Regulatory AlertsPrudential Standard LPS 360 Termination Values, Minimum Surrender Values and Paid-up Values
The Australian Prudential Regulation Authority issued Prudential Standard LPS 360 to mandate prescribed methods for life insurers to calculate termination values, minimum surrender values, and minimum paid-up values. This standard applies to all life companies and friendly societies, requiring them to ensure these values meet specific regulatory floors to support capital adequacy and policyholder protection. It revokes previous determinations and establishes detailed calculation methodologies and parameters for various policy types, including traditional business, investment-linked policies, and annuities.
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