Document ID: chunk:federal_register_of_legislation:C2011A00043:clause:3_6
Version: federal_register_of_legislation:C2011A00043
Segment Type: clause
Provision Reference: sch 3 cl 6
Character Range: 9979–11167

6  After subsection 295‑465(2)
Insert:
 (2A) For the purposes of subsection (2), the regulations may provide that a specified proportion of an amount mentioned in subsection (2B) may be treated as being the amount the fund could reasonably be expected to pay in an *arm's length transaction to obtain an insurance policy to cover it for its current or contingent liabilities to provide benefits referred to in section 295‑460.
Example: If:
(a) an actuary certifies the amount a fund could reasonably be expected to pay in an arm's length transaction to obtain an insurance policy; and
(b) the insurance policy covers liabilities of the fund to provide a class of total and permanent disability benefits broader than that covered by section 295‑460; and
(c) the insurance policy is specified in the regulations; and
(d) the fund does not have insurance coverage for the liabilities;
 the fund may deduct, under subsection (2), so much of that certified amount as is specified in the regulations.
 (2B) The amount is the amount a *complying superannuation fund could reasonably be expected to pay in an *arm's length transaction to obtain an insurance policy specified in the regulations.