Commonwealth Consolidated Acts

INSURANCE CONTRACTS ACT 1984 - SECT 48A

             (1)  This section applies to a contract of life insurance effected on the life of a person but expressed to be for the benefit of another person specified in the contract (the third party ).

             (2)  The following provisions have effect in relation to a contract to which this section applies:

                     (a)  any money that becomes payable under the contract is payable to the third party, even though he or she is not a party to the contract;

                     (b)  money paid under the contract does not form part of the estate of the person whose life is insured.

             (3)  Nothing in this section restricts the capacity of a person to exercise any right or power under a contract of life insurance to which the person is a party. In particular, nothing in this section restricts the capacity of a person:

                     (a)  to surrender a contract of life insurance to which the person is a party; or

                     (b)  to borrow money on the security of a contract of life insurance; or

                     (c)  to obtain a variation of a contract of life insurance, including a variation having the result that the contract ceases to be a contract to which this section applies.