Document ID: chunk:federal_register_of_legislation:F2024L01053:front:0:p24
Version: federal_register_of_legislation:F2024L01053
Segment Type: other
Provision Reference: 
Character Range: 63761–66646

benefits and must not be traditional business or funeral bond business.
    [PHI] risk equalisation is the payments to be made to or receivables expected from the Risk Equalisation Special Account for the relevant period. Risk Equalisation Special Account has the same meaning as in the PHIPS Act.
    [ADI, GI, LI, PHI] risk management declaration is as defined in Prudential Standard CPS 220 Risk Management.
    [ADI, GI, LI, PHI] risk management framework is as defined in Prudential Standard CPS 220 Risk Management.
    [ADI, GI, LI, PHI] risk management strategy is as defined in Prudential Standard CPS 220 Risk Management.
    [LI] risk-free best estimate liability is as defined in Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.
    [LI] risk-free discount rate for liabilities denominated in Australian currency means the rate (or rates) based on the yields of Commonwealth Government Securities that relate to the term of the future liability cash flows. If the term of the liability cash flows exceeds the maximum available term of Commonwealth Government Securities, APRA expects other instruments with longer terms to be used as a reference point for the purpose of extrapolation unless the insurer can demonstrate there are no other suitable instruments. Adjustments must be made to remove any allowances for credit risk and illiquidity that are implicit in the yields on these instruments. For foreign liabilities, the rate (or rates) must be based on the yields of highly liquid sovereign risk securities in the currency of the policy liabilities and with counterparty grade 1. If there are no securities satisfying these requirements, other instruments may be used as a reference point. Adjustments must be made to remove any allowances for credit risk and illiquidity that are implicit in the yields on these instruments.
    [ADI, GI, LI] RSE means a registrable superannuation entity as defined in the Superannuation Industry (Supervision) Act 1993 (SIS Act).
    [ADI, GI, LI] RSE licensee has the meaning given in the Superannuation Industry (Supervision) Act 1993 (SIS Act).
    [GI] run-off insurer means an insurer that is closed to new business and has not written renewal business for a period of at least 12 months.
    [LI] seed capital means an amount transferred, with the approval of APRA, from the management fund of a friendly society to one of its approved benefits funds for the purpose of meeting the capital standards for the benefit fund.
    [PHI] senior management means a person who has or exercises any senior management responsibilities for the private health insurer.
    [ADI, GI, LI] senior management means senior managers as defined in Prudential Standard CPS 520 Fit and Proper.
    [ADI] senior manager has the meaning in the Banking Act.
    [GI] senior manager has the meaning in the Insurance Act.
    [LI]