Document ID: chunk:federal_register_of_legislation:F2018L01496:body:0:p10
Version: federal_register_of_legislation:F2018L01496
Segment Type: other
Provision Reference: 
Character Range: 24787–27721

event occurs. Insurers should report the full Sum Insured and not apply any reductions that may exist for severity-based Trauma and Accidental Injury benefits or for DII due to partial disability or a workers' compensation offset. Where reductions to the Sum Insured are made consistent with the Policy Contract, this will be reflected in the Claim Amount Paid (defined in paragraph 51). Sum Insured should be reported gross of reinsurance. Distinction is made between the following types of Sums Insured:
(a)          Lump Sum: this is a single amount payable when the policy conditions are met. Sums Insured in respect of Death, TPD and Trauma, as well as Funeral and Accident Insurance are normally of a lump sum nature. TPD benefits paid by instalments should be shown at their full face value. For Trauma contracts that include partial payments for less severe conditions, the Sum Insured is the full nominal Sum Insured and not the severity-based payment amount.
(b)          Monthly Insured Benefit: for DII the Sum Insured is the regular monthly (or equivalent monthly) benefit that would be paid if the insured were disabled in accordance with the provisions of the Policy Contract.
(c)          CCI benefits should be reported as follows:
(i)            Lump sum that is fixed: The fixed benefit should be reported.
(ii)         Lump sum equal to the outstanding loan or credit card balance: The latest known balance should be reported.
(iii)       Lump sum equal to a portion of the outstanding loan or credit card balance: The calculated benefit based on the latest known balance should be reported.
(iv)        Monthly benefit equal to a loan instalment: Monthly benefits should be reported on a capitalised basis, i.e. the monthly benefit multiplied by the number of months that the benefit is expected to be paid. Additional detail in respect of monthly benefits should be provided in the SUPPLEMENT_CCI sheet of the reporting form.
22.         'New Business' refers to a new Policy Contract, or a new Policy Benefit under an existing Policy Contract.
(a)          New Business should include the following specific circumstances:
(i)            Voluntary cover increases that resulted in new covers being created (typically subject to underwriting) or the exercise of embedded options (e.g. additional cover for the birth of a child);
(ii)         New Policy Contracts issued that also had a claim during the Reporting Period;
(iii)       Policies issued and subsequently lapsed during the cooling off period, all within the Reporting Period; and
(iv)        New Policy Contracts created to replace cancelled policies. This only applies to instances that result in new covers.
(b)          New Business should exclude the following specific circumstances:
(i)            Automated premium and/or Sum Insured increases on existing covers, such as age-related premium increases for a stepped premium product or automatic