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Contents (2017 - 10)
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Motor Accident Injuries Act 2017 No 10
Current version for 1 February 2019 to date (accessed 20 January 2020 at 04:10)
Part 2 Division 2.3 Section 2.24
2.24   Risk equalisation
(cf s 29 MACA)
(1)  The purpose of this section is to achieve an appropriate balance between the premium income of an insurer and the risk profile of the third-party policies issued by the insurer.
(2)  The regulations may impose any one or more of the following arrangements on licensed insurers:
(a)  an arrangement for allocating high risk or low risk third-party policies among insurers,
(b)  an arrangement for the adjustment of premiums collected in respect of third-party policies and for the allocation and transfer of those premiums among insurers,
(c)  an arrangement for the adjustment of the costs of claims for motor accidents covered by high risk or low risk third-party policies and for the allocation and transfer of those costs among insurers.
An allocation of premiums or costs is to be made generally in accordance with the market share of each insurer or in any other appropriate manner.
(3)  Any such arrangement may require insurers to provide information to the Authority about third-party policies or claims, to re-imburse the Authority for the costs of administering the arrangement and to take other measures to give effect to the obligations and liabilities of insurers under the arrangement.
(4)  It is a condition of an insurer’s licence under this Act that the insurer must comply with any such arrangement.
(5)  The regulations may authorise any matter arising under any such arrangement to be determined in accordance with the Motor Accident Guidelines.
(6)  For the purposes of this section, high risk or low risk third-party policies are policies of a kind that the Authority determines incur a higher or lower disproportionate share of liability for the total cost of claims for motor accidents.
(7)  An arrangement under section 29 of the Motor Accidents Compensation Act 1999 that is in force on the commencement of this section is (subject to the regulations) taken to be an arrangement under this section. Any such arrangement may be varied by the regulations or by the agreement of the parties to which it applies.