2002 

The Parliament of the

Commonwealth of Australia 

HOUSE OF REPRESENTATIVES

Presented and read a first time

Medical Indemnity (Prudential Supervision and Product Standards) (Consequential Amendments) Bill 2002 

No. , 2002 

(Treasury) 
 
 

A Bill for an Act to make amendments consequential on the Medical Indemnity (Prudential Supervision and Product Standards) Act 2002, and for related purposes

 
Contents 

 
A Bill for an Act to make amendments consequential on the Medical Indemnity (Prudential Supervision and Product Standards) Act 2002, and for related purposes

The Parliament of Australia enacts:

1 Short title

              This Act may be cited as the Medical Indemnity (Prudential Supervision and Product Standards) (Consequential Amendments) Act 2002.

2 Commencement

              This Act commences, or is taken to have commenced, on 1 July 2003.

3 Schedule(s)

              Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1Consequential amendments

Australian Prudential Regulation Authority Act 1998

1 Subsection 56(1) (after paragraph (f) of the definition of Act covered by this section)

Insert:

      (fa) the Medical Indemnity (Prudential Supervision and Product Standards) Act 2002;

Financial Sector (Collection of Data) Act 2001

2 Subsection 5(2)

Repeal the subsection, substitute:

      (2) A financial sector entity is:

      (a) a registered entity; or

      (b) a regulated entity; or

      (c) a corporation to which section 5A applies.

3 After section 5

Insert:

5A Medical indemnity entities

              This section applies to a corporation at a particular time if:

      (a) the corporation is a financial corporation formed within the limits of Australia; and

      (b) an arrangement under which medical indemnity cover is provided for a health care professional was entered into before 1 July 2003; and

      (c) the arrangement was not effected by means of a contract of insurance; and

      (d) the corporation may pay, or may have to pay, an amount under the arrangement at some time after that time.

Expressions used in paragraph (b) have the same meaning as they have in the Medical Indemnity (Prudential Supervision and Product Standards) Act 2002.

Insurance Act 1973

4 After subsection 12(3)

Insert:

      (3A) Without limiting the circumstances in which APRA may refuse an application, APRA must refuse an application if:

      (a) an arrangement under which medical indemnity cover is provided for a health care professional was entered into before 1 July 2003; and

      (b) the arrangement was not effected by means of a contract of insurance; and

      (c) the applicant may pay, or may have to pay, an amount under the arrangement at some time after the time when the application is made.

Expressions used in paragraph (a) have the same meaning as they have in the Medical Indemnity (Prudential Supervision and Product Standards) Act 2002.

Note 1: This means that an applicant that is an MDO (medical defence organisation) that entered into discretionary medical indemnity arrangements before 1 July 2003 cannot be granted an authorisation under this section while amounts remain potentially payable by the applicant under those arrangements.

Note 2: All medical indemnity arrangements (arrangements under which medical indemnity cover is provided for health care professionals) that are entered into, come into effect or are renewed on or after 1 July 2003 must be by way of contracts of insurance (see section 10 of the Medical Indemnity (Prudential Supervision and Product Standards) Act 2002).

5 Subsection 115(1)

Omit this Act, substitute the relevant legislation.

6 After subsection 115(1)

Insert:

      (1A) In subsection (1):

relevant legislation means:

      (a) this Act; or

      (b) Part 2 of the Medical Indemnity (Prudential Supervision and Product Standards) Act 2002.

7 Subsection 115A(1)

Omit this Act or the Financial Sector (Collection of Data) Act 2001, substitute the relevant legislation.

8 Paragraph 115A(2)(a)

Omit this Act or the Financial Sector (Collection of Data) Act 2001, substitute the relevant legislation.

9 Subparagraph 115A(3)(a)(i)

Omit this Act or the Financial Sector (Collection of Data) Act 2001, substitute the relevant legislation.

10 Paragraph 115A(3)(b)

Omit this Act, substitute the relevant legislation.

11 Subsection 115A(6)

Repeal the subsection, substitute:

      (5) In this section:

authorized person means APRA or a person authorized by APRA, in writing, for the purposes of this section.

relevant legislation means:

      (a) this Act; or

      (b) the Financial Sector (Collection of Data) Act 2001; or

      (c) Part 2 of the Medical Indemnity (Prudential Supervision and Product Standards) Act 2002.

Insurance Contracts Act 1984

12 Before section 11A

Insert:

11AAA Definition

              In this Part, unless the contrary intention appears:

relevant legislation means:

      (a) this Act; or

      (b) Part 3 of the Medical Indemnity (Prudential Supervision and Product Standards) Act 2002.

13 Section 11B

Omit this Act, substitute the relevant legislation.

14 Section 11B

Omit the Act (wherever occurring), substitute the relevant legislation.

15 Subsection 11C(1)

Omit this Act, substitute the relevant legislation.

16 Subsection 11D(1)

Omit this Act, substitute the relevant legislation.

17 Paragraph 11E(a)

Omit this Act, substitute the relevant legislation.

Note: The heading to section 11E is altered by omitting Act and substituting relevant legislation.