Document ID: chunk:federal_register_of_legislation:F2024L00813:reg:1:p2
Version: federal_register_of_legislation:F2024L00813
Segment Type: reg
Provision Reference: reg 1 (pt 2/5)
Character Range: 17297–20264

for the company under paragraph 5‑5(3)(a) (gross premium income from public liability insurance and product liability insurance, capped by reference to the special public/product maximum).
B means the amount worked out for the company under paragraph 5‑5(3)(b) (gross premium income from professional indemnity insurance, capped by reference to the special professional maximum).
C means the special public/product percentage.
D means the special professional percentage.
 (5) The amount worked out under this subsection is the total of:
 (a) if during the previous calendar year the company has liabilities in respect of either or both of public liability insurance and product liability insurance—the special runoff amount; and
 (b) if during the previous calendar year the company has liabilities in respect of professional indemnity insurance—the special runoff amount.
 (6) In this section:
special professional maximum means $32,000.
special professional minimum means $5,000.
special professional percentage means 0.0398 per cent.
special public/product maximum means $50,000.
special public/product minimum means $5,000.
special public/product percentage means 0.0273 per cent.
special runoff amount means $2,500.

5-5  Eligible premium income for working out special component
 (1) For the purposes of paragraph 8(3)(h) of the Act, this section determines how a general insurance company's eligible premium income is to be worked out.
 (2) For the purposes of paragraph 8(6)(b) of the Act, the period for which a general insurance company's eligible premium income is to be worked out is the previous calendar year.
 (3) For the purposes of paragraph 8(6)(a) of the Act, the part of the general insurance company's premium income that is eligible premium income is the sum of:
 (a) the company's gross premium income (if any) from public liability insurance and from product liability insurance (if any) during the previous calendar year, worked out under subsection (4), but only so much of that gross premium income as, when multiplied by the special public/product percentage, does not exceed the special public/product maximum; and
 (b) the company's gross premium income from professional indemnity insurance (if any) during the previous calendar year, worked out under subsection (6), but only so much of that gross premium income as, when multiplied by the special professional percentage, does not exceed the special professional maximum.
 (4) For the purposes of paragraph (3)(a), gross premium income from public liability insurance and product liability insurance during the previous calendar year is the sum of:
 (a) the aggregate of the amounts required to be reported in:
 (i) the policy file for the 6 months ending on 30 June of the previous calendar year; and
 (ii) the policy file for the 6 months ending on 31 December of the previous calendar year;
  in the column headed "Gross Earned Premium" (and referred to as "field 15b"), where the