Document ID: chunk:federal_register_of_legislation:F2024L01053:front:0:p20
Version: federal_register_of_legislation:F2024L01053
Segment Type: other
Provision Reference: 
Character Range: 52648–55649

health insurer that is not a significant financial institution.
    [ADI] offshoring means the outsourcing by an ADI of a material business activity associated with its Australian business to a service provider (including a related body corporate) where the outsourced activity is to be conducted outside Australia.
    [LI] operating profit has the same meaning as in section 58 of the Life Insurance Act.
    [ADI] operational risk means the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk but excludes strategic and reputational risks.
    [GI] Operational Risk Charge is the risk charge determined under Prudential Standard GPS 118 Capital Adequacy: Operational Risk Charge.
    [LI] Operational Risk Charge is the risk charge determined under Prudential Standard LPS 118 Capital Adequacy: Operational Risk Charge.
    [PHI] Operational Risk Charge is the risk charge determined under Prudential Standard HPS 118 Capital Adequacy: Operational Risk Charge.
    [ADI] ordinary shares for Regulatory Capital purposes must meet the criteria in Attachment B to Prudential Standard APS 111 Capital Adequacy: Measurement of Capital.
    [LI] other liability refers to a liability according to general accounting concepts, other than a policy liability or a liability in respect of an instrument that is eligible to be included in the capital base.
    [PHI] outstanding claims risk size margin of a health benefits fund is as defined in Prudential Standard HPS 115 Capital Adequacy: Insurance Risk Charge.
    [GI] parent entity is as defined in Attachment A to this Prudential Standard.
    [LI] participating benefit has the same meaning as in section 15 of the Life Insurance Act.
    [LI] participating policy liability is as defined in Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.
    [GI] partnership captive means an insurer that:
 1.           is owned by a partnership; and
 2.           exists for the purpose of underwriting the business risks of the partners and/or the partnership.
    [PHI] PHI Act means the Private Health Insurance Act 2007.
    [PHI] PHIPS Act means the Private Health Insurance (Prudential Supervision) Act 2015.
    [GI, PHI] policy administration expenses are costs that a general insurer, Level 2 insurance group or private health insurer expects to incur in administering policies, which includes an appropriate allocation of business overheads such as corporate office overheads. This includes, but is not limited to, policy management and administration expenses to allow for the cost of managing unexpired policies for which the entity is on risk.
    [PHI] policy holder has the same meaning as in the PHIPS Act.
    [ADI, GI, LI] policyholder means a policyholder as referred to in the Insurance Act or a policy owner as referred to in the Life Insurance Act.
    [LI] policy liability has the same meaning as in the Dictionary to the