{"id":"nsw:sl-2009-0171","name":"Insurance Premiums Order (Retro-Paid Loss Premium Method) 2009–2010","slug":"insurance-premiums-order-retro-paid-loss-premium-method-2009-2010","collection":"regulation","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"171 of 2009","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":178335,"registerId":"nsw-nsw:sl-2009-0171-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Name of Order","content":"#### 1 Name of Order\n\n1 Name of Order\n\n> This Order is the [Insurance Premiums Order (Retro-Paid Loss Premium Method) 2009–2010](/view/html/inforce/current/sl-2009-0171).","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> This Order commences at 4 pm on 30 June 2009 and is required to be published in the Gazette.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Interpretation","content":"#### 3 Interpretation\n\n3 Interpretation\n\n> > (1) In this Order, words and expressions have the same meanings as they have in the General Order, unless this Order provides otherwise.\n> \n> > (2) In this Order:\n> > \n> > adjustment date, in relation to a policy of insurance, means each of the following dates:\n> > \n> > > (a) the date that is 15 months after the date of the commencement of the period of insurance (the first adjustment date),\n> > \n> > > (b) the date that is 24 months after the date of the commencement of the period of insurance (the second adjustment date),\n> > \n> > > (c) the date that is 36 months after the date of the commencement of the period of insurance (the third adjustment date),\n> > \n> > > (d) the date that is 48 months after the date of the commencement of the period of insurance (the fourth adjustment date),\n> > \n> > > (e) the date that is 60 months after the date of the commencement of the period of insurance (the fifth adjustment date).\n> > \n> > cost of claims has the same meaning as in Division 4 of Part 20 of the [Workers Compensation Regulation 2003](/view/html/repealed/current/sl-2003-0628).\n> > \n> > General Order means:\n> > \n> > > (a) the [Insurance Premiums Order 2009–2010](/view/html/inforce/current/sl-2009-0229), or\n> > \n> > > (b) if no such order has been made, the [Insurance Premiums Order 2008–2009](/view/html/inforce/current/sl-2008-0157).\n> \n> > (3) The explanatory note does not form part of this Order.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Application of Order","content":"#### 4 Application of Order\n\n4 Application of Order\n\n> > (1) This Order applies only to and in respect of policies of insurance for employers to whom the optional alternative method of calculating premiums under section 168A of the Act applies (retro-paid loss premium policies).\n> \n> > (2) This Order applies to and in respect of retro-paid loss premium policies that are to be or have been issued or renewed so as to take effect on or after 4 pm on 30 June 2009 and before 4 pm on 30 June 2010.\n> \n> > (3) If, before 4 pm on 30 June 2010, an insurance premiums order that applies only to and in respect of retro-paid loss premium policies has not been made in respect of such policies of insurance taking effect on or after that time, this Order applies to and in respect of those policies pending the making of such an order.\n> \n> > (4) The General Order (other than clauses 3 and 4) applies to and in respect of retro-paid loss premium policies, unless this Order provides otherwise.\n> \n> > (5) This Order does not apply to a policy of insurance issued or renewed by a specialised insurer that is exempted from insurance premiums orders by clause 147 of the [Workers Compensation Regulation 2003](/view/html/repealed/current/sl-2003-0628).","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Classification of large employers","content":"#### 5 Classification of large employers\n\n5 Classification of large employers\n\n> A large employer within the meaning of the General Order is classified a large employer under this Order.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Retro-Paid Loss Premium Method of premium calculation","content":"#### 6 Retro-Paid Loss Premium Method of premium calculation\n\n6 Retro-Paid Loss Premium Method of premium calculation\n\n> For the purposes of section 168A of the Act, the alternative method is to calculate the premium for a policy of insurance at the commencement of the period of insurance (the deposit premium), and then recalculate the premium at each adjustment date (the adjusted premium), in accordance with this Order.