Australian Capital Territory Numbered Regulations

WORKERS COMPENSATION REGULATIONS 2002 (NO 20 OF 2002) - REG 75

    (1)     In working out premiums, an insurer must—

        (a)     provide for sufficient (but not excessive) income from premiums to fully fund liabilities arising from policies of insurance to which the premiums relate; and

        (b)     ensure that premiums are structured so as to minimise, as far as reasonably practicable, the cross subsidisation of premium rating groups.

    (2)     For this regulation, there is sufficient income from premiums to fully fund the liabilities to which the premiums relate if the premiums are sufficient to do all of the following:

        (a)     fully fund claims liabilities arising from the insurance policies to which the premiums relate;

        (b)     pay all acquisition, policy administration and claims settlement expenses of the insurer;

        (c)     provide a profit margin after the payment of claims, costs and expenses that represents an adequate return on capital invested and compensation for the risk taken;

        (d)     provide for anything else that a prudent insurer should, in the circumstances, provide for;

        (e)     provide for contributions or other charges payable by the insurer under the Act.

    (3)     An insurer is taken to have complied with subregulation (1) (a) if the insurer provides for sufficient (but not excessive) income from premiums in accordance with actuarial advice about the liability arising from policies of insurance to which the premiums relate.