Document ID: chunk:federal_register_of_legislation:F2024L01053:front:0:p11
Version: federal_register_of_legislation:F2024L01053
Segment Type: other
Provision Reference: 
Character Range: 28369–31430

to a benefit is defined to mean any change to the previously applying contractual conditions that is beneficial to the policy owner.
    [LI] discretionary participation feature means a contractual right to receive, as a supplement to guaranteed benefits, additional benefits:
 1.           that are likely to be a significant portion of the total contractual benefits;
 2.           the amount or timing of which is contractually at the discretion of the issuer; and
 3.           that are contractually based on:
         1.             the performance of a specified pool of contracts or a specified type of contract;
         2.          realised and/or unrealised investment returns on a specified pool of assets held by the issuer; or
         3.        the profit or loss of the company, fund or other entity that issues the contract.
    A policy with a discretionary participation feature can provide benefits that are either participating benefits or non-participating benefits.
    [LI] education bond business means a form of unbundled investment business where the policies provide for the payment of a benefit for the specific purpose of contributing towards the expenses of, and incidental to, the education of the beneficiary.
    [LI] Eligible Foreign Life Insurance Company (EFLIC) has the meaning given in section 16ZD of the Life Insurance Act.
    [ADI, GI, LI, PHI] ensure, when used in relation to a responsibility of the board, means to take all reasonable steps and make all reasonable enquiries as are appropriate for a board so that the board can determine, to the best of its knowledge, that the stated matter has been properly addressed.
    [LI] establishment fee is a fee received at the commencement of a policy which is intended to, at least partially, cover acquisition expenses. It does not include contingent entitlement to exit fees or surrender penalties.
    [GI] expected reinsurance recoveries means any amounts due to an insurer, or to an entity that carries on international business within a Level 2 insurance group, from a reinsurer that arise from the recognition of premiums liabilities referred to in the GI Prudential Standards (including Prudential Standard GPS 340 Insurance Liability Valuation). This is distinguished from reinsurance recoverables.
    [PHI] expected reinsurance recoveries means any amounts due to a private health insurer from a reinsurer that arise from the recognition of premiums liabilities referred to in the PHI Prudential Standards (including Prudential Standard HPS 340 Insurance Liability Valuation). This is distinguished from reinsurance recoverables.
    [LI] expense category refers to a grouping of expenses directly or indirectly referable to life business. For the purposes of prudential standards, three categories of expense are defined: acquisition expenses, maintenance expenses and investment management expenses.
    [LI] expense driver means a quantifiable measure in relation to which the relevant expenses of a life company are expected to vary.
    [LI] experience