADI for each health benefits fund that it conducts.

What are the assets of a health benefits fund?

             (3)  The assets of a health benefits fund at a particular time are the following:

                     (a)  the balance of money represented by amounts credited to the fund in accordance with section 27;

                     (b)  assets of the insurer obtained as a result of the expenditure or application of money credited to the fund;

                     (c)  investments held by the insurer as a result of the expenditure or application of money credited to the fund;

                     (d)  other money, assets or investments of the insurer transferred to the fund, whether under this Act or otherwise.

             (4)  Assets or investments obtained by the application of assets of a health benefits fund are themselves assets of the fund.

             (5)  The assets of a health benefits fund:

                     (a)  include assets that, in accordance with a restructure or arrangement approved under Division 4, are to be assets of the fund; but

                     (b)  do not include assets that, in accordance with such a restructure or arrangement, are no longer to be assets of the fund.

             (6)  Despite paragraphs (3)(b) and (c) and subsection (4), assets or investments obtained by the expenditure of money of, or the application of other assets of, a health benefits fund are not assets of the fund if:

                     (a)  the private health insurer conducting the fund is a for profit insurer; and

                     (b)  the expenditure or application was not done for the purposes of the fund.

Act does not have effect of making insurer etc. a trustee of assets of a health benefits fund

             (7)  To avoid doubt, nothing in this Act is intended to have the effect of making a private health insurer or its directors a trustee or trustees of the assets of the health benefits funds of the insurer.