Document ID: chunk:federal_register_of_legislation:F2024L01053:front:0:p33
Version: federal_register_of_legislation:F2024L01053
Segment Type: other
Provision Reference: 
Character Range: 88869–92037

in performing professional services that has resulted in economic losses suffered by third parties.
 1.           Directors and Officers (D&O)
         1.             D&O covers directors and officers of a company, and the company itself, for liability in the event of a legal action brought for alleged wrongful acts in their capacity as directors and officers.
         2.          Cover for legal expense is generally included in this type of policy.
 2.           Cyber
       Cyber insurance provides first party and third-party coverage in respect to the insured's exposures relating to indemnified cyber events.
 1.           Employers' Liability (EL)
    Includes:
 1.             Workers' Compensation;
 2.          Seamen's Compensation; and
 3.        Domestic Workers' Compensation.
 1.              Reinsurance classes of business referred to in the GI Prudential Standards are defined in accordance with both the direct classes of business defined in paragraph 1 of this Attachment and by the following types of reinsurance classification:
         1.           Proportional reinsurance
    This refers to either:
 1.             traditional forms of quota share and/or surplus reinsurance placed on a treaty reinsurance basis; or
 2.          reinsurance written on an individual offer and acceptance basis;
       where the reinsurer and reinsured share, in proportion, the premium and losses of the reinsured.
 1.           Non-proportional reinsurance
    This refers to either:
 1.             traditional forms of excess of loss reinsurance arrangements written on a treaty reinsurance arrangement basis; or
 2.          reinsurance written on an individual offer and acceptance basis;
       where the reinsurer pays losses only above an agreed retention/deductible up to an agreed maximum limit.

Attachment C - Counterparty grades for a general insurer, life company and private health insurer
 1.              Unless otherwise determined by APRA, assets subject to credit risk must be assigned a counterparty grade using one of the following methods:
         1.           for publicly rated assets refer to paragraphs 2 and 3 of this Attachment;
         2.           for non-publicly rated assets secured by a residential mortgage refer to paragraphs 8 to 12 of this Attachment. An asset secured by a residential mortgage comprises an investment held by way of a registered lien, charge or mortgage over residential property. The valuation must have been performed by a qualified valuer. The property cannot be a speculative construction or a property development;
         3.           assets other than those referred to in (a) and (b) may be rated using private external ratings or a general insurer, Level 2 insurance group, a life company or a private health insurer's own ratings, but only with the prior approval of APRA; or
         4.           assets other than those referred to in (a) and (b) that have not been rated using methods approved by APRA must be assigned a counterparty grade of 5.
 1.              Publicly rated assets are assigned a counterparty grade based on Table 1 and Table 2. The short-term ratings in Table 1