242.9(1)An administrator appointed under section 242.8 may arrange for the reinsurance by some other licensed insurer of all automobile insurance contracts of a defaulting insurer whose licence has been revoked under section 242.6.

242.9(2)Where the licence of a defaulting insurer is revoked under section 242.6, all automobile insurance contracts, the terms and conditions of such contracts and all rights, duties, obligations and liabilities of the insured and insurer thereunder remain in full force and effect until such contracts have been reinsured under subsection (1).

242.9(3)An administrator appointed under section 242.8 may make a valid and effectual assignment to the reinsurer of all right, title and interest of a defaulting insurer whose licence has been revoked, in and to the automobile insurance contracts of the defaulting insurer in force at the time of reinsurance.

242.9(4)Where an assignment of contracts to a reinsurer is made by an administrator under subsection (3), all right, title and interest in the unearned premiums existing in respect of such contracts shall, effective as of the time of reinsurance, vest in the reinsurer and the defaulting insurer shall immediately pay over to the reinsurer an amount equal to the amount of the unearned premiums then in existence.

242.9(5)Where right, title and interest in unearned premiums vests in the reinsurer under subsection (4), the interest so vested in the reinsurer shall constitute a debt owing by the defaulting insurer to the reinsurer and shall be a first charge against all assets of the defaulting insurer in the Province.