Contents
- Part 1 Preliminary
- Part 2 Explanation of key concepts
- Part 2A Special provisions relating to life companies that are friendly societies
- Part 2B Special provisions relating to Australian branches of foreign life insurance companies
- Part 3 Registration of life companies and their NOHCs
- Part 4 Statutory funds of life companies
- Part 6 Financial management of life companies etc.
- Part 7 Monitoring and investigation of life companies and registered NOHCs
- Part 8 Judicial management, other external administration and winding up
- Part 9 Transfers and amalgamations of life insurance business
- Part 10 Provisions relating to policies
- Part 10A Prudential standards and directions
- Part 11 Miscellaneous
- Part 12 How this Act affects existing life companies etc.
- Schedule 1 Dictionary
- Schedule 2 Modifications relating to friendly societies
Contents
4,576 provisions, too many to show on one page. Open a part or section to read it with its history and connections, or search inside the text.
- Part 1 · Preliminary
- 1 Short title
- 2 Commencement
- 3 Objects of Act
- 4 Additional operation of Act
- 5 Exclusion of certain State insurance
- 6 Extension of Act to Norfolk Island
- 7 General administration of Act
- 7A Determination that certain provisions do not apply
- 7B Breach of condition of a determination under section 7A
- 8 Dictionary
- 8A Approved manner and form of applications and notices
- Part 2 · Explanation of key concepts
- 9 Life policy
- 9A Continuous disability policy
- 10 Issue and ownership of policies
- 11 Life insurance business
- 12 Classes of life insurance business
- 12A Declarations that insurance or annuity business is life insurance business
- 12B Declarations that other financial business is life insurance business
- 13 Business of a statutory fund
- 14 Investment account benefits, investment-linked benefits
- 15 Participating, non-participating benefits
- 15A Relevant group of bodies corporate
- 16 Related bodies corporate and subsidiaries
- Part 2A · Special provisions relating to life companies that are friendly societies
- Division 1 Preliminary
- Division 2 Friendly societies and how this Act applies to them
- Division 3 Modified operation of key concepts
- Division 4 Modified operation of provisions relating to statutory funds
- Division 5 Modified operation of provisions relating to financial management
- Division 6 Modified operation of provisions relating to policies
- Division 7 Other modifications
- Part 2B · Special provisions relating to Australian branches of foreign life insurance companies
- Part 3 · Registration of life companies and their NOHCs
- Part 4 · Statutory funds of life companies
- Division 1 General requirements
- Division 2 Duties and liabilities of directors etc.
- Division 3 Restructure and termination of statutory funds
- Division 4 Additional requirements for transfer of policies between statutory funds by endorsement
- Division 5 Allocation of profits and losses and capital payments
- Division 6 Distribution of retained profits and shareholders’ capital
- Part 6 · Financial management of life companies etc.
- Part 7 · Monitoring and investigation of life companies and registered NOHCs
- Part 8 · Judicial management, other external administration and winding up
- Part 9 · Transfers and amalgamations of life insurance business
- 189 Interpretation
- 190 Transfer or amalgamation of life insurance business
- 191 Steps to be taken before application for confirmation
- 192 Actuarial report on scheme
- 193 Application to Court
- 194 Confirmation of scheme
- 195 Effect of confirmation etc.
- 196 Costs of actuary’s report
- 197 Documents to be given to APRA in case of transfer or amalgamation
- Part 10 · Provisions relating to policies
- Division 1 Issue of policies
- Division 2 Assignments and mortgages
- Division 2A Restriction on assignment or commutation of payments under structured settlements and structured orders
- Division 3 Protection of policies
- Division 4 Surrender values, paid-up policies and non-forfeiture of policies
- Division 5 Payment of policy money
- Division 6 Children’s advancement policies
- Division 7 Lost or destroyed policy documents
- Division 8 General
- Part 10A · Prudential standards and directions
- Part 11 · Miscellaneous
- 233 Operation of State and Territory laws
- 233A Transfer by life insurance company to statutory fund
- 234 Prohibition of mixed insurance business
- 235 Injunctions
- 236 Review of certain decisions
- 237 Constitution and procedure of Tribunal
- 240 Register of Life Companies and Non-Operating Holding Companies
- 241 Inspection of Register etc.
