LIFE INSURANCE ACT 1995
Table of Provisions
PART 1--PRELIMINARY
- 1 Short title
- 2 Commencement
- 3 Objects of Act
- 4 Additional operation of Act
- 5 Exclusion of certain State insurance
- 6 Extension of Act to Norfolk Island
- 7 General administration of Act
- 7A Determination that certain provisions do not apply
- 7B Breach of condition of a determination under section 7A
- 8 Dictionary
- 8A Approved manner and form of applications and notices
PART 2--EXPLANATION--OF KEY CONCEPTS
- 9 Life policy
- 9A Continuous disability policy
- 10 Issue and ownership of policies
- 11 Life insurance business
- 12 Classes of life insurance business
- 12A Declarations that insurance or annuity business is life insurance business
- 12B Declarations that other financial business is life insurance business
- 13 Business of a statutory fund
- 14 Investment account benefits, investment - linked benefits
- 15 Participating, non - participating benefits
- 15A Relevant group of bodies corporate
- 16 Related bodies corporate and subsidiaries
PART 2A--SPECIAL--PROVISIONS RELATING TO LIFE COMPANIES THAT ARE FRIENDLY SOCIETIES
Division 1--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 society
Division 3--Modified operation of key concepts
- 16F Issue, ownership etc. of policies
Division 4--Modified operation of provisions relating to statutory funds
Subdivision 1--Modifications- 16G Act generally applies as if references to a statutory fund were references to an approved benefit fund
- 16GA Modification of section 30
- 16H Modification of section 34
- 16HA Modification of section 35
- 16HB Modification of section 36
- 16I Modification of section 38
- 16J Modification of section 43
- 16K Modification of section 45
- 16KA Other modifications of Part 4 Subdivision 2--Approved 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 part of company's constitution
- 16P Amendment of approved benefit fund rules not effective unless approved by APRA
- 16Q Amendment of approved benefit fund rules on initiative of friendly society
- 16R Amendment of approved benefit fund rules as required by APRA
- 16T When amendment of benefit fund rules approved or determined by APRA come into force
- 16U Approval of consequential amendments of company's constitution
- 16V Consequential amendments of constitution as required by APRA
- 16X When consequential amendments approved or determined by APRA come into force
- 16Y Consequential amendments approved by APRA and in force take effect as amendments of company's constitution
- 16Z Contractual effect of approved benefit fund rules and policies
Division 5--Modified operation of provisions relating to financial management
- 16ZAA Modification of Part 6
Division 6--Modified operation of provisions relating to policies
- 16ZAB Modification of section 198
- 16ZA Assignment of an interest in a benefit fund that is, because of section 16F, taken to be a policy
- 16ZAAA Modification of section 201
- 16ZAAB Modification of section 213
- 16ZAAC Modification of Division 7 of Part 10
- 16ZAAD Modification of section 226
- 16ZAAE Modification of section 227
- 16ZAAF Modification of section 229
Division 7--Other modifications
- 16ZAAG Modification of section 242
- 16ZB Certain friendly societies may continue to carry on health insurance business--modified operation of this Act
- 16ZC Other modifications
PART 2B--SPECIAL--PROVISIONS RELATING TO AUSTRALIAN BRANCHES OF FOREIGN LIFE INSURANCE COMPANIES
- 16ZD Eligible foreign life insurance company
- 16ZE Limited application of Act to eligible foreign life insurance companies
- 16ZF Compliance Committee of eligible foreign life insurance company
- 16ZG Address for service of eligible foreign life insurance companies
PART 3--REGISTRATION--OF LIFE COMPANIES AND THEIR NOHCS
Division 1--Registration of life companies
- 17 When registration is required
- 18 Certain activities not regarded as carrying on life business
- 19 Certain persons taken to carry on life business etc.
- 20 Application for registration
- 21 Decision on application for registration
- 22 Conditions on registration
- 23 Breach of registration conditions
- 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 Breach of conditions 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 notice to ensure that life company has a registered NOHC
PART 4--STATUTORY--FUNDS OF LIFE COMPANIES
Division 1--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
- 38A Charges relating to derivatives
- 38B Friendly societies mortgaging and charging assets of approved benefit funds
- 39 Prohibition of reinsurance between funds
- 40 Mortgages etc. of assets
- 41 Effect of non - compliance with section 38 ï¾ general
- 41A Effect of non - compliance with section 38 ï¾ certain classes of transactions
- 42 Investment performance guarantee--limit of certain liabilities
- 43 Investment of statutory funds
- 43A Investment of statutory funds--investment in subsidiaries of life company
- 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 power to sue in the name of a company
Division 3--Restructure and termination of statutory funds
Division 4--Additional requirements for transfer of policies between statutory funds by endorsement
- 55 Additional requirements for transfer of policies between statutory funds by endorsement
Division 5--Allocation of profits and losses and capital payments
- 56 Interpretation
- 57 Obligation to allocate operating profit or loss
- 58 Operating profit etc.
