Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010
44Total run‑off cover credits
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44 Total run‑off cover credits
(1) This is how to work out an affected eligible midwife’s total run‑off cover credit:
Method statement
Step 1. For the first financial year after 30 June 2010 in which an eligible insurer provided midwife professional indemnity cover for the eligible midwife under a contract of insurance, multiply:
(a) the eligible midwife’s run‑off cover credit for the financial year; by
(b) the interest rate adjustment for the financial year (see subsection (4)).
Step 2. For each subsequent financial year (if any) until the financial year in which the termination date occurs, multiply:
(a) the sum of the eligible midwife’s run‑off cover credit for the financial year and the amount worked out, under step 1 or this step, for the immediately preceding financial year; by
(b) the interest rate adjustment for the financial year (see subsection (4)).
Step 3. Add together:
(a) the eligible midwife’s run‑off cover credit for the financial year in which the run‑off cover termination date occurs; and
(b) the last of the amounts worked out under step 1 or step 2.
The result is the practitioner’s total run‑off cover credit.
(2) The eligible midwife’s run‑off cover credit for a financial year is the sum of all run‑off cover support payments paid or payable to the extent that they are attributable, under subsection (3), to the eligible midwife in relation to the financial year. (3) Run‑off cover support payments are attributable to the practitioner in relation to the financial year to the extent that they relate to premiums paid during the financial year to an eligible insurer for midwife professional indemnity cover provided for the eligible midwife by one or more contracts of insurance with the eligible insurer. (4) The interest rate adjustment for a financial year is the number worked out as follows: Start formula 1 plus applicable interest rate end formula where:
applicable interest rate is the rate of interest, for the financial year, specified in the Rules for the purposes of this subsection.