Insurance Premiums Order (Retro-Paid Loss Premium Method) 2012–2013

This Order is the Insurance Premiums Order (Retro-Paid Loss Premium Method) 2012–2013.

This Order commences at 4 pm on 30 June 2012 and is required to be published in the Gazette.

In this Order, words and expressions have the same meanings as they have in the General Order, unless this Order provides otherwise.

In this Order:

adjustment date, in relation to a policy of insurance, means each of the following dates:

the date that is 15 months after the date of the commencement of the period of insurance (the first adjustment date),

the date that is 24 months after the date of the commencement of the period of insurance (the second adjustment date),

the date that is 36 months after the date of the commencement of the period of insurance (the third adjustment date),

the date that is 48 months after the date of the commencement of the period of insurance (the fourth adjustment date),

the date that is 60 months after the date of the commencement of the period of insurance (the fifth adjustment date).

cost of claims has the same meaning as in Division 4 of Part 18 of the Workers Compensation Regulation 2010.

General Order means:

the Insurance Premiums Order 2012–2013, or

if no such order has been made, the Insurance Premiums Order 2011–2012.

This Order applies only to and in respect of policies of insurance for employers to whom the optional alternative method of calculating premiums under section 168A of the Act applies (retro-paid loss premium policies).

This Order applies to and in respect of retro-paid loss premium policies that are to be or have been issued or renewed so as to take effect on or after 4 pm on 30 June 2012 and before 4 pm on 30 June 2013.

If, before 4 pm on 30 June 2013, an insurance premiums order that applies only to and in respect of retro-paid loss premium policies has not been made in respect of such policies of insurance taking effect on or after that time, this Order applies to and in respect of those policies pending the making of such an order.

The General Order (other than clauses 3 and 4) applies to and in respect of retro-paid loss premium policies, unless this Order provides otherwise.

This Order does not apply to a policy of insurance issued or renewed by a specialised insurer that is exempted from insurance premiums orders by clause 165 of the Workers Compensation Regulation 2010.

A large employer within the meaning of the General Order is classified as a large employer under this Order.

For the purposes of section 168A of the Act, the alternative method is to calculate the premium for a policy of insurance at the commencement of the period of insurance (the deposit premium), and then recalculate the premium at each adjustment date (the adjusted premium), in accordance with this Order.

Despite any other provision of this Order, a deposit premium and an adjusted premium in respect of any policy of insurance is to be no less than $175.

The required deposit for an employer in relation to a policy of insurance is to be calculated in accordance with the following formula:

on or before the third adjustment date:

after the third adjustment date:

where:

R_D is the required deposit in respect of the period of insurance to which the policy relates.

T is the basic tariff premium for the employer, calculated with respect to the period of insurance in accordance with the General Order.

Schedules 1–4 form part of this Order.