Document ID: chunk:federal_register_of_legislation:F2023L00678:body:0:p8
Version: federal_register_of_legislation:F2023L00678
Segment Type: other
Provision Reference: 
Character Range: 21067–24073

(by whatever name called).

   Where the chief executive officer and the chief reinsurance officer are the same person, the reinsurance declaration must be signed by that person and another person to be agreed upon with APRA.

    38.         The reinsurance declaration must be submitted to APRA at the same time as the Reinsurance Statement required under this Prudential Standard. This means that for an insurer whose reinsurance arrangements incept on a common date, the declaration must be provided within two months of the inception of the reinsurance arrangements. For an insurer with multiple inception dates, the declaration must be provided with one of the two Reinsurance Statements provided on an annual basis.

    39.         Should the reinsurance arrangements from the current and previous Reinsurance Statement not be fully placed, the details of any gaps or potential gaps must be detailed in the reinsurance declaration together with their impact on the insurance liabilities and ICRC of the insurer. The insurer must provide details of actions taken, or being taken, to eliminate any gaps in reinsurance coverage.

    40.         Where an insurer complies with the 'two month rule' in accordance with paragraph 42, the reinsurance declaration must confirm that there are no outstanding clauses, terms and conditions or other provisions yet to be agreed (that is, that no alterations or amendments to the contract are outstanding).

The 'inception date rule'
    41.         The 'inception date rule' is that by the inception date(s) of a reinsurance arrangement the regulated institution has written evidence each participating reinsurer is bound by the terms and coverage of the arrangement.

The 'two month rule'
    42.         The 'two month rule' is that within two months after the inception date(s) of the regulated institution's reinsurance arrangements the regulated institution has in its possession full treaty contracts (including any appending contracts and/or schedules) that have been signed and stamped by all contracting parties, namely the regulated institution and all participating reinsurers.[10]

Reinsurance declaration qualification
    43.         Where the insurer is unable to state in its reinsurance declaration that it has complied with the 'inception date rule' or the 'two month rule', the declaration must set out what alternate documentation is in place or, if there is no documentation, the reasons for this and what action the insurer is taking to seek to put this documentation in place.

    44.         Where the reinsurance arrangements attested to in the reinsurance declaration differ from those included in the insurer's Reinsurance Statement submitted to APRA in accordance with paragraphs 28 to 31, the insurer or insurance group, as the case may be, must submit to APRA a revised Reinsurance Statement which reflects details of the amended arrangements that are in place. If the amended Reinsurance Statement also warrants a change