Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 15

             (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 Prudential Rules or 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.