Document ID: chunk:federal_register_of_legislation:F2017L00610:reg:2017:p2
Version: federal_register_of_legislation:F2017L00610
Segment Type: reg
Provision Reference: reg 2017 (pt 2/2)
Character Range: 3063–6043

Service Levy component of that premium which the                                                                       insured has remitted.  (The figures used for this calculation must be                                           the figures disclosed in the Reinsured's returns to APRA for the 12                                           months ending 30 June prior to each Retention Period).
  OR

  B If the Reinsured does not submit returns to APRA for Fire and ISR                                           premium, or, being a newly formed entity has not submitted a                                                         return to APRA for the 12 months ending 30 June prior to the                                                         relevant Retention Period, the figures used for this calculation will                                           be an appropriate equivalent to that described in clause 5(b)(ii)A                                                         as determined by the Corporation in its discretion.
  OR

  C If the amount calculated in accordance with clauses 5(b)(ii)A or                                            5(b)(ii)B is less than the Minimum specified in the Retention                                                                       Table then the Reinsured's Retention shall be an amount equivalent                                           to the Minimum.

(c) The Reinsured's Retention may be borne by the Reinsured or wholly or partly               reinsured elsewhere at the Reinsured's discretion.

(d) If, however, the sum of the Reinsured's Retention and the retentions of all the  Corporation's other reinsureds together total more than the Maximum Industry               Retention set out in the Retention Table in respect of all eligible terrorism               losses caused by a single declared terrorist incident then the amount of the               Reinsured's Retention in respect of that declared terrorist incident shall be               adjusted on the following basis:

 (i)  the Corporation will determine the Reinsured's Retention as a percentage                             of the total retention of all of the Corporation's reinsureds that incur                                           claims caused by that declared terrorist incident (the Reinsured's                                                         Proportion);

 (ii) the Reinsured's Retention shall be an amount equal to the Reinsured's                              Proportion of the Maximum Industry Retention.

(e) Retention Table

Retention Period              Minimum   Default Figure  Maximum Industry Retention
1 July 2017 to 30 June 2018   $100,000  $12.5 million   $150 million
Occurring after 30 June 2018  $100,000  $12.5 million   $200 million

    6 Corporation to ensure consistency

    The Corporation must ensure that a contract of reinsurance between the Corporation and another person is consistent with this Direction.