The Private Health Insurance Administration Council (PHIAC) has issued a Standard Operating Procedure (SOP) on “Giving a Council Direction”.
The SOP considers four separate powers which the Council may employ to protect the interests of consumers and to ensure the prudential safety of private health insurers:
- a direction to prevent or address a contravention of a council supervised obligation, as set out under section 200-1 of the Private Health Insurance Act 2007 (the Act);
- a direction to comply with a prudential standard, as set out under section 163-15 of the Act;
- a direction to comply with the capital adequacy standard, as set out under section 143-20 of the Act;
- a direction to comply with the solvency standard, as set out under section 140-20 of the Act.
