{"id":"nsw:sl-2013-0205","name":"Insurance Premiums Order (Retro-Paid Loss Premium Method) 2013–2014","slug":"insurance-premiums-order-retro-paid-loss-premium-method-2013-2014","collection":"regulation","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"205 of 2013","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":177955,"registerId":"nsw-nsw:sl-2013-0205-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) 2013–2014](/view/html/inforce/current/sl-2013-0205).","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 2013 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 relevant 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> > cost of claims has the same meaning as in Division 4 of Part 18 of the [Workers Compensation Regulation 2010](/view/html/repealed/current/sl-2011-0037).\n> > \n> > relevant General Order means:\n> > \n> > > (a) in relation to a retro-paid loss premium policy that is to be or has been issued or renewed so as to take effect at or after 4 pm on 30 June 2013 and before 4 pm on 31 December 2013—the [Insurance Premiums Order (July–December) 2013](/view/html/inforce/current/sl-2013-0204), and\n> > \n> > > (b) in relation to a retro-paid loss premium policy that is to be or has been issued or renewed so as to take effect at or after 4 pm on 31 December 2013 and before 4 pm on 30 June 2014—the [Insurance Premiums Order (January–June) 2014](/view/html/inforce/current/sl-2013-0622).\n> \n> **cl 3:** Am 2013 (621), Sch 2 \\[2\\].\n> \n> **whole Order (except cl 3 (2)):** Am 2013 (621), Sch 2 \\[1\\] (“General Order” omitted wherever occurring, “relevant General Order” inserted instead).","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 2013 and before 4 pm on 30 June 2014.\n> \n> > (3) If, before 4 pm on 30 June 2014, 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 relevant 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 165 of the [Workers Compensation Regulation 2010](/view/html/repealed/current/sl-2011-0037).","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 relevant General Order is classified as 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> 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) on or before the third adjustment date:\n> > \n> > ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0205)%20AND%20(Year%3D2013)%20AND%20(%22Historical%20Document%22%3D0))/g1.gif)\n> \n> > (b) after the third adjustment date:\n> > \n> > ![](/image/((Type%3D%22subordleg%22)%20AND%20(No%3D0205)%20AND%20(Year%3D2013)%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> T is the basic tariff premium for the employer, calculated with respect to the period of insurance in accordance with the relevant General Order.","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","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","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 4)","sortOrder":17},{"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 4)\n\nGeneral\n\nThe 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 154 (5) of the [Workers Compensation Regulation 2010](/view/html/repealed/current/sl-2011-0037) 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\nTable\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 |","sortOrder":21}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"This Order appears tightly scoped to its original purpose: implementing the retro-paid loss premium method for a specific financial year (2013-2014). It does not expand beyond the technical calculation methodology for this specific optional premium system. The amendment history shows only technical corrections (changing 'General Order' to 'relevant General Order'), not substantive expansion of scope."},"complexity_factors":["Multiple mathematical formulas with embedded variables (at least 16 distinct formulas across the Order, many represented as images rather than text)","Extensive cross-referencing to two separate 'General Orders' (Insurance Premiums Orders for different six-month periods) and the Workers Compensation Regulation 2010","Nested conditional logic: different formulas apply depending on whether it's a deposit premium or adjusted premium, whether at first/second vs third/fourth adjustment dates, and whether the employer is in a group","Multiple defined terms (approximately 20+ variables like P, C, V, PD, Pmax, Pmin, V4, T, S, Q, D, M, A, plus group variants like PG, CG, VG, SG, TE, TG)","Temporal complexity with four distinct adjustment dates triggering different calculations and different claims adjustment factors","Dual-track system: separate Schedules 1 and 2 for individual vs group employers with different formula structures","Reference to external documents (Schedules 3 and 4 of the General Orders) for basic tariff premium calculations without reproducing that content","Amendment history embedded in the text showing the Order was modified during its life (2013 No 621 amendments)"],"plain_english_summary":"This Order sets out a special method for calculating workers compensation insurance premiums for certain large employers in New South Wales who choose an alternative payment system called the 'retro-paid loss premium method'.\n\n**What it does:**\nInstead of paying a fixed premium upfront, employers using this method pay an initial estimate (called a 'deposit premium'), then have their premium recalculated up to four times over four years based on their actual claims costs. This means employers with fewer or cheaper claims pay less overall, while those with more expensive claims pay more.