Document ID: chunk:federal_register_of_legislation:F2024L01053:front:0:p18
Version: federal_register_of_legislation:F2024L01053
Segment Type: other
Provision Reference: 
Character Range: 47028–50050

the Dictionary to the Life Insurance Act.
    [LI] life company has the meaning given in the Dictionary to the Life Insurance Act.
    [LI] Life Insurance Act means the Life Insurance Act 1995.
    [LI] life insurance contract means an insurance contract or a financial instrument with a discretionary participation feature which is regulated under the Life Insurance Act.
    [LI] life investment contract means a contract other than a life insurance contract which is regulated under the Life Insurance Act.
    [ADI, GI] limited assurance is as defined according to Framework for Assurance Engagements issued by the AUASB.
    [ADI] listed refers to an institution admitted to, and not removed from, a securities exchange.
    [ADI] locally-incorporated ADI refers to an ADI that is incorporated in Australia or in a State or Territory of Australia, by or under Commonwealth, State or Territory legislation.
    [LI] long term risk business refers to policies providing continuous insurance against the contingency of death, other than solely by accident, on terms and conditions agreed at the commencement of the policy, where:
 1.           a level premium is paid through the term of the policy;
 1.           the term of the policy is:
         1.             greater than or equal to 15 years; and
         2.          such that the life insured is aged greater than 70 at the expiry of that term; and
 2.           the amount of insurance (excluding any entitlement to bonus) is greater than $15,000.
    [LI] maintenance expenses means the fixed and variable expenses of a life company to the extent they are, either directly or indirectly, associated with:
 1.           the company's administration of policies subsequent to their sale, including policies subject to claim; and
 2.           the general operations, including maintenance of the overall health, of the company.
    Maintenance expenses include all operating costs and expenses other than acquisition expenses and investment management expenses.
    [PHI] management expenses means the expenses associated with the management of the insurer. This includes claims handling expenses, and does not include benefits incurred, taxes or expenses ceded through a reinsurance arrangement.
    [ADI] mark-to-model refers to any valuation that has to be benchmarked, extrapolated or otherwise calculated from a market input.
    [ADI] material currency means a currency for which the total book value of an ADI's banking book items in that currency is more than five per cent of the total book value of all banking book items. In determining whether a currency is material, the effect of currency hedges that reduce foreign currency exposure may be taken into account, provided those hedges are effective.
    [PHI] material risks are those risks that could have a material impact, both financial and non-financial on the APRA-regulated institution, or on the interests of depositors and/or policy holders of the APRA-regulated institution. Material risks