Insurance Premiums Order (Retro-Paid Loss Premium Method) 2014–2015 (2014 SI 312) 1 Name of Order This Order is the Insurance Premiums Order (Retro-Paid Loss Premium Method) 2014–2015. 2 Commencement This Order commences at 4 pm on 30 June 2014 and is required to be published in the Gazette. 3 Interpretation (1) In this Order, words and expressions have the same meanings as they have in the relevant General Order, unless this Order provides otherwise. (2) In this Order: adjustment date, in relation to a policy of insurance, means each of the following dates: (a) the date that is 15 months after the date of the commencement of the period of insurance (the first adjustment date), (b) the date that is 24 months after the date of the commencement of the period of insurance (the second adjustment date), (c) the date that is 36 months after the date of the commencement of the period of insurance (the third adjustment date), (d) the date that is 48 months after the date of the commencement of the period of insurance (the fourth adjustment date). cost of claims has the same meaning as in Division 4 of Part 18 of the Workers Compensation Regulation 2010. relevant General Order means: (a) the Insurance Premiums Order 2014–2015, or (b) if no such order has been made, the Insurance Premiums Order (January–June) 2014. 4 Application of Order (1) 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). (2) 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 at or after 4 pm on 30 June 2014 and before 4 pm on 30 June 2015. (3) If, before 4 pm on 30 June 2015, 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 at or after that time, this Order applies to and in respect of those policies pending the making of such an order. (4) The relevant General Order (other than clauses 3 and 4) applies to and in respect of retro-paid loss premium policies, unless this Order provides otherwise. (5) 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. 5 Classification of large employers A large employer within the meaning of the relevant General Order is classified as a large employer under this Order. 6 Retro-Paid Loss Premium Method of premium calculation 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. 7 Minimum premium 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. 8 Calculation of required deposit: section 172A of Act The required deposit for an employer in relation to a policy of insurance is to be calculated in accordance with the following formula: (a) on or before the third adjustment date: (b) after the third adjustment date: where: RD 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 relevant General Order. 9 Schedules form part of Order Schedules 1–4 form part of this Order. Schedule 1 Method of calculation of deposit premium and adjusted premium—general 1 Calculation of deposit premium and adjusted premium (1) The method for calculating the premium for a policy of insurance at the commencement of the period of insurance (the deposit premium) is as follows: (2) The method for recalculating the premium for the policy of insurance at each adjustment date (the adjusted premium) is as follows: but is not less than Pmin and not more than Pmax. 2 Interpretation In this Schedule: P is the adjusted premium for the time being payable by the employer in respect of the period of insurance to which the policy relates (including, where adjustments are required to be made to that premium by reason of the operation of this Order, the premium so payable by reason of those adjustments). C is the total of the cost of claims for the employer in respect of the period of insurance (not including the cost of any claims under sections 10 (Journey claims) and 11 (Recess claims) of the Act). V is the claims adjustment factor for the employer determined with respect to the period of insurance to which the policy relates in accordance with Schedule 4 to this Order. PD is the deposit premium payable by the employer in respect of the period of insurance to which the policy relates. Pmax is the maximum premium that is payable by the employer in respect of the period of insurance to which the policy relates, calculated as follows: Pmin is the minimum premium that is payable by the employer in respect of the period of insurance to which the policy relates, calculated as follows: (a) in relation to a premium calculated at the first or second adjustment date: (b) in relation to a premium calculated at the third or fourth adjustment date: V4 is the claims adjustment factor for the employer determined with respect to the period of insurance to which the policy relates in accordance with Schedule 4 to this Order in relation to the fourth adjustment date. T is the basic tariff premium for the employer, calculated with respect to the period of insurance in accordance with the relevant General Order. S is the experience adjustment factor for the employer determined with respect to the period of insurance in accordance with Schedule 3 to this Order. Q is the premiums adjustment contribution, if any, for the employer calculated with respect to the period of insurance in accordance with the relevant General Order. D is the dust diseases contribution, if any, for the employer calculated with respect to the period of insurance in accordance with the relevant General Order. M is the Mine Safety Fund premium adjustment, if any, for the employer calculated with respect to the period of insurance in accordance with the relevant General Order. A is the apprentice incentive amount, if any, for the employer calculated with respect to the period of insurance in accordance with the relevant General Order. Schedule 2 Method of calculation of deposit premium and adjusted premium—member of a group 1 Application of Schedule Despite Schedule 1, if an employer is a member of a group, the provisions of this Schedule apply. 