Document ID: chunk:federal_register_of_legislation:F2023L00604:reg:14:p4
Version: federal_register_of_legislation:F2023L00604
Segment Type: reg
Provision Reference: reg 14 (pt 4/12)
Character Range: 16316–19828

definition is provided in these instructions.

A

Actual gross claims incurred                    This is actual claims incurred over the reporting period, gross of reinsurance. The basis of this item must reflect the basis used for the RFBEL calculation.

                                                Claims incurred excludes any impact from strengthening / weakening of assumptions.

Actual gross initial commission paid            This is actual initial commissions paid over the reporting period, gross of reinsurance. Commissions include rebates.

Actual gross premium accrued                    This is actual premiums accrued over the reporting period, gross of reinsurance. The starting basis of this item must reflect the basis used for the RFBEL calculation, and apply adjustments to this item (and other related items) to meet the following definition.

                                                Premium is defined as gross of commissions, before profit share rebates, and inclusive of stamp duty, policy fees, loadings and discounts. This definition is consistent with the definition of premium in Reporting Standard LRS 750.0 Claims and Disputes (LRS 750.0).

                                                Accrued premium is defined as:

                                                , where:

                                                and

                                                Life companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item if accrued premium which meets the outlined definition is not readily available.

Actual gross renewal commission incurred        This is actual renewal commissions incurred over the reporting period, gross of reinsurance. Commissions include rebates. The basis of this item must reflect the basis used for the RFBEL calculation.

Actual maintenance and overhead costs incurred  This is actual maintenance and overhead costs incurred over the reporting period. The basis of this item must reflect the basis used for the RFBEL calculation.

Actual net claims incurred                      This is actual claims incurred over the reporting period, net of reinsurance. The basis of this item must reflect the basis used for the RFBEL calculation.

                                                Claims incurred excludes any impact from strengthening / weakening of assumptions.

Actual net initial commission paid              This is actual initial commissions paid over the reporting period, net of reinsurance. Commissions include rebates.

Actual net premiums accrued                     This is actual premiums accrued over the reporting period, net of reinsurance. The starting basis of this item must reflect the basis used for the RFBEL calculation, and apply adjustments to this item (and other related items) to meet the definitions of premium and accrued premium outlined in actual gross premiums accrued.

                                                Life companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item if accrued premium which meets the outlined definition is not readily available.

Actual net renewal commission incurred          This is actual renewal commissions incurred over the reporting period, net