Commonwealth Numbered Acts

PRIVATE HEALTH INSURANCE (PRUDENTIAL SUPERVISION) ACT 2015 (NO. 85, 2015) - SECT 59

             (1)  As soon as practicable after being appointed as external manager of a health benefits fund, and in any case within the period under subsection (2), the external manager must:

                     (a)  conclude the examination of the business, affairs and property of the fund; and

                     (b)  make a final written report to APRA.

             (2)  The period is:

                     (a)  the 3 months after being appointed as external manager; or

                     (b)  such longer period as APRA determines in writing.

             (3)  The external manager must, in the report to APRA:

                     (a)  recommend a course of action that, in the external manager's opinion, maximises, in the circumstances, the chance that the policy holders of the fund continue to be covered for health insurance either by that fund or by another fund to which the business of that fund is transferred; and

                     (b)  set out the reasons for that recommendation.

             (4)  Without limiting subsection (3), the external manager may recommend:

                     (a)  subject to the Federal Court's making an order or orders in relation to the matter, that the responsible insurer for the fund implement a scheme of arrangement concerning the business of the fund; or

                     (b)  subject to the Court's making an order or orders in relation to the matter, that a terminating manager of the health benefits funds of the responsible insurer be appointed; or

                     (c)  that the external management cease and that the business of the fund be resumed by the responsible insurer for the fund.

             (5)  However, if APRA rules made for the purpose of this subsection so provide, the external manager must recommend that APRA approve the execution of a voluntary deed of arrangement.

             (6)  Without limiting the matters that may be dealt with in a scheme of arrangement referred to in paragraph (4)(a), such a scheme may provide for:

                     (a)  the continuance, on terms or conditions set out in the scheme, of the business of the fund; or

                     (b)  the transfer of the fund, on terms set out in the scheme, to a private health insurer other than the responsible insurer for the fund; or

                     (c)  the execution of a deed in the same terms as a proposed voluntary deed of arrangement rejected at a meeting of a kind referred to in section 58.