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Minimum premium","content":"#### 7 Minimum premium\n\n7 Minimum premium\n\n> Despite any other provision of this Order, a deposit premium and an adjusted premium in respect of any policy of insurance is to be no less than $175.","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"Calculation of required deposit: section 172A of Act","content":"#### 8 Calculation of required deposit: section 172A of Act\n\n8 Calculation of required deposit: section 172A of Act\n\n> > (1) The required deposit for an employer in relation to a policy of insurance is to be calculated in accordance with the following formula:\n> > \n> > > (a) before the first adjustment date:\n> > > \n> > > ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0171)%20AND%20(Year%3D2009)%20AND%20(%22Historical%20Document%22%3D0))/g1.gif)\n> > \n> > > (b) on and from the first adjustment date:\n> > > \n> > > ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0171)%20AND%20(Year%3D2009)%20AND%20(%22Historical%20Document%22%3D0))/g2.gif)\n> > \n> > where:\n> > \n> > RD is the required deposit in respect of the period of insurance to which the policy relates.\n> > \n> > Pmax is the maximum premium that is payable by the employer calculated in accordance with Schedule 1.\n> > \n> > PD is the deposit premium payable by the employer calculated in accordance with Schedule 1.\n> > \n> > P is the premium payable by an employer for a policy of insurance calculated in accordance with Schedule 1.\n> \n> > (2) However, if the employer is a member of a group, subclause (1) does not apply and the required deposit for an employer in relation to a policy of insurance is to be calculated in accordance with the following formula:\n> > \n> > > (a) before the first adjustment date:\n> > > \n> > > ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0171)%20AND%20(Year%3D2009)%20AND%20(%22Historical%20Document%22%3D0))/g3.gif)\n> > \n> > > (b) on and from the first adjustment date:\n> > > \n> > > ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0171)%20AND%20(Year%3D2009)%20AND%20(%22Historical%20Document%22%3D0))/g4.gif)\n> > \n> > where:\n> > \n> > RD is the required deposit in respect of the period of insurance to which the policy relates.\n> > \n> > PGmax is the maximum premium that is payable by the members of the group in respect of the period of insurance to which the group’s policies relate calculated in accordance with Schedule 2.\n> > \n> > PGd is the deposit premium payable by the members of the group in respect of the period of insurance to which the group’s policies relate calculated in accordance with Schedule 2.\n> > \n> > PEd is the deposit premium that is payable by the employer who is a member of a group calculated in accordance with Schedule 2.\n> > \n> > PG is the group premium payable by the members of the group in respect of the period of insurance to which the group’s policies relate calculated in accordance with Schedule 2.\n> > \n> > PE is the premium for the time being payable by an employer who is a member of a group in respect of the period of insurance to which the policy relates (including, where adjustments are required to be made to that premium by reason of the operation of this Order, the premium so payable by reason of those adjustments).","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Schedules form part of Order","content":"#### 9 Schedules form part of Order\n\n9 Schedules form part of Order\n\n> Schedules 1–4 form part of this Order.","sortOrder":8},{"sectionNumber":"Schedule 1","sectionType":"schedule","heading":"Method of calculation of deposit premium and adjusted premium—general","content":"# Schedule 1 Method of calculation of deposit premium and adjusted premium—general\n\nSchedule 1 Method of calculation of deposit premium and adjusted premium—general\n\n(Clause 8)","sortOrder":9},{"sectionNumber":"Schedule 2","sectionType":"schedule","heading":"Method of calculation of deposit premium and adjusted premium—member of a group","content":"# Schedule 2 Method of calculation of deposit premium and adjusted premium—member of a group\n\nSchedule 2 Method of calculation of deposit premium and adjusted premium—member of a group\n\n(Clause 8)","sortOrder":12},{"sectionNumber":"Schedule 3","sectionType":"schedule","heading":"Experience adjustment factor","content":"# Schedule 3 Experience adjustment factor\n\nSchedule 3 Experience adjustment factor\n\n(Schedule 1, clause 2 and Schedule 2, clause 6)","sortOrder":19},{"sectionNumber":"Schedule 4","sectionType":"schedule","heading":"Claims adjustment