Document ID: chunk:federal_register_of_legislation:F2024L01053:front:0:p6
Version: federal_register_of_legislation:F2024L01053
Segment Type: other
Provision Reference: 
Character Range: 14543–17576

[ADI, GI, LI, PHI] Australian Accounting Standards is a reference to the Australian Accounting Standards issued by the AASB.
    [ADI, GI, LI, PHI] Australian Auditing and Assurance Standards or Auditing and Assurance Standards is a reference to the Australian Auditing and Assurance Standards issued by the AUASB.
    [GI] Australian business of a Level 2 insurance group, for the purposes of the prudential requirements applicable to Level 2 insurance groups, means insurance business carried on (whether in Australia or elsewhere) by any Level 1 insurer within the group.
    [ADI] Australian-owned ADI refers to an ADI that is not a foreign-owned ADI.
    [ADI, GI, LI, PHI] authorised deposit-taking institution (ADI) means a deposit-taking institution authorised by APRA under the Banking Act. It includes foreign ADIs as defined in the Banking Act.
    [ADI] authorised NOHC has the same meaning as in the Banking Act.
    [GI] authorised NOHC has the same meaning as in the Insurance Act.
    [ADI] Banking Act refers to the Banking Act 1959.
    [PHI] benefits incurred are the value of all insurance claims incurred during the period for the relevant class of business, net of risk equalisation expense, net of reinsurance and include ambulance levies. This is to include the value of services provided in lieu of a benefit payment and movements in the central estimate of outstanding claims liabilities.
    [LI] best estimate assumptions means assumptions about future experience determined in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities.
    [LI] best estimate bonus refers to the maximum level of bonus which (on best estimate assumptions and taking into account a life company's profit distribution philosophy, including shareholder entitlements) can be added to a participating benefit over its benefit life without supplementary income from other sources, including policy owner retained profits.
    [LI] best estimate discretionary addition means the level of discretionary addition which (on best estimate assumptions and taking into account a life company's crediting philosophy) can be added to a non-participating benefit over its benefit life without supplementary income from other sources, including policy owner retained profits.
    [LI] best estimate liability is calculated in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities and refers to the amount expected on best estimate assumptions to be required to the end of the benefit period to meet future benefits and expenses related to past transactions for the business in force. The calculation process will take into account all factors which are known to be material, including future investment earnings, taxation, any options under the policies and future premiums, where relevant to the calculation.
    [LI] best estimate shareholder profit refers to the maximum level of shareholder profit which (on best estimate assumptions and taking into account a life company's profit distribution