• Specific Year
    Any

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

Division 2--Friendly societies and how this Act applies to them

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

Division 5--Modified operation of provisions relating to financial management

  • 16ZAA Modification of Part 6  

Division 6--Modified operation of provisions relating to policies

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  general  
  • 41A Effect of non - compliance with section 38  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

  • 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 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

  • 61 Interpretation  
  • 62 Distribution of retained profits  
  • 63 Distribution of 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

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

  • 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 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

  • 204 Protection of interest of insured  
  • 205 Protection of policy money on person's death  

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

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  

PART 12--HOW--THIS ACT AFFECTS EXISTING LIFE COMPANIES ETC.

Navigate