103BGRejection of premiums by Authority

#### 103BG Rejection of premiums by Authority 103BG Rejection of premiums by Authority > > (1) The Authority may reject an insurance premium filed with it under this Division if it is of the opinion that— > > > > > (a) the premium is, having regard to actuarial advice and to other relevant financial information available to the Authority, excessive or inadequate, or > > > > > (b) the premium does not conform to the relevant provisions of the Insurance Guidelines. > > > (2) Written notice of the Authority’s rejection of a premium, and the reasons for the rejection, must be given to the licensed insurer. > > > (3) If the Authority rejects a premium of a licensed insurer, the insurer may request the Authority to reconsider the rejection. > > > (4) Pending its reconsideration, the Authority may request an actuary to determine a provisional premium. > > > (5) A provisional premium so determined has effect, pending the Authority’s reconsideration, as if it were an insurance premium that may lawfully be charged by the insurer concerned. > > > (6) If the Authority has not withdrawn its rejection of a premium within 4 weeks after a request to reconsider the rejection, the matter is to be arbitrated under this section. The following provisions have effect— > > > > > (a) The [Commercial Arbitration Act 2010](/view/html/inforce/current/act-2010-061) applies to an arbitration under this section, subject to this Act and the regulations. The Authority and the insurer concerned may by agreement appoint a person to act as arbitrator in connection with the matter. Failing agreement within 7 days, paragraphs (b) and (c) apply. > > > > > (b) The Independent Pricing and Regulatory Tribunal (established by the [Independent Pricing and Regulatory Tribunal Act 1992](/view/html/inforce/current/act-1992-039)) may act as arbitrator to hear and determine the matter. > > > > > (c) Alternatively, that Tribunal may appoint a person to act as arbitrator in connection with the matter. The person is to be appointed from a panel constituted by the Minister and consisting of persons who have appropriate knowledge and understanding of economics, general insurance and the interests of consumers. > > > > > (d) The regulations may make provision for or with respect to the arbitration of matters under this section. > > > (7) The arbitrator may determine the premium that may be charged by the licensed insurer. > > > (8) The Insurance Guidelines may— > > > > > (a) specify the factors to be taken into account in determining for the purposes of this section the reasonable cost of claims and reasonable claim settlement expenses, and > > > > > (b) specify the factors to be taken into account in determining for the purposes of this section whether a premium is excessive, and > > > > > (c) exclude specified costs and expenses from being taken into account as costs and expenses of the insurer for the purposes of this section, and > > > > > (d) limit the extent to which specified costs and expenses can be taken into account as costs and expenses of the insurer for the purposes of this section. > > **ss 103BD–103BG:** Ins 2017 No 28, Sch 1 \[40\].