Document ID: chunk:federal_register_of_legislation:F2017L00636:body:0:p7
Version: federal_register_of_legislation:F2017L00636
Segment Type: other
Provision Reference: 
Character Range: 15025–17902

product for the second year is reduced to an amount that is less than the policy cost (initial second year policy cost) for the product for the second year as determined at:
                  (A) if the benefit was not given because of a client initiated increase—the start of the second year; and
                  (B) if the benefit was given because of a client initiated increase—12 months after the date of the client initiated increase; and
           (b) if the benefit was given because of a client initiated increase, the cancellation, non-continuation or reduction does not occur within the 12 month period commencing on the date of the client initiated increase.
(11)  Subject to subsection (13), the amount of the acceptable repayment is:
           (a) in the case of the product being cancelled or not continued—60% of the adjusted benefit; and
           (b) in the case of a reduction in policy cost referred to in paragraph (10)(a)(ii) or (iii)—60% of the percentage of the adjusted benefit that is equal to the percentage by which the policy cost (determined immediately before and immediately after the reduction) has been reduced; and
           (c) in the case of a reduction in policy cost referred to in paragraph (10)(a)(iv)—60% of the percentage of the adjusted benefit that is equal to the percentage by which the policy cost (determined immediately after the reduction) has been reduced below the initial second year policy cost.
(12) In subsection (11), adjusted benefit means the benefit less the aggregate of any acceptable repayments in relation to the benefit resulting from any previous applications of subsection (3) or (6).
(13) If there have been any previous applications of subsection (10) in relation to the benefit, the amount of the acceptable repayment determined under subsection (11) is reduced by the aggregate of the acceptable repayments resulting from the previous applications of subsection (10).
           Note: Each application of subsection (10) gives rise to a separate acceptable repayment amount.
    Acceptable repayment for second year client initiated increase where trigger event in second year—100% clawback
(14) An acceptable repayment in relation to a benefit given for the second year in relation to circumstances where:
           (a) the benefit was given because of a client initiated increase in the second year; and
           (b) the product is cancelled or not continued during the second year or the policy cost for the product for the second year is reduced to an amount that is less than the policy cost for the product for the second year as determined immediately after the client initiated increase;
           is the amount worked out in accordance with subsections (15) and (16).
(15)  Subject to subsection (16), the amount of the acceptable repayment is:
           (a) in the case of the product