Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 16F

New interests in benefit funds

             (1)  A friendly society is taken to issue a policy to a person when it accepts an application by the person for an interest in a benefit fund of the friendly society in accordance with the benefit fund rules. However, acceptance of an application for an increase to, or a continuation of, an existing interest in a benefit fund does not constitute the issue of a policy.

Interests in benefit funds existing as at the transfer date

             (2)  An interest that a person holds in a benefit fund of a friendly society on the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 is taken to be a policy issued to the person by the friendly society.

Terms etc. of the policy

             (3)  If subsection (1) or (2) applies, then:

                     (a)  the benefit fund rules are taken to be the terms of the policy referred to in that subsection; and

                     (b)  the owner of the policy is taken to be:

                              (i)  the person referred to in that subsection; or

                             (ii)  if that person's rights to the interest in the benefit fund have been assigned under this Act or transferred by the operation of the benefit fund rules--the person who has those rights; and

                     (c)  an amount that is required or permitted, by the benefit fund rules, to be paid in respect of those rights is taken to be a premium in respect of the policy; and

                     (d)  the policy is taken to be referable to the benefit fund.

Note 1:       Approved benefit fund rules have effect as a contract (see section 16Z).

Note 2:       The policy that a friendly society is taken by subsection (1) or (2) to issue or to have issued will, depending on the terms of the benefit fund rules, be:

(a)           a life policy (see section 9); or

(b)           a sinking fund policy (see the definition in the Schedule); or

(c)           a section 12A or 12B policy (see the definition in the Schedule); or

(d)           some other kind of policy.

             (4)  Subsections (1), (2) and (3) have effect:

                     (a)  for the purposes of this Act; and

                     (b)  for the purposes of all other laws of the Commonwealth, subject to the expression of a contrary intention.

             (5)  In this section:

"policy" is not limited to a life policy, a sinking fund policy or a section 12A or 12B policy.