Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 3

             (1)  The principal object of this Act is to protect the interests of the owners and prospective owners of life insurance policies in a manner consistent with the continued development of a viable, competitive and innovative life insurance industry.

          (1A)  An additional object of this Act is to protect the interests of persons entitled to other kinds of benefits provided in the course of carrying on life insurance business (including business that is declared to be life insurance business).

             (2)  The principal means adopted for the achievement of these objects are the following:

                     (a)  restricting the conduct of life insurance business to companies that are able to meet certain requirements as to suitability;

                     (b)  imposing on life companies requirements designed to promote prudent management of the life insurance business of such companies, including requirements designed to ensure the solvency and capital adequacy of statutory funds;

                     (c)  providing for the supervision of life companies by APRA and ASIC;

                     (d)  providing for judicial management of life companies whose continuance may be threatened by unsatisfactory management or an unsatisfactory financial position, so as to protect the interests of policyholders and financial system stability in Australia;

                     (e)  making provision to ensure that, in the winding‑up of a life company, the interests of policy owners are adequately protected;

                      (f)  providing for the supervision of transfers and amalgamations of life insurance business by the Court.

             (3)  Generally, this Act achieves these objects by provisions applying to all life companies. However, there are a number of special provisions that apply only to friendly societies (see in particular Part 2A).