- 242 Non-shareholder members of life company—voting by post
- 245 Disqualified persons not to be directors, principal executive officers etc. of life companies
- 245A Court power of disqualification
- 245B Court power to revoke or vary a disqualification etc.
- 245C Privilege against exposure to penalty—disqualification under section 245A
- 246 Principal executive officer
- 246A Protection from liability—general
- 246B Protection from liability—directions and secrecy
- 246C Protection from liability—provisions do not limit each other
- 247 Protection of person who discloses information etc. under compulsion
- 248 Offences
- 250 Conduct by directors, employees and agents
- 251 Compensation for acquisition of property
- 251AA Act has effect despite the Corporations Act
- 251A Authorising contracts etc. for protecting policy owners’ interests and financial system stability
- 251B Borrowing funds for payments under authorised contracts etc.
- 253 Regulations
- Part 12 · How this Act affects existing life companies etc.
- Schedule 1 · Dictionary
- Section 8
- administrator, of a body corporate’s business, means an administrator appointed under subsection 179AA(1) to take control of the body corporate’s business.
- appointed actuary, in relation to a life company or anything done, or to be done, by a life company, means the person holding an appointment by the company unde
- approved body has the meaning given by the regulations.
- APRA means the Australian Prudential Regulation Authority.
- ASIC means the Australian Securities and Investments Commission.
- Australian business assets and liabilities, of an eligible foreign life insurance company, has the meaning given by subsection 16ZE(6).
- Australian financial sector statutory manager (or AFS statutory manager) means:
- (a) a Banking Act statutory manager (within the meaning of the Banking Act 1959); or
- (b) an Insurance Act statutory manager (within the meaning of the Insurance Act 1973); or
- (c) a Life Insurance Act statutory manager.
- Australian fund has the meaning given by section 74.
- Australian/overseas fund has the meaning given by section 74.
- Australian participating business has the meaning given by section 56.
- Australian policy means a policy issued in Australia.
- Australian policy owners’ retained profits has the meaning given by section 61.
- bank includes, but is not limited to, a body corporate that is an ADI (authorised deposit-taking institution) for the purposes of the Banking Act 1959.
- business day means a day that is not a Saturday, a Sunday or a public holiday or bank holiday in the place concerned.
- business of a statutory fund has the meaning given by section 13.
- child: without limiting who is a child of a person for the purposes of this Act, someone is the child of a person if he or she is a child of the person within t
- class of life insurance business has the meaning given by section 12.
- company means:
- (a) a company incorporated under the Corporations Act 2001; or
- (b) a body corporate incorporated, or continued in existence, by or under any law of a State or Territory; or
- (c) an eligible foreign life insurance company.
- Compliance Committee, in relation to an eligible foreign life insurance company, has the meaning given by subsection 16ZF(1).
- constitution, in relation to a company, includes:
- (a) the documents under which the company is constituted; and
- (b) any other document governing activities or conduct of the company or its members.
- continuous disability policy has the meaning given by section 9A.
- Court means the Federal Court of Australia.
- de facto partner of a person has the meaning given by the Acts Interpretation Act 1901.
- derivative:
- (a) subject to paragraph (b), means any of the following:
- (i) a derivative (within the meaning of Chapter 7 of the Corporations Act 2001);
- (ii) a foreign exchange contract (within the meaning of that Act);
- (iii) an arrangement that is a forward, swap or option, or any combination of those things, in relation to one or more commodities; and
- (b) does not include anything prescribed by the regulations for the purposes of this paragraph.
- direction under this Act means a direction under any of the following provisions:
- (a) section 27A;
- (b) section 125A;
- (c) section 230AB;
- (d) section 230B.
- director, in relation to an eligible foreign life insurance company, includes a member of the Compliance Committee of the company.
- eligible foreign life insurance company has the meaning given by section 16ZD.
- executive officer, in relation to a company, means a person, whatever his or her title and whether or not a director of the company, who is concerned, or takes
- existing life company means a body corporate that, immediately before the commencement of this Act, was registered under the Life Insurance Act 1945.