\n\n**Who it affects:**\n- Large employers who opt into this alternative premium calculation method under section 168A of the Workers Compensation Act 1987 (NSW)\n- Employers who are members of corporate groups (special group calculations apply)\n- Policies issued or renewed between 30 June 2013 and 30 June 2014\n\n**Key features:**\n- **Four adjustment dates:** Premiums are recalculated at 15 months, 24 months, 36 months, and 48 months after the policy starts\n- **Minimum premium:** No employer pays less than $175\n- **Caps on premiums:** There are maximum and minimum limits on how much the premium can change at each adjustment\n- **Claims adjustment factors:** Multipliers that decrease over time (from roughly 3.0 down to 1.7) depending on whether the employer chose a $350,000 or $500,000 'large claim limit' (a threshold above which very expensive individual claims don't count against the employer)\n- **Group calculations:** Special formulas apply when employers are part of a corporate group, using group-wide claims experience\n\n**Why it matters:**\nThis gives large employers with good safety records and low claims costs a way to potentially reduce their insurance costs over time, while ensuring they pay fairly if they have expensive claims. It shifts some risk from the insurer back to the employer."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"The Order is narrowly targeted to employers eligible under s168A and to policies effective 30 June 2013–30 June 2014; it does not broaden who is covered. It replaces generic references to a \"General Order\" with specific \"relevant General Order\" cross‑references and provides transitional coverage if no successor order is made (cl 4(3)), but does not expand subject matter or add new categories of employers beyond the optional retro‑paid method."},"complexity_factors":["Multiple interdependent mathematical formulas for deposit and adjusted premiums (Schedule 1, Schedule 2, cl 8).","Periodic recalculation at up to four adjustment dates with different formulae before/after the third date (cl 3(2); cl 8).","Separate treatment and aggregation rules for groups versus individual employers (Schedule 2, cl 1–4).","Experience and claims adjustment factors calculated by separate schedules with inputs from tariff, claims and other contributions (Schedule 3, Schedule 4, Schedule 1 cl 2).","Fixed minimum and maximum caps on premiums and a statutory floor of $175 (cl 7; Schedule 1 cl 2).","Cross‑references to the relevant General Order and Workers Compensation Regulation for defined terms and contributions, creating dependency on external instruments (cl 3(1), cl 3(2), Schedule 1 cl 2).","Discrete parameters (large‑claim limits) that change multipliers by adjustment date, requiring lookup and application (Schedule 4 Table).","Transitional and temporal scope limited to a defined period, with a fallback if a successor order is not made (cl 4(2)–(3))."],"plain_english_summary":"This Order prescribes how retro‑paid (experience‑rated) workers’ compensation premiums are calculated for employers using the optional alternative under section 168A. It sets an initial deposit premium and requires recalculation at up to four fixed adjustment dates, with formulae, minimum and maximum caps and fixed claims‑adjustment multipliers. It applies to policies taking effect between 30 June 2013 and 30 June 2014, treats group and individual employers differently, and shifts premium variability and administrative reconciliation onto employers."},"summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"Based on the available metadata, the instrument appears to remain focused on its original and narrow purpose: prescribing the retro-paid loss premium calculation method for the 2013–2014 workers compensation insurance year in NSW. The December 2013 amendment appears to be a routine update rather than a fundamental expansion or contraction of scope."},"complexity_factors":["Actuarial and insurance-specific terminology (retro-paid loss, premium adjustment methods) requires specialist knowledge to interpret correctly","The legislation exists within a broader regulatory framework (NSW workers compensation scheme) that must be understood for full context","Retrospective adjustment mechanisms involve complex calculations that interact with claims data over time, creating ongoing obligations beyond the policy year","The instrument has two point-in-time versions (May 2013 and December 2013), indicating mid-year amendments that must be read in conjunction","The actual substantive content of the order (the premium formulas and schedules) is not reproduced in the available text, meaning the true complexity of the operative provisions cannot be fully assessed","Applicable only to a specific subset of employers, requiring readers to first determine their eligibility before the rules become relevant"],"plain_english_summary":"This NSW instrument sets the rules for calculating workers’ compensation premiums in 2013–2014 using the Retro‑Paid Loss Premium Method — a “pay‑as‑you‑actually-cost” approach where final premiums are adjusted after the policy year based on actual claims. \n\nIt affects employers (mainly larger businesses) who opted into retro plans and their insurers, and matters because it determines final amounts owed and can lead to significant post‑year adjustments; it is specific to the 2013–2014 insurance 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"},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/insurance-premiums-order-retro-paid-loss-premium-method-2013-2014","history":"/api/acts/insurance-premiums-order-retro-paid-loss-premium-method-2013-2014/history","analysis":"/api/acts/insurance-premiums-order-retro-paid-loss-premium-method-2013-2014/analysis","conflicts":"/api/acts/insurance-premiums-order-retro-paid-loss-premium-method-2013-2014/conflicts","importantCases":"/api/acts/insurance-premiums-order-retro-paid-loss-premium-method-2013-2014/important-cases","documents":"/api/acts/insurance-premiums-order-retro-paid-loss-premium-method-2013-2014/documents"}}