Federal Register of Legislation - Australian Government

Primary content

Life Insurance Act 1945

Act No. 28 of 1945 as amended, taking into account amendments up to Act No. 216 of 1973
Registered 27 Nov 2009
Start Date 31 Dec 1973
End Date 18 May 1977
Date of repeal 01 Jul 1995
Repealed by Life Insurance (Consequential Amendments and Repeals) Act 1995

LIFE INSURANCE ACT 1945
- Reprinted as at 19 December 1973 (HISTACT2 CHAP 125 #DATE 19:12:1973)

LIFE INSURANCE ACT 1945-1973 - TABLE OF PROVISIONS

TABLE


LIFE INSURANCE ACT 1945-1973

TABLE OF PROVISIONS

PART I-PRELIMINARY
Section
1. Short title
2. Commencement
3. (Repealed)
4. Interpretation
5. Application of Act
6. Application of Act to Territories
7. (Repealed)
8. Certain State Acts to cease to apply to life insurance business

PART II-ADMINISTRATION

9. Life Insurance Commissioner
10. Actuarial advice
11. Annual report and returns
12. Delegation by Commissioner
13. Power of Commissioner to arbitrate

PART III-PROVISIONS RELATING TO COMPANIES

Division 1-Registration

14. Persons other than companies not to carry on business
15. Companies not to carry on business unless registered
16. Certain transactions not to be deemed carrying on business
17. Application for registration
18. (Repealed)
19. Registration of other companies
20. Compliance with provisions as to deposits
21. Foreign company to appoint principal officer
22. Certificate of registration
23. Notification of change in particulars, &c.
23A. Cancellation of registration

Division 2-Deposits

24. Prior deposits under State Acts
25. Deposit under Insurance Act 1932-1937
26. Deposits by existing companies
27. Deposit in case of foreign company
28. Deposit in case of new life insurance companies
29. Investments of sums deposited
30. Deposits part of assets of company
31. Certificate as to nature and extent of deposit
32. Deposits by companies acquiring business of other companies
33. Increase of deposit where securities have depreciated
34. Deposits to be security to policy owners
35. Responsibility for lost securities
36. Substitution and withdrawal of deposits

Division 3-Statutory Funds

37. Establishment of statutory funds
37A. Determination by company that policy referable to statutory fund
38. Formation and application of statutory funds
39. Investment of statutory funds
40. Provisions in relation to the establishment of statutory funds in
respect of classes of life insurance business
40A. Transfer of assets between funds in certain circumstances

Division 4-Accounts, Balance-sheets and Audit

41. Separate accounts for each class of life insurance business
42. Apportionment of receipts and payments between life insurance
business and other business
42A. Apportionment of receipts and payments between classes of life
insurance business
42B. Apportionment of payments in respect of income tax
43. Appreciation and depreciation of assets
44. Accounts and balance-sheet
45. Audit
46. Certificate as to apportionment
47. Auditors

Division 5-Actuarial Investigations

48. Actuarial reports and abstracts and statements of life insurance
business
49. Provisions as to valuations
50. Payments of dividends and bonuses from statutory funds

Division 6-Documents to be furnished to the Commissioner

51. Returns of policies
52. Accounts, balance-sheets, &c., to be signed and deposited
53. Copies to be furnished

Division 7-Investigations by Commissioner

54. Commissioner may demand information
55. Power to make investigation
56. Power to obtain information
57. Persons to observe secrecy
58. Action after completion of investigation

Division 8-Judicial Management and Winding-up

59. Application for judicial management or winding-up
60. Judicial management
61. Cancellation of judicial management order
62. Report by judicial manager
63. Indemnity
64. Decision of Court on report of judicial manager
65. Transfer of business to another company
66. Cancellation of contracts or agreements
67. Winding-up
68. Ascertainment of value of liability under policies
69. Application of certain assets
70. Liability of directors and officers
71. Application of deposits
72. Winding-up of part of business of company

Division 9-Transfer and Amalgamation

73. Transfer or amalgamation
74. Preparation of scheme
75. Submission, confirmation and effect of schemes
76. Returns to be made in case of transfers or amalgamations

PART IV-PROVISIONS RELATING TO POLICIES

Division 1-Issue of Policies

77. Certain forms to be submitted for approval
78. Premium rates
79. Commissions or rebates in respect of policies
80. Particulars as to age of person to be insured
81. Notice regarding proof of age
82. Procedure where company declines to accept proof of age
83. Mis-statement of age
84. Incorrect statement in proposal not to avoid policy
85. Minors
86. Insurable interest

Division 2-Assignments and Mortgages of Policies

87. Assignments of policies
88. Mortgages and trusts
89. Effect of notice of trust
90. Assignment or mortgage of industrial policy not valid without
consent of company
90A. Assignment of policy to company issuing it not to merge rights, &c.,
under policy
91. Policies held by trustees

Division 3-Protection of Policies

92. Interest of insured protected in certain cases
93. Insurance by married women
94. Family insurance policies

Division 4-Paid-up Policies, Surrender Values and
Non-forfeiture

95. Application of Division
96. Paid-up policies
97. Surrender of policies
98. Calculation of surrender values
99. Relaxation of obligations as to surrender values
100. Non-forfeiture of ordinary policies in certain cases on non-payment
of premiums
101. Non-forfeiture of industrial policies in certain cases on
non-payment of premiums
102. Treatment of debts on grant of paid-up policies

Division 5-Payment of Policy Moneys

103. Probate or administration may be dispensed with in certain cases
103A. Death of owner of policy not being life insured
104. Company not bound to see to application of moneys paid by it
105. Power to pay money into Court
106. Unclaimed moneys
107. No deductions in respect of other policies

Division 6-Payments on Death of Children under Ten Years of
Age

108. Definitions
109. Limitation of amount payable on death of children
110. Production of prescribed certificate of death
111. Certificates of death
112. Offences and penalties
113. Saving as to insurable interest

Division 7-Children's Advancement Policies

114. Definitions
115. Child's advancement policy not void for want of insurable interest
116. Property in child's advancement policy

Division 8-General

117. Registries and Registers
118. Registration of policies
119. Lost policy
120. Effect of suicide or capital punishment on policy
121. Condition as to war risk void
122. Offences by company not to invalidate policies

PART V-PROVISIONS RELATING TO INDUSTRIAL INSURANCE BUSINESS

123. Objection to policies
124. Return of industrial policies and premium receipt books after
inspection
125. Penalties for falsification
126. As to avoidance of policy by reason of particulars in proposal
written or filled in by agent or servant of company
127. Particulars to be set forth in policies
128. Issue of premium receipt books
129. Premium receipt book to show date to which premiums paid, &c.
130. Guarantor not to be liable to refund commissions on lapsed policies
131. Production of company's certificate as to agent's or guarantor's
indebtedness not to be conclusive evidence thereof

PART VI (Sections 132-138) (Repealed)

PART VII-MISCELLANEOUS

139. Issue of capital by companies
140. Voting by post
141. Inspection of documents
142. Documents to be received in evidence
143. Publication of authorized, subscribed and paid-up capital
144. Modification of Schedules
145. Power to collect statistics
146. Service of notices
147. Authority by principal officer of company
147A. Printing of documents
148. Offences
149. Penalties
150. Regulations

THE SCHEDULES

FIRST SCHEDULE

Forms

SECOND SCHEDULE

Provisions Relating to the Preparation of Abstracts of Actuary's Reports

THIRD SCHEDULE
Provisions Relating to the Preparation of Statements of Life Insurance Business

FOURTH SCHEDULE

Rules for Calculation of Value of Liabilities on the Minimum Basis

FIFTH SCHEDULE

Memorandum of Transfer

SIXTH SCHEDULE

Rules for the purposes of Division 4 of Part IV of this Act

SEVENTH SCHEDULE

Amount Payable in case of Death of Child

LIFE INSURANCE ACT 1945-1973 - SECT. 1.
Short title.

SECT

LIFE INSURANCE ACT 1945-1973

An Act relating to Life Insurance and other matters.

PART I-PRELIMINARY
Short title amended; No. 32, 1918, s. 2.
1. This Act may be cited as the Life Insurance Act 1945-1973.*

LIFE INSURANCE ACT 1945-1973 - SECT. 2.
Commencement.

SECT

2. Except as otherwise provided by this Act, this Act shall commence on a date to be fixed by Proclamation.*
Section 3 repealed by No. 216, 1973, s. 3.
* * * * * * * *

LIFE INSURANCE ACT 1945-1973 - SECT. 4.
Interpretation.

SECT

Sub-section (1) amended by No. 94, 1953, s. 3; No. 3, 1958, s. 4; No. 29, 1961, s. 3; No. 78, 1973, ss. 3 and 4; and No. 216, 1973, s. 3.
4. (1) In this Act, unless the contrary intention appears-

''actuary'' means a Fellow of the Institute of Actuaries incorporated by Royal Charter on the twenty-ninth day of July, One thousand eight hundred and eighty-four, or a Fellow of The Faculty of Actuaries in Scotland, and includes an Associate or either of those bodies who qualified as such before the commencement of this Act and is approved by the Treasurer or the Commissioner, and, when an Institute of Actuaries is established in Australia and has been approved by the Governor-General, includes a Fellow of that Institute;
No. 4, 1932, s. 3.
''approved securities'' means-

(a) securities of or guaranteed by the government of the Commonwealth or of the United Kingdom or of any other part of the dominions of the Crown;

(b) municipal securities which have been approved by the Treasurer;

(c) debentures or stock of any corporation (whether public or private), formed or constituted in Australia, which have been approved by the Treasurer;

(d) fixed deposits in any bank, carrying on business in Australia, which has been approved by the Treasurer;

(e) bank guarantees or undertakings which are in the prescribed form and have been approved by the Treasurer;

(f) unencumbered titles to freehold lands in Australia approved by the Treasurer and first mortgages of freehold lands in Australia approved by the Treasurer where the sum secured does not exceed two-thirds of the improved value of the lands determined in the prescribed manner or such other proportion (being less than two-thirds) of that value as the Treasurer determines; and

(g) any other securities approved by the Treasurer;

''assignment'', in relation to a policy, does not include a surrender of the policy to the company liable under the policy;

''Australia'' includes any Territory to which this Act extends;

''chairman of directors'', in relation to a company, means the person for the time being presiding over the board of directors or other governing body of the company;

''collecting book'' includes any book or document in which a collector records payments of premiums;

''collector'' includes every person, howsoever remunerated, who, by himself or by any deputy or substitute, makes house to house visits for the purpose of receiving premiums payable on policies, and includes such a deputy or substitute;

''Commonwealth securities'' has the same meaning as in the Income Tax Assessment Act 1936-1973;

''company'' means a body corporate which carries on or proposes to carry on life insurance business in Australia;

''continuous disability insurance business'' means business of or in relation to, the issuing of, or the undertaking of liability under, continuous disability insurance contracts;

''continuous disability insurance contract'' means a contract of insurance (which is by its terms to be of more than one year's duration and is incorporated in a life policy) whereby any person is to become entitled to a benefit in the event of the occurrence, within the duration of the contract, of death by accident or by some other cause specified in the contract, or of injury or disability caused by accident or sickness;

''financial year'', in relation to a company, means each period of twelve months at the end of which the balance of the accounts of the company is struck;

''foreign company'' means any company which is incorporated outside Australia;

''friendly society'' means any society registered under any State Act or law of a Territory providing for the registration of friendly or benefit societies;

''industrial insurance business'' means life insurance business, being business of, or in relation to, the issuing of, or the undertaking of liability under, industrial policies;

''industrial policy'' means a policy in respect of which the premiums are contracted to be paid at intervals of less than two months and are contracted to be received, or are usually received, by means of collectors, and includes-

(a) a policy that has at any time been such a policy; and

(b) a paid-up policy (not being a policy expressed to be an ordinary policy) granted in lieu of such a policy or of a policy referred to in the last preceding paragraph;

''life business'' means business of, or in relation to, the issuing of, or the undertaking of liability under, life policies;

''life insurance business'' means life business, continuous disability insurance business and sinking fund business, or any of those businesses, but does not include-

(a) business in relation to the benefits provided by a friendly society or trade union for its members or their dependants;

(aa) business in relation to the benefits provided for its members or their dependants by an association of employees that is registered as an organization under the Conciliation and Arbitration Act 1904-1972;

(b) business in relation to any scheme or arrangement whereby superannuation benefits, pensions or payments to employees or their dependants (and not to any other persons) on retirement, disability or death, are provided by an employer or his employees, or by both, wholly through an organization established by the employer or his employees or by both;

(c) in the case of a person who issues policies to his employees, and not to any other persons, in Australia, the business of or in relation to, the issuing of, or the undertaking of liability under, those policies; or

(d) business in relation to a scheme or arrangement for the provision of benefits consisting of-

(i) the supply of funeral, burial or cremation services, with or without the supply of goods connected with such services; or

(ii) the payment of money, upon the death of a person, for the purpose of meeting the whole or a part of the expenses of and incidental to the funeral, burial or cremation of that person,

and no other benefits, except benefits incidental to the scheme or arrangement;

''life policy'' means a policy insuring payment of money on death (not being death by accident or specified sickness only) or on the happening of any contingency dependent on the termination or continuance of human life (either with or without provision for a benefit under a continuous disability insurance contract), and includes an instrument evidencing a contract which is subject to payment of premiums for a term dependent on the termination or continuance of human life and an instrument securing the grant of an annuity for a term dependent upon human life;

''ordinary life insurance business'' means life insurance business being business of, or in relation to, the issuing of, or the undertaking of liability under, ordinary policies;

''ordinary policy'' means a policy other than an industrial policy;

''owner'', in relation to a policy, means the person who for the time being has the legal title to the policy;

''participating policy'' means a policy by the terms of which the owner of the policy is entitled to a share in surpluses or profits which may be distributed by the company;

''personal representative'' means the executor of the will, or administrator of the estate, of a deceased person;

''policy'' means a life policy or a sinking fund policy;

''premium'' includes an instalment of a premium;

''premium receipt book'' includes any book or document held by the owner of a policy in which acknowledgments of receipts of premiums payable in respect of the policy are entered;

''principal officer'', in relation to any company, means the principal officer of the company, for the time being, in Australia;

''public securities'' has the same meaning as in the Income Tax Assessment Act 1936-1973;

''Schedule'' means Schedule to this Act;

''sinking fund business'' means business of, or in relation to, the issuing of, or the undertaking of liability under, sinking fund policies;

''sinking fund policy'' means a policy ensuring payment of a sum, or series of sums, of money on a future date or dates in consideration of one or more premiums but does not include a life policy;

''statutory fund'', in relation to a company, means a statutory fund maintained by the company under section thirty-seven of this Act;

''superannuation business'' means life insurance business, being business of, or in relation to, the issuing of, or the undertaking of liability under, superannuation policies;

''superannuation policy'' means a policy-

(a) that is vested in the trustee of a fund established or maintained by a person, being a fund the terms and conditions applicable to which provide for-

(i) the payment of contributions to the fund by that person; and

(ii) payments being made from the fund, by reason of injury, sickness, retirement or death of employees of that person or of a company in which that person has a controlling interest; or

(b) that was-

(i) effected for the purposes of a superannuation or retirement scheme; or

(ii) accepted by the person maintaining such a scheme for the purposes of the scheme;

''the Commissioner'' means the Life Insurance Commissioner appointed under this Act;

''the Court'' means the High Court;

''trade union'' means any association registered under any State Act or law of a Territory as a trade union;

''war service'' means service with any Naval, Military or Air Forces of any part of the dominions of the Crown and includes any engagement in aviation as part of that service.

(2) In this Act, unless the contrary intention appears, any reference to a form shall be read as a reference to a form in the First Schedule.
Substituted by No. 29, 1961, s. 3.

(3) For the purposes of this Act, the following are classes of life insurance business:-

(a) life insurance business (other than superannuation business) under ordinary policies;

(b) life insurance business (other than superannuation business) under industrial policies; and

(c) superannuation business.

(4) If a company satisfies the Commissioner that-

(a) any class of life insurance business carried on by the company ought to be treated as if it were another class of life insurance business; or

(b) any other insurance business (not being business of insurance against loss of, or damage to, property) carried on, or to be carried on, by the company ought to be treated as if it were a class of life insurance business,
the Commissioner may direct that it shall be so treated, and thereupon it shall, for the purposes of this Act, be deemed to be that other class of life insurance business, or a class of life insurance business, as the case may be.

(5) Where a company carries on continuous disability insurance business or sinking fund business, and either of those businesses is, by the instruments constituting the company or by its articles of association or other rules, dissociated from the other life insurance business of the company, the Commissioner may, on the application of the company, direct that, subject to such exceptions as are specified in the direction, the continuous disability insurance business or sinking fund business of the company shall be deemed not to be life insurance business, and thereupon the provisions of this Act shall not apply to that continuous disability insurance business or sinking fund business except to the extent so specified.

(6) The Commissioner shall not make a direction under the last preceding sub-section unless he is satisfied that reasonable provision has been made by the company for its liability in respect of that continuous disability insurance business or sinking fund business.
Added by No. 3, 1958, s. 4.

(7) Where a company carries on life insurance business as defined by sub-section (1) of this section, business carried on by that company which, but for paragraph (d) of the definition of ''life insurance business'' in that sub-section, would be life insurance business shall be deemed to be life insurance business carried on by that company.
Added by No. 29, 1961, s. 3.

(8) For the purposes of this Act-

(a) the life insurance business of a company under a policy that is registered by the company in a register kept at a registry in a State or a Territory shall be deemed to be life insurance business carried on by the company in Australia; and

(b) the life insurance business of a company under any other policy shall be deemed to be life insurance business carried on by the company outside Australia.

LIFE INSURANCE ACT 1945-1973 - SECT. 5.
Application of Act.

SECT

5. (1) Subject to the next succeeding sub-section, this Act shall apply to State insurance extending beyond the limits of the State concerned.

(2) Where the policies issued by any authority of a State carrying on life insurance business are guaranteed by the State, Division 2 of Part III of this Act shall not apply to that authority.
Amended by No. 29, 1961, s. 4.

(3) The provisions of this Act shall not apply to-

(a) any fund which is maintained by a foreign company in respect of any part of its life insurance business, where none of the liabilities arising out of that part of its business relates to any policy registered by the company in Australia; or

(b) the part of the life insurance business in respect of which that fund is maintained.

LIFE INSURANCE ACT 1945-1973 - SECT. 6.
Application of Act to Territories.

SECT

Amended by No. 216, 1973, s. 3.
6. This Act shall extend to any external Territory to which the Governor-General by Proclamation declares that this Act shall extend.
Section 7 repealed by No. 216, 1973, s. 3.
* * * * * * * *

LIFE INSURANCE ACT 1945-1973 - SECT. 8.
Certain State Acts to cease to apply to life insurance business.

SECT

8. (1) The provisions of this Act shall, subject to any exceptions prescribed by or under this Act, apply in relation to life insurance business, including State life insurance extending beyond the limits of the State concerned, to the exclusion of the application of the following State Acts and portions of State Acts and of any State Acts or portions of State Acts amending, adding to, or in substitution for any of those State Acts or portions of State Acts, namely:-

New South Wales-

Life, Fire, and Marine Insurance Act, 1902;
Life, Fire, and Marine Insurance (Amendment) Act, 1917;
Life, Fire, and Marine Insurance (Amendment) Act, 1938.

Victoria-

Instruments (Insurance Contracts) Act 1936;
Companies Act 1938, Part III;
Industrial Life Assurance Act 1938;
Instruments (Insurance Contracts)Act 1939;
Ordinary Life Assurance Act 1940;
Industrial Life Assurance Act 1940;
Instruments (Insurance Contracts) Act 1943.

Queensland-

The Life Assurance Companies Act of 1901;
The Insurance Act of 1916;

The Insurance Act of 1923;

The Life Assurance Companies Acts Amendment Act of 1933;

The Insurance Acts Amendment Act of 1934.

South Australia-

Life Assurance Companies Act, 1936;
Life Assurance Companies Amendment Act, 1939;
Life Assurance Companies Act Amendment Act, 1941;
Life Assurance Companies Act (Partial Suspension) Act, 1943.

Western Australia-

The Life Assurance Companies Act, 1889;
Life Assurance Companies Amendment Act, 1905;
Life Assurance Companies Act Amendment Act,1939.

Tasmania-

Life Assurance Companies Act, 1874;
Life Assurance Companies Act, 1885;
Life Assurance Companies Act, 1906.

(2) Nothing in this section shall operate prejudicially to affect the rights, powers or privileges under any of those Acts of the owner, or persons entitled to the benefit, of any policy issued prior to the commencement of this Act.

LIFE INSURANCE ACT 1945-1973 - SECT. 9.

SECT

PART II-ADMINISTRATION
Life Insurance Commissioner.
Sub-section (1) amended by No. 78, 1973, s. 5.
9. (1) There shall be a Life Insurance Commissioner, who shall be appointed by the Governor-General.

(2) The Commissioner shall, subject to any directions of the Treasurer, be charged with the general administration of this Act.

LIFE INSURANCE ACT 1945-1973 - SECT. 10.
Actuarial advice.

SECT

10. If the Commissioner is not an actuary, the Treasurer shall cause arrangements to be made for the services of an actuary to be available at all times for the purpose of advising the Commissioner in relation to matters arising under this Act.

LIFE INSURANCE ACT 1945-1973 - SECT. 11.
Annual report and returns.

SECT

11. (1) The Commissioner shall, within three months after the thirty-first day of December in each year, furnish to the Treasurer, for presentation to the Parliament-

(a) a report on the working of this Act during that year; and

(b) printed copies or summaries of the documents lodged with him under Division 6 of Part III of this Act during that year.

(2) The Commissioner may attach to any such copy or summary any note which he thinks proper to make with reference to the document, together with a copy of any correspondence relating to the document.

(3) The Treasurer shall cause a copy of the report of the Commissioner under this section, together with the printed copies or summaries referred to in paragraph (b) of sub-section (1) of this section, to be laid before each House of the Parliament within fifteen sitting days of that House after the receipt of the report and copies or summaries by the Treasurer.

LIFE INSURANCE ACT 1945-1973 - SECT. 12.
Delegation by Commissioner.

SECT

12. (1) The Commissioner may, in relation to any particular matter or class of matters, or to any particular State or Territory, by writing under his hand, delegate all or any of his powers and functions under this Act (except this power of delegation), so that the delegated powers and functions may be exercised by the delegate with respect to the matter or class of matters, or the State or Territory, specified in the instrument of delegation.

(2) Every delegation under this section shall be revocable at will and no delegation shall prevent the exercise of any power or function by the Commissioner.

LIFE INSURANCE ACT 1945-1973 - SECT. 13.
Power of Commissioner to arbitrate.

SECT

13. (1) Where, in relation to a policy, any dispute or difference arises between the company and the policy owner, if the parties have agreed, whether by the terms of the policy or otherwise, to submit the dispute or difference to arbitration by the Commissioner, the Commissioner may act as arbitrator of the dispute or difference and his award shall be binding on both parties.

(2) An arbitration under this section shall, unless the parties otherwise agree, be conducted in accordance with the provisions of the law relating to arbitration of the State or Territory in which the policy is registered by the company.

LIFE INSURANCE ACT 1945-1973 - SECT. 14.

SECT

PART III-PROVISIONS RELATING TO COMPANIES

Division 1-Registration
Persons other than companies not to carry on business.
Sub-section (1) amended by No. 216, 1973, s. 3.
14. (1) A person, other than a company, shall not carry on any class of life insurance business in Australia except on behalf of a company registered under this Act.
Added by No. 3, 1958, s. 5.

(2) A person who contravenes the last preceding sub-section is guilty of an offence against this Act.

LIFE INSURANCE ACT 1945-1973 - SECT. 15.
Companies not to carry on business unless registered.

SECT

Substituted by No. 216, 1973, s. 3.
15. A company shall not carry on any class of life insurance business in Australia unless if has been registered by the Commissioner.