- external administrator means any of the following:
- (a) a liquidator;
- (b) a receiver, manager, managing controller, receiver and manager or other controller (other than a judicial manager or Life Insurance Act statutory manager);
- (c) a voluntary administrator or administrator of a deed of a company arrangement or a scheme manager.
- Expressions used in this definition have the same meanings as they have in the Corporations Act 2001.
- Finance Minister means the Minister who administers the Public Governance, Performance and Accountability Act 2013.
- financial market has the same meaning as in Chapter 7 of the Corporations Act 2001.
- financial property has the same meaning as in the Payment Systems and Netting Act 1998.
- Financial System Stability Special Account means the Financial System Stability Special Account established by section 70E of the Banking Act 1959.
- friendly society has the meaning given by section 16C.
- Note: Other expressions relevant to friendly societies are defined in section 16B.
- health insurance business has the same meaning as in Division 121 of the Private Health Insurance Act 2007.
- holding company, of a body corporate, means another body corporate of which the first body corporate is a subsidiary.
- intermediary of intermediated financial property has the same meaning as in paragraph (h) of the definition of financial property in section 5 of the Payment Sy
- intermediated financial property has the same meaning as in the Payment Systems and Netting Act 1998.
- investment account benefits has the meaning given by section 14.
- investment account contract has the meaning given by section 14.
- investment-linked benefits has the meaning given by section 14.
- investment-linked contract has the meaning given by section 14.
- issue, in relation to a policy, has the meaning given by section 10.
- life business means business that consists of:
- (a) the issuing of life policies or the undertaking of liability under life policies; or
- (b) any business that relates to business referred to in paragraph (a).
- life company means a company that is carrying on life insurance business in Australia.
- Life Insurance Act statutory manager has the meaning given by subsection 179AA(8).
- life insurance business has the meaning given by section 11.
- life policy has the meaning given by section 9.
- liquidator includes a provisional liquidator.
- listing rules has the same meaning as in the Corporations Act 2001.
- member of staff means:
- (a) in relation to APRA—a person who is an APRA staff member within the meaning of the Australian Prudential Regulation Authority Act 1998; and
- (b) in relation to ASIC—a person who is a staff member within the meaning of the Australian Securities and Investments Commission Act 2001.
- NOHC: see Non-Operating Holding Company.
- NOHC/NOHC subsidiary has the meaning given by subsection 230AA(5).
- NOHC registration has the meaning given by section 28A.
- Non-Operating Holding Company, in relation to a body corporate, means a body corporate:
- (a) of which the first body corporate is a subsidiary; and
- (b) that does not carry on a business (other than a business consisting of the ownership or control of other bodies corporate); and
- (c) that is incorporated in Australia.
- non-participating business means life insurance business that consists of the provision of non-participating benefits under policies.
- ordinary business means life insurance business other than superannuation business.
- ordinary policy means a policy other than a superannuation policy.
- overseas fund has the meaning given by section 74.
- overseas participating business has the meaning given by section 56.
- overseas policy means a policy issued outside Australia.
- overseas policy owners’ retained profits has the meaning given by section 61.
- parent: without limiting who is a parent of a person for the purposes of this Act, someone is the parent of a person if the person is his or her child because o
- participating business means life insurance business that consists of the provision of participating benefits under policies.
- person affected by a reviewable decision has the meaning given by section 236.
- policy means a life policy, a sinking fund policy or a section 12A or 12B policy.
- policy document means a document that sets out, or the documents that together set out, the terms of a contract that is a life policy, a sinking fund policy or
- policy liability, in relation to a life company, means:
- (a) a liability that has arisen under a policy; or
- (b) a liability that, subject to the terms and conditions of a policy, will arise on the happening of an event, or at a time, specified in the policy.
- premium includes an instalment of premium.
- principal auditor, of a life company, means an auditor appointed by the life company under subsection 83(1).
- produce includes permit access to.
