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HOME BUILDING REGULATION 2014 - REG 62ZZB
Rejection of charges by Authority
62ZZB Rejection of charges by Authority
(1) The Authority may reject a proposed charge filed with it under this
Division if it is of the opinion that-- (a) the amount to be charged is,
having regard to actuarial advice and to other relevant financial information
available to the Authority, excessive or inadequate, or
(b) the amount to be
charged does not conform to the relevant provisions of the Insurance
Guidelines.
(2) Written notice of the Authority's rejection of a proposed
charge, and the reasons for the rejection, must be given to the
licensed provider.
(3) If the Authority rejects a charge proposed by a
licensed provider, the provider may request the Authority to reconsider the
rejection.
(4) Pending its reconsideration, the Authority may request an
actuary to determine a provisional charge.
(5) A provisional charge so
determined has effect, pending the Authority's reconsideration, as if it were
an amount that may lawfully be charged or collected for alternative indemnity
product cover by the provider concerned.
(6) If the Authority has not
withdrawn its rejection of a charge within 4 weeks after a request to
reconsider the rejection, the matter is to be arbitrated under this clause.
The following provisions have effect-- (a) The Commercial Arbitration Act
2010 applies to an arbitration under this clause, subject to this Regulation.
The Authority and the provider concerned may by agreement appoint a person to
act as arbitrator in connection with the matter. Failing agreement within 7
days, paragraphs (b) and (c) apply.
(b) The Independent Pricing and
Regulatory Tribunal (established by the Independent Pricing and Regulatory
Tribunal Act 1992 ) may act as arbitrator to hear and determine the matter.
(c) Alternatively, that Tribunal may appoint a person to act as arbitrator in
connection with the matter. The person is to be appointed from a panel
constituted by the Minister and consisting of persons who have appropriate
knowledge and understanding of actuarial science, general alternative
indemnity product cover and the interests of home owners and beneficiaries
under the Act and this Regulation.
(7) The arbitrator may determine the
charge that may be charged by the licensed provider.
(8) The Insurance
Guidelines may-- (a) specify the factors to be taken into account in
determining for the purposes of this clause the reasonable cost of claims and
reasonable claim settlement expenses, and
(b) specify the factors to be taken
into account in determining for the purposes of this clause whether a charge
is excessive, and
(c) exclude specified costs and expenses from being taken
into account as costs and expenses of the provider for the purposes of this
clause, and
(d) limit the extent to which specified costs and expenses can be
taken into account as costs and expenses of the provider for the purposes of
this clause.
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