Document ID: chunk:federal_register_of_legislation:C2023C00421:section:7a
Version: federal_register_of_legislation:C2023C00421
Segment Type: section
Provision Reference: s 7A
Character Range: 18436–19868

7A  Reasonableness of premiums
  In deciding whether the premium payable by an insured under a contract of insurance for particular cover is reasonable, regard is to be had to:
 (a) the nature of the risks being assumed by the insurer; and
 (b) the claims handling expenses, and other administrative expenses, the insurer has incurred and can reasonably be expected to incur; and
 (c) the expenses the insurer can reasonably be expected to incur in obtaining appropriate reinsurance; and
 (d) the expenses the insurer can reasonably be expected to incur in capital raising and prudential compliance; and
 (e) the amount that represents a reasonable profit margin for the insurer; and
 (f) the amount of any relevant taxes or statutory charges payable by the insurer; and
 (g) the information provided, or not provided, to the insurer by the client in relation to matters relevant to assessing the risk being assumed by the insurer; and
 (h) the amount that represents provisioning for future liabilities for medical indemnity cover that may be required to be offered under section 23 for a premium that does not reflect the cost of providing that medical indemnity cover; and
 (i) the receipt, or probable receipt, of Commonwealth assistance in relation to provision of the medical indemnity cover; and
 (j) such other matters as are specified in regulations made for the purposes of this paragraph.

Division 3—Application of Act