factor","content":"# Schedule 4 Claims adjustment factor\n\nSchedule 4 Claims adjustment factor\n\n(Schedule 1, clause 2 and Schedule 2, clause 6)","sortOrder":23},{"sectionNumber":"sch.4-sec","sectionType":"section","heading":"General","content":"#### sch.4-sec General\n\nGeneral\n\n> The claims adjustment factor for an employer (“V”) (or for a group (“VG”)) at the adjustment date set out in Column 1 of the Table to this clause is, if the employer has (or all the members of the group of employers of which the employer is a member have) elected a large claim limit for the purposes of clause 137 (5) of [Workers Compensation Regulation 2003](/view/html/repealed/current/sl-2003-0628) of:\n> \n> > (a) $350,000—the factor set out in Column 2 of the Table corresponding to that date, and\n> \n> > (b) $500,000—the factor set out in Column 3 of the Table corresponding to that date.\n> \n> Table\n> \n> | Column 1 | Column 2 | Column 3 |\n> | Adjustment date | Adjustment factor “V” (or “VG”) for $350,000 large claim limit | Adjustment factor “V” (or “VG”) for $500,000 large claim limit |\n> | First adjustment date (being commencement of policy period plus 15 months) | 3.05 | 2.95 |\n> | Second adjustment date (being commencement of policy period plus 24 months) | 2.10 | 2.00 |\n> | Third adjustment date (being commencement of policy period plus 36 months) | 1.80 | 1.70 |\n> | Fourth adjustment date (being commencement of policy period plus 48 months) | 1.75 | 1.67 |\n> | Fifth adjustment date (being commencement of policy period plus 60 months) | 1.75 | 1.67 |","sortOrder":24}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"Based on the available information, the legislation appears to have remained consistent with its original intent — to govern the retro-paid loss premium calculation method for the 2009–2010 insurance year. There is only one version on record (from 8 May 2009) and no amendments are noted, suggesting no scope change occurred."},"complexity_factors":["Specialist actuarial and insurance premium calculation concepts (retrospective premium methods) that require industry knowledge to fully understand","Operates within a broader regulatory framework of NSW workers compensation legislation, requiring familiarity with the parent Act","Technical financial mechanics — the interaction between standard premiums, paid losses, and retrospective adjustments — are not self-explanatory","Limited public content available in the extract provided; the actual operative provisions (the calculations and tables) are not reproduced, making full assessment difficult","Time-limited application to a single financial year adds complexity around determining ongoing relevance for disputes or audits"],"plain_english_summary":"This NSW statutory instrument sets the rules for the Retro‑Paid Loss Premium Method for the 2009–2010 workers’ compensation year: final premiums are adjusted after the year based on an employer’s actual claims, rewarding safer workplaces and increasing costs for higher claims.  \n\nIt affects large NSW employers who used this method, insurers required to apply it, and WorkCover NSW as regulator, and matters for calculating historical premiums or resolving disputes from that year."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"This Order appears to serve its original narrow purpose: providing the specific premium calculation methodology for the retro-paid loss optional alternative under section 168A of the Workers Compensation Act. It does not appear to have expanded beyond this specific technical function. The complexity arises from the inherent mathematical nature of insurance premium calculations rather than scope creep."},"complexity_factors":["Extensive mathematical formulas throughout (8 separate formulas in clause 8 alone, plus multiple formulas in each Schedule)","Heavy cross-referencing to the 'General Order' (Insurance Premiums Order 2009–2010) and the Workers Compensation Regulation 2003","Multiple parallel calculation systems: standalone employers (Schedule 1) vs. group members (Schedule 2 with 3 different 'Options')","Nested conditional logic: different formulas apply before vs. after the first adjustment date, and different minimum premium calculations for early vs. late adjustment dates","19 defined variables across Schedules (P, C, V, PD, Pmax, Pmin, V5, T, S, Q, D, M, A, PGd, PGmin, PGmax, TE, TG, SG, PE, PG, CG, VG, CE)","Temporal complexity with five distinct adjustment dates triggering different calculations","Interdependence between schedules: Schedule 3 calculates 'S' and 'SG' which feed into Schedules 1 and 2; Schedule 4 provides lookup table values for 'V' and 'VG'","Exception handling: clause 8(2) overrides clause 8(1) for group members; clause 4(5) exempts specialised insurers; Option 2 has a conditional fallback to Option 1 if CG=0"],"plain_english_summary":"This Order sets out a special way to calculate workers compensation insurance premiums for large employers in New South Wales who choose an alternative payment method called the \"retro-paid loss\" method.