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Commonwealth Consolidated Acts

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LIFE INSURANCE Human action 1995

Tabular array OF PROVISIONS Long Title PART 1--PRELIMINARY 1. Short title ii. Commencement 3. Objects of Deed iv. Boosted operation of Deed 5. Exclusion of sure Land insurance 6. Extension of Deed to Norfolk Island vii. General administration of Act 7A. Determination that certain provisions do not utilise 7B. Alienation of condition of a conclusion nether section 7A 8. Lexicon Role two--Explanation OF KEY CONCEPTS 9. Life policy 9A. Continuous disability policy ten. Issue and ownership of policies eleven. Life insurance business concern 12. Classes of life insurance business organization 12A. Declarations that insurance or annuity business is life insurance business 12B. Declarations that other financial business is life insurance business organisation thirteen. Business organization of a statutory fund xiv. Investment account benefits, investment-linked benefits 15. Participating, non-participating benefits 15A. Relevant group of bodies corporate xvi. Related bodies corporate and subsidiaries PART 2A--SPECIAL PROVISIONS RELATING TO LIFE COMPANIES THAT ARE FRIENDLY SOCIETIES Division i--Preliminary 16A. Overview 16B. Definitions Division 2--Friendly societies and how this Act applies to them 16C. What is a friendly society? 16D. Act applies to friendly societies in accordance with this Part 16E. Restriction on use of expression friendly gild Segmentation 3--Modified operation of primal concepts 16F. Issue, ownership etc. of policies Sectionalization iv--Modified operation of provisions relating to statutory funds Subdivision 1--Modifications 16G. Act mostly applies as if references to a statutory fund were references to an approved benefit fund 16H. Modification of section 34 16I. Modification of section 38 16J. Modification of section 43 16K. Modification of section 45 Subdivision 2--Canonical benefit fund rules 16L. Approval of benefit fund rules 16N. When benefit fund rules approved by APRA come into force 16O. Benefit fund rules approved by APRA and in force form function of company'due south constitution 16P. Subpoena of approved benefit fund rules not constructive unless approved past APRA 16Q. Amendment of canonical benefit fund rules on initiative of friendly society 16R. Amendment of canonical benefit fund rules as required by APRA 16T. When amendment of benefit fund rules canonical or determined by APRA come into force 16U. Approval of consequential amendments of visitor'due south constitution 16V. Consequential amendments of constitution every bit required past APRA 16X. When consequential amendments approved or determined by APRA come into forcefulness 16Y. Consequential amendments approved by APRA and in force take effect as amendments of company'southward constitution 16Z. Contractual result of approved benefit fund rules and policies Division 5--Other modifications 16ZA. Assignment of an interest in a benefit fund that is, because of section 16F, taken to exist a policy 16ZB. Sure friendly societies may go along to carry on health insurance concern--modified functioning of this Act 16ZC. Other modifications Office 2B--SPECIAL PROVISIONS RELATING TO AUSTRALIAN BRANCHES OF Strange LIFE INSURANCE COMPANIES 16ZD. Eligible foreign life insurance visitor 16ZE. Express application of Act to eligible foreign life insurance companies 16ZF. Compliance Committee of eligible strange life insurance visitor 16ZG. Address for service of eligible foreign life insurance companies PART 3--REGISTRATION OF LIFE COMPANIES AND THEIR NOHCS Partitioning ane--Registration of life companies 17. When registration is required 18. Sure activities not regarded as carrying on life business organization 19. Certain persons taken to carry on life business etc. xx. Application for registration 21. Conclusion on application for registration 22. Conditions on registration 23. Breach of registration atmospheric condition 26. When APRA may revoke registration 27. Voluntary deregistration 27A. Assignment of liabilities to enable revocation Division 2--Registration of NOHCs of life companies 28A. Registration as a NOHC 28B. Conditions on a NOHC registration 28BA. Alienation of weather on a NOHC registration 28C. When APRA may revoke a NOHC registration 28D. When APRA must revoke a NOHC registration 28E. Continuation of body corporate's NOHC registration 28. Continuation of effect of company's registration 28AA. APRA may give observe to ensure that life company has a registered NOHC PART 4--STATUTORY FUNDS OF LIFE COMPANIES Division 1--Full general requirements 29. What is a statutory fund? 30. Outline of requirements regarding statutory funds 31. Requirement that company have statutory funds 32. Duty of company in relation to statutory funds 33. Notice to APRA when fund established 34. Assets of statutory fund 35. Identification of policies referable to statutory fund 36. Payments to statutory fund 37. Capital payments to statutory funds 38. Expenditure and application of statutory fund 39. Prohibition of reinsurance between funds 40. Mortgages etc. of avails 41. Effect of non-compliance with section 38¾general 41A. Effect of non-compliance with section 38¾sure classes of transactions 42. Investment performance guarantee--limit of certain liabilities 43. Investment of statutory funds 45. Transfer of assets between funds 46. Restriction on