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Life Insurance (prudential standard) determination No. 4 of 2023
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6. Terms that are defined in Prudential Standard LPS 001 Definitions appear in bold the first time they are used in this Prudential Standard.
Limit on investment performance guarantees
7. A life company must, at all times, ensure that the ‘investment performance guarantee factor’ of a statutory fund to which this Prudential Standard applies does not exceed 5 per cent.[\[3\]](#_ftn3)
8. The investment performance guarantee factor of a statutory fund at a particular time is the proportion of the amount of the current policy liabilities of the fund at that time that represents the total cost, as at that time, of providing the investment performance guarantees included in policies referable to the fund.
9. For the purpose of paragraph 8, policy liabilities must be determined gross of reinsurance.