Penalty: $4,000 and, in addition, $1,000 for each day on which business is carried on in contravention of this section.

LIFE INSURANCE ACT 1945-1973 - SECT. 16.
Certain transactions not to be deemed carrying on business.

SECT

16. (1) A person or company shall not be deemed to carry on any class of life insurance business by reason only-

(a) of collecting renewal premiums under a policy in respect of that class of business issued outside Australia to a person resident outside Australia at the date of issue of the policy; or

(b) of making payments due under any such policy.

(2) Subject to the last preceding sub-section, a person or company receiving premiums or proposals in respect of life insurance business shall be deemed to be carrying on the class of life insurance business to which the premiums or proposals relate.

(3) When a company has ceased to issue policies in respect of any class of life insurance business in Australia, it shall, unless the Commissioner is satisfied that reasonable provision has been made for its liability in respect of policies of that class previously effected, be deemed to carry on that class of business.

LIFE INSURANCE ACT 1945-1973 - SECT. 17.
Application for registration.

SECT

17. (1) Any company may make application to the Commissioner for registration under this Act.
Amended by No. 216, 1973, s. 3.

(2) The application shall be in writing, shall be signed by a director and by the principal officer of the company, and shall specify-

(a) the situation of the head office of the company;

(b) the names of the directors and of the auditors, and the name and address of the principal officer, of the company;

(c) the name of the actuary (if any) of the company;

* * * * * * * *

(e) in the case of a foreign company, the countries outside Australia in which the company carries on life insurance business; and

(f) the classes of life insurance business undertaken or to be undertaken by the company.

(3) The application shall be accompanied by-

(a) a copy of the instruments constituting the company;

(b) a copy of the articles of association or other rules of the company;

(c) a copy of the latest revenue account and balance-sheet of the company and a copy of the latest valuation report upon the financial position of the company; and

(d) in the case of a company having shareholders, a statement showing the nominal, subscribed and paid-up capital of the company and the amount of capital which has been paid in cash,
certified by the principal officer of the company to be true and correct.
Section 18 repealed by No. 216, 1973, s. 3.
* * * * * * * *

LIFE INSURANCE ACT 1945-1973 - SECT. 19.
Registration of other companies.

SECT

Sub-section (1) amended by No. 216, 1973, s. 3.
19. (1) The Commissioner may, on receipt of an application for registration from a company-

(a) subject to this Act, register the company; or

(b) with the approval of the Treasurer, refuse to register the company.
Added by No. 65, 1950, s. 3.

(2) Registration of a company shall, subject to the next two succeeding sections, be refused only if the Commissioner, after appropriate inquiry, is not satisfied-

(a) that the application is in accordance with the provisions of this Act;

(b) that the company is, or is likely to be, able to meet its obligations, including obligations in respect of business other than life insurance business;

(c) that the company is likely to be able to comply with such of the provisions of this Act as would be applicable to it;

(d) that the name of the company does not so closely resemble the name of a company already registered under this Act as to be likely to deceive; or

(e) in the case of a company which carries on, or proposes to carry on, some other form of business in addition to insurance business, that the carrying on of that other form of business in addition to insurance business is not contrary to the public interest.

LIFE INSURANCE ACT 1945-1973 - SECT. 20.
Compliance with provisions as to deposits.

SECT

20. A company shall not be registered unless the Commissioner is satisfied that the company has complied with such of the provisions of Division 2 of this Part as are applicable to it.

LIFE INSURANCE ACT 1945-1973 - SECT. 21.
Foreign company to appoint principal officer.

SECT

21. A foreign company shall not be registered unless it has appointed some person resident in Australia to be its principal officer and has informed the Commissioner in writing of the name and address of that person.

LIFE INSURANCE ACT 1945-1973 - SECT. 22.
Certificate of registration.

SECT

22. The Commissioner shall furnish to every company registered under this Act a certificate that the company has been so registered, and the certificate shall in all courts be prima facie evidence that the company specified in the certificate has been so registered.

LIFE INSURANCE ACT 1945-1973 - SECT. 23.
Notification of change in particulars, &c.

SECT

23. If, subsequent to the registration of any company under this Act, any change takes place in the particulars specified in the application of the company for registration or in the particulars of the information or documents required to accompany the application, the company shall, within such time as is prescribed, notify the Commissioner in writing of the change.

LIFE INSURANCE ACT 1945-1973 - SECT. 23A.
Cancellation of registration.

SECT

Inserted by No. 94, 1953, s. 4.
23A. (1) Where a company has been registered under this Act for a period of not less than twelve months and the Commissioner has reason to believe that the company is not carrying on life insurance business in Australia, he may serve on the company a notice requiring it to satisfy him, within one month after the date of service of the notice, that it is carrying on life insurance business in Australia.

(2) If a company on which a notice is served in pursuance of the last preceding sub-section does not, within the time specified in that subsection, satisfy the Commissioner that it is carrying on life insurance business in Australia, the Commissioner may, with the approval of the Treasurer, cancel the registration of the company.

(3) Where the registration of a company is cancelled, the Commissioner-

(a) shall give notice of the cancellation to the company; and

(b) may, by the same or by a subsequent notice, require the company to deliver to him, within a period specified in the notice, the certificate of registration furnished to the company under section twenty-two of this Act.

LIFE INSURANCE ACT 1945-1973 - SECT. 24.

SECT

Division 2-Deposits
Prior deposits under State Acts.
No. 4, 1932, s. 7.
Substituted by No. 216, 1973, s. 3.
24. Any amount or security that was held by a State or by an authority of a State by way of deposit on account of a company carrying on life insurance business and that was paid or transferred to the Treasurer shall, to the extent of the deposit required to be lodged by that company under this Act, be held by the Treasurer as, or as part of, the deposit so required.

LIFE INSURANCE ACT 1945-1973 - SECT. 25.
Deposit under Insurance Act 1932-1937.

SECT

25. Any deposit lodged with the Treasurer in pursuance of the Insurance Act 1932-1937 by a company in respect of life insurance business and held by the Treasurer immediately prior to the commencement of this Act shall thereafter continue to be held by the Treasurer as, or as part of, the deposit required to be lodged by that company under this Act.

LIFE INSURANCE ACT 1945-1973 - SECT. 26.
Deposits by existing companies.

SECT

No. 4, 1932, s. 12.
26. (1) Subject to this Act, a company carrying on life insurance business in Australia immediately prior to the commencement of this Act shall deposit with the Treasurer money or approved securities or both to the value of Fifty thousand pounds.

(2) Where a company carrying on life insurance business in Australia immediately prior to the commencement of this Act satisfies the Commissioner that its net liability, as ascertained at the latest actuarial valuation, in respect of that business is less than Two hundred and fifty thousand pounds, the company shall deposit with the Treasurer money or approved securities or both to the value of One thousand pounds for every Five thousand pounds of the amount which, in the opinion of the Commissioner, is the net liability of the company.

(3) Where a deposit lodged under the last preceding sub-section is less than Fifty thousand pounds, the amount deposited shall be increased, within nine months after the date as at which each and every subsequent actuarial valuation is made, by One thousand pounds in respect of every Five thousand pounds by which the net liability of the company disclosed at that valuation exceeds the amount of the net liability taken into account in fixing the amount of its aggregate deposits previously lodged under this Act, until the amount deposited reaches Fifty thousand pounds.

LIFE INSURANCE ACT 1945-1973 - SECT. 27.
Deposit in case of foreign company.

SECT

No. 4, 1932, s. 12.
Amended by No. 216, 1973, s. 3.
27. A foreign company not carrying on life insurance business in Australia immediately prior to the commencement of this Act shall, before carrying on that business in Australia, deposit with the Treasurer, money or approved securities or both to the value of $100,000.

LIFE INSURANCE ACT 1945-1973 - SECT. 28.
Deposit in case of new life insurance companies.

SECT

No. 4, 1932, s. 13.
Sub-section (1) amended by No. 216, 1973, s. 3.
28. (1) A company incorporated in Australia (whether before or after the commencement of this Act) not carrying on life insurance business in Australia immediately prior to the commencement of this Act shall, before carrying on life insurance business in Australia, deposit with the Treasurer money or approved securities or both to the value of $10,000.
Amended by No. 216, 1973, s. 3.

(2) The company shall thereafter deposit annually with the Treasurer money or approved securities or both to the value of $10,000, until the deposit reaches the value of $100,000:

Provided that in the case of a company having no shareholders the annual deposit under this sub-section shall be $2,000 until the deposit reaches the value of $100,000:

Provided further that the aggregate amount deposited shall not at any time be less than the aggregate amount which would be required by this Act to be deposited if the company had been carrying on life insurance business in Australia immediately prior to the commencement of this Act.

LIFE INSURANCE ACT 1945-1973 - SECT. 29.
Investment of sums deposited.

SECT

No. 4, 1932, s. 18.
29. Every sum of money deposited by a company in pursuance of this Act shall be invested by the Treasurer in such approved securities as the company selects or, in default of selection within fourteen days after the deposit has been made, in such approved securities as the Treasurer determines.

LIFE INSURANCE ACT 1945-1973 - SECT. 30.
Deposits part of assets of company.

SECT

30. All deposits by a company in pursuance of this Act shall be deemed to form part of the assets of the company, and all interest accruing due on the deposits or the securities in which they are for the time being invested shall be paid to the company.

LIFE INSURANCE ACT 1945-1973 - SECT. 31.
Certificate as to nature and extent of deposit.

SECT

No. 4, 1932, s. 19. Amended by No. 216, 1973, s. 3.
31. The Secretary to the Department of the Treasury shall, on demand by a company, furnish to the company a certificate in writing, setting out the nature and extent of any deposit held by the Treasurer under this Act in respect of the company together with particulars of the securities (if any) forming the whole or part of the deposit.

LIFE INSURANCE ACT 1945-1973 - SECT. 32.
Deposits by companies acquiring business of other companies.

SECT

No. 4, 1932, s. 14.
32. If the Commissioner is satisfied that any company has acquired the life insurance business of any other company, a deposit by the acquiring company to the extent which would be required of that company by this Act if it carried on the business of that other company in addition to its own business shall, if the Commissioner so certifies, be a sufficient compliance with the requirements of this Division.

LIFE INSURANCE ACT 1945-1973 - SECT. 33.
Increase of deposit where securities have depreciated.

SECT

No. 4, 1932, s. 20.
33. (1) If the Treasurer is satisfied that by reason of depreciation in the value of securities or other cause the value of money and approved securities deposited by a company with him falls short of the value required by this Act, he may, by notice in writing, require the company to deposit with him money or approved securities or both to a value deemed by him to be sufficient to bring the amount of the deposit to the value required by this Act.

(2) A notice under this section shall not be issued until after the Treasurer has given an opportunity to the company to be heard in connexion with the matter.

(3) Any company which fails to deposit with the Treasurer money or approved securities or both as required by him under this section shall be guilty of an offence.

LIFE INSURANCE ACT 1945-1973 - SECT. 34.
Deposits to be security to policy owners.

SECT

No. 4, 1932, s. 21.
34. (1) Where in pursuance of Division 3 of this Part a company establishes and maintains one statutory fund only, the amount of the deposit lodged by the company under this Act shall, subject to this Act, be and remain as a security for the discharge of the liabilities of that statutory fund in respect of policies.

(2) Where in pursuance of Division 3 of this Part a company establishes and maintains more than one statutory fund, then in respect of every such statutory fund such portion of the amount of that deposit as the company with the approval of the Commissioner determines shall, subject to this Act, be and remain as a security for the discharge of the liabilities of that statutory fund in respect of policies.

(3) The amount or the portion of the amount of any such deposit which is a security for the payment of liabilities of a statutory fund in respect of policies shall not be applicable in the discharge of any other liabilities of the company until the first-mentioned liabilities have been discharged or otherwise provided for to the satisfaction of the Commissioner.

LIFE INSURANCE ACT 1945-1973 - SECT. 35.
Responsibility for lost securities.

SECT

No. 4, 1932, s. 23.
35. If any money or securities held by the Treasurer as, or as part of, the deposit required to be lodged by a company under this Act are, while so deposited, lost, stolen, destroyed or damaged, the injury occasioned to all persons interested in the moneys or securities shall be made good out of moneys to be appropriated by the Parliament for the purpose.

LIFE INSURANCE ACT 1945-1973 - SECT. 36.
Substitution and withdrawal of deposits.

SECT

No. 4, 1932, s. 26.
36. (1) A company may at any time substitute for any security held by the Treasurer as, or as part of, the deposit required to be lodged by the company under this Act any other approved security, but so that the total amount then deposited is not less than the amount required by this Act and any security so substituted shall be subject to the same charge or liability as the security withdrawn.

(2) Any company which makes any such substitution shall be entitled to obtain from the Secretary to the Department of the Treasury, and the Secretary shall issue to the company, a certificate in writing of the substitution so made and a receipt for the substituted security, and the company shall lodge the certificate with the Commissioner.

(3) Where a company ceases to carry on life insurance business in Australia, the Treasurer may permit the withdrawal of the whole of the money or securities held by him as the deposit required to be lodged by the company under this Act or such portion of the money or securities as he considers reasonable having regard to the liabilities of the company under policies registered by the company in Australia.
Added by No. 94, 1953, s. 5.

(4) Where the registration of a company that has not commenced to carry on life insurance business in Australia is cancelled in pursuance of section twenty-three A of this Act, the Treasurer shall refund to the company any moneys, and deliver to the company any securities, deposited by the company in pursuance of section twenty-seven or twenty-eight of this Act.

LIFE INSURANCE ACT 1945-1973 - SECT. 37.

SECT

Division 3-Statutory Funds
Establishment of statutory funds.
Eng. Bill 1927, Cl. 3.
Sub-section (1) substituted by No. 216, 1973, s. 3.
37. (1) Subject to this section, a company shall, as at the date on which it commences to carry on life insurance business in Australia, establish and maintain a statutory fund, under an appropriate name, in respect of the life insurance business carried on by it.
Inserted by No. 29, 1961, s. 5.

(1A) A company may establish and maintain a separate statutory fund, under an appropriate name, in respect of such part of the superannuation business carried on by the company as the company determines.
Inserted by No. 29, 1961, s. 5.

(1B) A company may establish and maintain a separate statutory fund, under an appropriate name, in respect of the whole, or such part as the company determines, of the life insurance business carried on by the company outside Australia.
Amended by No. 29, 1961, s. 5.

(2) A company may establish and maintain a separate statutory fund, under an appropriate name, in respect of any class or classes of its life insurance business (or, with the consent of the Commissioner, in respect of a part of any class or classes of its life insurance business).
Sub-section (3) omitted by No. 216, 1973, s. 3.
* * * * * * * *
Substituted by No. 29, 1961, s. 5.

(4) Where a company establishes a separate statutory fund in respect of a part of the life insurance business of the company, the company shall forthwith notify the Commissioner in writing of the establishment of the fund, the date on which the establishment of the fund took or takes effect and the part of the life insurance business of the company in respect of which the fund was established.

LIFE INSURANCE ACT 1945-1973 - SECT. 37A.
Determination by company that policy referable to statutory fund.

SECT

Inserted by No. 29, 1961, s. 6.
37A. (1) Where a company has established before the date of commencement of this section, or establishes on or after that date, a statutory fund solely in respect of the whole or a part of its superannuation business-

(a) the company shall, on or as soon as practicable after that date or the date on which the establishment of the statutory fund takes effect, whichever is the later date, determine which, if any, of the policies issued by it, or under which it has undertaken liability, before that later date are policies included in a class of policies in respect of the business of, or in relation to, the issuing of, or the undertaking of liability under, which the statutory fund was established; and

(b) the company shall, when issuing, or undertaking liability under, a superannuation policy on or after that later date, determine whether the policy is included in the class of policies in respect of the business of, or in relation to, the issuing of, or the undertaking of liability under, which the statutory fund was established.

(2) A company may revoke a determination made under this section.

(3) Where a company determines under this section that a superannuation policy is included in a class of policies in respect of the business of, or in relation to, the issuing of, or the undertaking of liability under, which a statutory fund specified in the determination is established, the policy shall, for the purposes of this Act, be deemed to be and to continue to be included in that class of policies until the determination is revoked.

LIFE INSURANCE ACT 1945-1973 - SECT. 38.
Formation and application of statutory funds.

SECT

Eng. Bill 1927, Cl. 4.
38. (1) All amounts received by a company in respect of any class of life insurance business, after the establishment by the company of a statutory fund in respect of that class of life insurance business, shall be carried to, and become assets of, that fund.
Amended by No. 29, 1961, s. 7.

(2) Subject to this Act, the assets of a statutory fund shall not, so long as the company carries on the class or classes of life insurance business in respect of which the fund was established, be available to meet any liabilities or expenses of the company other than-

(a) liabilities or expenses referable to that class or those classes of life insurance business; and

(b) liabilities charged on those assets or any of them immediately prior to the commencement of this Act,
and shall not otherwise be directly or indirectly applied for any purpose other than the purposes of that class or those classes of life insurance business.
Imp. Act 1923, s. 13.
Eng. Bill 1927, Cl. 4.

(3) A company shall not mortgage or charge any of the assets of any statutory fund otherwise than to secure a temporary bank overdraft.

(4) Subject to the next succeeding sub-section, a transaction shall not be invalidated by reason only that it has been entered into in contravention of the last preceding sub-section, but nothing in this sub-section shall affect the liability of any person to a penalty in respect of any such contravention.

(5) The Court may, on the application of the Commissioner, make an order that a transaction entered into in contravention of sub-section (3) of this section shall be invalidated, but the Court shall not make any such order if the Court is satisfied that the effect of the order (if made) would be to prejudice the rights of any person in respect of, or arising out of, the transaction which have been acquired in good faith and without knowledge of the contravention.

(6) The assets of each statutory fund shall be kept distinct and separate from all other assets of the company.

(7) The income arising from the investment of the assets of any statutory fund shall be carried to that fund.

(8) Every director of a company shall be under the same liability, in the event of a contravention of the provisions of this section in respect of any statutory fund, as if he had been a trustee under a trust for the execution of those provisions in respect of that fund, and as if the appropriate policy owners had been beneficiaries of such a trust, unless the director proves that the contravention occurred without his knowledge and that he used all due diligence to prevent the contravention.

LIFE INSURANCE ACT 1945-1973 - SECT. 39.
Investment of statutory funds.

SECT

Eng. Bill 1927, Cl. 4.
39. (1) Subject to this Act, the assets of every statutory fund maintained by a company may be invested (subject to any provisions in the instruments constituting the company or in the articles of association or other rules of the company which impose restrictions upon the manner in which the assets of the company may be invested) in such manner as the company thinks fit.
Amended by No. 29, 1961, s. 8.

(2) The assets of a statutory fund shall not, without the sanction of the Court, be invested directly or indirectly in any share or interest in any company or undertaking carrying on life insurance business whether in Australia or elsewhere.

LIFE INSURANCE ACT 1945-1973 - SECT. 40.
Provisions in relation to the establishment of statutory funds in respect of
classes of life insurance business.

SECT

Substituted by No. 29, 1961, s. 9.
40. (1) In this section-

''liabilities'', in relation to the business in respect of which a statutory fund is established by a company, means liabilities under policies, reserves and any other liabilities referable to the class of life insurance business in respect of which that statutory fund was established;

''the effective date'', in relation to the establishment by a company of a statutory fund, means the date on which the establishment of that statutory fund takes effect.

(2) Where-

(a) a company has established before the date of commencement of the Life Insurance Act 1961 or establishes on or after that date, and maintains, a statutory fund (in this section referred to as ''the old fund'') in respect of the whole or a part of its life insurance business; and

(b) the company has established before the date of commencement of the Life Insurance Act 1961 or establishes on or after that date, and maintains, another statutory fund (in this section referred to as ''the new fund'') in respect of a part of the life insurance business in respect of which the old fund was established,
the company shall continue to maintain the old fund only in respect of such part of the life insurance business in respect of which that fund was established as remains after excluding the life insurance business in respect of which the new fund was established, and, if the new fund was established in respect of part of a class of the life insurance business of the company-

(c) the part (if any) of the life insurance business of the company in respect of which the company continues to maintain the old fund, being a part of that business that is not a class of life insurance business; and

(d) the part of the life insurance business of the company in respect of which the new fund was established,
shall, for the purposes of this Act, each be deemed to be a class of life insurance business.

(3) The company shall, on or within six months after the effective date of the establishment of the new fund-

(a) make separate determinations, as at the effective date, of the amount of the liabilities in respect of the business of the old fund and of the amount of the liabilities in respect of the business of the new fund; and

(b) transfer from the old fund to the new fund assets of the old fund of such a value that an amount equal to that value bears to an amount equal to the total value of the assets of the old fund immediately before the transfer the same proportion as an amount equal to the amount of the liabilities in respect of the business of the new fund bears to an amount equal to the sum of the amounts of the liabilities in respect of the business of the old fund and the new fund.

(4) Where-

(a) the old fund contains assets included in a prescribed class of assets; and

(b) the new fund was established in respect of the whole or a part of the superannuation business of the company,
the company shall, unless the Commissioner otherwise directs, in transferring assets under paragraph (b) of the last preceding sub-section, transfer from the old fund to the new fund, as nearly as practicable, assets of that class of the old fund of such a value that an amount equal to that value bears to an amount equal to the total value of the assets of that class of the old fund immediately before the transfer the same proportion as an amount equal to the amount of the liabilities in respect of the business of the new fund bears to an amount equal to the sum of the amounts of the liabilities in respect of the business of the old fund and the new fund.

(5) Where the old fund or the new fund is established by the company wholly or partly in respect of life insurance business carried on outside Australia, the company shall be deemed to have complied with the last preceding sub-section in relation to assets included in a prescribed class of assets if, after the transfer of assets under paragraph (b) of sub-section (3) of this section, an amount as nearly as practicable equal to the value of the assets of that class in the old fund bears to an amount equal to the amount of the liabilities in respect of the business of the old fund carried on in Australia the same proportion as an amount equal to the value of the assets of that class in the new fund bears to an amount equal to the amount of the liabilities in respect of the business of the new fund carried on in Australia.

(6) For the purposes of the last two preceding sub-sections, Commonwealth securities and public securities other than Commonwealth securities are prescribed classes of assets.

(7) A company shall, on or within six months after the effective date of establishment of the new fund, furnish to the Commissioner a statement in accordance with the prescribed form showing-

(a) particulars of the amounts, as at the effective date, of the liabilities in respect of the business of the old fund and of the liabilities in respect of the business of the new fund; and

(b) particulars of the assets transferred from the old fund to the new fund and of the assets remaining in the old fund.

(8) If it appears to the Commissioner that-

(a) a statement furnished to him under the last preceding sub- section is in any respect unsatisfactory, incomplete, inaccurate or misleading or otherwise fails to comply with the requirements of that sub-section;

(b) the amount of the liabilities in respect of the business of the old fund or the new fund as shown by the statement is insufficient or excessive; or

(c) the value of the assets, or of the assets included in a particular class of assets, of the old fund or the new fund as shown by the statement is insufficient or excessive,
the Commissioner may, after considering any explanation made by or on behalf of the company, give to the company such directions in writing as he thinks necessary-

(d) for the variation of the statement;

(e) for an increase or decrease in the amount of the liabilities shown in respect of the business of the old fund or the new fund; or

(f) for the transfer of assets from one fund to the other fund,
respectively, and, subject to this section, the company shall forthwith comply with any directions so given.

(9) A company shall, if directed by the Commissioner, forthwith furnish to him such information as he requires for the purpose of exercising his powers under this section.

(10) An appeal lies to the Court against a direction given under sub-section (8) of this section.

(11) On such an appeal, the Court may confirm, disallow or vary the direction.

(12) The assets shown-

(a) by a statement furnished to the Commissioner by a company under this section; or

(b) where directions are given by the Commissioner or, on appeal, by the Court, for the variation of the statement-by the statement as so varied,
as being assets of the old fund or the new fund form part of the assets of the old fund or the new fund, as the case may be, and shall be deemed to have formed part of those assets as from the effective date of establishment of the new fund.

