Document ID: chunk:federal_register_of_legislation:F2023L00208:front:0:p7
Version: federal_register_of_legislation:F2023L00208
Segment Type: other
Provision Reference: 
Character Range: 16544–19587

entitlement.
       (b)          regular premium business in force for less than three years;
       (c)          overseas business;
       (d)          wholesale business; and
       (e)          reinsurance business.
    41.         For policies that are not listed in paragraph 40, the minimum surrender value is the minimum termination value.
    42.         The life company must be able to demonstrate that the amount paid to each policy owner who surrenders a policy is not less than the minimum surrender value of the policy, less the amount of any debt owed to the company under, or secured by, the policy.

Part D - Minimum paid-up values
    43.         The minimum paid-up value is zero for a policy with no (or zero) minimum surrender value.

Friendly societies
    44.         For a policy issued by a friendly society, the minimum paid-up value is zero.

Life companies other than friendly societies
    45.         Where there is a debt secured by a policy, in determining the minimum paid-up value the life company may either:
       (a)          retain the debt, secured against the paid-up value of that policy; or
       (b)          extinguish the debt, reducing the amount of the paid-up value of that policy accordingly.

Traditional business and long term risk business of life companies other than friendly societies
    46.         For regular premium traditional business and long term risk business the minimum paid-up value is determined as at the date immediately preceding the due date of the first regular premium which is unpaid or not advanced in accordance with non-forfeiture provisions.
    47.         The amount of the minimum paid-up value must be determined either:
       (a)          using the method set out in Attachment 2 - Part I, with prescribed parameters as set out in Attachment 1 - Part III; or
       (b)          using the method set out in Attachment 2 - Part II, with prescribed parameters as set out in Attachment 1 - Part IV.
    48.         The method adopted (i.e. Part I or Part II) must be consistent with that used for the determination of the minimum termination value.

Unbundled investment business of life companies other than friendly societies
    49.         For regular premium unbundled investment business the minimum paid-up value is determined as at the date of the policy becoming paid-up. At that date the minimum paid-up value equals the greater of:
       (a)          any contractual minimum paid-up value under the policy; and
       (b)          the minimum termination value.
    50.         Subsequent to that date, the minimum paid-up value may make appropriate allowance for ongoing charges, investment earnings and other policy transactions.

Adjustments and exclusions
    51.         APRA may, by notice in writing to a life company, adjust or exclude a specific requirement in this Prudential Standard in relation to that life company.

Determinations made under previous prudential standards
    52.         An exercise of APRA's discretion (such as an