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Legislative Assembly for the ACT: 2001 Week 10 Hansard (28 August) . . Page.. 3531 ..

(2) For this regulation, premiums are sufficient to fully fund the liability to which the premiums relate if the premiums are sufficient to do all of the following:

(a) fully fund claims liabilities arising from the insurance policies to which the premiums relate;

(b) pay all acquisition, policy administration and claims settlement expenses of the insurer;

(c) provide a profit margin after the payment of claims, costs and expenses that represents an adequate return on capital invested and compensation for the risk taken;

(d) provide for anything else that a prudent insurer should, in the circumstances, provide for;

(e) provide for contributions or other charges payable by the insurer under the Act.

(3) An insurer is taken to have complied with subregulation (1) (a) if the insurer provides for sufficient (but not excessive) income from premiums in accordance with actuarial advice about the liability arising from policies of insurance to which the premiums relate.

36 Prompt payment

(1) It is a condition of an insurer's approval that the insurer pays the amount for a service for which the insurer is required to pay under the Act to a service provider who has provided a service in relation to a compensable injury within 30 days after the service has been provided.

(2) However, the insurer does not breach the condition mentioned in subregulation (1) if the insurer does not pay for the service if-

(a) the insurer believes on reasonable grounds that the service has not been provided, or has not been properly provided, and the insurer has told the service provider why the insurer has not paid for the service; or

(b) the insurer has another reasonable ground for not paying for the service.

37 Information to be provided quickly

It is a condition of an insurer's approval that any information required to be provided to the Minister, is provided as quickly as is reasonably practicable.

Division 5.3 Action on approvals

38 Notice of proposed action on approval

If the Minister proposes to take action (the proposed action ) under regulation 39 in relation to an insurer's approval, the Minister must give the insurer a notice that-

(a) states the proposed action and the ground for the proposed action; and

Note The possible grounds for the proposed action are set out in regulation 39 (1).

(b) invites the insurer to make written representations, within a stated period of at least 14 days after the insurer is given the notice, why the proposed action should not be taken.

39 Action in relation to approval

(1) This regulation applies in relation to an insurer's approval if the insurer-

(a) contravenes the Act, section 10ZH (Compliance by insurers); or

(b) contravenes any other provision of the Act; or

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