Document ID: chunk:federal_register_of_legislation:F2021N00108:clause:1_22:p2
Version: federal_register_of_legislation:F2021N00108
Segment Type: clause
Provision Reference: sch 1 cl 22 (pt 2/2)
Character Range: 30303–32646

amount calculated by the actuary as the greater of:
 (a) the 95th percentile of the Licensee's Outstanding Claim Liability under the SRC Act in accordance with the scope of this licence at the Balance Date and the addition of the Excess Amount; or
 (b) the 95th percentile of the Licensee's projected Outstanding Claim Liability under the SRC Act in accordance with the scope of this licence in 12 months' time from the Balance Date and the addition of the Excess Amount.
Note: The liability calculations under condition 22(7) are to include an allowance for the cost of administering claims under this licence and be calculated net of reinsurance recoveries.
 (8) In calculating the amount of the Guarantee, the Licensee must direct the actuary to:
 (a) calculate existing and projected estimates of the Licensee's Outstanding Claim Liability under the SRC Act in accordance with the scope of this licence to the 95th percentile and to include this result in the Liability Report; and
 (b) base the calculation on a full statistical analysis of data, trends and variability and according to any relevant IAA standards and guidelines on liability valuation for general insurance.
 (9) If the Licensee obtained a Guarantee under condition 22(1), the Licensee may at any time provide to the Commission a new Guarantee obtained under condition 22(1) that, if prepared in accordance with conditions 22(5), 22(7) and 22(8), will replace the existing Guarantee obtained under condition 22(1).
 (10) If the Commission identifies a financial risk with respect to the suitability of the financial institution from which the Licensee has obtained its current Guarantee under condition 22(1) and requests, after consulting with the Licensee, that the Licensee obtain a new Guarantee under condition 22(1), the Licensee must:
 (a) comply with this request within 3 months or, if applicable, an alternative timeframe specified in the request; and
 (b) ensure that the new Guarantee is prepared in accordance with conditions 22(5), 22(7) and 22(8).
 (11) If the guarantor under a Guarantee obtained by the Licensee under condition 22(1) discharges its financial obligation under that Guarantee by making payment to Comcare of its total liability or amounts which when aggregated equal its total liability, Comcare must return that Guarantee to the guarantor