Document ID: chunk:federal_register_of_legislation:F2024L01053:front:0:p16
Version: federal_register_of_legislation:F2024L01053
Segment Type: other
Provision Reference: 
Character Range: 41916–44804

any entity within the group that is not authorised under the Insurance Act.
    [LI] investment account benefit has the meaning given in the Dictionary to the Life Insurance Act.
    [LI] investment account contract has the meaning given in the Dictionary to the Life Insurance Act.
    [LI] investment fluctuation reserve means a reserve used for smoothing discretionary additions for non-participating benefits. For the purpose of the capital adequacy standards the investment fluctuation reserve is defined to be the difference between the value of the assets administered for the purpose of a subcategory and the aggregate value of the accounts under the policies belonging to that subcategory.
    [LI] investment management expenses means the fixed and variable expenses of a life company to the extent they are, either directly or indirectly, referable to managing the company's investment portfolio.
    [LI] investment performance guarantee means an investment performance guarantee in accordance with section 42 of the Life Insurance Act.
    [LI] investment-linked benefit has the meaning given in the Dictionary to the Life Insurance Act.
    [LI] investment-linked contract has the meaning given in the Dictionary to the Life Insurance Act.
    [ADI] IRB approval refers to the written approval from APRA for an ADI to adopt the IRB approach.
    [ADI] IRRBB means interest rate risk in the banking book: the risk of loss in earnings or in the economic value on banking book items as a consequence of movements in interest rates.
    [ADI] legal risk includes, but is not limited to, exposure to fines, penalties or punitive damages resulting from supervisory actions as well as ordinary damages in civil litigation, related legal costs and private settlements.
    [GI] lenders mortgage insurance has its ordinary commercial meaning and includes insurance under a policy that protects a lender from losses in the event of borrower default on a loan secured by a mortgage over residential or other property.
    [GI] lenders mortgage insurer means an insurer that has written or reinsured, or proposes to write or reinsure, policies of lenders mortgage insurance.
    [ADI] Level 1 means either the ADI itself or the ELE.
    [GI] Level 1 insurer, for the purposes of the prudential requirements applicable to Level 2 insurance groups, means an individual insurer that is authorised under the Insurance Act and is part of a Level 2 insurance group.
    [ADI] Level 2 means either:
 1.           if the ADI is not a subsidiary of an authorised NOHC and the ADI has subsidiaries in addition to those included in its ELE, the consolidation of the ADI and all its subsidiary entities other than non-consolidated subsidiaries; or
 2.           if the ADI is a subsidiary of an authorised NOHC, the consolidation of the immediate parent NOHC of the ADI and all the immediate parent