\n\n**What it does:**\nInstead of paying a fixed premium upfront, employers pay a **deposit premium** when the policy starts, then have that amount adjusted at five specific dates over the next five years (15, 24, 36, 48, and 60 months after the policy begins). The final premium depends on how much the employer actually pays out in workers compensation claims during that period.\n\n**Who it affects:**\n- Large employers who opt into this alternative premium calculation method under section 168A of the Workers Compensation Act\n- Employers who are members of corporate groups (which have their own special calculation rules)\n- This applies to policies issued or renewed between 30 June 2009 and 30 June 2010\n\n**Key features:**\n- **Minimum premium:** No employer pays less than $175\n- **Required deposits:** Employers must pay security deposits calculated by specific formulas, with different rules for standalone employers versus group members\n- **Claims adjustment:** The premium is recalculated based on actual claims costs, with adjustment factors that decrease over time (meaning less uncertainty as time passes)\n- **Large claim limits:** Employers can choose a $350,000 or $500,000 cap on individual large claims, which affects their adjustment factors\n\n**Why it matters:**\nThis gives large employers more control over their insurance costs. If they manage workplace safety well and keep claims low, they pay less. If claims are high, they pay more. It's a \"pay for what you use\" system rather than a fixed rate, but it requires employers to set aside money for potential adjustments over five years."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"This Order does not expand statutory coverage; it specifies the calculation method for employers opting into the retro‑paid loss premium alternative under section 168A for policies effective between 4 pm 30 June 2009 and 4 pm 30 June 2010, and applies pending a replacement retro‑paid order if none is made (cl.4; cl.6). It excludes specialised insurers exempt under the Workers Compensation Regulation (cl.4(5))."},"complexity_factors":["Multiple interdependent mathematical formulas across the Order and Schedules (cl.8; sch.1–2)","Five staggered adjustment dates requiring repeated recalculation (definition of adjustment date, cl.3(2); sch.4 table)","Distinct group treatment with three recalculation options and aggregation rules (sch.2 cl.3–6)","Cross‑references to the General Order and Workers Compensation Regulation for tariff, contributions and definitions (cl.3(1)–(2); cl.4(4))","Numerical caps and floors plus a statutory minimum premium ($175) that bound outcomes (cl.7; sch.1 Pmin/Pmax)","Tabulated claims adjustment factors tied to elected large‑claim limits (sch.4 table)","Source uses embedded formula images rather than inline text, increasing interpretation effort (sch.1–2; sch.3)"],"plain_english_summary":"This Order prescribes how employers who choose the Section 168A ‘retro‑paid loss’ option must have their workers’ compensation premiums calculated: an initial deposit premium and then recalculated adjusted premiums at five set adjustment dates, with formulas, caps/floors, group‑member options and a $175 minimum (cl.6–8; sch.1–4). Employers pay the premiums; insurers (and employers in groups) must apply the specified formulas and factors, which standardises timing and numeric rules but increases calculation and compliance effort (cl.4, sch.3–4)."}},"importantCases":[],"_links":{"self":"/api/acts/insurance-premiums-order-retro-paid-loss-premium-method-2009-2010","history":"/api/acts/insurance-premiums-order-retro-paid-loss-premium-method-2009-2010/history","analysis":"/api/acts/insurance-premiums-order-retro-paid-loss-premium-method-2009-2010/analysis","conflicts":"/api/acts/insurance-premiums-order-retro-paid-loss-premium-method-2009-2010/conflicts","importantCases":"/api/acts/insurance-premiums-order-retro-paid-loss-premium-method-2009-2010/important-cases","documents":"/api/acts/insurance-premiums-order-retro-paid-loss-premium-method-2009-2010/documents"}}