9Transitional adjustment provision

9 Transitional adjustment provision

9 Transitional adjustment provision

(1) An employer may apply to the Nominal Insurer to have the employer’s premium for the period of insurance adjusted downward if the new premium percentage rate is more than 1.3 times greater than the old premium percentage rate.

(2) This clause does not apply if the new premium percentage rate is greater than the old premium percentage rate solely because of:

(a) a change to a classification under the Insurance Premiums Order 2014–2015 to a classification under this Order (both classifications being correct), or

(b) a change of business activity.

(3) The Nominal Insurer may issue guidelines for or with respect to any of the following:

(a) the manner in which applications under this clause are to be made,

(b) criteria for determining how downward adjustments are calculated,

(c) other matters relevant to the transition to the calculation of premiums under this Order.

(4) If the Nominal Insurer calculates a downward adjustment of a premium, the insurer must redetermine the employer’s premium in accordance with that downward adjustment.

(5) A downward adjustment, or an application for a downward adjustment, under this clause is not a disputed aspect for the purposes of section 170 of the Act.

(6) In this clause:

new premium percentage rate, in relation to an employer, means a percentage rate calculated in accordance with the following formula:

where:

BTP is the basic tariff premium for the employer, calculated with respect to the period of insurance in accordance with Schedule 3.

CPA is the claims performance adjustment for the employer calculated with respect to the period of insurance in accordance with Schedule 4.

W0 is the total wages payable to workers by the employer in respect of the period of insurance for which the premium is to be calculated.

old premium percentage rate, in relation to an employer, means a percentage rate calculated in relation to the premium for the period of insurance immediately preceding the current period of insurance: