Document ID: chunk:federal_register_of_legislation:F2024L00195:reg:11
Version: federal_register_of_legislation:F2024L00195
Segment Type: reg
Provision Reference: reg 11
Character Range: 12332–13364

11  Calculation of net claim value of policy
 (1) For the purposes of subsection 223(2) of the Act, this section sets out how to calculate the net claim value of a policy at a particular time.
 (2) The net claim value is the amount worked out using the following formula:
where:
amount payable in respect of claim means:
 (a) if, at that particular time:
 (i) the policy has matured; or
 (ii) the person whose life is insured under the policy has died;
  the amount payable on a claim arising under the policy in respect of that maturing or death; or
 (b) otherwise—the amount that, were the policy to be voluntarily terminated at that particular time, would be payable on a claim arising under the policy in respect of that termination.
debts means the total amount of any debts that, at that particular time, are:
 (a) owed to the relevant life company under the policy; or
 (b) secured by the policy.

Part 12—Application, transitional and saving provisions

Division 1—Provisions relating to this instrument as originally made