239AGContributions to Terrorism Re-insurance Fund

239AG Contributions to Terrorism Re-insurance Fund

239AG Contributions to Terrorism Re-insurance Fund

(1) On each occasion that a declaration is made under section 239AD, the Authority is to determine, in accordance with this section—

(a) the total amount to be paid to the TRF, and

(b) the amount to be contributed by each insurer.

(2) The total amount to be paid to the TRF is the amount that the Authority estimates will be necessary to satisfy all claims (both against self-insurers and under policies of insurance issued or renewed by insurers that are not self-insurers) in respect of the act of terrorism specified in the declaration, less the greater of the following amounts—

(a) the total of the maximum amounts payable to insurers under contracts or arrangements for re-insurance in respect of liability for claims arising from the act of terrorism,

(b) the threshold amount.

(3) The Authority is to determine the amount to be paid to the TRF by an insurer in accordance with the following formula—

where—

A is the amount of wages (within the meaning of the Workers Compensation Market Practice and Premiums Guidelines relating to the financial year in which the act of terrorism occurred) by reference to which the insurer’s premium (or, if the insurer is a self-insurer, the insurer’s deemed premium income) for that financial year was calculated.

B is the total amount of wages (as referred to in A above) of all insurers.

C is the amount determined under subsection (1) (a).

(4) The Authority is to give each insurer written notice of the amount determined under this section in respect of the insurer. The notice must specify the date or dates (the date being (or, if more than one date is specified, the first date being) a date not less than 15 days after the notice is given) by which the insurer must pay the amount or specified instalments of the amount (or, if the notice requires payment of a lesser amount in accordance with subsection (5), that lesser amount or specified instalments of that lesser amount) to the Authority.

(5) The notice may (but need not) offset in accordance with section 239AI the amount (if any) to be reimbursed to the insurer under section 239AH and reduce the amount to be paid by the insurer under this section accordingly.