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Circular No 10/15

PDF Format
This Circular
SOP
Contact Officers
Fiona Bowden (02) 6215 7909
Email
fiona.bowden@phiac.gov.au
Replaces Circular
10/11

19 August 2010

STANDARD OPERATING PROCEDURE – ACCEPTING A WRITTEN UNDERTAKING

This circular is to advise of the publication of the Private Health Insurance Administration Council’s (PHIAC’s) first Standard Operating Procedure (SOP) document entitled Accepting a written undertaking given by a Private Health Insurer on the PHIAC website. The development and publication of a variety of SOPs is a key project in PHIAC’s 2010-12 Corporate Plan.

The SOP discusses the following components of an enforceable undertaking:

  • they are strategic, as they allow the insurer to implement and monitor its own turnaround strategy
  • they are a collaborative document, intended to improve future conduct
  • they are enforceable through the Federal Court, in a more predictable and cost effective manner than other enforcement remedies through the court system.

The final SOP follows on from extensive consultation with the private health insurance industry, interested stakeholders and other regulators with similar enforcement powers. It is designed to provide the industry with a better understanding of insurer obligations under the Act and the Council’s options for monitoring, and where necessary, intervening in the affairs of an insurer.

The next SOP with respect to PHIAC’s Direction powers is now in development and will be circulated to the industry for comment in due course. The Council looks forward to the continuing support and feedback from the industry.