Document ID: chunk:federal_register_of_legislation:F2021L00345:reg:23:p4
Version: federal_register_of_legislation:F2021L00345
Segment Type: reg
Provision Reference: reg 23 (pt 4/11)
Character Range: 25439–28167

premium for a full 12 months cover based on the rating factors that apply to the policy at the effective start date (field 12).

For the principle policy, the GAP must be reported in each and every reporting period, i.e. the original GAP amount will be reported each time the record is reported.

For an endorsement, the incremental change in GAP should be reported. For example, if the original policy was an annualised $1,000, and an endorsement to the policy increased the total premium (from inception) by $100, to $1,100, then $100 should be reported as the GAP on the endorsement record.

For a cancellation, the reported GAP amount will be the annualised amount (if any) refunded to the policy holder, stated as a negative. Negative numbers should be reported with a minus sign '-'.

Where records are aggregated due to duplication of the unique record key, the GAP must be the combined value of the GAP for all of the aggregated records.

In some cases (particularly endorsements) it would not be unusual to have a zero annualised premium.

Leap years are taken into account when calculating GEP (policy item 15b) from GAP (policy item 15a) and then validating that result back to GWP (policy item 16).

 15b. Gross Earned Premium (GEP)

In this field, insert (your co-insured share of) the earned amount of gross annual premium for the exposure of this policy during the reporting period (in whole $, no decimal points) between the effective start date (field 12) and effective end date (field 14).  Include the same components as for gross annualised premium.

Where a number of risks are reported separately, only the premium associated with that risk should be reported.

For endorsements and cancellations, the GEP should still be the earned amount of gross annual premium for the exposure of this endorsement or cancellation during the reporting period (in whole $, no decimal points) between the effective start date of the endorsement or cancellation (field 12) and effective end date of the endorsement or cancellation (field 14).

For an endorsement, the GEP will recognise the value of the premium earned on the endorsement for the relevant reporting period. For example, if the written premium on the endorsement was an incremental increase of $200, the GEP reported for the endorsement would represent the premium earned during the reporting period in respect of the incremental $200 written.

Negative numbers should be reported with a minus sign '-'.

Where records are aggregated due to duplication of the unique record key, the GEP must be the combined value of the GEP for all of the aggregated records.

16. Gross Written Premium (GWP)

In this field insert (your co-insured share of) the