(13) The liabilities shown-

(a) by a statement furnished to the Commissioner by a company under this section; or

(b) where directions are given by the Commissioner or, on appeal, by the Court, for the variation of the statement-by the statement as so varied,
as being liabilities in respect of the business of the old fund or the new fund are liabilities in respect of the business of the old fund or the new fund, as the case may be, and shall be deemed to have been liabilities in respect of that business as from the effective date of establishment of the new fund.

LIFE INSURANCE ACT 1945-1973 - SECT. 40A.
Transfer of assets between funds in certain circumstances.

SECT

Inserted by No. 29, 1961, s. 9.
40A. (1) In this section, ''liabilities'', in relation to a company, means liabilities under policies, reserves and any other liabilities of the company.

(2) Where, at any time-

(a) a company is maintaining more than one statutory fund in respect of its life insurance business; and

(b) the life insurance business carried on by the company under a particular policy ceases to be included in the part of the life insurance business of the company in respect of which one of the statutory funds is maintained (in this section referred to as ''the first fund'') and commences to be included in the part of the life insurance business of the company in respect of which another of the statutory funds is maintained (in this section referred to as ''the second fund''),
the company shall forthwith transfer from the first fund to the second fund assets of a value equivalent to such part of the amount of the liabilities of the company at that time as is ascertained in a manner approved by the Commissioner.

LIFE INSURANCE ACT 1945-1973 - SECT. 41.

SECT

Division 4-Accounts, Balance-sheets and Audit
Separate accounts for each class of life insurance business.
Substituted by No. 29, 1961, s. 10.
41. A company shall keep separate accounts of its receipts and payments (including sums ascertained by apportionment under this Division) in respect of each class of life insurance business carried on by it.

LIFE INSURANCE ACT 1945-1973 - SECT. 42.
Apportionment of receipts and payments between life insurance business and
other business.

SECT

Substituted by No. 29, 1961, s. 10.
42. Where a company carries on life insurance business and other business and an amount received or paid by the company is not received or paid wholly in respect of the life insurance business or wholly in respect of the other business, the company shall, for the purposes of this Division, apportion the amount in an equitable manner between the life insurance business and the other business.

LIFE INSURANCE ACT 1945-1973 - SECT. 42A.
Apportionment of receipts and payments between classes of life insurance
business.

SECT

Inserted by No. 29, 1961, s. 10.
42A. Subject to the next succeeding section, where-

(a) a company carries on more than one class of life insurance business; and

(b) an amount (including a sum ascertained by apportionment under the last preceding section) is received or paid by the company partly in respect of one class of life insurance business and partly in respect of another class or other classes of life insurance business,
the company shall, for the purposes of this Division, apportion the amount in an equitable manner between the classes of life insurance business in respect of which it is received or paid.

LIFE INSURANCE ACT 1945-1973 - SECT. 42B.
Apportionment of payments in respect of income tax.

SECT

Inserted by No. 29, 1961, s. 10; amended by No. 216, 1973, s. 3.
42B. (1) Where a company that carries on superannuation business pays an amount in respect of income tax as defined by the Income Tax Assessment Act 1936-1973-

(a) if that amount does not exceed the amount that the company reasonably considers would have been payable by the company in respect of income tax if the company had not carried on the whole or a part of its superannuation business-the company shall not apportion to that business or to that part of that business, as the case may be, any part of the amount paid in respect of income tax; or

(b) in any other case-the company shall apportion to that business or to that part of that business, as the case may be, an amount equal to the difference between the amount paid by the company in respect of income tax and the amount that the company reasonably considers would have been payable by the company in respect of income tax if the company had not carried on that business or that part of that business, as the case may be.

(2) A reference in the last preceding sub-section to an amount paid, or an amount that a company reasonably considers would have been payable, by the company in respect of income tax shall, where an amount has been apportioned, or would have been subject to apportionment, as the case may be, under section forty-two of this Act, be read as a reference to that part of the amount that was, or would have been, apportioned, as the case may be, under that section to the life insurance business carried on by the company.

LIFE INSURANCE ACT 1945-1973 - SECT. 43.
Appreciation and depreciation of assets.

SECT

43. Where a company treats any asset as having appreciated or depreciated in value, the company shall, for the purposes of this Division, regard the amount of the appreciation or depreciation as a receipt or payment, as the case may be.

LIFE INSURANCE ACT 1945-1973 - SECT. 44.
Accounts and balance-sheet.

SECT

Sub-section (1) amended by No. 94, 1953, s. 6; and No. 29, 1961, s. 11.
44. (1) Subject to this section, every company shall, at the expiration of each financial year of the company, prepare-

(a) a revenue account for the year in accordance with Form A in respect of each class of life insurance business carried on by the company;

(b) a revenue account for the year in accordance with Form B in respect of any insurance business, other than life insurance business, carried on by the company;

(c) except where the company does not carry on any business other than life insurance business, a profit and loss account for the year in accordance with Form C; and

(d) a balance-sheet in accordance with Form D.
Sub-section (2) omitted by No. 29, 1961, s. 11.
* * * * * * * *

LIFE INSURANCE ACT 1945-1973 - SECT. 45.
Audit.

SECT

Imp. Act 1909, s. 9. Eng. Bill 1927, Cl. 7.
45. The accounts of every company shall be audited annually by its auditors, and every account and balance-sheet prepared by the company under this Division shall bear a certificate by the auditors as to whether, in their opinion-

(a) the accounts and balance-sheet are in accordance with the provisions of this Act;

(b) the balance-sheet truly represents the financial position of the company; and

(c) the books of the company have been properly kept and record correctly the affairs and transactions of the company.

LIFE INSURANCE ACT 1945-1973 - SECT. 46.
Certificate as to apportionment.

SECT

Amended by No. 29, 1961, s. 12.
46. If an apportionment has been made under this Division, the certificate of the auditors under the last preceding section shall state whether they are satisfied that the apportionment has been made in an equitable manner.

LIFE INSURANCE ACT 1945-1973 - SECT. 47.
Auditors.

SECT

47. (1) A person appointed as an auditor of a company shall not be capable of performing the functions of an auditor under this Division unless the Commissioner has approved of his performing those functions.

(2) The Commissioner may at any time revoke any approval given in respect of any person under this section, and thereupon that person shall not be capable of performing the functions of an auditor under this Division.

(3) In the event of any approval under this Division being revoked in the case of a person who holds an appointment as an auditor of a company, the directors of the company may, subject to this section, appoint some other person to perform in respect of the company the functions of an auditor under this Division until such time as an auditor is appointed in accordance with the articles of association or other rules of the company.

(4) An appeal shall lie to the Court or the Supreme Court of a State or Territory against any refusal of the Commissioner to approve of any person performing the functions of an auditor under this Division, or against any revocation of an approval given in respect of any person under this section.

(5) On any such appeal, the Court may confirm or disallow the refusal or revocation.

LIFE INSURANCE ACT 1945-1973 - SECT. 48.

SECT

Division 5-Actuarial Investigations
Actuarial reports and abstracts and statements of life insurance business.
48. (1) Every company shall, as at the date of the expiration of the financial year expiring next after the date of commencement of this Act or as at such later date as the Commissioner approves, and thereafter at intervals of five years, or at such shorter intervals as it notifies to the Commissioner to be the intervals adopted by it for the purposes of this Division-

(a) cause an actuary to make an investigation into its financial condition, including a valuation of its liabilities in respect of its life insurance business and to furnish it with a report of the results of the investigation;

(b) cause an abstract of the report of the actuary to be prepared in accordance with the provisions set forth in the Second Schedule or in accordance with those provisions as amended by the regulations; and

(c) cause a statement of its life insurance business to be prepared in accordance with the provisions set forth in the Third Schedule or in accordance with those provisions as amended by the regulations.

(2) Where a company causes such an investigation to be made at any other time, and the results of the investigation are made public, the company shall cause an abstract of the report of the actuary to be prepared in accordance with the provisions set forth in the Second Schedule or in accordance with those provisions as amended by the regulations, but subject to such modifications (if any) as the Commissioner approves.
Substituted by No. 29, 1961, s. 13.

(3) The company shall cause a separate abstract and a separate statement or, in the case of an investigation referred to in the last preceding sub-section, a separate abstract, to be prepared in respect of each class of life insurance business carried on by the company.

(4) The valuation balance-sheet annexed to any abstract shall, in accordance with a method approved by the Commissioner, show the net liabilities in respect of policies on registers in Australia separately from the net liabilities in respect of other policies.

LIFE INSURANCE ACT 1945-1973 - SECT. 49.
Provisions as to valuations.

SECT

Imp. Act 1923, s. 18.
Substituted by No. 94, 1953, s. 8.
49. (1) The provisions of the succeeding sub-sections of this section apply in relation to valuations made, in respect of any company, in pursuance of this Division.

(2) The basis of valuation adopted shall be such as to place a proper value upon the liabilities, having regard to the mortality experience among the persons whose lives have been insured by the company, to the average rate of interest from investments and to the expenses of management (including commission), and shall be such as to ensure that no policy shall be treated as an asset.

(3) The value placed upon the aggregate liabilities of a statutory fund in respect of policies by reason of the adoption of any basis of valuation shall not be less than it would have been if it had been calculated on the Minimum Basis in accordance with the rules set forth in the Fourth Schedule.
Amended by No. 29, 1961, s. 14.

(4) The actuary who makes the valuation shall certify whether, in his opinion, the value placed upon the aggregate liabilities of a statutory fund in respect of policies by the valuation is not less than the value which would have been placed upon those aggregate liabilities if it had been calculated on the Minimum Basis in accordance with the rules set forth in the Fourth Schedule.
Amended by No. 29, 1961, s. 14.

(5) Where the balance-sheet of the company includes amongst the assets of the life insurance business to which a statutory fund relates any sums representing expenses of organization or extension, or the purchase of business or goodwill or other intangible assets, and the amount of the other assets of that business (after deducting debts due by the company in respect of that business) is less than the balance of the revenue account, or the sum of the balances of the revenue accounts, as the case may be, as shown in the balance-sheet in respect of that business-

(a) where the statutory fund relates to one class of life insurance business only-the balance of the revenue account shall be shown in the appropriate valuation balance-sheet as reduced by the amount of the deficiency; and

(b) where the statutory fund relates to more than one class of life insurance business-the balances of the revenue accounts in respect of each class of life insurance business shall each be shown in the appropriate valuation balance-sheet as reduced by a portion of the amount of the deficiency, being a portion ascertained by apportioning the amount of the deficiency between those revenue accounts so that the amount apportioned to each account bears to the amount to be apportioned the same proportion as the balance of that account bears to the sum of the balances of those accounts.

LIFE INSURANCE ACT 1945-1973 - SECT. 50.
Payments of dividends and bonuses from statutory funds.

SECT

Substituted by No. 94, 1953, s. 8.
Sub-section (1) substituted by No. 29, 1961, s. 15.
50. (1) A company shall not-

(a) pay, apply or allocate any part of the assets of a statutory fund-

(i) as dividends or otherwise as profits to shareholders; or

(ii) as bonuses to policy owners; or

(b) transfer any part of the assets of a statutory fund to another statutory fund,
except in accordance with this section or section forty or forty A of this Act.
Amended by No. 29, 1961, s. 15.

(2) If, as a result of the latest valuation in respect of a company which is either-

(a) a valuation made in pursuance of sub-section (1) of section forty-eight of this Act; or

(b) a valuation (not being a valuation in pursuance of that sub- section) made in the course of an investigation into the financial condition of the company, being a valuation-

(i) the results of which are made public; and

(ii) in respect of which the provisions of sub-sections (2), (3) and (4) of section forty-eight and of section forty-nine of this Act have been complied with,
the valuation balance-sheet or valuation balance-sheets in respect of the life insurance business to which a statutory fund relates discloses or disclose that the balance of the revenue account or, if there is more than one revenue account in respect of that business, the sum of the balances of the revenue accounts, is greater than the amount of the net liabilities of the company in respect of that business, the company may, with the approval of an actuary and subject to the next succeeding sub-section, pay, allocate or transfer the surplus or a part of it in any manner consistent with the provisions of the instruments constituting the company and the articles of association or other rules of the company.
Amended by No. 29, 1961, s. 15.

(3) The sum of the amount paid or allocated to or for the benefit of the shareholders of the company and the amount transferred to another statutory fund under the last preceding sub-section in respect of that part of the surplus which is derived from participating policies registered in Australia shall not exceed one-quarter of the amount paid or allocated to or for the benefit of the owners of those policies.
Amended by No. 29, 1961, s. 15.

(4) Where there were included as a liability of a company, in the latest valuation made in respect of the company, being a valuation referred to in paragraph (a) or (b) of sub-section (2) of this section, bonuses which were attached to policies at the date of commencement of this Act or became attached to policies as a result of an allocation of surplus made in pursuance of this section, the company may, without regard to the conditions and limitations contained in the last two preceding sub-sections, pay or apply, in respect of those bonuses, moneys forming part of the assets of the statutory fund or part of a statutory fund which relates to the business in which those policies are included.

LIFE INSURANCE ACT 1945-1973 - SECT. 51.

SECT

Division 6-Documents to be furnished to the Commissioner
Returns of policies.
Substituted by No. 29, 1961, s. 16.
51. A company shall, at the expiration of each financial year, prepare, separately, returns in accordance with Forms E, F and G in respect of each class of life insurance business carried on by the company.

LIFE INSURANCE ACT 1945-1973 - SECT. 52.
Accounts, balance-sheets, &c., to be signed and deposited.

SECT

Imp. Act 1909, s. 7. Eng. Bill 1927, Cl. 8-9. V. 4602, s. 535. Q., s. 15. S.A., s. 52. W.A., s. 23. T., s. 21.
52. (1) Every account, balance-sheet, abstract, statement and return which a company is required by sections forty-four, forty-eight and fifty-one of this Act to prepare shall be printed and shall be signed by the chairman of directors and two other directors of the company and by the principal officer.

(2) Each account, balance-sheet, abstract, statement or return, signed as required by this section, and at least ten printed copies of each of those documents, shall be lodged with the Commissioner-

(a) in the case of accounts, balance-sheets or returns required to be prepared under section forty-four or section fifty-one of this Act-within six months after the expiration of the financial year in respect of which they are prepared; and

(b) in the case of the abstract and statement required to be prepared under section forty-eight of this Act-within nine months after the date as at which the investigation was made,
or within such extended period, not exceeding three months, as the Commissioner allows.
Eng. Bill 1927, Cl. 9.

(3) If it appears to the Commissioner that any account, balance-sheet, abstract, statement or return lodged with him by a company in accordance with the provisions of this section is, in any particular, unsatisfactory, incomplete, incorrect or misleading, or that it does not comply with the requirements of this Act, the Commissioner may, by notice in writing served upon the company, require such explanations as he considers necessary to be made by or on behalf of the company within such time (not less than fourteen days) as is specified in the notice, and may, after considering any such explanations or if the explanations required have not been given by the company within the time so specified, reject the account, balance-sheet, abstract, statement or return and give such directions as he thinks necessary for the variation of any of them within such time (not less than one month) as he specifies, and of any other account, balance-sheet, abstract, statement or return affected by the variation, and the company shall comply with any directions so given.

(4) An appeal shall lie to the Court against any rejection of an account, balance-sheet, abstract, statement or return, or against any direction given by the Commissioner, under the last preceding sub- section.

(5) On any such appeal the Court may-

(a) confirm or disallow the rejection or direction; or

(b) vary the direction.

(6) Every account and balance-sheet lodged with the Commissioner by a company in accordance with the requirements of this Division shall be accompanied by a copy of any report on the business of the company submitted to the shareholders or policy owners of the company in respect of the financial year to which the account or balance-sheet relates.

LIFE INSURANCE ACT 1945-1973 - SECT. 53.
Copies to be furnished.

SECT

Imp. Act 1909, s. 8. Eng. Bill 1927, Cl. 9 (b). V. 4062, s. 535. Q., s. 16. S.A., s. 53. W.A., s. 24. T., s. 22.
53. A printed copy of the latest account, balance-sheet, abstract, statement or return lodged with the Commissioner by a company in accordance with the requirements of this Division shall, on the application of any shareholder or policy owner of the company, be forwarded to him by the company.

LIFE INSURANCE ACT 1945-1973 - SECT. 54.

SECT

Division 7-Investigations by Commissioner
Commissioner may demand information.
S. Africa, s. 28.
54. The Commissioner may demand in writing from any company information relating to any matter in connexion with its business.

LIFE INSURANCE ACT 1945-1973 - SECT. 55.
Power to make investigation.

SECT

Imp. Act 1923, s. 17. S. Africa, s. 29.
Sub-section (1) amended by No. 94, 1953, s. 9.
55. (1) If it appears to the Commissioner that-

(a) a company is, or is likely to become, unable to meet its obligations;

(b) a valuation balance-sheet annexed to an abstract prepared in pursuance of Division 5 of this Part shows that the balance of the revenue account in respect of the life insurance business to which a statutory fund relates, or in respect of a part of that business, is less than the amount of the liabilities of the company in respect of that business or that part of that business, as the case requires;

(c) a company has failed to comply with any provisions of this Act;

(d) a company has not, within a period of one month as from a date upon which the Commissioner demanded from it in writing any information which the Commissioner was entitled under this Act to demand from it, furnished that information fully and satisfactorily;
V. 4773, s. 13.
(e) the rate of expense of procuring, maintaining and administering any life insurance business of a company in relation to the income derived from premiums is unduly high;

(f) the method of apportionment of income or expenditure of a company among any classes of life insurance business or between life insurance business and any other business is inequitable; or

(g) any information in the possession of the Commissioner calls for an investigation into the whole or any part of the life insurance business of the company,
the Commissioner may serve on the company a notice in writing calling upon it to show cause, within such period, not less than fourteen days from the date of the notice, as is specified in the notice, why he should not, on the grounds so specified, investigate the whole or any part of the business of the company or appoint a person (in this Division referred to as ''the Inspector'') to make such an investigation and report to the Commissioner the results of his investigation.

(2) If the company fails, within the period specified in the notice, to show cause to the satisfaction of the Commissioner, the Commissioner may make the investigation or may cause it to be made by the Inspector.

LIFE INSURANCE ACT 1945-1973 - SECT. 56.
Power to obtain information.

SECT

S. Africa, s. 29.
56. (1) In making an investigation under this Division, the Commissioner or the Inspector-

(a) may require the company to produce any securities, books, accounts, documents or statistics of the company for his inspection and to allow him to make such extracts from them as he deems fit;

(b) may examine on oath or affirmation, in relation to the company's business, any person who is, or has at any time been, a director, auditor, officer, agent, servant or shareholder of the company or the owner of a policy issued by the company or the personal representative of the owner; and

(c) for the purpose of the last preceding paragraph, may administer oaths or take affirmations.
Amended by No. 216, 1973, s. 3.

(2) A person specified in paragraph (b) of the last preceding sub-section shall produce to the Commissioner or the Inspector at his request any securities, books, accounts, documents or statistics of the company which are available to him and shall give to the Commissioner or the Inspector, at his request, any information in his possession relating to the business of the company.

Penalty: $100.
Amended by No. 216, 1973, s. 3.

(3) A person so specified shall not refuse to be sworn or to make an affirmation or to give information on his examination on oath or affirmation, and shall not, in reply to a request made under the last preceding sub-section, give any false information.

Penalty: $100.

LIFE INSURANCE ACT 1945-1973 - SECT. 57.
Persons to observe secrecy.

SECT

Income Tax Assessment Act, s. 16.
57. (1) A person shall not either directly or indirectly, except in the performance of any duty under this Act, make a record of, or divulge or communicate to any person, any information acquired by him under this Division.

(2) A person performing any duty under this Division shall take an oath or make a declaration, in the manner and form prescribed, to maintain secrecy in conformity with the provisions of this section.
Penalty amended by No. 216, 1973, s. 3.
Penalty: $200 or imprisonment for 6 months.

LIFE INSURANCE ACT 1945-1973 - SECT. 58.
Action after completion of investigation.

SECT

Imp. Act 1923, s. 17. V. 4773, s. 13. S. Africa, s. 29 (7).
58. (1) After an investigation under this Division in respect of any company has been completed-

(a) the Commissioner shall transmit to the company a summary of the conclusions arrived at by him as a result of the investigation; and

(b) the Commissioner may, without affecting any powers conferred by Division 8 of this Part, issue such directions in writing to the company, in respect of its life insurance business, as he thinks necessary or proper to deal with the situation disclosed in those conclusions and, in particular, a direction that the company shall not issue any further policies (other than paid up policies as required by this Act).

(2) No direction issued to a company under this section shall remain in force for more than twelve months, but nothing in this sub-section shall prevent the Commissioner from issuing any further direction to the company.

(3) An appeal shall lie to the Court against any direction issued under this section.

(4) On any such appeal, the Court may confirm, disallow or vary the direction.

LIFE INSURANCE ACT 1945-1973 - SECT. 59.

SECT

Division 8-Judicial Management and Winding-up
Application for judicial management or winding-up.
S. Africa, s. 30.
59. (1) If the Commissioner, by reason of the conclusions arrived at by him as a result of an investigation under Division 7 of this Part in respect of any company is of opinion that it is necessary or proper so to do, he may apply to the Court for-

(a) an order that the company or any part of the business of the company be placed under judicial management; or

(b) an order that the company or any part of the business of the company be wound up.

(2) A company may, in respect of itself, after giving the Commissioner one month's notice in writing of its intention so to do, apply to the Court for any order specified in the last preceding sub-section.

(3) Both the company and the Commissioner shall be entitled to be heard on any application made to the Court under this section.

(4) A company or any part of the business of a company shall not be judicially managed or wound up except under the provisions of this Act.

(5) Where an application is made under this section for an order in respect of any company, all actions and the execution of all writs, summonses and other processes against the company shall, by virtue of this section, be stayed and shall not be proceeded with without the leave of the Court first obtained or unless the Court otherwise directs.

LIFE INSURANCE ACT 1945-1973 - SECT. 60.
Judicial management.

SECT

S. Africa, s. 31.
60. (1) An order for the judicial management of a company or of part of the business of a company made after the hearing of an application under the last preceding section shall be subject to the provisions of this section and of the next six succeeding sections.

(2) The Court shall appoint a judicial manager who shall receive such remuneration as the Court directs, and the Court may at any time cancel the appointment and appoint some other person as judicial manager.

(3) The Court may direct how and by whom the remuneration, charges and expenses of the judicial manager shall be borne, and may, if it thinks fit, charge that remuneration and those charges and expenses on the property of the company in such order of priority in relation to any existing charges on that property as it thinks fit.

(4) The management of the company, or of such part of the business of the company as the order of the Court directs shall, as on and after a date specified in the order, vest in the judicial manager appointed by the Court, but, except with the leave of the Court, the judicial manager shall not issue any further policies (other than paid-up policies as required by this Act).

(5) As on and after the date so specified, any person vested with any such management immediately prior to that date shall be divested of that management.

(6) The Court shall issue such directions to the judicial manager as to his powers and duties as it deems desirable in the circumstances of the case.

(7) The judicial manager shall act under the control of the Court, and may apply to the Court at any time for instructions as to the manner in which he shall conduct the judicial management or in relation to any matter arising in the course of the judicial management.

(8) The judicial manager shall give the Commissioner such information as the Commissioner requires from time to time, and shall report to the Commissioner whenever he intends to apply to the Court for instructions and shall, at the same time, furnish to the Commissioner particulars of the application.

(9) The Commissioner shall be entitled to be heard on any such application, and may himself make application to the Court with reference to the conduct of the judicial management.

LIFE INSURANCE ACT 1945-1973 - SECT. 61.
Cancellation of judicial management order.

