Document ID: chunk:federal_register_of_legislation:F2023L00640:body:0:p15
Version: federal_register_of_legislation:F2023L00640
Segment Type: other
Provision Reference: 
Character Range: 40214–43068

offset is calculated as the sum across columns 1 to 4.
 Item 2.4.5  Report the H4 reinstatement premiums amount for each event.
             The total H4 reinstatement premiums is calculated as the sum across columns 1 to 4.
 Item 2.4.6  Report the H4 reinstatement cost amount after the first, second and third events.
             The Level 2 insurance group is not required to determine a H4 reinstatement cost after the fourth event.
             The total H4 reinstatement cost is calculated as the sum across columns 1 to 3.
 Item 2.4.7  H4 loss per event is a derived item and is calculated for columns 1 to 4 as the sum of:

                  * item 2.4.2; and
                  * item 2.4.6.

             less:

                  * item 2.4.3;
                  * item 2.4.4; and
                  * item 2.4.5.

             The total H4 loss per event is calculated as the sum across columns 1 to 4.

 Item 2.5  Report the PL offset amount.

3.     Other accumulations vertical requirement (OA VR)
 Item 3    Other accumulations vertical requirement (OA VR) is a derived item and is calculated as the sum of:

                * item 3.1; and
                * item 3.4

            less:

                * item 3.2; and
                * item 3.3.

 Item 3.1  Report the OA PML amount.

 Item 3.2  Report the PL adjustment to OA PML amount.

 Item 3.3  Report the OA reinsurance recoverables amount.

 Item 3.4  Report the OA reinstatement cost amount.

4.     LMI concentration risk charge
 Item 4  LMI concentration risk charge is a derived item and is calculated as the greater of the:

              * total of item 4.3 multiplied by 10%; or
              * the sum of item 4.6 and item 4.8 less item 4.7.

The following columns are to be reported (where applicable) for item 4.1 to item 4.8:

 Column 1  Report the amount for year 1.

 Column 2  Report the amount for year 2.

 Column 3  Report the amount for year 3.

 Column 4  Report the total amount.

 Item 4.1  Report the total PML amount in column 4.
           The amounts in columns 1 to 3 respectively are calculated as:

                * column 4 multiplied by 25%;
                * column 4 multiplied by 50%; and
                * column 4 multiplied by 25%.

 Item 4.2  Report the adjustment to the PML amount for year 2 and year 3.
           A reduction in PML is to be entered as a positive amount. Do not enter any other adjustments to PML in this field.
 Item 4.3  Adjusted PML is a derived item and is calculated as:
              * item 4.1
           less:
              * item 4.2
 Item 4.4  Report the available reinsurance amount for each year.
           Report the amount of available reinsurance for each of the three years of the prescribed stress scenario.
 Item 4.5  Allowable reinsurance is a derived item and is calculated as the lesser of