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Life Insurance Act 1995
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Administered by
Department of the Treasury
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C2025C00196 (C09)
02 June 1997
-
29 June 1997
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Part 1—Preliminary
1 Short title
2 Commencement
3 Object of Act
4 Additional operation of Act
5 Exclusion of certain State insurance
6 Extension of Act to Norfolk Island
7 General administration
8 Dictionary
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Part 2—Explanation of key concepts
9 Life policy
10 Issue and ownership of policies
11 Life insurance business
12 Classes of life insurance business
13 Business of a statutory fund
14 Investment account benefits, investment linked benefits
15 Participating, non participating benefits
16 Related companies
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Part 3—Registration of life companies
17 Prohibition of persons other than registered companies carrying on life business
18 Certain activities not regarded as carrying on life business
19 Certain persons taken to carry on life business etc.
20 Application for registration
21 Decision on application for registration
22 Conditions of registration
23 Continuing capital requirements
24 Modification of application of section 23 to particular companies
25 Notification of changes in information supplied to Commissioner
26 Cancellation of registration: defunct company
27 Voluntary deregistration
28 Return of certificate of registration
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Part 4—Statutory funds of life companies
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Division 1—General requirements
29 What is a statutory fund?
30 Outline of requirements regarding statutory funds
31 Requirement that company have statutory funds
32 Duty of company in relation to statutory funds
33 Notice to Commissioner when fund established
34 Assets of statutory fund
35 Identification of policies referable to statutory fund
36 Payments to statutory fund
37 Capital payments to statutory funds
38 Expenditure and application of statutory fund
39 Prohibition of reinsurance between funds
40 Mortgages etc. of assets
41 Effect of non compliance with section 38
42 Investment performance guarantee—limit of certain liabilities
43 Investment of statutory funds
44 Reporting of restricted investments
45 Transfer of assets between funds
46 Division, amalgamation etc. of statutory funds
47 Ascertainment of income and outgoings of a statutory fund
Division 2—Duties and liabilities of directors etc.
48 Duty of directors in relation to statutory funds
49 Commissioner may give notice
50 Liability of directors
51 Commissioner’s power to sue in the name of a company
Division 3—Division and amalgamation of statutory funds
52 Division of statutory fund
53 Amalgamation of statutory funds
54 Notice to policy owners of establishment or amalgamation of statutory funds
Division 4—Transfer of policies between statutory funds
55 Consequences of transfer of policy from one statutory fund to another
Division 5—Allocation of profits and losses and capital payments
56 Interpretation
57 Obligation to allocate operating profit or loss
58 Operating profit etc.
59 Allocation of operating profit etc.
60 Basis of allocation of operating profit etc.
Division 6—Distribution of retained profits and shareholders’ capital
61 Interpretation
62 Distribution of retained profits
63 Distribution of shareholders’ capital
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Part 5—Solvency and capital adequacy standards
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Division 1—Solvency standard applicable to statutory funds
64 Purpose of Division
65 Solvency standard
66 Purpose of solvency standard
67 Obligation to comply with standard
68 Commissioner’s power to give solvency directions to particular life companies
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Division 2—Capital adequacy standard applicable to statutory funds
69 Purpose of Division
70 Capital adequacy standard
71 Purpose of capital adequacy standard
72 Obligation to comply with standard
73 Commissioner’s power to give capital directions to particular life companies
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Part 6—Financial management of life companies
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Division 1—Preliminary
74 Interpretation
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Division 2—Financial records and statements
75 Financial records—Australian and Australian/overseas funds
76 Financial records—overseas funds
77 Financial year of a life company
78 Treatment of income and outgoings relating to mixed business
79 Treatment of income or outgoings relating to 2 or more categories of business etc.
80 Basis of apportionment
81 Treatment of appreciation and depreciation of assets
82 Financial statements
83 Audit
84 Appointment of auditor
85 Approval of auditors
86 Revocation of approval of auditor
87 Notification of appointment etc. of auditor
88 Auditor’s obligation to report to company and Commissioner
89 Qualified privilege of auditors
90 Obligation on life company to have audit committee
91 Membership and meetings of audit committee
92 Functions and powers of audit committee
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Division 3—Appointed actuaries
93 Appointment
94 Cessation of appointment
95 Notification of appointment etc.
96 Compliance with actuarial standards
97 Powers of appointed actuary
98 Actuary’s obligation to report to Commissioner
99 Qualified privilege of appointed actuary
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Division 4—Life Insurance Actuarial Standards Board
100 Establishment
101 Actuarial standards
102 Powers of the Board
103 Membership
104 Acting Chairperson
105 Leave of absence of members
106 Resignation
107 Ending of appointments for misbehaviour etc.
108 Remuneration and allowances
109 Meetings
110 Conduct of meetings
111 Resolutions without formal meetings
112 Annual report
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Division 5—Actuarial investigations and advice
113 Annual actuarial investigations
114 Method of valuing policy liabilities
115 Additional actuarial investigations
116 Actuarial advice regarding policies
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Division 6—Annual returns etc.
