Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 30

                   The principal requirements of this Part in relation to statutory funds may be summarised as follows:

                     (a)  all amounts received by a life company in respect of the business of a fund must be credited to the fund;

                     (b)  all assets and investments related to the business of a fund must be included in the fund;

                     (c)  all liabilities (including policy liabilities) of the company arising out of the conduct of the business of a fund must be treated as liabilities of the fund;

                     (d)  the assets of a fund are only available for expenditure related to the conduct of the business of the fund;

                     (e)  statutory funds may not be restructured or terminated without the approval of APRA;

                      (f)  profits and losses of a statutory fund may only be dealt with in accordance with Divisions 5 and 6 (the object of those Divisions being to ensure that such profits and losses are dealt with in a manner that protects the interests of policy owners and is consistent with prudent management of the fund).