Document ID: chunk:federal_register_of_legislation:F2023L00735:body:0:p9
Version: federal_register_of_legislation:F2023L00735
Segment Type: other
Provision Reference: 
Character Range: 20978–23808

those charges as determined by or ascertained according to the decision of the company:
(i)            are specified as a dollar amount, a percentage, or a combination of a dollar amount and a percentage;
(ii)         to the extent that the charges are specified as a dollar amount - do not exceed the charges, specified as a dollar amount, that applied when the policy was issued, increased in accordance with a formula or index relating to price variations that the company believes, on reasonable grounds, operates fairly and reasonably in the circumstances (for example, a consumer price index published by the Australian Bureau of Statistics); and
(iii)       to the extent that the charges are specified as a percentage - do not exceed twice the specified percentage that applied when the policy was issued;
(e)          the only elements of the formula mentioned in subparagraph 27(c) that are dependent on, or to be ascertained according to, a decision of the company are one or both of the following:
(i)            the charges payable under the policy; and/or
(ii)         the surrender value of the policy; and
(f)           the circumstances in which and the conditions subject to which the company may make a decision mentioned in subparagraph 27(c)(ii) are set out in the policy document.

Policies providing rolling fixed rates for fixed terms
28.         A benefit in respect of which all the following conditions are satisfied:
(a)          the benefit has the features mentioned in paragraph 15(2)(a) of the Act;
(b)          the policy:
(i)            provides for a benefit in respect of each of two or more consecutive specified periods occurring during the term of the policy;
(ii)         provides that the benefit in respect of each of the specified periods is to be determined at or before the commencement of the period;
(iii)       gives the policyholder the option, at or before the end of each of the specified periods that end before the expiry of the term of the policy, to surrender the policy; and
(iv)        does not provide for any benefits other than those mentioned in subparagraph 28(b)(i);
(c)          if the benefit in respect of each of the specified periods were the only benefit provided for by the policy, that benefit would be a non-participating benefit by virtue of:
(i)            subsection 15(2) of the Act; or
(ii)         this Prudential Standard; and
(d)          the circumstances in which and the conditions subject to which the company may make a determination mentioned in subparagraph 28(b)(ii) are set out in the policy document.

Transitional
29.         A benefit in respect of which all the following conditions are satisfied:
(a)          the benefit is provided for by a policy issued by the life company before 1 January 1996;
(b)          the policy is a kind of