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Circular No 6
General PHIAC Circulars
Circular No 6
Contact Officers:
Gayle Ginnane (02) 6285 3132
Trish Cassidy (02) 6285 3134
22 November 1989
ACTUARIAL CERTIFICATION OF SOLVENCY LEVELS
Circular No 5 which was issued on 26 October 1989 outlined guidelines for organisations which do not comply with minimum solvency requirements.
It is understood that organisations are receiving approaches from actuarial firms offering their services to assist in assessing the viability of the organisations regardless of the size of the fund or the amount of its reserves.
The purpose of this circular is to clarify for organisations the circumstances where the Private Health Insurance Administration Council would require an actuarial certification of an organisation's financial position. As indicated in Circular No 5 there are two circumstances where such certification is mandatory:
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where the reserves of an organisation fall below 2CM, and
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where an organisation may have 2CM but the amount involved is less than $1 000 000
The Council reserves the right to seek actuarial certification in other situations if deemed appropriate. However in these situations specific advice would be forwarded to the particular organisations concerned.
In all other circumstances actuarial certification is a matter for decision by the organisation.