Commonwealth Consolidated Acts

MEDICAL INDEMNITY (PRUDENTIAL SUPERVISION AND PRODUCT STANDARDS) ACT 2003 - SECT 7A

    In deciding whether the premium payable by an insured under a contract of insurance for particular cover is reasonable, regard is to be had to:

  (a)   the nature of the risks being assumed by the insurer; and

  (b)   the claims handling expenses, and other administrative expenses, the insurer has incurred and can reasonably be expected to incur; and

  (c)   the expenses the insurer can reasonably be expected to incur in obtaining appropriate reinsurance; and

  (d)   the expenses the insurer can reasonably be expected to incur in capital raising and prudential compliance; and

  (e)   the amount that represents a reasonable profit margin for the insurer; and

  (f)   the amount of any relevant taxes or statutory charges payable by the insurer; and

  (g)   the information provided, or not provided, to the insurer by the client in relation to matters relevant to assessing the risk being assumed by the insurer; and

  (h)   the amount that represents provisioning for future liabilities for medical indemnity cover that may be required to be offered under section   23 for a premium that does not reflect the cost of providing that medical indemnity cover; and

  (i)   the receipt, or probable receipt, of Commonwealth assistance in relation to provision of the medical indemnity cover; and

  (j)   such other matters as are specified in regulations made for the purposes of this paragraph.