LIFE INSURANCE ACT 1995 - SECT 12A Declarations that insurance or annuity business is life insurance business
LIFE INSURANCE ACT 1995 - SECT 12A
Declarations that insurance or annuity business is life insurance business(1) APRA may, on the application of a company, declare, in writing, that insurance business (other than health insurance business or business of insurance against loss of, or damage to, property) or business relating to the payment of annuities:
(a) that is carried on by the company; or
(b) that the company proposes to carry on;
is to be treated, for the purposes of this Act, as if it were life insurance business.
(2) The application must comply with any applicable requirements in the prudential standards.
(3) APRA must only make the declaration if it is satisfied that:
(a) the company is a life company; or
(b) the company is not currently a life company, but the only business it proposes to carry on if the declaration is made is:
(i) the business in respect of which the declaration is sought; or
(ii) that business and other business that will be, or is likely to be declared to be, life insurance business.
(4) In deciding whether to make the declaration, APRA may also have regard to the following matters:
(a) whether the business in respect of which the declaration is sought is similar in nature to other life insurance business;
(b) whether it would be appropriate for the business to be regulated under this Act;
(c) whether it would be more appropriate for the business to be regulated under some other law (for example, the Insurance Act 1973 );
(d) the tax treatment of benefits provided in the course of the business;
(e) if the company is not registered under section 21--whether the company would be able to be registered under section 21;
(f) any other matter that APRA considers is relevant.
(5) The declaration must also state the class of life insurance business in which the business is to be treated as being included.
(6) If APRA makes a declaration:
(a) this Act has effect accordingly; and
(b) APRA must give a copy of the declaration to the company.