2 Premium at commencement of policy period The method for calculating the premium for the policy of insurance at the commencement of the period of insurance (the deposit premium) is as follows: 3 Adjusted premium at each adjustment date The method for recalculating the premium for the policy of insurance at each adjustment date (the adjusted premium) is as follows: 4 Interpretation (1) Terms that have a meaning in Schedule 1 have the same meaning in this Schedule. (2) In this Schedule: PEd is the deposit premium payable by the employer who is a member of a group in respect of the period of insurance to which the policy relates. PGd is the group deposit premium payable by the members of the group calculated as follows: PGmin is the minimum premium that is payable by the members of the group in respect of the period of insurance to which the group's policies relate, calculated as follows: (a) in relation to a premium calculated at the first or second adjustment date: (b) in relation to a premium calculated at the third or fourth adjustment date: PGmax is the maximum premium that is payable by the members of the group in respect of the period of insurance to which the group's policies relate, calculated as follows: TE is the basic tariff premium for the employer who is a member of a group calculated in accordance with Schedule 3 to the relevant General Order with respect to the period of insurance. TG is the sum of the basic tariff premiums for all the members of a group calculated in accordance with Schedule 3 to the relevant General Order with respect to the period of insurance. SG is the experience adjustment factor for a group of which the employer is a member determined with respect to the period of insurance to which the group's policies of insurance relate in accordance with Schedule 3 to this Order. PE is the adjusted premium for the time being payable by an employer who is a member of a group in respect of the period of insurance to which the policy relates (including, where adjustments are required to be made to that premium by reason of the operation of this Order, the premium so payable by reason of those adjustments). PG is the group adjusted premium payable in respect of the period of insurance to which the group's policies of insurance relate, calculated as follows: but is not less than PGmin and not more than PGmax. CG is the total of the cost of claims for all members of the group in respect of the period of insurance to which the group's policies of insurance relate (not including the cost of any claims under sections 10 (Journey claims) and 11 (Recess claims) of the Act). VG is the claims adjustment factor for the group determined with respect to the period of insurance to which the group's policies of insurance relate in accordance with Schedule 4 to this Order. CE is the total of the cost of claims for the employer in respect of the period of insurance to which the policy relates (not including the cost of any claims under sections 10 (Journey claims) and 11 (Recess claims) of the Act). Schedule 3 Experience adjustment factor (Schedule 1, clause 2 and Schedule 2, clause 4) 1 Where employer not a member of a group The experience adjustment factor (S) for an employer is the factor calculated in accordance with the following formula: 2 Where employer a member of a group If the employer is a member of a group, the experience adjustment factor (SG) for the group is the factor calculated in accordance with the following formula: 3 Interpretation In this Schedule: T is the basic tariff premium for the employer calculated: (a) where the period of insurance to which the premium relates is 12 months—in accordance with Schedule 3 to the relevant General Order with respect to that period of insurance, or (b) where the period of insurance to which the premium relates is not 12 months—in accordance with Schedule 3 to the relevant General Order as if the policy to which the premium relates had a period of insurance of 12 months. TG is the sum of the basic tariff premiums for all the members of the group calculated: (a) where the period of insurance to which the premium relates is 12 months—in accordance with Schedule 3 to the relevant General Order with respect to that period of insurance, or (b) where the period of insurance to which the premium relates is not 12 months—in accordance with Schedule 3 to the relevant General Order as if the policies to which the premiums relate had a period of insurance of 12 months. Schedule 4 Claims adjustment factor (Schedule 1, clause 2 and Schedule 2, clause 4) General The claims adjustment factor for an employer (V) (or for a group (VG)) at the adjustment date set out in Column 1 of the Table to this clause is, if the employer has (or all the members of the group of employers of which the employer is a member have) elected a large claim limit for the purposes of clause 154 (5) of the Workers Compensation Regulation 2010 of: (a) $350,000—the factor set out in Column 2 of the Table corresponding to that date, and (b) $500,000—the factor set out in Column 3 of the Table corresponding to that date. Table Column 1 Column 2 Column 3 Adjustment date Adjustment factor V (or VG) for $350,000 large claim limit Adjustment factor V (or VG) for $500,000 large claim limit First adjustment date (being commencement of policy period plus 15 months) 3.05 2.95 Second adjustment date (being commencement of policy period plus 24 months) 2.10 2.00 Third adjustment date (being commencement of policy period plus 36 months) 1.80 1.70 Fourth adjustment date (being commencement of policy period plus 48 months) 1.75 1.67