SECT

61. If at any time, on the application of the judicial manager or of any person interested, it appears to the Court that the purpose of the order for the judicial management of the company or of part of the business of the company has been fulfilled, or that for any reason it is undesirable that the order should remain in force, the Court may cancel the order and thereupon the judicial manager shall be divested of the management which shall again vest in the board of directors or other governing body of the company.

LIFE INSURANCE ACT 1945-1973 - SECT. 62.
Report by judicial manager.

SECT

Sub-section (1) amended by No. 94, 1953, s. 10.
62. (1) The judicial manager shall conduct the management with the greatest economy compatible with efficiency, and shall, as soon as possible, file with the Court a report stating which of the following courses is in the circumstances, in his opinion, most advantageous to the general interests of the owners of the policies of the company:-

(a) The transfer of the business of the company to some other company, in pursuance of a scheme to be prepared in accordance with Division 9 of this Part (whether the policies of the business continue for the original sums insured, with the addition of bonuses that attach to the policies, or for reduced amounts);

(b) The carrying on of its business by the company (whether the policies of the business continue for the original sums insured, with the addition of bonuses that attach to the policies, or for reduced amounts);

(c) The winding-up of the company or of any part of the business of the company;

(d) The dealing with part of the business of the company in one way, and with part of that business in another way; or

(e) Such other course as he deems advisable.

(2) The judicial manager shall forthwith after filing the report furnish a copy of the report to the Commissioner and make an application in writing to the Court for an order to give effect to the course stated in the report.

(3) The report or a copy of the report shall be open for inspection by any person during official hours, at the Registry of the Court in which the report is filed or at such place as the Commissioner determines.

LIFE INSURANCE ACT 1945-1973 - SECT. 63.
Indemnity.

SECT

63. The judicial manager shall not be subject to any action, claim or demand by, or liability to, any person in respect of anything done or omitted to be done in good faith in the exercise, or in connexion with the exercise, of the powers conferred on the judicial manager under this Division.

LIFE INSURANCE ACT 1945-1973 - SECT. 64.
Decision of Court on report of judicial manager.

SECT

64. (1) The Court shall on the hearing of an application made under sub-section (2) of section sixty-two of this Act-

(a) after hearing the Commissioner, the judicial manager and any other person who in the opinion of the Court is entitled to be heard; and

(b) after considering the report of the judicial manager,
make an order giving effect to the course which it considers in the circumstances to be most advantageous to the general interests of the owners of the policies of the company.

(2) The order of the Court shall be binding on all persons, and shall have effect notwithstanding anything in the instruments constituting the company, or in the articles of association or other rules of the company.

LIFE INSURANCE ACT 1945-1973 - SECT. 65.
Transfer of business to another company.

SECT

Amended by No. 94, 1953, s. 11.
65. Where an order is made by the Court for the transfer of the business of a company to some other company the judicial manager shall prepare a scheme for the transfer in accordance with Division 9 of this Part and until the scheme is confirmed by the Court under that Division the management of the company shall continue to be vested in the judicial manager.

LIFE INSURANCE ACT 1945-1973 - SECT. 66.
Cancellation of contracts or agreements.

SECT

66. The Court may, either of its own motion or on the application of the judicial manager, at any time while an order under section sixty of this Act is in force with respect to a company, after hearing all persons who, in the opinion of the Court, are entitled to be heard, cancel or vary (either unconditionally or subject to such conditions as the Court thinks just) any contract or agreement (other than a policy) between the company and any other person which the Court is satisfied is detrimental to the interests of the policy owners.

LIFE INSURANCE ACT 1945-1973 - SECT. 67.
Winding-up.

SECT

S. Africa, s. 32.
67. (1) An order of the Court for the winding-up of a company made after the hearing of an application under section fifty-nine of this Act or made in pursuance of section sixty-four of this Act, shall be subject to the provisions of this section and of the next four succeeding sections.

(2) The company shall be wound up by the Court which shall appoint a liquidator, who shall receive such remuneration as the Court directs, and the Court may at any time cancel the appointment and appoint some other person as liquidator.

(3) The Court shall give such directions to the liquidator as appear to the Court to be necessary or desirable with respect to the winding-up.

(4) The liquidator shall act under the control of the Court and may apply to the Court at any time for instructions as to the manner in which he shall conduct the winding-up or in relation to any matter arising in the course of the winding-up.

(5) The liquidator shall give the Commissioner such information as the Commissioner requires from time to time, and shall report to the Commissioner whenever he intends to apply to the Court for instructions and shall at the same time furnish to the Commissioner particulars of the application.

(6) The Commissioner shall be entitled to be heard on any such application, and may himself make an application to the Court with reference to the conduct of the winding-up.

(7) Subject to this Act, and to any direction of the Court, the winding-up of a company incorporated within Australia shall be carried out in accordance with the law in force in the State or Territory in which the head office of the company is situated with respect to the winding-up of a company by a court and that law shall apply accordingly, with such modifications and adaptations as are necessary.

LIFE INSURANCE ACT 1945-1973 - SECT. 68.
Ascertainment of value of liability under policies.

SECT

Imp. Act, 1909, 7th Schedule, Eng. Bill 1927, 7th Schedule, Pt. II.
68. The liquidator shall ascertain, in such manner and upon such basis as the Court approves, the value of the liability of the company to every person appearing by the books of the company to be entitled to or interested in policies of the business of the company, and shall in such manner as he thinks proper give notice to every such person of the value so ascertained, and every person to whom notice is so given shall be bound by the value so ascertained, unless he disputes the valuation in such manner and within such time as is prescribed by the Rules of Court, or as the Court in any particular case by order directs.

LIFE INSURANCE ACT 1945-1973 - SECT. 69.
Application of certain assets.

SECT

Eng. Bill 1927, Cl. 17.
69. (1) In the winding-up of a company, the value of the liabilities and the value of the assets of a statutory fund of the company shall be ascertained separately from the value of any other liabilities or from the value of any other assets of the company, and no assets of the statutory fund shall be applied to the discharge of any liabilities other than those in respect of that statutory fund except in so far as those assets exceed the liabilities of that statutory fund.

(2) In the winding-up of a company, if, when the liabilities and assets of any statutory fund of the company have been ascertained, there is found to be a surplus of those assets over those liabilities, there shall be added to the liabilities of that statutory fund an amount equal to that proportion of the surplus so found as is equivalent to the proportion, if any, of the profits in the class or classes of life insurance business to which the statutory fund relates, allocated to shareholders and policy owners, which was allocated to policy owners during the ten years immediately preceding the commencement of the winding-up, and the assets of that statutory fund shall be deemed to exceed the liabilities of that statutory fund only in so far as those assets exceed those liabilities after that addition:

Provided that, if it appears to the Court that, by reason of special circumstances, it would be inequitable that the amount specified should be added to the liabilities of any statutory fund, the amount to be added shall be such amount as the Court directs.

LIFE INSURANCE ACT 1945-1973 - SECT. 70.
Liability of directors and officers.

SECT

Eng. Bill 1927, Cl. 20.
70. If, in the course of the winding-up of a company, the Court is satisfied that the amount of any statutory fund has been diminished by reason of any contravention of the provisions of this Act, every person who at the time of the contravention was a director, the principal officer or an officer of the company, shall be deemed in respect of the contravention to have been guilty of misfeasance in relation to the company unless he proves that the contravention occurred without his knowledge and that he used all due diligence to prevent the contravention; and the Court may assess the sum by which the amount of the statutory fund has been diminished by reason of the misfeasance, and may order any person guilty of the misfeasance to contribute to the statutory fund the whole or any part of that sum by way of compensation.

LIFE INSURANCE ACT 1945-1973 - SECT. 71.
Application of deposits.

SECT

Amended by No. 29, 1961, s. 17.
71. Upon the winding-up of a company, all money and securities for the time being held by the Treasurer as a deposit in respect of that company shall be paid to the liquidator and shall be applied by him in accordance with the provisions of this Act in the discharge of the liabilities of the company in respect of policies.

LIFE INSURANCE ACT 1945-1973 - SECT. 72.
Winding-up of part of business of company.

SECT

Eng. Bill 1927, Cl. 18.
72. (1) If an order of the Court for the winding-up of part of the business of a company is made after the hearing of an application under section fifty-nine of this Act, or in pursuance of section sixty-four of this Act, a scheme for the purposes of that winding-up shall be prepared and submitted for the confirmation of the Court-

(a) if the order is made after the hearing of an application under section fifty-nine of this Act-by the person who made the application; or

(b) if the order is made in pursuance of section sixty-four of this Act-by the judicial manager appointed in respect of the company.

(2) Any scheme prepared under this section shall provide for the allocation and distribution of the assets and liabilities of the company between any classes of business affected (including the allocation of any surplus assets which may arise on the proposed winding-up), for any future rights of every class of policy owners in respect of their policies, and for the manner of winding-up any of the business of the company which is proposed to be wound up, and may contain such provisions as are expedient for giving effect to the scheme.

(3) The provisions of sections sixty-seven, sixty-eight, sixty-nine, seventy and seventy-one of this Act shall apply, with such alterations as are necessary, in a winding-up in accordance with a scheme under this section.

LIFE INSURANCE ACT 1945-1973 - SECT. 73.

SECT

Division 9-Transfer and Amalgamation
Transfer or amalgamation.
Imp. Act 1909, s. 13. Eng. Bill 1927, Cl. 13. V. 4602, s. 539. Q., s. 30. S.A., s. 32. W.A., s. 48. T., s. 25.
73. The life insurance business of any company shall not, either in whole or in part, be transferred to, or amalgamated with the life insurance business of, any other company, except in pursuance of a scheme prepared in accordance with this Division and submitted to and confirmed by the Court as prescribed in this Division.

LIFE INSURANCE ACT 1945-1973 - SECT. 74.
Preparation of scheme.

SECT

Imp. Act 1909, s. 13. Eng. Bill 1927, Cl. 13. Q., s. 30. T., s. 25.
74. A scheme prepared in accordance with this Division shall set out the terms of the agreement or deed under which it is proposed to effect the transfer or amalgamation, and shall contain such further provisions as are necessary for giving effect to the scheme.

LIFE INSURANCE ACT 1945-1973 - SECT. 75.
Submission, confirmation and effect of schemes.

SECT

Imp. Act 1909, s. 13. Eng. Bill 1927, Cl. 25. V. 4602, s. 539. Q., s. 30. S.A., s. 30. W.A., s. 46. T., s. 25.
75. (1) Before an application is made for confirmation by the Court of any scheme for transfer or amalgamation-

(a) a copy of the scheme shall be lodged with the Commissioner together with copies of the actuarial and other reports (if any) upon which the scheme is founded;

(b) notice of the intention to make the application (containing such particulars as are prescribed) shall, not less than one month after the copy of the scheme has been lodged with the Commissioner, be published in the Gazette and in newspapers approved by the Commissioner, circulating in each State and Territory in which any company concerned has a registry, and, for a period of fifteen days after the publication of the notice, the scheme shall be open to inspection, at each registry of every company concerned, by any policy owners or shareholders affected by the scheme;

(c) the Commissioner may cause a report on the scheme to be made by an independent actuary, and shall cause a copy of the report to be sent to each of the companies concerned;

(d) any directions which are given by the Court, upon application made in that behalf, with respect to any proposed scheme, as to the publication of advertisements of schemes, the giving of notices to shareholders, or to policy owners or other creditors of the companies concerned, or as to the holding of meetings of any company affected, shall be complied with by the person to whom the directions are given; and

(e) copies of the scheme and of every report received by the Commissioner in accordance with the provisions of this subsection or summaries of the scheme and reports approved by the Commissioner shall, unless the Court, upon application made in that behalf, otherwise directs, be transmitted by the companies concerned, at least fifteen days before application is made for confirmation of the scheme, to every policy owner of any class affected by the scheme.

(2) An application to the Court for the confirmation of the scheme may be made by or on behalf of any company concerned, and an application to the Court with respect to any matter connected with a scheme or proposed scheme may be made, at any time before confirmation by the Court, by the Commissioner or by any person who in the opinion of the Court is likely to be affected by the scheme or proposed scheme.

(3) Any person who in the opinion of the Court is likely to be affected shall be entitled to be heard on any application made to the Court under this section.

(4) The Court may confirm the scheme, either without modification, or subject to such modifications as the companies concerned agree to, or may refuse to confirm the scheme.

(5) The scheme, when confirmed by the Court, shall be binding on all persons, and shall have effect notwithstanding anything in the instruments constituting the company or in the articles of association or other rules of the company, and the directors of any company affected by the scheme shall cause a copy of the scheme to be filed with the Registrar of Companies in every State or Territory in which the company carries on life insurance business.

(6) All expenses incurred by the Commissioner in obtaining any actuary's report on the scheme shall be defrayed by the companies concerned, and any sum due in respect of those expenses may be recovered by the Commissioner summarily as a civil debt from the companies jointly.

LIFE INSURANCE ACT 1945-1973 - SECT. 76.
Returns to be made in case of transfers or amalgamations.

SECT

76. Where the life insurance business carried on by a company is transferred to, or amalgamated with the life insurance business of, another company, the company to which the life insurance business is transferred, or the company carrying on the amalgamated life insurance business, as the case may be, shall, within one month after the completion of the transfer or amalgamation, lodge with the Commissioner-
Imp. Act 1909, s. 14. Eng. Bill 1927, Cl 14. V. 4602, s. 540. Q., s. 31. S.A., s. 33. W.A., s. 49. T., s. 26.
(a) certified copies of statements of the assets and liabilities of every company concerned in the transfer or amalgamation, together with a statement of the nature and terms of the transfer or amalgamation;

(b) certified copies of the scheme and of the agreement or deed under which the transfer or amalgamation was effected and a certified copy of the order of the Court confirming the scheme;

(c) certified copies of the actuarial or other reports upon which the scheme and the agreement or deed were founded; and

(d) a statutory declaration, made by the chairman of directors or by the principal officer of the company, fully setting forth every payment made or to be made to any person whatsoever on account of the transfer or amalgamation, and stating that to the best of his belief no other payment beyond those so set forth has been or is to be made in money, policies, bonds, valuable securities, property of any description or any other valuable consideration, by or with the knowledge of any parties to the transfer or amalgamation.

LIFE INSURANCE ACT 1945-1973 - SECT. 77.

SECT

PART IV-PROVISIONS RELATING TO POLICIES

Division 1-Issue of Policies
Certain forms to be submitted for approval.
N.Z. 1920, s. 8.
77. (1) A company shall, if the Commissioner so requires, submit to the Commissioner any form of proposal or policy ordinarily used by the company in Australia, or any form of written matter ordinarily so used and describing the terms or conditions of, or the benefits to be or likely to be derived from, policies.

(2) The Commissioner shall consider each form so submitted, and, if he is of opinion that the form is not in compliance with this Act, or contains anything likely to mislead a proponent or policy owner, he shall object to the form.

(3) The Commissioner shall not object to any form until he has given the company an opportunity of being heard by him on the matter.

(4) The Commissioner shall, in writing, notify the company of any objection taken by him to any form submitted.

(5) A company shall not accept any proposal or issue any policy or written matter if the proposal, policy or written matter is in a form to which the Commissioner has objected under this section.

LIFE INSURANCE ACT 1945-1973 - SECT. 78.
Premium rates.

SECT

78. (1) A company shall not issue any policy unless the rate of premium chargeable under the policy is a rate which has been approved by an actuary as suitable for the class of policy to which that policy belongs.

(2) The Commissioner may, at any time, require the company to obtain, and to furnish him with, a report by an actuary as to the suitability of the rate of premium chargeable under any class of policy issued by the company and, if the actuary considers that the rate is not suitable, a report as to the rate of premium which the actuary approves as suitable in respect of that class of policy.

(3) Where any requirement is made under the last preceding sub-section in respect of the rate of premium chargeable under any class of policy, the company shall not issue any policy of that class until the company has, in accordance with the requirement, obtained the approval of the actuary to the rate of premium.

(4) An actuary in approving a rate of premium in respect of any class of policy under this section shall have regard to the maximum rate of commission or rebate proposed to be paid or allowed to any person in respect of that class of policy.

LIFE INSURANCE ACT 1945-1973 - SECT. 79.
Commissions or rebates in respect of policies.

SECT

79. Where a rate of premium is approved by an actuary in respect of any class of policy the company shall not, except with the approval of an actuary or the Commissioner, pay or allow in respect of any policy of that class a commission or rebate at a rate greater than-

(a) the maximum rate of commission or rebate to which the first-mentioned actuary had regard when approving the rate of premium; or

(b) the maximum rate of commission or rebate payable by the company, immediately prior to the commencement of this Act, in respect of policies of that class (if any) issued at the rate of premium so approved,
whichever is the greater.

LIFE INSURANCE ACT 1945-1973 - SECT. 80.
Particulars as to age of person to be insured.

SECT

80. A form of proposal shall be framed so as to require a person making a proposal for a life policy to specify the place and date of birth of the person whose life is proposed to be insured, and it shall be the duty of the person making the proposal to supply those particulars to the best of his knowledge and belief.

LIFE INSURANCE ACT 1945-1973 - SECT. 81.
Notice regarding proof of age.

SECT

Amended by No. 94, 1953, s. 12.
81. Where a company issues a life policy which provides that proof of age of the life insured is a condition precedent to the payment of the sum insured, the company shall, unless the age of the life insured has already been admitted by it, issue with the policy a printed notice stating that proof of age of the life insured may be required prior to the payment of the sum insured.

LIFE INSURANCE ACT 1945-1973 - SECT. 82.
Procedure where company declines to accept proof of age.

SECT

82. (1) If a company declines to accept the proof of age tendered in respect of a policy, whether issued before or after the commencement of this Act, the policy owner may apply to the Court, or to the Supreme Court or a County Court, District Court or Local Court of Full Jurisdiction of a State or Territory, by summons, for an order directing the company to accept the proof tendered.

(2) On any such application, the court may make such order in relation to the application as it thinks just.

(3) Every order under this section shall be binding on the company and shall be complied with on its part.

LIFE INSURANCE ACT 1945-1973 - SECT. 83.
Mis-statement of age.

SECT

Imp. Act 1923, s. 20 (4) (a). V. 4602, s. 553. Q., ss. 21, 26.
Substituted by No. 94, 1953, s. 13.
83. (1) A policy is not avoided by reason only of a mis-statement of the age of the life insured.

(2) Where the true age as shown by the proofs is greater than that on which the policy was based, the company may vary the sum insured by, and the bonuses (if any) allotted to, the policy so that, as varied, they bear the same proportion to the sum insured by, and the bonuses (if any) allotted to, the policy before variation as the amount of the premiums that have become payable under the policy as issued bears to the amount of the premiums that would have become payable if the policy had been based on the true age.

(3) Where the true age as shown by the proofs is less than that on which the policy was based, the company shall either-

(a) vary the sum insured by, and the bonuses (if any) allotted to, the policy so that, as varied, they bear the same proportion to the sum insured by, and the bonuses (if any) allotted to, the policy before variation as the amount of the premiums that have become payable under the policy as issued bears to the amount of the premiums that would have become payable if the policy had been based on the true age; or

(b) reduce, as from the date of issue of the policy, the premium payable to the amount that would have been payable if the policy had been based on the true age and repay to the policy owner the amount of over-payments of premium less any amount that has been paid as the cash value of bonuses in excess of the cash value that would have been paid if the policy had been based on the true age.

LIFE INSURANCE ACT 1945-1973 - SECT. 84.
Incorrect statement in proposal not to avoid policy.

SECT

Imp. Act 1923, s. 20. V. 4464, s. 2. V. 4660, s. 3.
84. A policy shall not be avoided by reason only of any incorrect statement (other than a statement as to the age of the life insured) made in any proposal or other document on the faith of which the policy was issued or reinstated by the company unless the statement-

(a) was fraudulently untrue; or

(b) being a statement material in relation to the risk of the company under the policy, was made within the period of three years immediately preceding the date on which the policy is sought to be avoided or the date of the death of the life insured, whichever is the earlier.

LIFE INSURANCE ACT 1945-1973 - SECT. 85.
Minors.

SECT

Cf. Q., 1901, No. 20, s. 20, N.Z. 1908, s. 75, 1920, s. 4.
Substituted by No. 94, 1953, s. 14.
85. (1) A minor who has attained the age of ten years but has not attained the age of sixteen years may, with the written consent of his parent or of a person standing in loco parentis to the minor-

(a) effect a policy upon his own life or upon another life in which he has an insurable interest; or

(b) take an assignment of a policy.

(2) A minor who has attained the age of sixteen years may-

(a) effect a policy upon his own life or upon another life in which he has an insurable interest; or

(b) take an assignment of a policy,
and, subject to the next succeeding sub-section, is as competent in all respects to have and exercise the powers and privileges of a policy owner in relation to a policy of which he is the owner as he would be if he were of full age.

(3) A minor who has attained the age of sixteen years is not competent to assign or mortgage a policy except with the consent in writing of his parent or of a person standing in loco parentis to the minor.

LIFE INSURANCE ACT 1945-1973 - SECT. 86.
Insurable interest.

SECT

Ontario 1927. Ch. 222, s. 135.
86. (1) An insurable interest shall be deemed to be had by-

(a) a parent of a child under twenty-one years of age, or a person in loco parentis of such a child-in the life of the child;

(b) a husband-in the life of his wife;

(c) a wife-in the life of her husband;

(d) any person-in the life of another upon whom he is wholly or in part dependent for support or education;

(e) a corporation or other person-in the life of an officer or employee thereof; and

(f) a person who has a pecuniary interest in the duration of the life of another person-in the life of that person.

(2) This section shall apply to policies whether effected before or after the commencement of this Act.

(3) This section shall not be construed to limit or restrict in any way the meaning of insurable interest as understood at the commencement of this Act.

LIFE INSURANCE ACT 1945-1973 - SECT. 87.

SECT

Division 2-Assignments and Mortgages of Policies
Assignments of policies.
V. 4602, s. 56. Q., s. 41. S.A., ss. 22-23. W.A., ss. 72-73. T., s. 41.
Sub-section (1) substituted by No. 94, 1953, s. 15.
87. (1) Subject to section ninety-one of this Act, an assignment of a policy made after the commencement of this Act-

(a) shall be by memorandum of transfer in accordance with, or substantially in accordance with, the form in the Fifth Schedule to this Act-

(i) endorsed upon the policy, or upon an annexure to the policy that is referred to in, or in an endorsement on, the policy; and

(ii) signed by the transferor and by the transferee; and

(b) is not valid until registered in accordance with this section by the company liable under the policy.

(2) Every such assignment shall be registered in a register to be provided by the company for that purpose, and the date of registration shall be inserted in the memorandum of transfer, which shall also be signed by the principal officer of the company or a person thereto authorized by him in writing.

(3) The transferee under a duly registered assignment shall have all the powers and be subject to all the liabilities of the transferor under the policy, and may sue in his own name on the policy:

Provided that nothing in this section shall be construed to admit the transferee to membership of a company or to deprive the transferor of his membership in respect of a policy, except as provided in the instruments constituting the company or in its articles of association or other rules.

(4) The receipt of the transferee shall be a discharge to the company for all moneys paid by the company under the policy.

(5) Every such memorandum of transfer signed as provided in this section shall be conclusive evidence of its registration and of the date of registration.

(6) Every such memorandum shall, as between the company and any person claiming any moneys under the policy, be conclusive evidence for all purposes that the transferee was at the time of registration the absolute owner of the policy, free from all trusts, rights, equities and interests (except liens or charges which the company has upon the policy), and legally entitled to receive and give a discharge for those moneys.

(7) Any discharge or surrender of or security over the policy given to the company by the transferee shall be valid and effectual, notwithstanding the existence of any trust, right, equity or interest of any other person.

(8) The company taking the discharge, surrender or security shall not be required or concerned to inquire or ascertain the circumstances in which or the consideration for which the transferee or any previous transferee became such transferee, or, except as provided by section eighty-nine of this Act be affected by express, implied or constructive notice of any trust, right, equity or interest.
Added by No. 94, 1953, s. 15.

