Document ID: chunk:federal_register_of_legislation:F2019L00398:schedule:1:p1
Version: federal_register_of_legislation:F2019L00398
Segment Type: schedule
Provision Reference: sch 1 (pt 1/18)
Character Range: 1911–4993

Schedule 1 – Mergers and acquisitions
1. Trust
2. Actions for transfer of assets and liabilities for purposes of subparagraph 15 (b)(ii) of the Rules

Part 1 – Preliminary
      1. Name of Rules
 These Rules are the Private Health Insurance (Prudential Supervision) Rules 2019.
2.                      Revocation
These Rules replace the Private Health Insurance (Prudential Supervision) Rules 2016.
3.                      Commencement
 These Rules commence on the day after they are registered on the Federal Register of Legislative Instruments.
4.                      Definitions
Note: Terms used in these Rules have the same meaning as in the Act – see section 13 of the Legislative Instruments Act 2003. These terms include:
       appointed actuary
       approved form
       APRA
       assets
       cover
       for profit insurer
       health benefits fund
       health‑related business
       net asset position
       policy group
       policy holder
       private health insurer
       officer [of a private health insurer]
       referable
       rules [of an insurer]
 In these Rules:
    Act means the Private Health Insurance (Prudential Supervision) Act 2015.
    borrowings of a health benefits fund are borrowings which would be permitted under Rule 6 of these Rules.
    capital adequacy direction means a direction given by APRA under section 95 of the Act relating to the capital held by a private health insurer in a health benefits fund.
    capital adequacy standard means Prudential Standard HPS 110 Capital Adequacy (HPS 110) made under subsection 92(1) of the Act.
    general treatment is treatment (including the provision of goods and services) that:
    (a) is intended to manage or prevent a disease, injury or condition; and
    (b) is not hospital treatment.

hospital treatment is treatment (including the provision of goods and services) that:
    (a) is intended to manage disease, injury or condition; and
    (b) is provided to a person:
    (i) by a person who is authorised by a hospital to provide the treatment; or
    (ii) under the management or controls of such a person; and
    (c) either:
    (i) is provided at a hospital; or
    (ii) is provided, or arranged, with the direct involvement of a hospital.
    PHI Act means the Private Health Insurance Act 2007.
    PHIAC means the Private Health Insurance Administration Council.
    Regulations mean any regulations made under the Act.
    solvency direction means a direction given by APRA under section 96 of the Act to ensure that a private health insurer will be able to meet the liabilities of a health benefits fund conducted by the insurer out of the assets of the fund as they become due.
    solvency standard means Prudential Standard HPS 100 Solvency Standard (HPS 100) made under subsection 92(1) of the Act.

        subordinated debt is as defined in Prudential Standard HPS 001 Definitions.

Part 2 – Expenditure and application of health benefits funds
5.                      Mortgages and charges
       (1)          For the purposes of subsection 28(3) of