Document ID: chunk:federal_register_of_legislation:F2022L00741:body:0:p3
Version: federal_register_of_legislation:F2022L00741
Segment Type: other
Provision Reference: 
Character Range: 5829–8923

available to beneficiaries.

    10.         An RSE licensee's insurance management framework is the totality of systems, structures, policies, processes and people to manage making insured benefits available to beneficiaries.

    11.         An RSE licensee's insurance management framework must be appropriate to the size, business mix and complexity of the RSE licensee's business operations and to the types of insured benefits made available.

    12.         The Board is ultimately responsible for the insurance management framework.

    13.         An RSE licensee's insurance management framework must, at a minimum, include:

(a)          the insurance strategy required under section 52(7) of the SIS Act (which must also comply with the requirements of this Prudential Standard);

(b)          policies and procedures of the RSE licensee relevant to making insured benefits available to beneficiaries, that cover but are not limited to:

            (i)            the process by which the cost to the RSE licensee of insurance premiums is recovered from the RSE(s);

            (ii)         the process for monitoring and reviewing the administration of insurance;

   4 For the purposes of this Prudential Standard, a reference to 'a group' is a reference to a group comprising the RSE licensee and all connected entities of the RSE licensee and 'connected entity' has the meaning given in section 10(1) of the SIS Act.

   5 For the purposes of this Prudential Standard, a reference to the 'Board' is a reference to the Board of directors or group of individual trustees of an RSE licensee and 'group of individual trustees' has the meaning given in section 10(1) of the SIS Act. For the purposes of this Prudential Standard, an 'RSE licensee's business operations' includes all activities as an RSE licensee (including the activities of each RSE of which it is the licensee), and all other activities of the RSE licensee to the extent that they are relevant to, or may impact on, its activities as an RSE licensee.

            (iii)       underwriting; and

            (iv)        claims assessment;

(c)          clearly defined roles and responsibilities and lines of reporting for the oversight of the insurance management framework;

(d)          a review process to ensure the insurance management framework remains appropriate and effective;

(e)          a policy for managing declined applications for insurance, applications resulting in reduced cover or restrictions, terminations of cover and requests for reinstatement; and

(f)           a process that enables beneficiaries to easily opt out of insurance cover, and that sets out how this will be communicated to beneficiaries.6

    14.         An RSE licensee must have procedures to ensure that all persons in roles relevant to the insurance activities of the RSE licensee are made aware of, and have processes and controls for monitoring compliance with, the RSE licensee's insurance management framework.

    15.         An RSE licensee must maintain or have access to records of sufficient detail to