Rejection of premiums
169 Rejection of premiums
The Authority may reject an insurance premium filed with it as required by the Workers Compensation Market Practice and Premiums Guidelines if the Authority is of the opinion that the premium does not conform with the Guidelines.
Written notice of the Authority’s rejection of a premium, and the reasons for the rejection, must be given to the licensed insurer.
If the Authority rejects a premium of a licensed insurer, the licensed insurer may request the Authority to reconsider the rejection.
Pending its reconsideration, the Authority may request an actuary to determine a provisional premium.
A provisional premium so determined has effect, pending the Authority’s reconsideration, as if it were an insurance premium which may lawfully be charged by the licensed insurer concerned.
If the Authority has not withdrawn its rejection of a premium within 4 weeks after a request to reconsider the rejection, the matter is to be arbitrated under this section. The following provisions have effect—
The Commercial Arbitration Act 2010 applies to an arbitration under this section, subject to this Act and the regulations. The Authority and the licensed insurer concerned may by agreement appoint a person to act as arbitrator in connection with the matter. Failing agreement within 7 days, paragraphs (b) and (c) apply.
The Independent Pricing and Regulatory Tribunal may act as arbitrator to hear and determine such a matter.
Alternatively, the Independent Pricing and Regulatory Tribunal may appoint a person to act as arbitrator in connection with the matter. The person is to be appointed from a panel constituted by the Minister and consisting of persons who have appropriate knowledge and understanding of economics, general insurance and the interests of consumers.
The regulations may make provision for or with respect to the arbitration of matters under this section.
The arbitrator may—
reject a premium if the arbitrator is of the opinion that the premium does not conform with the Workers Compensation Market Practice and Premiums Guidelines, and
determine the premium that may be charged by the licensed insurer, being a premium that in the arbitrator’s opinion conforms with those Guidelines.
This provision refers to the regulations (the regulations
, The regulations may make
). Made under this Act:
- Insurance Premiums Order (January–June) 2006 · Regulation
- Insurance Premiums Order (January–June) 2007 · Regulation
- Insurance Premiums Order (January–June) 2008 · Regulation
29 more instruments made under this Act are listed on the Act’s overview.
This Act’s bill:Explanatory memorandum
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