• Specific Year
    Any

LIFE INSURANCE ACT 1995 - SECT 15 Participating, non - participating benefits

LIFE INSURANCE ACT 1995 - SECT 15

Participating, non - participating benefits

  (1)   Subject to this section, a participating benefit is any benefit other than a non - participating benefit.

  (2)   Subject to this section, a non - participating benefit is a benefit that has the following features:

  (a)   the benefit does not include any entitlement to share in any distribution by the life company of profits or surplus;

  (b)   the amount of the benefit is specified in the policy document or is to be calculated according to a formula that:

  (i)   is set out in the policy document; and

  (ii)   does not include any element that is in any way dependent on, or to be ascertained according to, a decision of the life company concerned.

  (3)   A benefit is a non - participating benefit if it is declared by the prudential standards to be a non - participating benefit.

  (4)   APRA, at the request of a life company, may make a written declaration:

  (a)   that benefits of a specified kind, when provided for by policies issued by the company, are, or would be, participating benefits; or

  (b)   that benefits of a specified kind, when provided for by policies issued by the company, are, or would be, non - participating benefits.

  (5)   If APRA makes a declaration:

  (a)   this Act has effect accordingly; and

  (b)   APRA must give a copy of the declaration to the life company at whose request the declaration was made.