Financial Sector (Collection of Data) (reporting standard) determination No. 16 of 2016 - Reporting Standard GRS 800.1 - Policy Data: Public and Product Liability and Professional Indemnity Insurance
15a. Gross Annualised Premium15a. Gross Annualised Premium
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15a. Gross Annualised Premium
In this field insert (your co-insured share of) the gross annualised premium in force based on the rating factors represented by this record (in whole $, no decimal points). Exclude all statutory charges (Stamp Duty, GST, and also exclude Fire Service Levies) but include others costs (such as commissions and instalment charges). If the policy is for a term other than twelve (12) months, pro-rate the premium to a 12month period.
Note that the premium for “short term events” cover should not be annualised. “Short Term Events” are defined as those that cover a specific period that is less than one month e.g. a sporting event over a long weekend or an annual festival.
Where a number of risks are reported separately, only the premium associated with that risk should be reported.
Note that this is NOT the gross written premium – it is the rate of premium for a full 12 months cover based on the rating factors that apply to the policy at the effective start date (field 12).
For the principle policy, the GAP must be reported in each and every reporting period, i.e. the original GAP amount will be reported each time the record is reported.
For an endorsement, the incremental change in GAP should be reported. For example, if the original policy was an annualised $1,000, and an endorsement to the policy increased the total premium (from inception) by $100, to $1,100, then $100 should be reported as the GAP on the endorsement record.
For a cancellation, the reported GAP amount will be the annualised amount (if any) refunded to the policy holder, stated as a negative. Negative numbers should be reported with a minus sign '-'.
Where records are aggregated due to duplication of the unique record key, the GAP must be the combined value of the GAP for all of the aggregated records.
In some cases (particularly endorsements) it would not be unusual to have a zero annualised premium.
Leap years are taken into account when calculating GEP (policy item 15b) from GAP (policy item 15a) and then validating that result back to GWP (policy item 16).