8Calculation of required deposit: section 172A of Act

8 Calculation of required deposit: section 172A of Act

8 Calculation of required deposit: section 172A of Act

(1) The required deposit for an employer in relation to a policy of insurance is to be calculated in accordance with the following formula:

(a) before the first adjustment date:

(b) on and from the first adjustment date:

where:

RD is the required deposit in respect of the period of insurance to which the policy relates.

Pmax is the maximum premium that is payable by the employer calculated in accordance with Schedule 1.

PD is the deposit premium payable by the employer calculated in accordance with Schedule 1.

P is the premium payable by an employer for a policy of insurance calculated in accordance with Schedule 1.

(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:

(a) before the first adjustment date:

(b) on and from the first adjustment date:

where:

RD is the required deposit in respect of the period of insurance to which the policy relates.

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.

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.

PEd is the deposit premium that is payable by the employer who is a member of a group calculated in accordance with Schedule 2.

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.

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).