Life Insurance (prudential standard) determination No. 1 of 2011 - Prudential Standard LPS 600 - Statutory Funds
Policies providing rolling fixed rates fPolicies providing rolling fixed rates for fixed terms
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Policies providing rolling fixed rates for fixed terms
- A benefit in respect of which all the following conditions are satisfied:
(a) the benefit has the features mentioned in paragraph 15(2)(a) of the Act;
(b) the policy:
(i) provides for a benefit in respect of each of 2 or more consecutive specified periods occurring during the term of the policy; and
(ii) provides that the benefit in respect of each of the specified periods is to be determined at or before the commencement of the period; and
(iii) gives the policyholder the option, at or before the end of each of the specified periods that end before the expiry of the term of the policy, to surrender the policy; and
(iv) does not provide for any benefits other than those mentioned in subparagraph (i);
(c) if the benefit in respect of each of the specified periods were the only benefit provided for by the policy, that benefit would be a non-participating benefit by virtue of:
(i) subsection 15(2) of the Act; or
(ii) this Prudential Standard;
(d) the circumstances in which and the conditions subject to which the company may make a determination mentioned in subparagraph (b)(ii) are set out in the policy document.