117 Annual statistical returns
118 Lodgment of financial statements and annual statistical returns
119 Lodgment of financial condition report
120 Statement of actuary’s pecuniary interests
121 Rejection of financial statement
122 Financial statements to be accompanied by reports to shareholders and policy owners
123 Reporting of reinsurance arrangements
124 Policy owner’s right to copy of financial statements and annual return
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Division 7—Miscellaneous
125 Approval of certain reinsurance arrangements
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Part 7—Monitoring and investigation of life companies
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Division 1—Preliminary
126 Interpretation
127 Appointment of authorised persons
128 Associated company
129 Related companies
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Division 2—Monitoring life companies
130 Purpose of Division
131 Requirement to give information to Commissioner
132 Requirement to produce records
133 Access to premises
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Division 3—Investigation by Commissioner
134 Directions regarding company assets
135 Giving of show cause notice
136 Grounds for giving of show cause notice
137 Decision to investigate
138 Investigation of associated company
139 Investigation procedure
140 Access to premises for purposes of investigation
141 Requirement to produce records
142 Commissioner’s power to require assistance
143 Application for warrant to seize records not produced
144 Grant of warrant
145 Powers if records produced or seized
146 Powers if records not produced
147 Offences related to investigations
148 Self incrimination
149 Commissioner must give company written summary of conclusions
150 Commissioner may give directions during or after investigation
151 Identity cards
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Division 3A—Life companies required to comply with determinations of the Superannuation Complaints Tribunal
151A Life companies must comply with determinations of the Superannuation Complaints Tribunal
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Division 4—Special provisions relating to the execution of warrants
152 Interpretation
153 Use of equipment to examine or process things
154 Use of electronic equipment at premises
155 Compensation for damage to electronic equipment
156 Copies of seized things to be provided
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Part 8—Judicial management and winding up
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Division 1—Judicial management
157 Application for order for judicial management
158 Order for judicial management after investigation
159 Order for judicial management on other grounds
160 Commencement of judicial management
161 Stay of proceedings during judicial management
162 No judicial management except in accordance with this Act
163 Appointment of judicial manager
164 Remuneration of judicial manager
165 Management vests in judicial manager
166 Continued application of other Parts of Act
167 Court’s control of judicial manager
168 Powers of judicial manager
169 Application by Commissioner for instructions to judicial manager
170 Request by Commissioner for information
171 Duration of judicial management
172 Cancellation of judicial management
173 Judicial manager must conduct management efficiently and economically
174 Disclaimer of onerous property
175 Report by judicial manager
176 Order of Court on report of judicial manager
177 Transfer of business to another company
178 Resignation
179 Indemnity
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Division 2—Winding up
180 Winding up of life companies
181 Order on application by Commissioner
182 Operation of Corporations Law
183 Notification to Commissioner regarding applications by liquidator
184 Application by Commissioner for directions
185 Commissioner’s power to ask for information
186 Determination of amounts to be treated as liabilities of life company
187 Application of statutory fund assets
188 Liability of directors for loss to statutory fund
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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 lodged in case of transfer or amalgamation
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Part 10—Provisions relating to policies
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Division 1—Issue of policies
198 Alteration of proposal and policy forms
199 Capacity of young persons to insure etc.
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Division 2—Assignments and mortgages
200 Assignment of life policy
201 Mortgages and trusts
202 Effect of notice of trust etc.
203 Transfer of policy after change of trustee
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Division 3—Protection of policies
204 Protection of interest of insured
205 Protection of policy money on person’s death
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Division 4—Surrender values, paid up policies and non forfeiture of policies
206 Application of Division
207 Surrender of policies
208 Relaxation of company’s obligations to surrender
209 Paid up policies
210 Non forfeiture of policies in certain cases of non payment of premiums
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Division 5—Payment of policy money
211 Probate or administration not necessary in certain cases—a single policy
212 Probate or administration not necessary in certain cases—2 or more policies
213 Death of policy owner who is not the life insured
214 Company not bound to see to the application of money paid by it
215 Power to pay money into Court
216 Unclaimed money
217 No deduction in respect of other policies
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Division 6—Children’s advancement policies
218 Interpretation
219 Property in child’s advancement policy
220 Death or bankruptcy of policy owner
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Division 7—Lost or destroyed policy documents
221 Lost or destroyed policy—issue of replacement policy document
222 Form of replacement policy document
223 Notice before issuing replacement policy document
224 Claim under policy where policy document lost or destroyed
225 Application of sections 221, 222, 223 and 224 to replacement policy document
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Division 8—General
226 Registers
227 Registration of life policies
228 Effect of suicide on policy
229 Condition as to war risk void
230 Policies not invalidated by contraventions of the Act
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Part 11—Miscellaneous
231 Annual report
232 Delegation
233 Operation of State and Territory laws
234 Prohibition of mixed insurance business
235 Injunctions
236 Review of certain decisions
237 Constitution and procedure of Tribunal
238 Prospectus to be given to Commissioner
239 Documents relating to takeover schemes
240 Register of Life Companies
241 Inspection of Register etc.
242 Non shareholder members of life company—voting by post
243 Inspection of documents
244 Commissioner’s power to obtain statistics etc.
245 Bankrupts and persons convicted of certain offences not to be directors, principal executive officers etc. of life companies
246 Principal executive officer
247 Protection of person who discloses information etc. under compulsion
248 Offences
249 False or misleading documents
250 Conduct by directors, servants and agents
251 Secrecy
252 Commissioner’s rules
253 Regulations
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Part 12—How this Act affects existing life companies etc.
254 Companies registered under Life Insurance Act 1945
255 Continuing capital requirements
256 Approved auditor
257 Approved actuary
258 Documents required to be lodged
259 Reinsurance between statutory funds
260 Scheme for transfer or amalgamation
261 Modification of operation of Divisions 5 and 6 of Part 4
262 Existing benefit society business
263 Judicial management and winding up
264 Saving provision: sections 83, 84 and 94 of the Life Insurance Act 1945
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Schedule—Dictionary
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Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
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