restructure or termination of statutory funds 47. Ascertainment of income and outgoings of a statutory fund Division 2--Duties and liabilities of directors etc 48. Duty of directors in relation to statutory funds 49. APRA may give notice 50. Liability of directors 51. APRA's ability to sue in the name of a company Division 3--Restructure and termination of statutory funds 52. Restructure of statutory funds 53. Termination of statutory funds Division 4--Additional requirements for transfer of policies between statutory funds by endorsement 55. Additional requirements for transfer of policies betwixt statutory funds past endorsement Division 5--Resource allotment of profits and losses and capital payments 56. Estimation 57. Obligation to allocate operating turn a profit or loss 58. Operating turn a profit etc. 59. Allocation of operating profit etc. 60. Footing of allocation of operating turn a profit etc. Division 6--Distribution of retained profits and shareholders' majuscule 61. Interpretation 62. Distribution of retained profits 63. Distribution of shareholders' capital PART 6--FINANCIAL Management OF LIFE COMPANIES ETC. Sectionalization 1--Preliminary 74. Interpretation Division 2--Financial records and statements 75. Financial records--Australian and Australian/overseas funds 76. Financial records--overseas funds 76A. Keeping records 77. Financial year of a life company 78. Treatment of income and outgoings relating to mixed business 79. Treatment of income or outgoings relating to 2 or more categories of business etc. 80. Basis of apportionment 81. Treatment of appreciation and depreciation of assets 83. Requirement for life company to have an auditor 83A. Additional auditors 83B. Compliance with prudential standards 84. Date of auditor 85. Ending an appointment as auditor 86. Life visitor must enable auditors 87. Notification of appointment etc. of auditor 88. Obligations of auditors of certain bodies to report to bodies and APRA 88A. Auditor may requite information to APRA 88B. Duty of auditor to give information when required 89. Qualified privilege of auditors 90. Auditor must notify APRA of attempts to disproportionately influence etc. the auditor 91. Giving auditor false or misleading information Division iii--Appointed actuaries 93. Appointment 94. Ending an appointment every bit actuary 95. Notification of appointment etc. 96. Compliance with prudential standards 97. Office of actuary 98. Actuary's obligation to report to APRA 98A. Appointed actuary may give information to APRA 98B. Duty of appointed actuary to give information when required 99. Qualified privilege of appointed actuary Segmentation viii--Miscellaneous 114. Method of valuing policy liabilities 124. Policy owner's right to copy of reporting documents 125. Referring matters to professional associations for auditors and actuaries 125A. APRA may straight removal of auditor or actuary Part seven--MONITORING AND INVESTIGATION OF LIFE COMPANIES AND REGISTERED NOHCS Sectionalization one--Preliminary 126. Interpretation 127. Appointment of authorised persons 128. Associated body corporate 129. Related bodies corporate Division 2--Monitoring life companies and registered NOHCs 130. Purpose of Division 131. Requirement to give information to Regulator 132. Requirement to produce records 132A. Requirement to notify APRA of certain matters 133. Access to premises 133A. Enforceable undertakings Division three--Investigation by APRA 135. Giving of show crusade detect 136. Grounds for giving of prove cause observe 137. Decision to investigate 138. Investigation of associated body corporate 139. Investigation procedure 140. Access to bounds for purposes of investigation 141. Requirement to produce records 142. Regulator's power to require assistance 143. Awarding for warrant to seize records not produced 144. Grant of warrant 145. Powers if records produced or seized 146. Powers if records non produced 147. Offences related to investigations 149. Regulator must give body corporate written summary of conclusions 151. Identity cards Division 4--Special provisions relating to the execution of warrants 152. Interpretation 153. Use of equipment to examine or process things 154. Use of electronic equipment at premises 155. Compensation for impairment to electronic equipment 156. Copies of seized things to be provided Division v--Protections in relation to information 156F. Cocky-incrimination PART 8--JUDICIAL Direction, OTHER EXTERNAL ADMINISTRATION AND WINDING UP Division 1--Judicial management 157. Awarding for order for judicial direction 158. Order for judicial management after investigation 159. Guild for judicial management on other grounds 160. Kickoff of judicial management 161. Moratorium--outcome of judicial management on court and tribunal proceedings 161A. Moratorium--effect of judicial management on enforcement process regarding belongings 161B. Moratorium--effect of judicial direction on disposal of property 161C. Moratorium--Restrictions on exercise of tertiary political party holding rights 161D. Moratorium--effect of judicial management on supply of essential services 161E. Moratorium--effect of judicial management on almanac general meeting 163. Appointment of judicial manager 164. Remuneration of judicial manager 165. Effect of judicial management on powers of officers etc. 165A. Consequence on external administrator of judicial manager managing company 165B. Judicial management not ground for denial of obligations 