(9) This section does not-

(a) impose on a minor any liability to which he would not, but for this section, be subject;

(b) confer on a minor any power or capacity which, but for this section, he would not have; or

(c) validate a receipt or discharge or a surrender of, or security over, a policy given by a minor, if, but for this section, that receipt, discharge, surrender or security would not be valid.

LIFE INSURANCE ACT 1945-1973 - SECT. 88.
Mortgages and trusts.

SECT

V. 4602, s. 557. Q., s. 42. S.A., s. 24. W.A., s. 74. T., s. 42.
88. If any policy is assigned by way of mortgage, or upon any trust, the mortgage or trust shall be effected by way of defeasance or declaration of trust by some separate instrument, and no notice of the mortgage or trust shall be entered on the memorandum of transfer or endorsed on the policy, and the company shall not, except as provided by the next succeeding section, be affected by express, implied or constructive notice of any such mortgage or trust.

LIFE INSURANCE ACT 1945-1973 - SECT. 89.
Effect of notice of trust.

SECT

Cf. V. 4602, s. 558.
89. (1) Notwithstanding anything contained in the last two preceding sections, a company shall not be entitled to any protection under those sections or to rely upon any of the provisions of those sections if the company has not acted in good faith or has received express notice in writing of any trust, right, equity or interest of any person.
Amended by No. 80, 1950, s. 3.

(2) In case of the receipt of any such notice the company may if it thinks fit pay into the Court any moneys payable under the policy, and the receipt of the Principal Registrar, a Deputy Registrar or a District Registrar of the Court for the moneys shall be a good and valid discharge to the company for the moneys so paid in.

(3) The moneys shall be paid out to such person as the Court or any Justice of the Court orders.

LIFE INSURANCE ACT 1945-1973 - SECT. 90.
Assignment or mortgage of industrial policy not valid without consent of
company.

SECT

90. (1) Notwithstanding anything to the contrary in this Division, no assignment of an industrial policy made after the commencement of this Act shall be valid without the consent of the company liable under the policy.

(2) If the company refuses its consent, the policy owner may appeal to the Commissioner whose decision shall be final.

LIFE INSURANCE ACT 1945-1973 - SECT. 90A.
Assignment of policy to company issuing it not to merge rights, &c., under

SECT

policy.
A.M.P. 1941, s. 6.
Inserted by No. 94, 1953, s. 16.
90A. The rights and liabilities arising under a policy shall not be deemed, either at law or in equity, to be merged or extinguished by reason only of an assignment of the policy, whether at law or in equity, to the company that issued the policy.

LIFE INSURANCE ACT 1945-1973 - SECT. 91.
Policies held by trustees.

SECT

A.M.P. 1941, s. 5.
Substituted by No. 94, 1953, s. 17.
91. Where a company is satisfied that-

(a) a policy has been issued or transferred to, or the ownership of a policy is otherwise vested in, persons as trustees; and

(b) those persons are no longer the trustees for the purposes of the trust,
the company may, if it sees fit, at the request in writing of the persons claiming to be the trustees for the time being for the purposes of the trust and on the evidence of a statutory declaration by one of those persons verifying the claim, record the names of those persons as the owners of the policy, and thereupon those persons become the owners of the policy.

LIFE INSURANCE ACT 1945-1973 - SECT. 92.

SECT

Division 3-Protection of Policies
Interest of insured protected in certain cases.
N.S.W., ss. 4-7. V. 4602, s. 554. Q., s. 18. S.A., s. 7. W.A., ss. 33-34.
Sub-section (1) amended by No. 216, 1973, s. 3.
92. (1) Subject to the Bankruptcy Act 1966-1973, the property and interest of any person in a policy effected (whether before or after the commencement of this Act) upon his own life shall not be liable to be applied or made available in payment of his debts by any judgment, order or process of any court.
Amended by No. 216, 1973, s. 3.

(2) In the event of a person whose life is insured dying after the commencement of this Act, the moneys payable upon his death under or in respect of a policy effected upon his life shall not, subject to the Bankruptcy Act 1966-1973, be liable to be applied or made available in payment of his debts by any judgment, order or process of any court, or by retainer by an executor or administrator, or in any other manner whatsoever, except by virtue of a contract or charge made by the person whose life is insured, or by virtue of an express direction contained in his will or other testamentary instrument executed by him that the moneys arising from the policy shall be so applied.

(3) A direction to pay debts, or a charge of debts upon the whole or any part of the testator's estate, or a trust for the payment of debts, shall not be deemed to be such an express direction.

LIFE INSURANCE ACT 1945-1973 - SECT. 93.
Insurance by married women.

SECT

Cf. 45-46 Vict., c. 75, s. 11.
Q. 1901, No. 20, s. 19.
93. (1) A married woman may effect a policy upon her own life or upon the life of her husband, for her separate use, and the policy and all benefits of the policy shall enure accordingly.

(2) The protection of the last preceding section shall extend to any such policy bona fide effected by a married woman.

LIFE INSURANCE ACT 1945-1973 - SECT. 94.
Family insurance policies.

SECT

N.S.W., ss. 8-9. Q., s. 19.
Sub-section (1) amended by No. 216, 1973, s. 3.
94. (1) Subject to the Bankruptcy Act 1966-1973, a policy effected (whether before or after the commencement of this Act) by any man upon his own life, and expressed to be for the benefit of his wife, or of his children, or of his wife and children, or any of them, or by any woman upon her own life, and expressed to be for the benefit of her husband, or of her children, or of her husband and children, or any of them, shall create a trust in favour of the objects named in the policy, and the moneys payable under any such policy shall not, so long as any object of the trust remains unperformed, form part of the estate of the person whose life is insured, or be subject to his or her debts.

(2) The person whose life is insured may by the policy, or by any memorandum under his or her hand, appoint trustees of the moneys payable under the policy, and from time to time appoint new trustees of the moneys, and may make provision for the appointment of new trustees of the moneys, and for the investment of the moneys payable under the policy.

(3) Subject to the next succeeding sub-section, if at any time there is no trustee, the policy shall vest in the person whose life is insured, and his personal representatives, in trust for the purposes referred to in, and subject to, sub-section (1) of this section.

(4) If, at any time, there is no trustee and the policy is not vested in any person in pursuance of the last preceding sub-section and it is expedient to appoint trustees or new trustees, trustees or new trustees may be appointed by the Court.
Amended by No. 94, 1953, s. 18.

(5) The receipt of a trustee or, if there is no trustee or in default of notice to the company of the existence of a trustee, the receipt of the person whose life is insured or of his personal representative, or, if the policy has been assigned in pursuance of the power to borrow money conferred by the next succeeding sub-section, the receipt of the owner for the time being of the policy shall be a discharge to the company for the sum payable under the policy, or for the value of the policy, in whole or in part.

(6) Any trustee or, if there is no trustee or in default of notice to the company of the existence of a trustee, the person whose life is insured or his personal representative may vary the terms of the policy in any manner permitted by the company, surrender the policy in whole or in part, or borrow money upon the policy, and any money obtained by any such variation, surrender or borrowing shall be subject to the same trusts as those upon which the policy was or is held.
Added by No. 94, 1953, s. 18.

(7) Except as expressly provided by this section, nothing in this section affects the operation of the law in force in a State or Territory relating to trustees.
Added by No. 3, 1958, s. 6; amended by No. 29, 1961, s. 18.

(8) In this section, ''children'', in relation to a person, includes-

(a) a person adopted by the first-mentioned person-

(i) under the law of a State or Territory relating to the adoption of children; or

(ii) under the law of any other place relating to the adoption of children, if the validity of the adoption would be recognized under the law of any State or Territory;

(b) a step-child of that person; or

(c) an ex-nuptial child of that person.

LIFE INSURANCE ACT 1945-1973 - SECT. 95.

SECT

Division 4-Paid-up Policies, Surrender Values and Non-forfeiture
Application of Division.
V. 4747, s. 2.
95. (1) The provisions of this Division, other than this section, shall not apply to-

(a) an instrument securing the grant of an annuity for a term dependent upon human life, not being a deferred annuity during the period of deferment; or

(b) a policy which provides insurance against contingencies none of which may happen, not being a policy which provides for the payment of a sum of money if the life insured by the policy survives a specified period.
V. 4747, s. 8.

(2) The Governor-General may, on the recommendation of the Commissioner, by regulation declare that the provisions of this Division shall apply in respect of any policy or class of policies with such modifications as are declared in the regulation, and the provisions of this Division shall apply in respect of that policy or class of policies accordingly.

LIFE INSURANCE ACT 1945-1973 - SECT. 96.
Paid-up policies.

SECT

V. 4608, ss. 4-5. V. 4747, s. 5.
96. (1) A policy owner who desires to discontinue further premium payments on a policy on which not less than three years' premiums have been paid in cash, shall, on application to the company, be entitled to receive, in lieu of that policy, a paid-up policy, for an amount not less than that determined in accordance with the Rules in that behalf set out in Part I of the Sixth Schedule.

(2) The paid-up policy shall be payable upon the happening of the contingency upon the happening of which the amount insured under the original policy would have been payable.

LIFE INSURANCE ACT 1945-1973 - SECT. 97.
Surrender of policies.

SECT

V. 4608, s. 6. V. 4747, s. 6.
97. (1) The owner of a policy which has been in force for at least six years, shall, on application to the company, be entitled to surrender the policy and to receive not less than the surrender value of the policy less the amount of any debt owing to the company under, or secured by, the policy.

(2) In the application of the last preceding sub-section to a paid-up policy which has been issued in lieu of another policy, the period of six years shall be calculated from the date of issue of the original policy.

LIFE INSURANCE ACT 1945-1973 - SECT. 98.
Calculation of surrender values.

SECT

V. 4608, s. 6. V. 4747, s. 6.
98. For the purposes of this Division the surrender value of a policy shall be the amount calculated in accordance with the Rules in that behalf set out in Part II of the Sixth Schedule.

LIFE INSURANCE ACT 1945-1973 - SECT. 99.
Relaxation of obligations as to surrender values.

SECT

V. 4608, s. 7. V. 4747, s. 7.
99. The Commissioner may, on application by a company, if, in his opinion, the payment in cash of surrender values as required by this Division would be prejudicial to the financial stability of the company or to the interests of the policy owners of that company, suspend or vary, for such period and subject to such conditions as the Commissioner thinks fit, the obligation of the company to pay those surrender values.

LIFE INSURANCE ACT 1945-1973 - SECT. 100.
Non-forfeiture of ordinary policies in certain cases on non-payment of
premiums.

SECT


V. 4747, s. 3.
100. (1) An ordinary policy shall not be forfeited by reason only of the non-payment of any premium (in this section referred to as ''the overdue premium'') if-

(a) not less than three years' premiums have been paid in cash on the policy; and

(b) the surrender value of the policy (calculated as at the day immediately preceding that on which the overdue premium falls due) exceeds the sum of the amount of the debts owing to the company under, or secured by, the policy, and the amount of the overdue premium.

(2) The company may, until payment of the overdue premium, charge compound interest on it, on terms not less favorable to the policy owner than such terms (if any) as are prescribed.

(3) The overdue premium and any interest charged on it under this section and unpaid shall for the purposes of this Act be deemed to be a debt owing to the company under the policy.

(4) Without affecting the generality of the foregoing provisions of this section, an ordinary policy on which not less than three years' premiums have been paid in cash shall not be forfeited by reason only of the non-payment of a premium unless, on or after the day on which the premium fell due-

(a) the company liable under the policy serves a notice on the policy owner stating-

(i) the amount due or payable to the company at the date of the notice in respect of the policy; and

(ii) that the policy will be forfeited at the expiration of twenty-eight days after the date of the notice if a sufficient sum is not paid to the company in the meantime; and

(b) a period of at least twenty-eight days has elapsed after the service of the notice.

LIFE INSURANCE ACT 1945-1973 - SECT. 101.
Non-forfeiture of industrial policies in certain cases on non-payment of
premiums.

SECT

V. 4608, ss. 3, 5.
101. (1) An industrial policy on which less than one year's premiums have been paid shall not be forfeited by reason only of the non-payment of any premium unless the premium has remained unpaid for not less than four weeks after it became due.

(2) An industrial policy on which not less than one year's but less than two years' premiums have been paid shall not be forfeited by reason only of the non-payment of any premium, unless the premium has remained unpaid for not less than eight weeks after it became due.

(3) An industrial policy on which not less than two years' premiums have been paid shall not be forfeited by reason only of the non-payment of any premium, unless the premium has remained unpaid for not less than twelve weeks after it became due.

(4) In the event of an industrial policy on which not less than three years' premiums have been paid being forfeited by reason of the non-payment of any premium, the company shall, without requiring any application from the policy owner, grant a paid-up policy for an amount not less than that calculated in accordance with the Rules in that behalf set out in Part I of the Sixth Schedule.

(5) The paid-up policy shall be payable upon the happening of the contingency upon the happening of which the amount insured under the original policy would have been payable.

(6) The company shall notify the policy owner in writing of the fact that the paid-up policy has been granted and shall specify the amount of the policy and the contingency upon which the policy is payable.

LIFE INSURANCE ACT 1945-1973 - SECT. 102.
Treatment of debts on grant of paid-up policies.

SECT

102. Where in pursuance of any provision of this Division a policy owner is entitled to receive, or a company is required to grant, a paid-up policy and there is any debt owing to the company under or secured by the policy, the company may elect-

(a) to treat the debt so owing as a debt secured by the paid-up policy, and thereupon the paid-up policy shall be a security for the debt so owing; or

(b) in the ascertainment of the amount of the paid-up policy, to reduce the amount by taking into account, upon a basis approved by the Commissioner, the debt so owing to the company, and thereupon the debt shall cease to be owing to the company.

LIFE INSURANCE ACT 1945-1973 - SECT. 103.

SECT

Division 5-Payment of Policy Moneys
Probate or administration may be dispensed with in certain cases.
Sub-section (1) substituted by No. 94, 1953, s. 19; amended by No. 93, 1959, s. 4; and No. 216, 1973, s. 3.
103. (1) Where-

(a) there is only one policy under which moneys are payable by a particular company to the personal representative of a deceased person and those moneys do not, excluding bonus additions, exceed $2,000; or

(b) there are two or more policies under which moneys are so payable and the aggregate of those moneys does not, excluding bonus additions, exceed $2,000,
the company may, without requiring the production of any probate or letters of administration, pay the moneys, together with the bonuses (if any) which have been added to the policy or policies, to a person-

(c) who is the husband, wife, father, mother, child, brother, sister, nephew or niece of the deceased person; or

(d) who satisfies the company that he is entitled to the property of the deceased person under his will or under the law relating to the disposition of the property of deceased persons or that he is entitled to obtain probate of the will of the deceased person or to take out letters of administration of his estate.

(2) The company making any such payment shall be thereby discharged from all further liability in respect of the moneys payable under the policy or policies.

(3) All persons to whom any such moneys are paid shall apply those moneys in due course of administration and, if the company thinks fit, it may require those persons to give sufficient security by bond or otherwise that the moneys so paid will be so applied.

LIFE INSURANCE ACT 1945-1973 - SECT. 103A.
Death of owner of policy not being life insured.

SECT

N.Z. 1925, s. 5.
Inserted by No. 94, 1953, s. 20.
103A. (1) Subject to this section, where the owner of a policy, not being the person whose life is insured by the policy, predeceases the person whose life is so insured, and a person satisfies the company that issued the policy-

(a) that he is entitled, under the will or on the intestacy of the deceased owner, to the benefit of the policy; or

(b) that he is entitled to obtain probate of the will, or to take out letters of administration of the estate, of the deceased owner,
the company may, without requiring the production of any probate or letters of administration, endorse on the policy a declaration that that person has so satisfied the company and is the owner of the policy, and thereupon that person becomes, subject to the next succeeding sub- section, the owner of the policy.

(2) The last preceding sub-section does not confer on a person declared to be the owner of a policy any beneficial interest in the policy which he would not otherwise have had.

(3) This section applies in relation to a policy referred to in subsection (1) of this section whether the deceased owner died before or after the commencement of this section.
Amended by No. 93, 1959, s. 5; and No. 216, 1973, s. 3.

(4) This section does not apply in relation to-

(a) a policy the surrender value of which, at the date of the death of the deceased owner, exceeds or exceeded $800; or

(b) a policy which is one of two or more policies owned by the deceased owner and issued by the same company if the aggregate of the surrender values of those policies at the date of the death of the deceased owner exceeds or exceeded $800.

(5) For the purposes of the last preceding sub-section, the surrender value of a policy is the amount (including any amount in respect of bonus additions) that would be paid by the company issuing the policy upon its surrender.

LIFE INSURANCE ACT 1945-1973 - SECT. 104.
Company not bound to see to application of moneys paid by it.

SECT

Q., s. 43. S.A., s. 72. W.A., s. 71. T., s. 40.
104. A company shall not in any circumstances be bound or concerned to see to the application of any moneys paid by the company in respect of any policy.

LIFE INSURANCE ACT 1945-1973 - SECT. 105.
Power to pay money into Court.

SECT

Cf. 59 Vict., c. 8, ss. 3, 4. Q., s. 40.
105. (1) A company may, subject to any Rules of Court in that behalf, pay into the Court any moneys payable by the company in respect of a policy for which, in the opinion of the company, no sufficient discharge can otherwise be obtained.
Amended by No. 80, 1950, s. 3.

(2) The receipt of the Principal Registrar, a Deputy Registrar or a District Registrar of the Court for the moneys shall be a good and valid discharge to the company for the moneys so paid in, and the moneys shall, subject to the Rules of Court, be dealt with according to the order of the Court.

LIFE INSURANCE ACT 1945-1973 - SECT. 106.
Unclaimed moneys.

SECT

Substituted by No. 94, 1953, s. 21.
106. (1) A company shall, within three months after the thirty-first day of December in each year, deliver to the Treasurer a statement of all unclaimed moneys as at that date.

(2) The statement shall set forth, in respect of each policy to which it refers, the name of the person whose life is insured, the name of the policy owner (if known), their last-known addresses, the amount due, the date on which it became due and the State or Territory in which the policy is registered.

(3) The company shall pay to the Treasurer, at the time of the delivery of the statement, the total amount of unclaimed moneys shown in the statement, less such amounts (if any) of those moneys as the company has paid, between the thirty-first day of December last preceding and the date on which the statement is delivered (particulars of which amounts shall be furnished in writing by the company with the statement), to the persons to whom those amounts were due.

(4) Where unclaimed moneys have been paid to the Treasurer under this section and the Treasurer or an authorized officer is satisfied that, but for this section, a person would be paid those unclaimed moneys by the company by which they were paid to the Treasurer (or, if that company is no longer carrying on life insurance business, by a company to which the life insurance business of the first-mentioned company has been sold or disposed of), the Treasurer or an authorized officer shall pay those unclaimed moneys to that company and specify the person to whom the company is to pay those moneys, and the company shall thereupon pay those moneys to that person.

(5) If a company, after paying to the Treasurer an amount in respect of a policy in pursuance of this section, satisfies the Treasurer or an authorized officer that the amount so paid exceeds the amount that would have been payable under the policy to the policy owner, the Treasurer or an authorized officer shall refund to the company the amount of the excess.

(6) Subject to sub-section (4) of this section, the company is, upon payment to the Treasurer of an amount as required by this section, discharged from further liability in respect of that amount.

(7) The Consolidated Revenue Fund is appropriated for the purposes of, and to the extent necessary to give effect to, this section.
Amended by No. 216, 1973, s. 3.

(8) The Treasurer shall cause particulars of every sum of not less than $20 shown in a statement delivered to him under this section to be published in the Gazette.
Amended by No. 216, 1973, s. 3.

(9) A company shall not contravene or fail to comply with any provision of this section which applies to it.

Penalty: $200.

(10) In this section -

''authorized officer'' means the Secretary to the Department of the Treasury or an officer of the Public Service of the Commonwealth authorized by him to act under this section;

''unclaimed moneys'' means all sums of money which, after the commencement of this Act, became or become legally payable by a company in respect of policies but in respect of which the time within which proceedings may be taken for their recovery has expired, and includes sums of money payable on the maturity, after the commencement of this Act, of an endowment policy or endowment insurance policy which are not claimed within seven years after the maturity date of the policy.

LIFE INSURANCE ACT 1945-1973 - SECT. 107.
No deductions in respect of other policies.

SECT

Imp. Act 1923, s. 27.
107. Where a claim arising under a policy is paid, no deductions shall, except with the consent in writing of the claimant, be made on account of premiums or debts due to the company under any other policy.

LIFE INSURANCE ACT 1945-1973 - SECT. 108.

SECT

Division 6-Payments on Death of Children under Ten Years of Age
Definitions.
No. 12, 1905, s. 1.
Amended by No. 216, 1973, s. 3.
108. In this Division, unless the contrary intention appears-

''Register of Deaths'' means any register kept in any State or Territory under any law for the registration of deaths in force in that State or Territory;

''registered medical practitioner'' means any person who, under the law of any State or Territory, is a legally qualified medical practitioner in that State or Territory;

''Registrar of Deaths'' means any person authorized by the law of any State or Territory relating to the registration of deaths to issue certificates of death in that State or Territory;

''repayment of premiums'' means repayment, either with or without interest, simple or compound, at a rate not exceeding 4 per centum per annum, to the person effecting a policy, or to his executors, administrators or assigns, of the whole or part of the premiums paid in respect of the policy.

LIFE INSURANCE ACT 1945-1973 - SECT. 109.
Limitation of amount payable on death of children.

SECT

No. 12, 1905, s. 2.
109. A company shall not, by any policy effected on the life of a child, contract to pay on the death of the child under ten years of age any sum of money (apart from repayment of premiums) which, added to any amount payable (apart from repayment of premiums) on the death of the child under ten years of age by any other company or by any friendly society, exceeds the amount specified in the Seventh Schedule and applicable to the case (in this Division referred to as ''the amount payable under the Seventh Schedule'').

LIFE INSURANCE ACT 1945-1973 - SECT. 110.
Production of prescribed certificate of death.

SECT

No. 12, 1905, s. 3.
110. A company shall not pay any sum (apart from repayment of premiums) on the death of a child under ten years of age, except upon production of a certificate of death issued by a Registrar of Deaths and containing the particulars mentioned in this Division.

LIFE INSURANCE ACT 1945-1973 - SECT. 111.
Certificates of death.

SECT

No. 12, 1905, s. 4.
111. (1) Where application is made for a certificate of the death of a child for the purpose of obtaining from a company a sum of money (apart from repayment of premiums), the name of the company and the sum sought to be obtained from the company shall be stated to the Registrar of Deaths.

(2) The Registrar of Deaths shall write on or at the foot of the certificate the words ''To be produced to the company [naming company] said to be liable for the payment of the sum of [stating the sum]''.

(3) All such certificates of the same death shall be numbered in consecutive order.

(4) A Registrar of Deaths shall not issue any one or more certificates of death of a child under the age of ten years for the payment in the whole of any sum of money exceeding the amount payable under the Seventh Schedule.

(5) A Registrar of Deaths shall not issue any such certificate unless-

(a) the cause of death has been previously entered in the Register of Deaths on the certificate of a coroner or of a registered medical practitioner who attended the deceased child during its last illness;

(b) a certificate under the hand of a registered medical practitioner of the probable cause of death is produced to him; or

(c) other satisfactory evidence of the cause of death is furnished to him.

(6) A company to which is produced a certificate which does not purport to be the first of the death of a child under the age of ten years shall, before paying any money on the death, inquire whether any and what sums of money have been paid on the same death by any other company or friendly society.

LIFE INSURANCE ACT 1945-1973 - SECT. 112.
Offences and penalties.

