Document ID: chunk:federal_register_of_legislation:F2019L00069:clause:1_9
Version: federal_register_of_legislation:F2019L00069
Segment Type: clause
Provision Reference: sch 1 cl 9
Character Range: 9143–10797

9  Premium income
 (1) The premium income for an eligible insurance contract is worked out as follows:

      Method statement
           Step 1. Work out the amount of the premium written by the party to be reinsured (the reinsured) that is attributable to the eligible insurance contract.
           Step 2. Reduce the result from Step 1 by that part of the result that relates to a premium that has been refunded to the reinsured as result of any adjustment or cancellation related to the eligible insurance contract.
           Step 3. Reduce the result from Step 2 by that part of the result that is attributable to GST, or a stamp duty or fire services levy (however described) imposed on the eligible insurance contract under a law of a State or Territory.  The result is the premium income.
 (2) However, if an eligible insurance contract:
 (a) comprises 2 or more distinct insurance covers that have been packaged or bundled together; and
 (b) is offered on the basis that the insured must take out one or more of the insurance covers offered; and
 (c) has a precisely quantifiable premium that can be attributed to each insurance cover that has been packaged or bundled together; and
 (d) that contains, both:
 (i) some insurance covers, each of which if provided individually, would be an eligible insurance contract; and
 (ii) other insurance covers, none of which, if provided individually, would be an eligible insurance contract;
then, apply the method statement in subsection (1) to only that part of an eligible insurance contract that provides insurance covers that, if provided individually, would be an eligible insurance contract.