- 59 Allocation of operating profit etc.
- 60 Basis of allocation of operating profit etc.
Division 6--Distribution of retained profits and shareholders' capital
PART 6--FINANCIAL--MANAGEMENT OF LIFE COMPANIES ETC.
Division 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 Appointment of auditor
- 85 Ending an appointment as auditor
- 86 Life company 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 give 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 unduly influence etc. the auditor
- 91 Giving auditor false or misleading information
Division 3--Appointed actuaries
- 93 Appointment
- 94 Ending an appointment as actuary
- 95 Notification of appointment etc.
- 96 Compliance with prudential standards
- 97 Role 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
Division 8--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 direct removal of auditor or actuary
PART 7--MONITORING--AND INVESTIGATION OF LIFE COMPANIES AND REGISTERED NOHCS
Division 1--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 3--Investigation by APRA
- 135 Giving of show cause notice
- 136 Grounds for giving of show cause notice
- 137 Decision to investigate
- 138 Investigation of associated body corporate
- 139 Investigation procedure
- 140 Access to premises for purposes of investigation
- 141 Requirement to produce records
- 142 Regulator's power to require assistance
- 143 Application for warrant to seize records not produced
- 144 Grant of warrant
- 145 Powers if records produced or seized
- 146 Powers if records not 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 damage to electronic equipment
- 156 Copies of seized things to be provided
Division 5--Protections in relation to information
- 156F Self - incrimination
PART 8--JUDICIAL--MANAGEMENT, OTHER EXTERNAL ADMINISTRATION AND WINDING UP
Division 1--Judicial management
- 157 Application for order for judicial management
- 158 Order for judicial management after investigation
- 159 Order for judicial management on other grounds
- 160 Commencement of judicial management
- 161 Moratorium--effect of judicial management on court and tribunal proceedings
- 161A Moratorium--effect of judicial management on enforcement process regarding property
- 161B Moratorium--effect of judicial management on disposal of property
- 161C Moratorium--Restrictions on exercise of third party property rights
- 161D Moratorium--effect of judicial management on supply of essential services
- 161E Moratorium--effect of judicial management on annual general meeting
- 163 Appointment of judicial manager
- 164 Remuneration of judicial manager
- 165 Effect of judicial management on powers of officers etc.
- 165A Effect 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 manager
- 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 ground for denial of obligations
- 169 Application by APRA for instructions to judicial manager
- 170 Request by APRA for information
- 171 Duration of judicial management
- 172 Cancellation of judicial management
- 173 Judicial manager must conduct management efficiently and economically
- 174 Disclaimer of onerous property
- 175 Report by judicial manager
- 176 Order of Court on report of judicial manager
- 177 Transfer of business to another company
- 178 Resignation
- 179 Immunity
- 179A Exceptions to Part IV of the Competition and Consumer Act 2010
Division 1AA--Statutory management of life company
Subdivision A--General provisions relating to statutory management- 179AA Consequences of inability 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 Act statutory managers--termination of control Subdivision B--Provisions dealing with control of a body corporate's business by a Life Insurance Act statutory manager
- 179AD Life Insurance Act statutory manager's powers and functions
- 179AE Safeguards on exercise of Life Insurance Act statutory manager's powers and functions
- 179AF Life Insurance Act statutory manager's additional powers to facilitate recapitalisation
- 179AG Considering report before acting under section 179AF
- 179AH Act under section 179AF not ground for denying obligation
- 179AI APRA may require a person to give information etc. for the purposes of this Division
- 179AJ Administrator in control--additional powers to recommend action by APRA
- 179AK Life Insurance Act statutory manager's liabilities and duties
- 179AL Transaction by Life Insurance Act statutory manager not voidable under section 588FE of the Corporations Act 2001
- 179AM Administrator in control--additional duties
- 179AN Administrator in control--additional duties where action may affect financial system stability in Australia
- 179AO Termination of Life Insurance Act statutory manager's appointment
- 179AP Effect on directors of Life Insurance Act statutory manager taking control of a body corporate's business
- 179AQ Effect on external administrator of Life Insurance Act statutory manager taking control of a body corporate's business
- 179AR Moratorium--effect 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--effect of Life Insurance Act statutory management on supply of essential services
- 179AW Moratorium--effect of Life Insurance Act statutory management on annual general meeting
- 179AX Life Insurance Act statutory manager being in control not grounds for denial of obligations
- 179AY Application of other provisions
- 179AZ Costs of statutory management
- 179AZA APRA must report to Minister and publish information about statutory management
- 179AZB Exceptions to Part IV of the Competition and Consumer Act 2010
Division 1A--Other external administration
- 179B Relationship of this Division with Chapter 5 of the Corporations Act 2001
- 179C Involving APRA in proposed appointment of external administrators of life companies and NOHCs
Division 2--Winding-up
- 180 Winding - up of life companies
- 181 Order on application by APRA
- 182 Operation of Corporations Act
- 183 Notification to APRA regarding applications by liquidator
- 183A Application 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's power to ask for information
- 186 Determination of amounts to be treated as liabilities of life company
- 187 Application 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 amalgamation of life insurance business
- 191 Steps to be taken before application for confirmation
- 192 Actuarial report on scheme
- 193 Application to Court
- 194 Confirmation of scheme
- 195 Effect of confirmation etc.