166. Continued application of other Parts of Act 167. Court's control of judicial managing director 168. Powers of judicial manager 168A. Judicial manager's additional powers to facilitate recapitalisation 168B. Considering report before acting under section 168A 168C. Act under section 168A not basis for denial of obligations 169. Application by APRA for instructions to judicial managing director 170. Request past APRA for data 171. Duration of judicial direction 172. Counterfoil of judicial management 173. Judicial manager must conduct direction efficiently and economically 174. Disclaimer of onerous holding 175. Report by judicial manager 176. Order of Court on report of judicial manager 177. Transfer of business organisation to another company 178. Resignation 179. Amnesty 179A. Exceptions to Part IV of the Competition and Consumer Act 2010 Division 1AA--Statutory management of life company Subdivision A--Full general provisions relating to statutory direction 179AA. Consequences of disability or failure of life company etc. to meet certain requirements 179AB. Start of control of body corporate's business by Life Insurance Act statutory manager 179AC. Life Insurance Human activity statutory managers--termination of control Subdivision B--Provisions dealing with control of a body corporate's business by a Life Insurance Human activity statutory director 179AD. Life Insurance Act statutory managing director's powers and functions 179AE. Safeguards on practice of Life Insurance Human activity statutory managing director'southward powers and functions 179AF. Life Insurance Act statutory managing director's additional powers to facilitate recapitalisation 179AG. Because report before acting nether section 179AF 179AH. Act under department 179AF non ground for denying obligation 179AI. APRA may require a person to give information etc. for the purposes of this Division 179AJ. Ambassador in control--additional powers to recommend action by APRA 179AK. Life Insurance Act statutory manager'due south liabilities and duties 179AL. Transaction past Life Insurance Act statutory manager not voidable under section 588FE of the Corporations Human action 2001 179AM. Administrator in control--boosted duties 179AN. Administrator in command--additional duties where action may impact financial system stability in Australia 179AO. Termination of Life Insurance Act statutory manager's appointment 179AP. Effect on directors of Life Insurance Human action statutory manager taking control of a torso corporate'south business 179AQ. Result on external ambassador of Life Insurance Act statutory manager taking control of a trunk corporate's business concern 179AR. Moratorium--consequence of Life Insurance Act statutory management on court and tribunal proceedings 179AS. Moratorium--effect of Life Insurance Act statutory management on enforcement process regarding property 179AT. Moratorium--effect of Life Insurance Act statutory management on disposal of property 179AU. Moratorium--Restrictions on exercise of third party property rights 179AV. Moratorium--outcome of Life Insurance Human activity statutory direction on supply of essential services 179AW. Moratorium--effect of Life Insurance Act statutory management on almanac general meeting 179AX. Life Insurance Act statutory manager being in control not grounds for denial of obligations 179AY. Awarding of other provisions 179AZ. Costs of statutory management 179AZA. APRA must study to Treasurer and publish information about statutory management 179AZB. Exceptions to Function IV of the Competition and Consumer Human activity 2010 Sectionalisation 1A--Other external administration 179B. Relationship of this Division with Chapter five of the Corporations Human action 2001 179C. Involving APRA in proposed appointment of external administrators of life companies and NOHCs Division 2--Winding-upwardly 180. Winding-up of life companies 181. Order on application by APRA 182. Functioning of Corporations Act 183. Notification to APRA regarding applications by liquidator 183A. Awarding by liquidator for directions--voluntary winding up of friendly society 183B. Application by APRA--voluntary winding up of friendly society 184. Application by APRA for directions 185. APRA'south power to enquire for information 186. Determination of amounts to exist treated equally liabilities of life company 187. Awarding of statutory fund assets 188. Liability of directors for loss to statutory fund PART 9--TRANSFERS AND AMALGAMATIONS OF LIFE INSURANCE BUSINESS 189. Interpretation 190. Transfer or affiliation of life insurance business 191. Steps to exist taken before application for confirmation 192. Actuarial report on scheme 193. Application to Court 194. Confirmation of scheme 195. Upshot of confirmation etc. 196. Costs of actuary'southward report 197. Documents to be lodged in instance of transfer or affiliation PART 10--PROVISIONS RELATING TO POLICIES Division i--Issue of policies 198. Alteration of proposal and policy forms 199. Capacity of young persons to insure etc. Division 2--Assignments and mortgages 200. Assignment of policy 201. Mortgages and trusts 202. Effect of observe of trust etc. 203. Transfer of policy after change of trustee Sectionalisation 2A--Restriction on assignment or commutation of payments under structured settlements and structured orders 203A. Definitions 203B. Application of Partitioning to tax-exempt annuities and lump sums 203C. Assignments or commutations