In this Division:
defaulting insurer means an insurer to which an order of the Minister in force under section 224B relates, but does not include an insolvent insurer.
insolvent insurer means an insolvent insurer within the meaning of Division 7.
(1) If the Minister is satisfied that a licensed insurer or former licensed insurer is unable to meet claims and other liabilities under policies of insurance issued or renewed by it, the Minister may, by order in writing, declare that the insurer is a defaulting insurer for the purposes of this Division.(2) An insolvent insurer may not be declared to be a defaulting insurer and the declaration of a defaulting insurer ceases to have effect if the insurer is or becomes an insolvent insurer.(3) (Repealed)
(1) Amounts standing to the credit of the Insurance Fund may be applied by the Nominal Insurer for the purposes of:(a) satisfying, on behalf of the defaulting insurer, claims, judgments or awards arising from or relating to policies of insurance issued or renewed by the defaulting insurer (whether before or after the commencement of this section), and(b) meeting the management expenses incurred in respect of satisfying those claims, judgments or awards.(2) Amounts applied by the Nominal Insurer under this section are to be applied in accordance with such priorities among claims, judgments or awards as the Nominal Insurer determines.(3) The Nominal Insurer may recover from the defaulting insurer as a debt in any court of competent jurisdiction the payments made on its behalf by the Nominal Insurer under this section and not repaid to the Nominal Insurer by the defaulting insurer.(4) Any amounts repaid by or recovered from a defaulting insurer are to be credited to the Insurance Fund.(5) The obligation of a defaulting insurer to repay any amounts paid on its behalf under this section does not cease because the insurer becomes an insolvent insurer.