- 196 Costs of actuary's report
- 197 Documents to be given to APRA in case of transfer or amalgamation
PART 10--PROVISIONS--RELATING TO POLICIES
Division 1--Issue of policies
Division 2--Assignments and mortgages
- 200 Assignment of policy
- 201 Mortgages and trusts
- 202 Effect of notice of trust etc.
- 203 Transfer of policy after change of trustee
Division 2A--Restriction on assignment or commutation of payments under structured settlements and structured orders
- 203A Definitions
- 203B Application of Division 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 effective
- 203E Relationship with Division 2
Division 3--Protection of policies
Division 4--Surrender values, paid-up policies and non-forfeiture of policies
- 206 Application of Division
- 207 Surrender of policies
- 208 Relaxation of company's obligations to surrender
- 209 Paid - up policies
- 210 Non - forfeiture of policies in certain cases of non - payment of premiums
Division 5--Payment of policy money
- 211 Probate or administration not necessary in certain cases--a single policy
- 212 Probate or administration not necessary in certain cases--2 or more policies
- 213 Death of policy owner who is not the life insured
- 214 Company not bound to see to the application of money paid by it
- 215 Power to pay money into Court
- 216 Unclaimed money
- 216AA Publication etc. of information in unclaimed money register
- 216A Disclosure of information relating to unclaimed money
- 217 No deduction in respect of other policies
Division 6--Children's advancement policies
- 218 Interpretation
- 219 Property in child's advancement policy
- 220 Death or bankruptcy of policy owner
Division 7--Lost or destroyed policy documents
- 221 Lost or destroyed policy--issue of replacement policy document
- 222 Form of replacement policy document
- 223 Other matters relating to certain replacement policy documents
- 224 Claim under policy where policy document lost or destroyed
- 225 Application of sections 221, 222, 223 and 224 to replacement policy document
Division 8--General
- 226 Registers
- 227 Registration of policies
- 228 Effect of suicide on policy
- 229 Condition as to war risk void
- 230 Policies not invalidated by contraventions of the Act
PART 10A--PRUDENTIAL--STANDARDS AND DIRECTIONS
Division 1--Prudential standards
- 230A APRA may make prudential standards for life companies, registered NOHCs and subsidiaries
- 230AAA Obligation to comply with the prudential standards
Division 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 by APRA
- 230AC Additional contents of a recapitalisation direction
- 230AD Compliance with a recapitalisation direction
- 230AE APRA must obtain expert's report on the fair value of shares etc.
- 230AF Determination of the fair value of shares by an expert
- 230AG Determination of the fair value of rights by an expert
- 230AH Ascertaining the fair value of other capital instruments
- 230AI Contravention of certain provisions does not affect the validity of recapitalisation direction etc.
- 230AJ Recapitalisation direction not grounds for denial of obligations
- 230AK Supply of information about issue and revocation of recapitalisation directions
- 230AL Non - compliance with a recapitalisation direction
- 230AM Exceptions to Part IV of the Competition and Consumer Act 2010 Subdivision B--Other directions
- 230B APRA may give directions in certain circumstances
- 230C Direction 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 allowed by APRA
- 231D Disclosure to legal representative for purpose of seeking legal advice
- 231E Disclosure allowed 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 State 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 Register of Life Companies and Non - Operating Holding Companies
- 241 Inspection of Register etc.
- 242 Non - shareholder members of life company--voting by post
- 245 Disqualified persons not to be directors, principal executive officers etc. of life companies
- 245A Court power of disqualification
- 245B Court power 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 do not limit each other
- 247 Protection of person who discloses information etc. under compulsion
- 248 Offences
- 250 Conduct by directors, employees and agents
- 251 Compensation for acquisition of property
- 251AA Act has effect despite the Corporations Act
- 251A Authorising contracts etc. for protecting policy owners' interests and financial system stability
- 251B Borrowing funds for payments under authorised contracts etc.
- 253 Regulations