Key stakeholders in the HIH issue will meet with provisional liquidator John McGrath tomorrow to thrash out some thorny issues. Hopefully one of the answers will enlighten brokers on what they can do with premiums collected for HIH but held by them. The law requires brokers to hand over the premium to the insurer within 90 days, but that may not be easy.

Among many questions, brokers want to know if the money being held can be used to offset the cost to the client of taking out new cover or to pay outstanding claims. They also want to know what the situation is if HIH is no longer in a position to supply insurance cover. Other questions relate to the position of clients and brokers in any settlement. 

NIBA has advised its members to seek independent legal advice, although CEO Noel Pettersen said the association is also seeking general answers to questions.