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Amendment of section 7F of Principal Act
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4. Section 7F of the Principal Act is amended—
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(a) by the insertion of the following subsection after subsection (4):
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“(4A) (a) The Authority shall take what would constitute a reasonable profit for a registered undertaking in respect of its relevant health insurance business in the State, in respect of the 3 year period from 1 January 2016 to the end of 2018, as being a return on sales, gross of reinsurance and excluding investment income, that does not exceed 4.4 per cent per annum in respect of that business for that 3 year period taken as a whole and as calculated using approved accounting standards and having regard to the European Union framework for State aid in the form of public service compensation (2011) (2012/C8/03).
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(b) Paragraph (a) shall, with all necessary modifications, apply to each applicable 3 year period as it applies to the 3 year period referred to in that paragraph.”,
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(b) in subsection (5)(b) —
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(i) in subparagraph (ii), by the substitution of “of 2013,” for “of 2013, or”, and
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(ii) by the insertion of the following subparagraphs after subparagraph (iii):
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“(iv) if paragraph (a) of subsection (4A) is applicable, the period from 1 January 2016 to the end of 2018, or
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(v) if paragraph (b) of subsection (4A) is applicable, the period from 1 January of the first year of the applicable 3 year period to the end of the last year of the applicable 3 year period,”,
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and
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(c) in subsection (14) —
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(i) by the insertion of the following definition:
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“ ‘applicable 3 year period’ means—
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(a) the 3 year period from 1 January 2017 to the end of 2019, and
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(b) the 3 year period from 1 January 2018 to the end of 2020,
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and so on for each succeeding 3 year period;”,
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(ii) by the substitution of the following definition for the definition of “reasonable profit”:
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“ ‘reasonable profit’—
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(a) shall be construed in accordance with subsection (4) in respect of a 3 year period referred to in paragraph (b) of that subsection and in respect of a relevant 3 year period, and
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(b) shall be construed in accordance with subsection (4A) in respect of a 3 year period referred to in paragraph (a) of that subsection and in respect of an applicable 3 year period;”,
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and
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(iii) by the substitution of the following definition for the definition of “relevant 3 year period”:
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“ ‘relevant 3 year period’ means the following:
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(a) the period from 1 January 2012 to the end of 2014;
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(b) the period from 1 January 2013 to the end of 2015.”.
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