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Attachment
General PHIAC Circulars
Attachment 1 |
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Form of Statements by Directors in Relation to Capital Adequacy Margin, Loss Ratio Risk Management Procedures
A. Capital Adequacy Margin
"The Board of [private health insurer], at a meeting held on [Date], after consideration of the qualitative factors specified by Clause 13 of Schedule 3 of the Private Health Insurance (Health Benefits Fund Administration) Rules 2007, resolved that the capital adequacy margin of [x]% is an appropriate margin for risk for the purposes of the preparation of the PHIAC Annual Return for [insurer] for the year ended 30 June 2008"
B. Loss Ratio
"The Board of [private health insurer], at a meeting held on [Date], after consideration of the qualitative factors specified by Subclause 19 (3) of Schedule 2 of the Private Health Insurance (Health Benefits Fund Administration) Rules 2007, resolved that the loss ratio of [x]% is a suitable alternative ratio for the purposes of the preparation of the PHIAC Annual Return for [insurer] for the year ended 30 June 2008."
C. Risk Management Processes
We, in our capacity as Directors of (private health insurer) certify that:
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The insurer has referred to the Australian Standard for Risk Management (AS/NZS 4360) as an accepted measure of appropriate risk management processes;
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The Board has approved the risk management system in place, and understands its contents;
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The risk management system in place has been formulated from a framework for establishing the context, identification, analysis, evaluation, treatment, monitoring and communication of risk;
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The system in place includes comprehensive written policies and procedures and adequate control systems to measure, monitor and manage risk;
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The Board has reviewed the policies and procedures, at least annually, to assess their implementation, effectiveness, and to endorse them;
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The Board receives regular reports on the operation of the risk management system and is satisfied with the level of adherence to those policies and procedures;
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The Board has ensured that there has been, at all times, appropriate Director’s and Officer’s (D&O) insurance cover in place;
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This statement is made in accordance with a resolution of Directors; and
- The information provided is true and correct. I am aware that the giving of false or misleading information, documents or statements to the Private Health Insurance Administration Council is a serious offence under the Commonwealth's Criminal Code Act 1995 and that the Criminal Code Act imposes substantial penalties, including imprisonment, for committing these offences.
I, [name] certify on behalf [name of private health insurer] that:
(a) the accounts and statements bearing this certification are true and correct; and
(b) I have the authority of [name of private health insurer] to make this certification.
………………………………………………………..
Certifier 1
………………………………………………………..
Date of certification
I, [name] certify on behalf [name of private health insurer] that:
(a) the accounts and statements bearing this certification are true and correct; and
(b) I have the authority of [name of private health insurer] to make this certification.
………………………………………………………..
Certifier 2
………………………………………………………..
Date of certification