SECT

No. 12, 1905, s. 6.
Amended by No. 216, 1973, s. 3.
112. It shall be an offence against this Act-

(a) if a company pays any money on any policy taken out after the commencement of this Act on the death of a child under ten years of age otherwise than as allowed by this Division;

(b) if a person claiming money (apart from repayment of premiums) on the death of a child under ten years of age produces a certificate of the death other than as provided in this Division to the company from which the money is claimed, or produces a false certificate or one fraudulently obtained, or in any way attempts to defeat the provisions of this Division; or

(c) if in a policy issued by a company after the commencement of this Act, insuring payment of a sum of money (apart from repayment of premiums) on the death of a child under ten years of age, it is not set forth that the total sum recoverable as insurance moneys or other benefits from any one or more companies or friendly societies on the death of the child under ten years of age (apart from repayment of premiums) does not exceed the amount payable under the Seventh Schedule.

Penalty: $100.

LIFE INSURANCE ACT 1945-1973 - SECT. 113.
Saving as to insurable interest.

SECT

No. 12, 1905, s. 5.
113. None of the preceding sections of this Division shall apply to any policy on the life of a child when the person effecting the insurance has an insurable interest (apart from the provisions of paragraph (a) of sub-section (1) of section eighty-six of this Act) in the life of the child.

LIFE INSURANCE ACT 1945-1973 - SECT. 114.

SECT

Division 7-Children's Advancement Policies
Definitions.
Sub-section (1) amended by No. 94, 1953, s. 22.
114. (1) In this Division, unless the contrary intention appears-

''child's advancement policy'' means a policy effected, before a child has attained the age of twenty-one years, by a person other than the child, which contains one or both of the following provisions:-

(a) provision for payment of a sum to the executors, administrators or assigns of the child on his death after attaining the vesting age; and

(b) provision for payment of a sum to the child or his assigns on his attaining an age not less than the vesting age;

''vesting age'' means-

(a) the age of twenty-five years; or

(b) an age (not less than ten years) on and after the attainment of which by the child it is specified in the policy that sums payable in respect of the policy by the company which issued it shall be paid to the child or his executors, administrators or assigns,

whichever is the earlier.

(2) For the purposes of this section, and of section one hundred and sixteen of this Act, the specifying in a policy of a date, without specifying the age of the child at that date, shall be deemed to be a specifying of the age of the child at that date.

LIFE INSURANCE ACT 1945-1973 - SECT. 115.
Child's advancement policy not void for want of insurable interest.

SECT

115. A child's advancement policy effected either before or after the commencement of this Act shall not be deemed to be void by reason only that the person effecting the policy had not at the time the policy was effected an insurable interest in the life of the child.

LIFE INSURANCE ACT 1945-1973 - SECT. 116.
Property in child's advancement policy.

SECT

116. (1) The provisions of this section shall apply to every child's advancement policy, whether effected before or after the commencement of this Act, unless (in the case of a policy effected by a parent or a person in loco parentis of the child) it is expressly provided in the policy that this section shall not apply to it.
Amended by No. 94, 1953, s.23.

(2) Subject to sub-section (4) of this section, the policy shall, unless and until the child attains the vesting age, be the absolute property both at law and in equity of the person effecting the policy or his assigns, and that person or his assigns, shall, unless and until the child attains the vesting age, be competent, and in the case of a policy effected before the commencement of this Act be deemed to have been competent, to assign, mortgage, charge, surrender, vary or otherwise deal with the policy in any way whatever.

(3) Where a child whose life is insured under any child's advancement policy has, whether before or after the commencement of this Act, attained the vesting age, the policy shall be deemed to have been or, as the case may be, shall become, as on and after the date on which the child attained the vesting age, the absolute property of the child both at law and in equity, subject-

(a) to any debt owing to the company under, or secured by, the policy,

(b) to any dealing done, prior to the attainment by the child of the vesting age, by the owner of the policy; and

(c) to any dealing done, after the attainment by the child of the vesting age and prior to the commencement of this Act, by the owner of the policy.
Amended by No. 94, 1953, s. 23.

(4) On the death or bankruptcy, during the child's life time and before he attains the vesting age, of the person effecting the policy, the executors, administrators, official receiver or trustee in bankruptcy of the person effecting the policy as the case may be (in this sub-section referred to as ''the representative'') shall, subject to any dealings other than testamentary by the person effecting the policy before his death or bankruptcy, hold the policy in trust for the child until he attains the vesting age, or dies before attaining the vesting age and the representative shall have power at his discretion to assign, mortgage, charge, surrender, vary or otherwise deal with the policy and apply the proceeds as he thinks fit for the maintenance or benefit of the child and the upkeep of the policy, and the company issuing the policy shall be under no obligation to see to the application of the proceeds, and in the event of the death of the child before attaining the vesting age, the moneys payable under the policy shall be applied in like manner as if this sub-section were not in force.

(5) Nothing in this section shall invalidate any payment made before the commencement of this Act in respect of a child's advancement policy if the payment, but for this Act, would have been valid.

LIFE INSURANCE ACT 1945-1973 - SECT. 117.

SECT

Division 8-General
Registries and Registers.
V. 4602, ss. 560-565. Q., ss. 45-46. S.A., ss. 17-20. W.A., ss. 78-81.
117. (1) A company shall have in each State in which it carries on life insurance business at least one office (in this Act referred to as a ''registry'') in which it shall keep a register of policies.

(2) A company may have one or more registries in each Territory in which it carries on life insurance business.

(3) A company shall have a representative in charge of each registry.

(4) Notice in writing of the situation of each registry and of the name of the representative in charge of each registry shall be lodged with the Commissioner.

(5) Whenever any change takes place in the situation of a registry or in the identity of a representative in charge of a registry, notice in writing of the change shall be lodged with the Commissioner.

LIFE INSURANCE ACT 1945-1973 - SECT. 118.
Registration of policies.

SECT

Sub-section (1) omitted by No. 216, 1973, s. 3.
118. (1) * * * * * * *
Amended by No. 216, 1973, s. 3.

(2) Every policy issued by a company in Australia shall immediately after issue be registered by the company in a register-

(a) at a registry in the State or Territory in which the policy owner resides, or in the event of the policy owner residing in a Territory where the company has no registry, at such registry in Australia as the policy owner elects; or

(b) at such other registry as is agreed upon by the company and policy owner.

(3) Unless otherwise agreed by the company and the policy owner, all moneys payable in respect of a policy shall be payable at the registry at which it is for the time being registered.

(4) A policy on any register at a registry of a company in Australia shall, at the request in writing of the policy owner, be transferred by the company to a register at any other registry in Australia.

(5) Any policy may, at the request in writing of the policy owner and with the consent of the company, be transferred from a register outside Australia to a register in Australia, or from a register in Australia to a register outside Australia.
Amended by No. 216, 1973, s. 3.

(6) All expenses incurred in connexion with any transfer of a policy in pursuance of either of the last two preceding sub-sections shall be borne by the policy owner.
Amended by No. 29, 1961, s. 19.

(7) For the purposes of this Act, a register of policies kept by a company shall be deemed to be in or at a registry if it is kept, in respect of that registry, at the head office of the company in Australia.

LIFE INSURANCE ACT 1945-1973 - SECT. 119.
Lost policy.

SECT

Substituted by No. 94, 1953, s. 24.
119. (1) Where-

(a) the owner of a policy; or

(b) a person claiming the benefit of the provisions of section one hundred and three or one hundred and three A of this Act in respect of a policy,
claims that the policy (in this section referred to as ''the original policy'') is lost or has been destroyed, the company liable under the original policy may, subject to this section, upon application by the owner or that person and upon such evidence as to the loss or destruction of the original policy as the company deems sufficient, issue to the applicant a special policy in substitution for the original policy.

(2) Where an application under the last preceding sub-section is made by a person referred to in paragraph (b) of that sub-section, the company shall not issue a special policy unless the company is satisfied that the provisions of section one hundred and three or one hundred and three A of this Act should be applied in favour of the applicant in relation to the policy.

(3) A special policy shall-

(a) be a copy, as nearly as can be ascertained, of the original policy in substitution for which it has been issued;

(b) contain copies of every endorsement on the original policy registered by the company; and

(c) state the reason for the issue of the special policy.
Amended by No. 93, 1959, s. 6; and No. 216, 1973, s. 3.

(4) Before issuing a special policy the company shall, if the amount insured, exclusive of bonus additions, exceeds $1,000, give at least one month's notice of its intention so to do-

(a) in a newspaper circulating-

(i) in the district in which the owner of the original policy resides or, if the application for the special policy is made by a person claiming the benefit of the provisions of section one hundred and three or one hundred and three A of this Act, in the district in which the deceased policy owner ordinarily resided at the time of his death; or

(ii) in the district in which the original policy is considered by the company to have been lost or destroyed; and

(b) if the newspaper in which notice is given in pursuance of the last preceding paragraph does not circulate in the State or Territory in which the original policy is registered, in a newspaper circulating in that State or Territory.

(5) The expenses of the advertisement and all other costs of the issue of a special policy shall be paid by the applicant at the time of application.

(6) The fact of the issue of a special policy and the reason for its issue shall be recorded by the company in the appropriate register of policies.

(7) A special policy is valid and available for all purposes for which the original policy in substitution for which it has been issued would have been valid and available and, after the issue of the special policy, the original policy in substitution for which it has been issued is void.

(8) If the company fails to issue a special policy within six months after receipt of an application in writing from the policy owner, the Court, or the Supreme Court or a County Court, District Court or Local Court of Full Jurisdiction of a State or Territory, may, upon application by summons, and upon such evidence as to the loss or destruction of the original policy as the court deems sufficient, order the company, upon such terms and within such time as the court thinks fit, to issue a special policy.

(9) If the owner of a special policy or a person claiming the benefit of the provisions of section one hundred and three or one hundred and three A of this Act in respect of a special policy, claims that the special policy is lost or has been destroyed the provisions of this section apply as if the special policy were an original policy issued by the company.

LIFE INSURANCE ACT 1945-1973 - SECT. 120.
Effect of suicide or capital punishment on policy.

SECT

N.S.W. 1938, s. 2. V. 4600, s. 2. S.A., s. 72A.
120. A policy shall not be avoided merely on the ground that the person whose life is insured died by his own hand or act, sane or insane, or suffered capital punishment, if, upon the true construction of the policy, the company has thereby agreed to pay the sum insured in the events that have happened.

LIFE INSURANCE ACT 1945-1973 - SECT. 121.
Condition as to war risk void.

SECT

121. Any term or condition of a policy issued after the commencement of this Act which limits, to an amount less than the sum insured, the amount payable under the policy in the event of the death of the life insured occurring on war service, shall not have any force or effect, unless the person who effected the policy agreed in writing to the insertion in the policy of that term or condition.

LIFE INSURANCE ACT 1945-1973 - SECT. 122.
Offences by company not to invalidate policies.

SECT

122. Failure on the part of a company to comply with any provision of this Act shall not in any way invalidate any policy issued by the company.

LIFE INSURANCE ACT 1945-1973 - SECT. 123.

SECT

PART V-PROVISIONS RELATING TO INDUSTRIAL INSURANCE BUSINESS
Objection to policies.
V. 4773, s. 8.
123. (1) If, within twenty-eight days after the delivery of an industrial policy by a company to the policy owner or, at the place of abode of the policy owner, to some other person who is an inmate of that place apparently not less than sixteen years of age and by whom any premium in respect of the policy is paid on behalf of the policy owner, the policy owner returns the policy to the company with an objection in writing to any term or condition of the policy, the company shall forthwith refund any premium which has been paid in respect of the policy which shall thereupon be cancelled.

(2) Where an industrial policy is sent by post by a company to the person to whom it is issued, it shall, unless the contrary is proved, be deemed to have been delivered to him at the time at which it would reach him in the ordinary course of post.

(3) For the purposes of this section, a policy shall be deemed to have been returned to a company with an objection if the policy and the writing specifying the objection are posted for transmission to the company by registered letter.

LIFE INSURANCE ACT 1945-1973 - SECT. 124.
Return of industrial policies and premium receipt books after inspection.

SECT

Imp. Act 1923, s. 22. V. 4773, s. 7.
Amended by No. 94, 1953, s. 25.
124. If at any time a company which carries on industrial insurance business, or any person authorized by such a company, takes possession of an industrial policy or premium receipt book or other document issued in connexion with the policy, a receipt for the policy, book or document shall be given to the person from whom it was received, and the policy, book or document shall be returned to that person on demand at any time after the expiration of twenty-eight days, unless-

(a) it is required for the purposes of evidence in legal proceedings;

(b) the policy has been terminated by reason of the satisfaction of all claims capable of arising under it; or

(c) in the case of a policy, the company is entitled to retain the policy as security for money owing to the company by the policy owner.

LIFE INSURANCE ACT 1945-1973 - SECT. 125.
Penalties for falsification.

SECT

Cf. 13 & 14, Geo. 5, c. 8, s. 40.
Amended by No. 216, 1973, s. 3.
125. If any person wilfully makes, or orders or allows to be made, any entry or erasure in, or omits any entry, or orders or allows any entry to be omitted, from, a collecting book or premium receipt book, with intent to falsify the book, or to evade any of the provisions of this Act, he shall be guilty of an offence.

Penalty: $100 or imprisonment for 3 months.

LIFE INSURANCE ACT 1945-1973 - SECT. 126.
As to avoidance of policy by reason of particulars in proposal written or
filled in by agent or servant of company.

SECT

Imp. Act 1923, s. 20 (4). V. 4773, s. 3.
126. (1) Where any agent or servant of a company writes or fills in or has before the commencement of this Act written or filled in any particulars in a proposal for an industrial policy with the company, then, notwithstanding any agreement to the contrary between the proponent and the company, any policy issued in pursuance of the proposal shall not be avoided by reason only of any incorrect or untrue statement contained in any such particulars so written or filled in unless the incorrect or untrue statement was in fact made by the proponent to the agent or servant for the purposes of the proposal.

(2) The burden of proving that any such statement was so made shall lie upon the company.

(3) Nothing in this section shall be deemed to allow of the avoidance of any policy for any reason or in any circumstances for or in which the policy could not have been avoided apart from the provisions of this section.

LIFE INSURANCE ACT 1945-1973 - SECT. 127.
Particulars to be set forth in policies.

SECT

V. 4773, s. 4.
127. (1) Every industrial policy issued by a company after the commencement of this section shall contain an endorsement in distinctive type setting forth-

(a) whether the policy is or is not a participating policy; and

(b) a short statement in a form approved by the Commissioner as to-

(i) the right of the policy owner to be granted a paid-up policy;

(ii) the right of the policy owner to surrender his policy and to receive in cash the surrender value of the policy; and

(iii) the forfeiture of the policy.
Amended by No. 216, 1973, s. 3.

(2) This section shall come into operation on a day to be fixed by Proclamation.*

LIFE INSURANCE ACT 1945-1973 - SECT. 128.
Issue of premium receipt books.

SECT

V.4773, s. 5.
Sub-section (1) substituted by No. 216, 1973, s. 3.
128. (1) Subject to sub-section (2), a company shall, in respect of each industrial policy issued by the company, at the time of the issue of the policy, issue to the policy owner a premium receipt book in accordance with the provisions of this section.
Inserted by No. 216, 1973, s. 3.

(1A) If the policy owners concerned do not object, a company may-

(a) issue one premium receipt book in respect of two or more policies if held by the same policy owner or by two or more policy owners who are members of the same household; or

(b) add the endorsements and entries required by this section in respect of a policy to the premium receipt book issued in respect of an earlier policy held by the same policy owner or by a member of the same household.
Amended by No. 216, 1973, s. 3.

(2) A company shall not issue or permit to be used one premium receipt book in respect of two or more policies held by different policy owners not members of the same household.
Amended by No. 216, 1973, s. 3.

(3) Any premium receipt book issued to a policy owner by a company, whether before or after the commencement of this Act, shall, if it conforms to the provisions of this section, be deemed to be a premium receipt book issued in accordance with the provisions of this section.

(4) Every premium receipt book issued by a company shall contain in respect of each policy to which it relates-

(a) an endorsement in distinctive type of the particulars referred to in paragraphs (a) and (b) of sub-section (1) of the last preceding section;

(b) an entry made by the company of the following matters:-

(i) The surname and initials of the policy owner and, where the policy is issued in respect of the life of a person other than the policy owner, the surname and initials of that person;

(ii) The date and number of the policy; and

(iii) The amount of the weekly or other periodical premium; and

(c) a notice stating that proof of age may be required prior to payment of the sum insured.

LIFE INSURANCE ACT 1945-1973 - SECT. 129.
Premium receipt book to show date to which premiums paid, &c.

SECT

V. 4773, s. 6.
Sub-section (1) amended by No. 94, 1953, s. 26.
129. (1) Every payment in respect of premiums under an industrial policy made to an agent or servant of the company shall be recorded by the agent or servant in the premium receipt book so as clearly to indicate the date to which premiums have been paid in respect of the policy or policies to which the premium receipt book relates, and the record shall-

(a) if it is the first entry on a page of the premium receipt book-be signed by the agent or servant with his usual signature; and

(b) if it is not such an entry-be signed by the agent or servant with his usual signature or be initialled by him.

(2) Where a premium receipt book relates to more than one policy and any payment for premiums on the policies is made which is less than the aggregate of the weekly or other periodical premiums in respect of all those policies, the person making the payment shall be required by the agent or servant of the company to whom the payment is made to state the policy or policies in respect of which no payment or an insufficient payment is made, and the agent or servant shall clearly record in the premium receipt book the fact stated, and unless, before any further premiums are paid, the amount of the deficiency is paid, the company shall cause a separate premium receipt book in conformity with the provisions of the last preceding section to be issued in respect of any policy in relation to which the deficiency exists and shall cause the particulars and entry in the first-mentioned premium receipt book relating to any such policy to be cancelled.

LIFE INSURANCE ACT 1945-1973 - SECT. 130.
Guarantor not to be liable to refund commissions on lapsed policies.

SECT

V. 4773, s. 9.
130. Any provision in any agreement (whether made before or after the commencement of this Act) whereby the guarantor of an agent of any company is or may be required to pay to the company the amount of any commissions repayable by the agent on account of lapsed industrial policies shall be void.

LIFE INSURANCE ACT 1945-1973 - SECT. 131.
Production of company's certificate as to agent's or guarantor's indebtedness
not to be conclusive evidence thereof.

SECT

V. 4773, s. 10.
131. (1) Any provision in any agreement made after the commencement of this Act whereby the production in any legal proceedings of a certificate signed by an officer or servant of the company may be deemed to be conclusive evidence of the indebtedness or the amount of the indebtedness to the company of any agent or of any guarantor of an agent shall be void.

(2) Any such provision in any agreement made before the commencement of this Act shall be read and construed so as to make the certificate to which the provision relates prima facie evidence only of the indebtedness or the amount of the indebtedness to which it refers.
Part VI (ss. 132-138) repealed by No. 94, 1953. s. 27.
* * * * * * * *

LIFE INSURANCE ACT 1945-1973 - SECT. 139.

SECT

PART VII-MISCELLANEOUS
Issue of capital by companies.
139. (1) A person shall not publish in respect of any company or in respect of a company proposed to be formed after the commencement of this Act a prospectus, notice, circular, advertisement or other invitation offering to the public for subscription any shares in the company or proposed company, unless the prospectus, notice, circular, advertisement or other invitation is first submitted to and approved by the Commissioner.

(2) A person acting as promoter of any such proposed company shall not accept any office of profit in the company or any payment or pecuniary advantage other than as provided in any such prospectus, notice, circular, advertisement or other invitation.

LIFE INSURANCE ACT 1945-1973 - SECT. 140.
Voting by post.

SECT

Sub-section (1) amended by No. 94, 1953, s. 28.
140. (1) Notwithstanding anything contained in the instruments constituting, or in the articles of association or other rules of, any company not having shareholders, the company shall, within one year after it is registered under this Act, make arrangements for-

(a) the establishment of a postal voters' roll in relation to voting in contested elections of directors of the company or on questions as to the alteration of the instruments constituting the company or of the articles of association or other rules of the company;

(b) the enrolment on the postal voters' roll of any member of the company entitled to vote in such elections or on such questions who applies to be so enrolled;

(c) the voting by post in any such election or on any such question by every member so enrolled; and

(d) the making of inspections of the postal voters' roll and the taking of copies of, or extracts from, the roll, on and after the close of nominations and before the close of the voting in any such election, by any person nominated for election as a director of the company,
and all regular votes of members given in pursuance of any such arrangements shall be valid and effectual for all purposes.

(2) Where a member of a company enrolled on the postal voters' roll of the company fails to exercise his right to vote by post on three consecutive occasions on which he is entitled so to vote, the company may remove his name from the roll, but the member shall be eligible for re- enrolment.
Added by No. 94, 1953, s. 28.

(3) This section does not apply to a company which is incorporated outside Australia.*

LIFE INSURANCE ACT 1945-1973 - SECT. 141.
Inspection of documents.

SECT

Cf. 9 Ed. 7, c. 49, s. 20; Q. 1901, No. 20, s. 48.
141. Any person may, upon payment of such fee as is prescribed, inspect at an office of the Commissioner any document furnished to the Commissioner under sub-section (2) of section fifty-two of this Act, and make a copy of, or extract from, the document.

LIFE INSURANCE ACT 1945-1973 - SECT. 142.
Documents to be received in evidence.

SECT

Cf. 9 Ed. 7, c. 49, s. 21; Q. 1901, No. 20, s. 49.
142. Every document purporting to be certified by the Commissioner to be a document lodged with him under the provisions of this Act, and every document purporting to be similarly certified to be a copy of such a document, shall be deemed to be such a document or copy, as the case may be, and shall be received in evidence as if it were the original document, unless some variation between it and the original document is proved.

LIFE INSURANCE ACT 1945-1973 - SECT. 143.
Publication of authorized, subscribed and paid-up capital.

SECT

Cf. 9 Ed. 7, c. 49, s. 12.
143. Where any notice, advertisement or other official publication of a company contains a statement of the amount of the authorized capital of the company, the publication shall also contain a statement of the amount of the capital which has been subscribed and the amount paid-up.

LIFE INSURANCE ACT 1945-1973 - SECT. 144.
Modification of Schedules.

SECT

V. 4602, s. 534. Q., s. 14. S.A., s. 51. W.A., s. 22. T., s. 20.
144. (1) The Commissioner may, in relation to any company, approve of the use of any of the forms in, or the application of any of the provisions of, any of the first three Schedules, with such modifications as he thinks fit, provided he is satisfied that, notwithstanding the modifications, the purpose of those Schedules will be substantially fulfilled.
S.A., s. 50. W.A., s. 21. T., s. 19.
Amended by No. 216, 1973, s. 3.

(2) Where a company is incorporated outside Australia but within the dominions of the Crown, and renders actuarial abstracts and statements of its business to the Department of Trade and Industry in and of the United Kingdom in pursuance of any Imperial Act, the company may furnish copies of those documents to the Commissioner in lieu of the abstracts and statements required to be furnished under section fifty-two of this Act:

Provided that the company shall, at the same time as it furnishes copies of those documents, furnish to the Commissioner a statement showing, in accordance with a method approved by the Commissioner, the net liabilities of the company under its policies on Australian registers as at the valuation date to which those documents relate.

LIFE INSURANCE ACT 1945-1973 - SECT. 145.
Power to collect statistics.

SECT

145. (1) The Commissioner shall collect at such times as are prescribed such statistics in relation to life insurance business as are prescribed.

(2) For the purpose of enabling the Commissioner to collect statistics under this section every company shall furnish to the Commissioner in accordance with the prescribed form and at such times as are prescribed such particulars as are specified in that form.

(3) The Commissioner may supply to such officers of the Commonwealth or of a State or of an authority of the Commonwealth or of a State as are prescribed any statistics collected under this section.

(4) Subject to the last preceding sub-section, a person shall not publish, in such a form as to disclose the particulars furnished by any individual company, any particulars furnished to the Commissioner under this section.

LIFE INSURANCE ACT 1945-1973 - SECT. 146.
Service of notices.

