Life Insurance (prudential standard) determination No. 3 of 2010 - Prudential Standard LPS 510 - Governance
Application for a modified Committee comApplication for a modified Committee composition
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Application for a modified Committee composition
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APRA may, on written application from an EFLIC, determine a modified Committee for the EFLIC where it can be demonstrated that it is appropriate to do so.
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In making this determination, APRA will take into account the following factors:
(a) the quantum of liabilities written by the EFLIC;
(b) the cost effectiveness or otherwise of establishing a Committee;
(c) any restrictions on the lines of business written by the EFLIC;
(d) whether these restrictions limit the number of policyholders of the EFLIC (for example, by targeting specific policyholder characteristics, such as age, nationality or geographical location); and
(e) whether the EFLIC has written any material amount of long tail business.
- The composition of any modified Committee would be determined in writing on a case by case basis by APRA, but the possible modifications could take one or more of the following forms:
(a) a Committee with fewer than five members;
(b) replacing the director of the Board of the EFLIC as required by subparagraph 5(a) with the PEO; or
(c) a Committee with fewer than two independent members.