- prudential matters means matters relating to:
- (a) the conduct of any part of the affairs of, or the structuring or organising of, a life company, a registered NOHC, a relevant group of bodies corporate, or
- (i) to keep the life company, NOHC, group or member or members of the group in a sound financial position; or
- (ii) to facilitate resolution of the life company, NOHC, group or member or members of the group; or
- (iii) to protect the interests of policy owners of any life company; or
- (iv) not to cause or promote instability in the Australian financial system; or
- (b) the conduct of any part of the affairs of a life company, a registered NOHC, a relevant group of bodies corporate, or a particular member or members of such
- prudential standards means standards made under Division 1 of Part 10A.
- recapitalisation direction means a direction given by APRA under subsection 230AB(1) or (1B).
- Register means the Register of Life Companies and Non-Operating Holding Companies kept under section 240.
- registered NOHC means a body corporate that:
- (a) is registered under Division 2 (Registration of NOHCs of life companies) of Part 3; and
- (b) is a NOHC of one or more life companies.
- Regulator means:
- (a) APRA if the provision in which it occurs is, or is being applied for the purposes of, a provision that is administered by APRA; and
- (b) ASIC if the provision in which it occurs is, or is being applied for the purposes of, a provision that is administered by ASIC.
- related body corporate:
- (a) in Part 7—has the meaning given by section 129; and
- (b) otherwise—has the meaning given by section 16.
- relevant group of bodies corporate has the meaning given by section 15A.
- reporting document has the same meaning as in the Financial Sector (Collection of Data) Act 2001.
- resolution means the process by which APRA or other relevant persons manage or respond to an entity:
- (a) being unable to meet its obligations; or
- (b) being considered likely to be unable, or being considered likely to become unable, to meet its obligations; or
- (c) suspending payment, or being considered likely to suspend payment;
- including through the exercise of powers and functions under this Act or another law.
- reviewable decision has the meaning given by section 236.
- section 12A or 12B policy means a policy, other than a life policy or a sinking fund policy, issued, or taken to be issued, in the course of carrying on busines
- senior manager, of a life company, means a person who has or exercises any of the senior management responsibilities (within the meaning of the prudential stand
- senior manager of a body corporate means a person who has or exercises any of the senior management responsibilities (within the meaning of the prudential stand
- shareholders’ capital has the meaning given by section 61.
- shareholders’ retained profits (Australian participating) has the meaning given by section 61.
- shareholders’ retained profits (overseas and non-participating) has the meaning given by section 61.
- sinking fund business means business that consists of:
- (a) the issuing of sinking fund policies or the undertaking of liability under sinking fund policies; or
- (b) any business that relates to business referred to in paragraph (a).
- sinking fund policy means a contract that has the following features:
- (a) the company issuing the policy undertakes to pay money on one or more specified dates;
- (b) neither the payment of that money nor the payment of premiums is dependent on the death or survival of the person to whom the policy is issued or of any oth
- starting amount has the meaning given by section 61.
- subsidiary has the meaning given by section 16.
- superannuation business means life business that consists of:
- (a) the issuing of superannuation policies or the undertaking of liability under superannuation policies; or
- (b) any business that relates to business referred to in paragraph (a).
- superannuation policy means:
- (a) a life policy that is maintained for the purposes of a superannuation or retirement scheme and is owned by the trustee under the scheme; or
- (aa) a life policy that is owned by the trustee of:
- (i) an approved deposit fund (within the meaning of the Superannuation Industry (Supervision) Act 1993); or
- (ii) a pooled superannuation trust (within the meaning of that Act); or
- (ab) an RSA (within the meaning of the Retirement Savings Accounts Act 1997); or
- (b) a life policy of a kind prescribed by the regulations for the purposes of this paragraph.
- this Act includes:
- (a) the regulations and prudential standards; and
- (b) the Life Insurance Act 1995, and the instruments made under that Act referred to in paragraph (a), as they have effect because of Part 2A of that Act.
- trade union means an association registered under a law of a State or Territory providing for the registration of trade unions.
- value, in relation to an asset, means the market value of the asset less the costs likely to be incurred in realising the asset.
- Schedule 2 · Modifications relating to friendly societies
Sourced from the Federal Register of Legislation at legislation.gov.au, © Commonwealth of Australia, licensed under CC BY 4.0. Compilations may have been reformatted.