SECT

Substituted by No. 94, 1953, s. 29.
146. (1) Where a notice is required or permitted by this Act to be given to or served upon a person, the notice shall be in writing and may be given or served-

(a) in the case of a notice addressed to a person other than a company-by serving it upon him personally or by sending it by prepaid post addressed to him at his usual or last known place of abode or business; and

(b) in the case of a notice addressed to a company-by serving it personally upon the person last known to the Commissioner as being the principal officer of the company or by sending it by prepaid post addressed to him at his address last known to the Commissioner,
and, if it is so sent by post, shall be deemed to have been given or served on the date on which it would have been delivered in the ordinary course of post.

(2) In this section, ''company'' includes a body corporate which has ceased to carry on life insurance business in Australia.

LIFE INSURANCE ACT 1945-1973 - SECT. 147.
Authority by principal officer of company.

SECT

147. Any document required by or under this Act to be signed by the principal officer of a company may be signed by any other officer of the company, if that officer is thereto authorized by the principal officer and the principal officer has notified the Commissioner in writing of the authorization.

LIFE INSURANCE ACT 1945-1973 - SECT. 147A.
Printing of documents.

SECT

Inserted by No. 94, 1953, s. 30.
147A. Where a document is, by this Act, required to be printed, the Commissioner may, in his discretion, permit it to be typewritten or lithographed or to be reproduced by mechanical means approved by the Commissioner.

LIFE INSURANCE ACT 1945-1973 - SECT. 148.
Offences.

SECT

148. (1) Any company which contravenes or fails to comply with-

(a) any provision of this Act;

(b) any provision of any order or regulation made under this Act; or

(c) any direction or requirement given or made by the Commissioner or a person appointed under section fifty-five of this Act,
shall be guilty of an offence against this Act, and, in the case of a default in complying with any such provision, direction or requirement, the offence shall be deemed to be continued so long as the default continues.

(2) Where an offence against this Act is committed by a company and the offence is proved to have been committed with the consent or connivance of, or to have been facilitated by any neglect on the part of, any director, principal officer, or other officer or an actuary or auditor of the company, he, as well as the company, shall be deemed to be guilty of the offence.

(3) If any document required by or under this Act to be signed by any person is false in any particular to the knowledge of any such person who signs it, that person shall be guilty of an offence.

(4) Notwithstanding any limitation on the time for the taking of proceedings which is contained in any Act, summary proceedings for offences against this Act may be commenced at any time within one year from the date on which there comes to the knowledge of the Commissioner evidence, sufficient in his opinion to justify a prosecution for the offence:

Provided that no such proceedings shall be commenced after the expiration of three years from the commission of the offence.

(5) For the purposes of the last preceding sub-section, a certificate purporting to be signed by the Commissioner, as to the date on which that evidence came to his knowledge shall, in any such summary proceedings, be evidence of that date.

(6) Any proceedings against a company for an offence against this Act shall be without prejudice to any proceedings for the judicial management, or the winding-up, of the company or of any part of the business of the company which may be taken in respect of the matter constituting the offence.

LIFE INSURANCE ACT 1945-1973 - SECT. 149.
Penalties.

SECT

Amended by No. 216, 1973, s. 3.
149. All offences against this Act for which no other penalty is prescribed shall be punishable, in the case of a company, by a fine not exceeding $2,000 and, in the case of an individual, by a fine not exceeding $200 or imprisonment for a period not exceeding 6 months.

LIFE INSURANCE ACT 1945-1973 - SECT. 150.
Regulations.

SECT

Amended by No. 216, 1973, s. 3.
150. The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters which by this Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed, for giving effect to this Act and in particular-

(a) for prescribing the time within which any appeal to the Court provided for by this Act will lie;

(b) for the repeal or alteration of, or addition to, any form in or any provision of any of the first three Schedules; and

(c) for prescribing penalties not exceeding $100 for any breach or contravention of the regulations.

-----------

LIFE INSURANCE ACT 1945-1973 - THE FIRST SCHEDULE

SCH


THE SCHEDULES
First Schedule amended by No. 94, 1953, s. 31; No. 29, 1961, ss. 20 and 21; and No. 216, 1973, s. 3; and by Life Insurance Regulations.
Form A substituted by No. 29, 1961, s. 20; amended by Life Insurance Regulations, r. 27A, and No. 216, 1973, s. 3.
THE FIRST SCHEDULE Section 44
FORM A

REVENUE ACCOUNT OF THE [name of Company] FOR THE YEAR ENDED
[date] IN RESPECT OF [class of life insurance business]. ------------------------------------------------------------------------------ --

Business Business
in in
respect respect
of of
policies policies
Particulars on Other Total Particulars on Other Total
registers
business registers
business
in in
Australia Australia
or a or a
Territory Territory
------------------------------------------------------------------------------ --

$ $ $ $ $ $
Balance of Account at beginning of year Amounts Paid or
Outstanding under
Policies-
----------------------- Insurance Premiums- Claims-Death
Single Premiums Maturity
Other Premiums Other Consideration for Annuities Granted-
Single Premiums
Other Premiums Surrenders
(including
surrenders of
bonus)
Bonuses paid in
Cash
Annuities
--------------------- ---------------------
Total Premiums, &c. Total Policy
Payments, &c.
--------------------- ---------------------
Interest Dividends and Rents Less Rates and Taxes thereon
---------------------
Net Interest, &c.
---------------------
Values allowed on conversion from other classes of life insurance business Transfers from Reserves (to be specified) Appreciation of Assets Profit on Sale of Assets Other Income (to be specified) Expenses and Other
Outgo-
Commission
Salaries
Travelling
Expenses
Contribution to
Staff
Superannuation
Fund or Scheme
Directors' Fees
Auditor's Fees
Medical Fees
Legal Expenses
Office Rent
Hire and
maintenance of
machines
Advertising
Printing and
Stationery
Postage
General Expenses
Taxes (other
than those charged
on Interest,
Dividends and
Rents)
Shareholders'
Dividends
Transfers to
Profit and Loss
Other (to be
specified)
---------------------

Total Expenses,
&c.
---------------------

Values allowed on
conversion to
other classes of
life insurance
business
Transfers to
Reserves (to be
specified)
Depreciation of
Assets
Loss on Sale of
Assets
Balance of Account
at end of year
--------------------- ---------------------
Grand Totals Grand Totals ------------------------------------------------------------------------------ --

Note 1.-If any sum has been deducted from an expenditure item and entered on the assets side of the Balance-sheet, the amount so deducted shall be shown separately.

Note 2.-Amounts shown in this Account shall be net amounts after deduction of sums paid or received in respect of reinsurances of the risks of the company.

Note 3.-Where an amount shown in this account has been ascertained by apportionment by the company under Division 4 of Part III, the persons signing this account shall also sign an appended statement showing the basis of the apportionment.
Form B substituted by Life Insurance Regulations, r. 27; amended by No. 216, 1973, s. 3. Section 44
FORM B
REVENUE ACCOUNT OF THE [name of company] FOR THE YEAR ENDED [date] IN
RESPECT OF [type of insurance, other than life insurance, business]. ------------------------------------------------------------------------------ --

Business Business Business Business
in outside in outside Particulars Australia Australia
Total Particulars Australia Australia
Total ------------------------------------------------------------------------------ --

$ $ $ $ $ $
Balance of Account at beginning
of year Claims under insurance
contracts paid and
outstanding, including
------ ------ ---
medical and legal
expenses directly Reserve for Unexpired Risks incurred in settling
claims Additional Reserve (if any) ----------------

------ ------ --- Expenses and Other
Outgo-
Total Reserves Commission
------ ------ ---
Salaries Premiums Travelling Expenses
------ ------ ---
Contributions to
Staff Superannuation
Fund Interest, Dividends and Rents Rates and Taxes thereon Directors' Fees
Auditors' Fees
Net Interest, &c. ------ ------ ---
Medical Fees
Legal Expenses Transfers from Reserves (to be ------ ------ ---
Office Rent
specified) Hire and Maintenance
of machines Appreciation of Assets Advertising Profit on Sale of Assets Printing and
Stationery Other Income (to be specified) Postage
General Expenses
Taxes (other than
those
charged on Interest,
Dividends and Rents)
Shareholders'
Dividends
Transfers to Profit
and Loss
Other (to be
specified)
----------------

Total Expenses,
&c.
----------------

Transfers to Reserves
(to be specified)
Depreciation of
Assets
Loss on Sale of
Assets
Balance of Account at
end of year
Reserve for Unexpired
Risks
Additional Reserve
(if any)
------ ------ --- ----------------

Grand Totals Grand Totals ------------------------------------------------------------------------------ --

Note 1.-If any sum has been deducted from an expenditure item and entered on the assets side of the Balance-sheet, the amount so deducted shall be shown separately.
Note 2.-Amounts shown in this Account shall be net amounts after deduction of sums paid or received in respect of reinsurances of the risks of the company.
Form C substituted by Life Insurance Regulations, r. 27; amended by No. 216, 1973, s. 3. Section 44
FORM C
PROFIT AND LOSS ACCOUNT OF THE [name of company] FOR THE YEAR ENDED
[date]. ------------------------------------------------------------------------------ --

Business Business Business Business
in outside in outside Particulars Australia Australia
Total Particulars Australia Australia
Total ------------------------------------------------------------------------------ --

$ $ $ $ $ $
Balance brought forward at beginning of year - - Dividends paid to
shareholders, not
charged to other
accounts - - Interest, Dividends and Rents not carried to other Accounts Expenses not charged
to other Accounts (to
be specified) Profits transferred from

Revenue and other Accounts (to be specified) Transfers to Revenue
and other Accounts (to
be specified) Other income (to be specified) Balance at end of
year, as shown
in the Balance-sheet - -

------ ------ --- ----------------

Total - - Total - - ------------------------------------------------------------------------------ --

Note 1.-If any sum has been deducted from the Expenses item and entered on the assets side of the Balance-sheet, the amount so deducted shall be shown separately.
Note 2.-Where this account includes any amounts of dividends or other payments to shareholders, the financial year in respect of which those dividends or other payments are made shall also be stated.
Note 3.-An entry shall not be made in a space marked ''-''.
Form D substituted by Life Insurance Regulations, r. 27; amended by No. 29, 1961, s. 21; and No. 216, 1973, s. 3. Section 44
FORM D
BALANCE-SHEET OF [name of company] AS AT [date]. ------------------------------------------------------------------------------ --

Amount of
Assets
Life Other Life Other held in
Australia Liabilities Insurance Classes
Total Assets Insurance Classes
Total-----------
of of Life Other
Business Business Business Business
Insurance Classes
of
Business
Business
Total ------------------------------------------------------------------------------ --

$ $ $ $ $ $ $ $ $
Shareholders' Capital- Fixed Assets-
Authorized - - - Freehold and
Leasehold
Less Unissued - - - Property
----
Office Furniture,
Fittings
Subscribed Capital - - - and equipment,
and
----
motor vehicles
Paid-in money - -------------------------

otherwise than in Total Fixed
Assets
money - -------------------------

---- ---- -- Loans-
Total Capital - On Mortgage
---- ---- --
On Debentures or
Shares Balances of Revenue Accounts and Reserve Accounts (to be specified separately) in respect of life insurance business - On Policies of the
company
On Life Interests
and
Reversions
On Personal
Security
To Controlled
Companies Balances of Revenue Accounts and Reserve Accounts (to be specified separately) in respect of other classes of business - Other Loans (to be
specified)

Total Loans -------------------------

-------------------------
Profit and Loss Account Investments-
Balance - Government
Securities-
---- ---- --
Australia
Total Balances New Zealand
---- ---- --
Great Britain
Bank Overdraft Other
---- ---- --
Securities of
Local Government
and semi-governmental
bodies Other Liabilities-
Deposits
Claims admitted or intimated but not paid* Company
Securities-
Debentures
Annuities due and unpaid* - Secured and
Unsecured
Sundry Creditors Notes
Other Liabilities (to be specified) Preference Shares
Ordinary Shares
---- ---- --
Holdings in
Controlled
Total Other Companies
Liabilities Life Interests and
Reversions Purchased
---- ---- --
Other investments
(to be specified)
-------------------------

Total
Investments
-------------------------

Cash-
On Deposit
On Current Account
and in Hand
-------------------------

Total Cash
-------------------------

Other Assets-
Outstanding
Premiums including
advances of
premiums*
Interest,
Dividends and Rents
accruing but not
due*
Outstanding
Interest, Dividends
and Rents*
Sundry Debtors
Other Assets (to
be specified)
-------------------------

Total Other
Assets
---- ---- -- -------------------------

Total Liabilities Total Assets ------------------------------------------------------------------------------ --

Note 1.-Where a company maintains more than one statutory fund in respect of its life insurance business, the amounts of the items in the balance-sheet shall be shown in separate columns in respect of each statutory fund in lieu of combining those amounts in the columns headed ''Life Insurance Business''.

Note 2.-Assets, Liabilities and Reserves not allocated to any class of life insurance business, and Shareholders' Capital, shall be shown in the columns headed ''Other Classes of Business''.

Note 3.-A footnote to the balance-sheet shall state what parts of the assets of the company have been deposited, in Australia or elsewhere, as security for policy owners specifying in each case the amount of the deposit, the type of security deposited, and the statutory fund, if any, of which that deposit or any portion of that deposit forms part.

Note 4.-Full particulars shall be stated of holdings in, and loans to, controlled companies (whether they transact life insurance business, or not), giving the name of each such company, the number, description and amounts paid up on the shares held in each, and the value at which the holdings in each such company stand in the balance-sheet. A company shall be regarded as a controlled company if the company in respect of which the balance-sheet is prepared has the power directly or indirectly to exercise decisive influence over its policy or management.

Note 5.-Amounts due from directors and officers of the company, unless fully secured, shall be shown separately.

Note 6.-Items marked * are, or have been, included in the corresponding items in the Revenue Accounts.

Note 7.-Investments in debentures, loans or other securities of Local Government and semi-governmental bodies shall be shown as securities of Local Government and semi-governmental bodies.

Note 8.-The balance-sheet shall be made up in Australian currency and the basis of any conversion of other currencies into Australian currency shall be stated.

Note 9.-The persons signing the balance-sheet shall also sign an appended statement showing how the values of the investments are arrived at, and a certificate stating whether, in their opinion, the assets set forth in the balance-sheet are in the aggregate fully of the value stated in the balance-sheet, less any investment reserve fund taken into account.

Note 10.-A certificate shall be appended, signed by the same persons as signed the balance-sheet and by the auditors, stating whether any part of the assets of any statutory fund has been applied, directly or indirectly, in contravention of the provisions of this Act relating to the application and investment of statutory funds.

Note 11.-An entry shall not be made in a space marked ''-''.
Form E substituted by No. 29, 1961, s. 21; amended by No. 216, 1973, s. 3. Section 51
FORM E

Class of Life Insurance
Business Name of Company New Insurances Issued During
the Year Ended ------------------------------------------------------------------------------ --

Policies on Registers in
Australia or a Territory Other Policies
Type of Policy ------------------------------------------------------

Number Number
of Sum Single Annual of Sum Single Annual
Policies Insured
Premiums
Premiums
Policies
Insured
Premiums
Premiums ------------------------------------------------------------------------------ --

$ $ $ $ $ $ Whole of Life Insurance Endowment Insurance Temporary Insurance Other Insurances Endowment
---------------------------------------------------------

Total
--------------------------------------------------------- Annuity (Per (Per
annum) annum) ------------------------------------------------------------------------------ --

Note.-Items in this return shall be shown after deductions of amounts in respect of reinsurances by means of the coinsurance method of the risks of the company.
FormF substituted by No. 29, 1961, s. 21; amended by No. 216, 1973, s. 3. Section 51
FORM F
Class of Life Insurance
Business Name of Company Insurances or Premiums
Discontinued or Reduced During
the Year Ended ------------------------------------------------------------------------------ --

Policies on Registers
in Australia or a
Territory Other Policies Type of Policy and Cause of Discontinuance ------------------------------------------

Number Number
of Sum Annual of Sum Annual
Policies Insured
Premiums
Policies
Insured
Premiums ------------------------------------------------------------------------------ --

$ $ $ $ Insurance, Endowment, &c.-
Death
Maturity
Other events provided for in the policy (including expiry)
Surrender
Forfeiture
Transfer
Conversion
Other Causes
------------------------------------------

Total
------------------------------------------
Annuity (all causes) (Per (Per
annum) annum) ------------------------------------------------------------------------------ --

Note 1.-Items in this return shall be shown after deductions of amounts in respect of reinsurances by means of the coinsurance method of the risks of the company.

Note 2.-Items in this return shall be shown exclusive of bonus additions.

Note 3.-Items opposite the word ''Transfer'' shall be the net loss or gain to the appropriate registers resulting from transfers between various registers during the year.

Note 4.-Items opposite the word ''Conversion'' shall be the net loss or gain to this class of life insurance business from the conversion of policies from one class of life insurance business to another class of life insurance business.
Form G substituted by No. 29, 1961, s. 21; amended by No. 216, 1973, s. 3. Section 51
FORM G

Class of Life Insurance Business Name of CompanyInsurances Existing on ------------------------------------------------------------------------------ --


Policies on Registers in
Australia or a Territory Other Policies
Type of Policy ---------------------------------------------

Number Number
of Sum Annual of Sum Annual
Policies Insured Premiums Policies
Insured
Premiums
------------------------------------------------------------------------------ --

$ $ $ $ Whole of Life Insurance Endowment Insurance Temporary Insurance Other Insurances Endowment
------------------------------------------

Total
------------------------------------------
Annuity (Per (Per
annum) annum) ------------------------------------------------------------------------------ --

Note.-Items in this return shall be shown after deductions of amounts in respect of reinsurances by means of the coinsurance method of the risks of the company.

LIFE INSURANCE ACT 1945-1973 - THE SECOND SCHEDULE

SCH


THE SECOND SCHEDULE
Section 48.
Amended by No. 94, 1953, s. 32; No. 29, 1961, s. 22; No. 145, 1965, s. 3; and No. 216, 1973, s. 3. PROVISIONS RELATING TO THE PREPARATION OF ABSTRACTS OF ACTUARY'S
REPORTS

PART I

Regulations

1. Abstracts shall be so arranged that the numbers and letters of the items correspond with those of the items of Part II of this Schedule.

2. Where any table of mortality or sickness used in a valuation is not a published table, then for the purpose of complying with item (3) of Part II of this Schedule, specimen policy values shall be given at the rate of interest employed in the valuation in respect of whole life insurance policies effected at the respective ages of 20, 30, 40 and 50, and having been in force respectively for five years, ten years and upwards at intervals of ten years; and similar specimen policy values shall be given in respect of endowment insurance policies effected at the respective ages of 20, 30 and 40 for endowment terms of twenty and thirty years, and in the case of policies involving continuous disability benefits, specimens of the valuation factors must be given:

Provided that, where the specimen policy values or valuation factors required by this regulation to be given are the same as those given in any abstract prepared under Part II of this Schedule previously submitted by the company to the Commissioner, it shall be sufficient in any abstract subsequently submitted to refer to the specimens so given in such manner as to enable the Commissioner to ascertain the required information.

3. In showing the proportion which that part of the annual premiums reserved as a provision for future expenses and profits bears to the total of the annual premiums, in accordance with the requirements of item (4) of Part II of this Schedule, no credit is to be taken for any adjustments made in order to secure that no policy is treated as an asset.

4. (1) The average rate of interest earned in any year by the assets constituting a statutory fund shall, for the purposes of item (5) of Part II of this Schedule, be calculated by dividing the interest of the year by the mean fund of the year; and for the purposes of any such calculation the interest of the year shall be taken to be the whole of the interest, dividends and rents credited to the statutory fund during the year after deduction of rates and taxes (any refund of rates or taxes made during the year being taken into account), and the mean fund of the year shall be ascertained by adding a sum equal to one-half of the aggregate of the balance or balances of the revenue account or accounts and the balance or balances of any reserve accounts in respect of the life insurance business to which the statutory fund relates at the beginning of the year to a sum equal to one-half of the aggregate of the balances of those accounts at the end of the year, and deducting from the aggregate of those two sums an amount equal to one-half of the interest of the year.

(2) It must be stated in what manner the sums invested in reversions and the income and profits derived from those reversions have been treated in calculating the average rate of interest.

5. Every abstract prepared in accordance with the requirements of Part II of this Schedule shall be signed by an actuary and shall contain a certificate by him as to the accuracy of the valuations made for the purposes of the abstract and of the valuation data:

Provided that, if the actuary who signs the abstract is not a permanent officer of the company, the certificate as to the accuracy of the valuation data shall be given and signed by the principal officer of the company and the actuary shall insert in the abstract a statement signed by him showing what precautions he has taken to ensure the accuracy of the data.

6. For the purposes of this Schedule-

''extra premium'' means a charge for any risk not provided for in the minimum contract premium;

''inter-valuation period'' means, in relation to any valuation in respect of any class of business, the period to the valuation date of that valuation from the valuation date of the last preceding valuation under this Act (if any) or, if there is no preceding valuation under this Act, from the valuation date of the last preceding valuation made in respect of that class of business or, in a case where no preceding valuation has been made in respect of that class of business, from the date on which the company began to carry on that class of business;

''maturity date'' means the fixed date on which any benefit will become payable either absolutely or contingently;

''net premiums'' means, in relation to any valuation, the premiums for which credit is taken in the valuation;

''premium term'' means the period during which premiums are payable;

''valuation date'' means, in relation to any valuation, the date as at which the valuation is made.

PART II

Requirements as to Abstracts

The following statements shall be annexed to every abstract prepared in accordance with the requirements of this Part:-

* * * * * * * *

(b) a Summary and Valuation, in accordance with Form I in this Schedule, of the policies included, at the valuation date, in the class of business to which the abstract relates; and

(c) a Valuation Balance-sheet, in accordance with Form J in this Schedule.

