Document ID: chunk:federal_register_of_legislation:F2023L00208:reg:5
Version: federal_register_of_legislation:F2023L00208
Segment Type: reg
Provision Reference: reg 5
Character Range: 45479–49970

5      Increased             A policy under which the contract of insurance (the original contract) is varied, at the request of the policy owner, by increasing:                                                     5.1 The minimum paid-up value is:

                             (a)  both the amount of the sum insured and the amount of each premium; or                                                                                                               where:
                             (b)  if additional amounts of premium are paid — the amount of the sum insured.

                                                                                                                                                                                                                      (a)  PUV is the minimum paid‑up value for the original contract, calculated according to Attachments 1 and 2 of this Prudential Standard.
                                                                                                                                                                                                                      (b)  INCPUV is the total of the minimum paid‑up values, in respect of each increase of the original contract, calculated according to Attachments 1 and 2 of this Prudential Standard, as if, for the purposes of those Attachments, each increase was a policy:
                                                                                                                                                                                                                      (i)      that was effected on the date of the increase;
                                                                                                                                                                                                                      (ii)    under which the sum insured is the amount of the increase; and
                                                                                                                                                                                                                      (iii)  under which the period for which premiums have been paid started on the date of the increase.

                                                                                                                                                                                                                      5.2 The minimum termination value of the policy is:

                                                                                                                                                                                                                      where:

                                                                                                                                                                                                                          (a)  SV is the minimum termination value of the original contract, calculated according to Attachments 1 and 2 of this Prudential Standard; and

                                                                                                                                                                                                                          (b)        INCSV is the total of the minimum termination values, in respect of each increase of the original contract, calculated according to Attachments 1 and 2 of this Prudential Standard, as if, for the purposes of those Attachments, each increase was a policy:

                                                                                                                                                                                                                      (i)      that was effected on the date of the increase;
                                                                                                                                                                                                                      (ii)    under which the sum insured is the amount of the increase; and
                                                                                                                                                                                                                      (iii)  under which the period for which premiums have been paid started on the date of the increase.