Document ID: chunk:federal_register_of_legislation:F2023C00382:front:0:p37
Version: federal_register_of_legislation:F2023C00382
Segment Type: other
Provision Reference: 
Character Range: 96606–100727

items;
                                                               (b) the entity expects to pay to the policyholder an amount equal to a substantial share of the fair value returns on the underlying items; and
                                                               (c) the entity expects a substantial proportion of any change in the amounts to be paid to the policyholder to vary with the change in fair value of the underlying items.
insurance contract without direct participation features       An insurance contract that is not an insurance contract with direct participation features.
insurance risk                                                 Risk, other than financial risk, transferred from the holder of a contract to the issuer.
insured event                                                  An uncertain future event covered by an insurance contract that creates insurance risk.
investment component                                           The amounts that an insurance contract requires the entity to repay to a policyholder in all circumstances, regardless of whether an insured event occurs.
investment contract with discretionary participation features  A financial instrument that provides a particular investor with the contractual right to receive, as a supplement to an amount not subject to the discretion of the issuer, additional amounts:
                                                               (a) that are expected to be a significant portion of the total contractual benefits;
                                                               (b) the timing or amount of which are contractually at the discretion of the issuer; and
                                                               (c) that are contractually based on:
                                                               (i) the returns on a specified pool of contracts or a specified type of contract;
                                                               (ii) realised and/or unrealised investment returns on a specified pool of assets held by the issuer; or
                                                               (iii) the profit or loss of the entity or fund that issues the contract.
liability for incurred claims                                  An entity's obligation to:
                                                                    (a)                    investigate and pay valid claims for insured events that have already occurred, including events that have occurred but for which claims have not been reported, and other incurred insurance expenses; and
                                                               (b) pay amounts that are not included in (a) and that relate to:
                                                               (i) insurance contract services that have already been provided; or
                                                                         (ii) any investment components or other amounts that are not related to the provision of insurance contract services and that are not in the liability for remaining coverage.
liability for remaining coverage                               An entity's obligation to:
                                                                    (a)                    investigate and pay valid claims under existing insurance contracts for insured events that have not yet occurred (ie the obligation that relates to the unexpired portion of the insurance coverage); and
                                                               (b) pay amounts under existing insurance contracts that are not included in (a) and that relate to:
                                                               (i) insurance contract services not yet provided (ie the obligations that relate to future provision of insurance contract services); or
                                                                         (ii) any investment components or other amounts that are not related to the provision of insurance contract services and that have not been transferred to the liability for incurred