CTHRepealedLegislation
Life Insurance (prudential standard) determination No. 6 of 2012
Attachment AAttachment A
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Attachment A
| Asset exposure | Limit | |
|---|---|---|
| (a) | Assets guaranteed by an Australian State or Federal government or by the national government of the country in whose currency the liabilities of the statutory fund or general fund are denominated: | No limit |
| (b) | A life insurance policy issued to the life company by a registered life company which is a related entity of the life company: | No limit |
| (c) | Bank bills; orAssets guaranteed by an overseas provincial government (equivalent in status to an Australian State government), in the country in whose currency the liabilities of a statutory fund or a general fund are denominated: | The greater of:i) 25% of VAF; andii) AUD 20 million. |
| (d) | Bank deposits | The greatest of:i) 50% of VAF less the value of the assets of the fund secured by bank bills;ii) 25% of VAF; andiii) AUD 20 million. |
| (e) | A reinsurance arrangement with a registered life company that is not a related entity of the life company; orWith APRA’s written approval, a reinsurance arrangement in respect of overseas business, with a related entity of a registered life company that has a statutory fund which is a specialist reinsurer: | The greater of:i) 25% of VAF; andii) AUD 20 million. |
| (f) | Outstanding premiums receivable by a reinsurer under a reinsurance policy with a registered life company: | The greater of:i) 25% of VAF; andii) AUD 20 million. |
| (g) | i) any other actively traded security;ii) a non-traded security, loan, or reinsurance arrangement with a counterparty grade of 1, 2 or 3;iii) real estate; oriv) other income producing real property asset: | The greater of:i) 5% of VAF; andii) 25% of capital base. |
| (h) | Any asset not covered by any of the above categories: | The greater of:i) 2.5% of VAF; andii) 12.5% of capital base. |