of tax-exempt annuities are generally not effective 203D. Assignments or commutations of tax-exempt lump sums are not constructive 203E. Relationship with Division 2 Division 3--Protection of policies 204. Protection of interest of insured 205. Protection of policy money on person'southward expiry Division 4--Surrender values, paid-up policies and non-forfeiture of policies 206. Application of Division 207. Give up of policies 208. Relaxation of visitor'due south obligations to surrender 209. Paid-up policies 210. Non-forfeiture of policies in certain cases of non-payment of premiums Segmentation 5--Payment of policy money 211. Probate or administration not necessary in certain cases--a single policy 212. Probate or assistants not necessary in certain cases--2 or more policies 213. Decease of policy owner who is not the life insured 214. Company not bound to run into to the application of coin paid by it 215. Power to pay money into Court 216. Unclaimed money 216A. Disclosure of information relating to unclaimed money 217. No deduction in respect of other policies Sectionalization half dozen--Children's advancement policies 218. Estimation 219. Property in child's advancement policy 220. Death or defalcation of policy owner Division 7--Lost or destroyed policy documents 221. Lost or destroyed policy--outcome of replacement policy document 222. Form of replacement policy document 223. Notice earlier issuing replacement policy document 224. Merits under policy where policy document lost or destroyed 225. Application of sections 221, 222, 223 and 224 to replacement policy document Sectionalization viii--Full general 226. Registers 227. Registration of policies 228. Outcome of suicide on policy 229. Condition equally to war chance void 230. Policies non invalidated by contraventions of the Act Part 10A--PRUDENTIAL STANDARDS AND DIRECTIONS Division 1--Prudential standards 230A. APRA may brand prudential standards for life companies, registered NOHCs and subsidiaries 230AAA. Obligation to comply with the prudential standards Sectionalization 1A--Conversion and write-off provisions 230AAB. Definitions 230AAC. Conversion and write-off provisions 230AAD. Conversion or write-off etc. not grounds for denial of obligations Division 2--Directions Subdivision A--Recapitalisation directions 230AA. Who this Subdivision applies to 230AB. Recapitalisation direction past APRA 230AC. Additional contents of a recapitalisation direction 230AD. Compliance with a recapitalisation management 230AE. APRA must obtain expert's report on the fair value of shares etc. 230AF. Determination of the off-white value of shares by an skillful 230AG. Decision of the fair value of rights by an good 230AH. Ascertaining the fair value of other capital instruments 230AI. Contravention of sure provisions does not affect the validity of recapitalisation management etc. 230AJ. Recapitalisation direction not grounds for denial of obligations 230AK. Supply of data about issue and revocation of recapitalisation directions 230AL. Not-compliance with a recapitalisation management 230AM. Exceptions to Office 4 of the Competition and Consumer Act 2010 Subdivision B--Other directions 230B. APRA may give directions in sure circumstances 230C. Management not grounds for denial of obligations 230D. Supply of information about issue and revocation of directions 230F. Non-compliance with a direction Subdivision C--Secrecy and disclosure provisions relating to all directions 231. APRA may determine that a direction is covered by secrecy provision 231A. Secrecy relating to directions 231B. Disclosure of publicly available information 231C. Disclosure immune past APRA 231D. Disclosure to legal representative for purpose of seeking legal advice 231E. Disclosure immune by APRA Act secrecy provision 231F. Disclosure in circumstances set out in the regulations 231G. Disclosure for purpose 231H. Exceptions operate independently PART 11--MISCELLANEOUS 233. Operation of Country and Territory laws 233A. Transfer by life insurance company to statutory fund 234. Prohibition of mixed insurance business 235. Injunctions 236. Review of certain decisions 237. Constitution and procedure of Tribunal 240. Annals of Life Companies and Not-Operating Belongings Companies 241. Inspection of Register etc. 242. Non-shareholder members of life company--voting by mail service 245. Disqualified persons non to exist directors, chief executive officers etc. of life companies 245A. Court power of disqualification 245B. Court ability to revoke or vary a disqualification etc. 245C. Privilege against exposure to penalty--disqualification under section 245A 246. Principal executive officer 246A. Protection from liability--general 246B. Protection from liability--directions and secrecy 246C. Protection from liability--provisions practice not limit each other 247. Protection of person who discloses information etc. under coercion 248. Offences 250. Bear past directors, employees and agents 251. Compensation for acquisition of holding 251AA. Act has effect despite the Corporations Act 251A. Authorising contracts etc. for protecting policy owners' interests and financial organisation stability 251B. Borrowing funds for payments under authorised contracts etc. 253. Regulations Role 12--HOW THIS ACT AFFECTS EXISTING LIFE COMPANIES ETC. 254. Companies registered under Life Insurance Act 1945 264. Saving provision: sections 83, 84 and 94 of the Life Insurance Act 1945 SCHEDULE Dictionary