Every such abstract shall show-

(1) the valuation date;

(2) the general principles and full details of the methods adopted in the valuation of each of the various classes of insurance and annuities shown in Form I in this Schedule, including statements on the following matters:-

(a) whether the principles were determined by the instruments constituting the company or by its articles of association or other rules, or, if not, how the principles were determined;

(b) the method by which the net premiums have been arrived at and how the ages at entry, premium terms amd maturity dates, have been treated for the purpose of the valuation;

(c) the methods by which the valuation age, period from the valuation date to the maturity date, and the future premium terms, have been treated for the purpose of the valuation;

(d) the rate of bonus taken into account where, by the method of valuation, definite provision is made for the maintenance of a specific rate of bonus;

(e) the method of allowing for-

(i) the incidence of the premium income; and

(ii) premiums payable otherwise than annually;

(f) the methods by which provision has been made for the following matters:-

(i) the immediate payment of claims;

(ii) future expenses and profits in the case of limited payment policies and paid-up policies;

(iii) the reserve in respect of lapsed policies, not included in the valuation, but under which a liability exists or may arise; and

(iv) payment of benefits or waiver of premiums during disability-

(A) in operation at the valuation date; and

(B) not in operation at that date,

and whether any reserves have been made for those matters;

(g) whether under the valuation method adopted any policy would be treated as an asset, and what steps have been taken to eliminate any such asset from the valuation;

(h) a statement of the manner in which policies on under-average lives and policies subject to premiums which include a charge for climatic, military or other extra risks have been dealt with; and

(i) the currency in which the valuation is made and the basis of conversion into that currency of the value of liabilities in other currencies;

(3) the tables of mortality sickness and accident used, and the rate of interest assumed, in the valuation;

(4) the proportion which that part of the annual premiums reserved as a provision for future expenses and profits bears to the total of the annual premiums, separately specified in respect of insurances with immediate profits, with deferred profits, and without profits;

(5) the average rates of interest earned by the assets constituting the relevant statutory fund for each of the five years preceding the valuation date;

(6) the basis adopted in the distribution of surplus as between the company and policy owners, and whether that basis was determined by the instruments constituting the company, or by its articles of association or other rules, or, if not, how the basis was determined;

(7) the general principles adopted in the distribution of surplus among policy owners, including statements on the following matters:-

(a) whether the principles were determined by the instruments constituting the company, or by its articles of association or other rules, or, if not, how the principles were determined;

(b) the number of years' premiums to be paid, period to elapse, and other conditions to be fulfilled, before a bonus is allotted;

(c) whether the bonus is allotted in respect of each year's premiums paid, or in respect of each completed calendar year or year of insurance or, if not, how the bonus is allotted; and

(d) whether the bonus vests immediately on allocation or, if not, the conditions of vesting;

(8) the total amount of surplus arising during the inter-valuation period including surplus paid away and sums transferred to reserve funds or other accounts during that period, and the amount brought forward from the preceding valuation (to be stated separately) and the allocation of that surplus-

(a) to interim bonus paid;

(b) among policy owners with immediate participation, giving the number of the policies which participated and the sums insured under the policies (excluding bonuses);

(c) among policy owners with deferred participation, giving the number of the policies which participated and the sums insured under the policies (excluding bonuses);

(d) among shareholders or to shareholders' accounts (any such sums passed through the accounts during the inter-valuation period to be separately stated);

(e) to every reserve fund, or other fund or account (any such sums passed through the accounts during the inter-valuation period to be separately stated); and

(f) as carried forward unappropriated;

(9) specimens of bonuses allotted as at the valuation date to policies for One thousand dollars-

(a) for the whole term of life effected at the respective ages of 20, 30 and 40, and having been in force respectively for five years, ten years and upwards at intervals of ten years;
(Where different rates of bonus are allotted to policies under which the premiums are payable for a limited term only, similar specimen bonuses shall be shown for policies having premium terms of ten and twenty years respectively); and

(b) for endowment insurances effected at the respective ages of 20, 30 and 40, for endowment terms of fifteen, twenty and thirty years and effected at age 20 for an endowment term of forty years, and having been in force respectively for five years, ten years and upwards at intervals of ten years;

(10) Where bonuses are allotted as reversionary additions to the sums insured under policies, a statement of the basis and conditions under which those bonuses may be surrendered for cash; and

(11) a statement of the value allowed for surrender of policies for One thousand dollars-

(a) for the whole term of life effected at the respective ages of 20, 30 and 40, and having been respectively in force for five years, ten years and upwards at intervals of ten years; and

(b) for endowment insurances effected at the respective ages of 20, 30 and 40, for endowment terms of fifteen, twenty and thirty years and effected at age 20 for an endowment term of forty years, and having been in force respectively for five years, ten years and upwards at intervals of ten years.

PART III

Forms
Form H omitted by No. 29, 1961, s. 22.
* * * * * * * *
Form I amended by No. 29, 1961, s. 22; No. 145, 1965, s. 3; and No. 216, 1973, s. 3.
FORM I
Summary and Valuation of the Policies of the [name of Company] in respect of
[class of life insurance business] at [date]. ------------------------------------------------------------------------------ --

Particulars of the Policies for Valuation by Table
Valuation Interest per centum
----------------------------------------------------------
Description of Transactions Number Office Net Net
of Sums Yearly Yearly Sums Yearly Net
Policies
insured
Bonuses
Premiums
Premiums
insured
Bonuses
Premiums
Liability ------------------------------------------------------------------------------ --

$ $ $ $ $ $ $ $
INSURANCE POLICIES
Group 1.-With immediate participation in
profits For whole term of life Other classes (to be specified separately) Extra premiums
----------------------------------------------------------
Total insurances
Deduct re-insurances
----------------------------------------------------------
Net insurances
----------------------------------------------------------
Group 2.-With deferred participation in
profits For whole term of life Other classes (to be specified separately) Extra premiums
----------------------------------------------------------
Total insurances
Deduct re-insurances
----------------------------------------------------------
Net insurances
----------------------------------------------------------

Total net insurances with profits
----------------------------------------------------------
Group 3.-Without participation in
profits For whole term of life Other classes (to be specified separately) Extra premiums
----------------------------------------------------------
Total insurances
Deduct re-insurances
----------------------------------------------------------

Total net insurances without profits
----------------------------------------------------------

OTHER POLICIES

Group 4.-Endowments Endowments on lives Other classes (to be specified separately)
----------------------------------------------------------
Total endowments
Deduct re-insurances
----------------------------------------------------------

Total net endowments
----------------------------------------------------------

Group 5.-Annuities Immediate annuities on lives Other classes (to be specified separately)
----------------------------------------------------------
Total annuities
Deduct re-insurances
----------------------------------------------------------

Total net annuities
----------------------------------------------------------

Total of the results after deduction of re- insurances ------------------------------------------------------------------------------ --

Note 1.-Items in this Summary may be stated to the nearest dollar.

Note 2.-Policies without participation in profits but with a guaranteed rate of bonus shall be shown separately in Group 3.

Note 3.-Where any adjustments have been made in the valuation, details of the adjustment shall be specified separately in respect of each group in this form.

Note 4.-Office and net premiums and the values of the latter shall be shown after abatements made by the application of bonus.
Form J substituted by No. 29, 1961, s. 22; amended by No. 216, 1973, s. 3.
FORM J Valuation Balance-sheet of [class of life insurance business] of [name of
Company] as at [date].
------------------------------------------------------------------------------ --

-- Total -- Total ------------------------------------------------------------------------------ --

$ $ Net liabilities under policies- Balance of Revenue Account
On registers in Australia or a Territory Deficiency (if any)
Other Surplus (if any)
-------- --------
------------------------------------------------------------------------------ --

LIFE INSURANCE ACT 1945-1973 - THE THIRD SCHEDULE

SCH

Section 48.
Amended by No. 145, 1965, s. 4; and by Life Insurance Regulations, r. 28.
THE THIRD SCHEDULE
PROVISIONS RELATING TO THE PREPARATION OF STATEMENTS OF LIFE INSURANCE
BUSINESS

PART I

Regulations

1. Statements prepared under this Schedule shall be prepared, so far as practicable, in tabular form and shall be identified by numbers and letters corresponding with those of the items of Part II of this Schedule.

2. Except with respect to rates of premium or contribution, items in statements prepared under this Schedule shall be shown to the nearest dollar.

3. Extra premiums where shown separately in Form 1 prepared under the Second Schedule to this Act shall not be included in statements prepared under this Schedule.

4. Every statement prepared under this Schedule shall be signed by the actuary making the investigation in connexion with which it is prepared.

5. For the purposes of this Schedule-

''extra premiums'' means a charge for any risk not provided for in the minimum contract premium;

''net premiums'' means the premiums for which credit is taken in the valuation in connexion with which any statement is prepared;

''valuation date'' means, in relation to any valuation, the date as at which the valuation is made.

7. Statements shall be prepared under this Schedule both for the total business before deduction in respect of re-insurances of the risks of the company, and for those re-insurances.

8. Where the rates of office premiums required to be shown in any statement prepared under this Schedule are the same as the rates shown in any statement previously so prepared and submitted to the Commissioner, it shall be sufficient to refer to the rates so shown in such manner as to enable the Commissioner to ascertain the required information.

PART II

Requirements as to Statements

The Statements required to be prepared under this Part are as follows:-

(1) Statements as to policies issued in Australia, separately prepared in respect of policies with and without participation in profits, showing-

(a) in relation to policies for the whole term of life, the rates of office premiums charged, in accordance with the published tables in use, for new policies giving the rates for decennial ages at entry from 20 to 70 inclusive;

(b) in relation to endowment insurance policies, the rates of office premiums charged, in accordance with the published tables in use, for new policies with original terms of ten, fifteen, twenty, thirty and forty years, giving the rates for ages at entry 20, 30 and 40, but excluding policies under which the age at maturity exceeds 60;

(c) in relation to policies specified in the preceding provisions of this item under which a continuous disability benefit is granted, the office premiums for that benefit under new policies, and the conditions which must be fulfilled before a continuous disability benefit-

(i) is allowed;

(ii) ceases to be allowed; and

(d) in relation to sinking fund policies the rates of office premiums charged in accordance with the published tables in use for new policies with original terms of 10, 15, 20 and 30 years:

Provided that, in the case of industrial policies, there shall be shown, in lieu of the rates of office premiums charged as specified in the foregoing items, the sums insured by new policies, in accordance with the published tables in use, in return for fixed weekly and monthly office premiums and in addition the sums insured for ages at entry 1, 5, 10 and 15;

(2) Statements, separately prepared in respect of policies with immediate profits, with deferred profits, and without profits, showing in quinquennial groups-

(a) in relation to policies on single lives for the whole term of life-

(i) the total amount insured (specifying sums insured and reversionary bonuses separately), grouped according to ages attained;

(ii) the amount per annum, after deducting abatements made by application of bonus, of office premiums payable throughout life, and of the corresponding net premiums, grouped according to ages attained; and

(iii) the amount per annum, after deducting abatements made by application of bonus, of office premiums payable for a limited number of years, and, of the corresponding net premiums grouped in accordance with the grouping adopted for the purposes of the valuation;

(b) in relation to endowment insurance policies on single lives-

(i) the total amount insured (specifying sums insured and reversionary bonuses separately), grouped in accordance with the grouping adopted for the purposes of the valuation; and

(ii) the amount per annum, after deducting abatements made by application of bonus, of office premiums payable and of the corresponding net premiums, grouped in accordance with the grouping adopted for the purposes of the valuation;

(c) in relation to policies specified in the preceding provisions of this item, under which a continuous disability benefit is granted-

(i) the total amount of continuous disability benefit insured under the policies, grouped in accordance with the grouping adopted for the purposes of the valuation; and

(ii) the amount per annum, after deducting abatements made by application of bonus, of office premiums payable (including premiums of which payment is, at the valuation date, suspended owing to disability arising from sickness or accident) and the corresponding net premiums, grouped according to the grouping adopted for the purposes of the valuations; and

(d) in relation to sinking fund policies (other than annuity policies)-

(i) the total amount insured (specifying sums insured and reversionary bonuses separately), grouped according to the number of complete years from the valuation date to the date of maturity of the policies; and
(ii) the amount per annum, after deducting abatements made by application of bonus, of office premiums payable, and of the corresponding net premiums, grouped according to the number of years' payments remaining to be made:
Provided that-

(a) in relation to endowment insurance policies or sinking fund policies which will reach maturity in less than five years, and which are grouped for the purposes of the valuation according to the years in which the policies will mature for payment, the information required by sub-items (b) (i), (c) (i) and (d) (i) of this item shall be given for each year instead of in quinquennial groups; and

(b) where the net premiums in respect of policies for the whole term of life with premiums payable for a limited number of years, or the net premiums in respect of endowment insurance policies, are grouped for the purposes of the valuation otherwise than according to the number of years' payments remaining to be made, or, where the sums insured under endowment insurance policies are grouped for the purposes of the valuation otherwise than according to the years in which the policies will mature for payment or in which they are assumed to mature if earlier than the true year, then, in any such case, the valuation constants and an explanation of the method by which they are calculated shall be given for each group, and, in the case of the sums insured under endowment insurance policies, a statement shall also be given of the amount insured maturing for payment in each of the two years following the valuation date;

(3) Statements in relation to immediate annuities on single lives for the whole term of life and annuities which were originally deferred but which have been entered upon before or on the valuation date, separately prepared in respect of annuities on male and female lives, showing in quinquennial age groups the total amount of those annuities, grouped according to ages attained at the valuation date;

(4) Statements in relation to deferred annuities which have not been entered upon before or on the valuation date, separately prepared in respect of annuities on male and female lives, showing in quinquennial groups-

(a) the total amount of those annuities, grouped according to the number of years from the valuation date to the date the annuity is to be entered upon, and either-

(i) the average age (obtained by weighting according to the amount of the annuity) attained at the valuation date by the prospective annuitants; or

(ii) the valuation constants and an explanation of the method by which they are calculated; and

(b) the amount per annum of office premiums payable and of the corresponding net premiums, grouped according to the number of years' payments remaining to be made;

(5) Statements in relation to sinking fund policies, being immediate annuity policies, showing in quinquennial groups the total amount of those annuities, grouped according to the number of years from the valuation date to the date the annuities cease to be payable;

(6) Statements showing in quinquennial groups the amount per annum of continuous disability benefits payable at the valuation date in respect of disability of more than one year's duration, grouped according to ages attained; and

(7) Statements showing the total amount of continuous disability benefit paid and premiums waived in each of the five years immediately preceding the valuation date.

LIFE INSURANCE ACT 1945-1973 - THE FOURTH SCHEDULE

SCH

Section 49. S. Africa, 2nd Schedule.
Amended by No. 216, 1973, s. 3.
THE FOURTH SCHEDULE

RULES FOR CALCULATION OF VALUE OF LIABILITIES ON THE MINIMUM BASIS

In the calculation on the Minimum Basis of the value of the aggregate liabilities of a statutory fund in respect of its policies, the following rules shall apply:-

(1) The rates of mortality used shall be rates assumed according to the following tables or to such other tables as are prescribed:-

(a) in respect of annuity policies for terms dependent on human life, including deferred annuity policies, the ultimate tables for female and male lives respectively, based on the experience of Annuitants for the years 1900 to 1920, and published on behalf of The Institute of Actuaries and The Faculty of Actuaries in Scotland under the short title of a (f) and a (m) tables;

(b) in respect of ordinary policies which are life policies other than annuity policies, the ultimate table based on the experience of insured lives for the years 1924 to 1929, and published on behalf of that Institute and that Faculty under the short title of A 1924-29 Table; and

(c) in respect of industrial policies which are life policies other than annuity policies, the Australian Life Table 1932-34 (Males), known as the AM** Table of Mortality.

(2) The rate of interest used shall be an assumed rate of 3.5 per centum per annum.

(3) The liability in respect of a policy shall be the difference between the capitalized values as at the valuation date of-

(a) the reversion in the sum insured, including any reversionary bonuses declared in respect of the policy and still attaching to the policy at the valuation date; and

(b) the future adjusted net premiums, less any reduction of those premiums which may have been granted as a bonus, or obtained by the giving of any valuable consideration,
according to the contingencies upon which they are respectively payable.

(4) For the purposes of the last preceding rule-

''adjusted net premiums'' means the net premium for the policy increased by-

(a) the difference between the net premium and the net premium that would apply (according to the rate of interest and rates of mortality assumed and the age of the person whose life is insured at the date one year after the date of the issue of the policy) if-

(i) the policy had been issued one year after the actual date of its issue; and

(ii) in cases where the premiums are payable for a limited period, the premiums were payable for a period one year less than that limited period; or

(b) an amount which, if payable according to the same contingencies as the net premium is payable, would have a capitalized value as at the date the policy was issued of Three per centum of the sum insured by the policy,

whichever is the less;

''net premium'' means such premium, exclusive of any addition for bonuses, office expenses and other charges, as (according to the rate of interest and rates of mortality assumed and the age, at the date of the issue of the policy, of the person whose life is insured) is sufficient to provide for the risk incurred by the company in issuing the policy.

(5) No policy shall be treated as an asset.

(6) Whenever for the purpose of calculating the liability in respect of policies it is necessary to have regard to the ages of persons whose lives are insured or to any periods of time connected with those policies, the ages and periods to be adopted for that purpose shall be-

(a) exact ages and periods; or

(b) such ages and periods as will produce a liability which in the aggregate is reasonably approximate to the liability that would be produced if exact ages and periods were adopted.

LIFE INSURANCE ACT 1945-1973 - THE FIFTH SCHEDULE

SCH

Section 87.
THE FIFTH SCHEDULE

MEMORANDUM OF TRANSFER
------------------------------------------------------------------------------ --

Transferee
Signature
of
-----------------------
Principal
Officer
of
Company
or
Date of
Registration
Signature Signature of
Transfer
person Date of of Name in of by authorized Transfer
Transferor
Witness full Address Occupation
Transferee
Witness Company by him ------------------------------------------------------------------------------ --

------------------------------------------------------------------------------ --

LIFE INSURANCE ACT 1945-1973 - THE SIXTH SCHEDULE

SCH

Sections 96, 98, 101.
Amended by No. 94, 1953, s. 33; No. 93, 1959, s. 7; No. 145, 1965, s. 5; and No. 216, 1973, s. 3.
THE SIXTH SCHEDULE

PART I
Rules for ascertaining the amount of a Paid-up policy in certain cases for the
purposes of Division 4 of Part IV of this Act

1. In respect of any policy (other than a policy for the whole term of life where the premiums are payable throughout life), the amount of that paid-up policy, exclusive of bonus additions, shall be-

(a) for policies on which three years' premiums have been paid-70 per centum;

(b) for policies on which four years' premiums have been paid-80 per centum; and

(c) for policies on which premiums have been paid for five years and upwards-90 per centum,
of the sum which bears to the original sum insured the same proportion as the number of complete months' premiums which have been paid on the policy bears to the number of months' premiums originally payable.

2. In respect of any policy for the whole term of life (where the premiums are payable throughout life), the amount of the paid-up policy, exclusive of bonus additions, shall be a sum bearing the same proportion to 80 per centum (or, where the paid-up policy will not participate in future profits, 90 per centum) of the value of the policy as the sum of One dollar bears to the present value (at the attained age of the person whose life is insured) of the reversion in the sum of One dollar according to the contingency upon which the sum insured under the original policy was payable.

3. (1) For the purposes of the last preceding rule, the value of the policy shall be the difference between the present values (at the attained age of the person whose life is insured) of-

(a) the reversion in the sum insured according to the contingency upon which it is payable; and

(b) the future net premiums.

(2) For the purposes of the last preceding sub-rule, ''net premium'' means such premium, exclusive of any addition for bonuses, office expenses and other charges, as (according to the rate of interest and rates of mortality assumed and the age of the person whose life is insured at his birthday next following the date one year after the date of the issue of the policy) is sufficient to provide for the risk incurred by the company in issuing the policy.

4. (1) For the purposes of this Part, the calculations shall be made as at the day immediately preceding that on which the first premium which has not been paid falls, or fell, due.

(2) For the purposes of this rule, any premium which has not been paid in cash and which is deemed to be a debt owing to the company shall be deemed to have been paid.

5.* For the purposes of rules 2 and 3 of these Rules-

(a) interest shall be assumed at the rate of 4 per centum per annum;

(b) the rates of mortality shall be assumed according to the Australian Life Tables 1932-34 (Males), known as the AM** Table of Mortality, or to such other tables as are prescribed; and

(c) the attained age of the person whose life is insured shall be obtained by adding to the age attained by him at his birthday next after the date of the issue of the policy, the duration of the policy in completed years and months as at the day at which the calculation is made.

6. There shall be added to the amount (exclusive of bonus additions) of any paid-up policy calculated in accordance with rule 1 or rule 2 of these Rules, the amount of all reversionary bonuses declared upon (and still attaching to) the original policy and there shall be deducted from the amount so ascertained-

(a) in the case of an ordinary policy-a sum equal to all the reversionary bonuses which have been declared upon the original policy in respect of the period-

(i) between the date of the issue of the original policy and a date three years subsequent to the date of that issue; or

(ii) between the date of the issue of the original policy and the date of the paid-up policy, whichever is the shorter; and

(b) in the case of an industrial policy-a sum equal to all the reversionary bonuses which have been declared upon the original policy in respect of the period-

(i) between the date of the issue of the original policy and a date five years subsequent to the date of that issue; or

(ii) between the date of the issue of the original policy and the date of the paid-up policy, whichever is the shorter,
and the amount remaining shall be the total amount of the paid-up policy.

PART II
Rules for ascertaining the surrender value of a policy in certain cases for the
purposes of Division 4 of Part IV of this Act

1. The surrender value of a policy at any date shall be the present value (according to the contingency upon which the policy is payable) of the amount of the paid-up policy which would be granted as at that date, determined according to the Rules set out in Part I of this Schedule, or the amount payable at death if death were to occur at the date as at which the surrender value is calculated, whichever is the less.

2.* For the purposes of the last preceding rule-

(a) interest shall be assumed at the rate of 4.5 per centum per annum or at such other rate as is prescribed; and

(b) in the case of a policy, issued for a term other than the whole term of life, the remaining term at the date as at which the surrender value of the policy is calculated shall be obtained by deducting from the original term of the policy the duration of the policy in completed years and months at that date,
and, in addition, in the case of a life policy-

(c) the rates of mortality shall be assumed according to the Australian Life Tables 1932-34 (Males), known as the AM** Table of Mortality, or to such other tables as are prescribed; and

(d) the present value of the paid-up policy shall be ascertained at an age which shall be obtained by adding to the age attained by the person whose life is insured at his birthday next after the date of the issue of the policy, the duration of the policy in completed years and months at the date as at which the surrender value of the policy is calculated.

3. In determining, for the purposes of rule 1 of these Rules, the amount of the paid-up policy which would be granted in the case of a policy for the whole term of life (where the premiums are payable throughout life), it shall be assumed that the paid-up policy would not participate in future profits.

LIFE INSURANCE ACT 1945-1973 - SEVENTH SCHEDULE

SCH

Sections 109, 111 and 112.
Substituted by No. 216, 1973, s. 3.
SEVENTH SCHEDULE

Amount payable in case of death of child between ages-
$ Birth and 1 year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1 year and 2 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 2 years and 3 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3 years and 4 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 4 years and 5 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 5 years and 6 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 6 years and 7 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 7 years and 8 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 8 years and 9 years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 9 years and 10 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
------------------------------------------------------------------------------ --

LIFE INSURANCE ACT 1945-1973 - NOTES


NOTES
1. The Life Insurance Act 1945-1973 comprises the Life Insurance Act 1945 as amended by the other Acts specified in the following table and by Regulations made in pursuance of section 150:
----------------------------------------------------------------------------

Number Date of
Act and year Date of
Assent commencement
----------------------------------------------------------------------------

Life Insurance Act 1945 No. 28, 1945 16 Aug 1945 20 June 1946 (see
Gazette 1946, p.
1607)
Life Insurance Act 1950 No. 65, 1950 14 Dec 1950 1 Jan 1951
Statute Law Revision Act
1950 No. 80, 1950 16 Dec 1950 31 Dec 1950
Life Insurance Act 1953 No. 94, 1953 12 Dec 1953 9 Jan 1954
Life Insurance Act 1958 No. 3, 1958 3 Apr 1958 3 Apr 1958
Life Insurance Act 1959 No. 93, 1959 4 Dec 1959 4 Dec 1959
Life Insurance Act 1961 No. 29, 1961 25 May 1961 22 June 1961
Life Insurance Act 1965 No. 145, 1965 18 Dec 1965 Ss. 1, 2, 3(c), 4,
6 and 7: Royal
Assent Remainder:
14 Feb 1966
Life Insurance Act 1973 No. 78, 1973 19 June 1973 S. 3 (1): 1 Aug
1974 (see Gazette
1974, No. 62, p.
2.)
Remainder: 19 June
1973
Statute Law Revision Act
1973 No. 216, 1973 19 Dec 1973 31 Dec 1973
----------------------------------------------------------------------------

The First and Third Schedules to the Life Insurance Act were amended by regulations 27, 27A and 28 of the Life Insurance Regulations (Statutory Rules 1946, No. 136, as amended by Statutory Rules 1959, No. 98; 1962, Nos. 3 and 12; 1966, No. 36; 1969, No. 51; and 1971, No. 100).
2.-S. 127 (2)-The date fixed was 1 June 1947; see Gazette 1947, p. 1270.
3.-S.140 (3)-This sub-section was added by paragraph 28 (1) (b) of the Life Insurance Act 1953. By sub-section (2) of that section, the amendment effected by paragraph (1) (b) of that section is to be deemed to have come into operation on 20 June 1946.
4.-Sixth Sch., Part I-By regulation 8 of the Life Insurance Regulations (see Note 1 above) it is declared that, in its application to ordinary policies, rule 5 applies with the substitution for paragraph (b) of the following paragraph:

''(b) the rates of mortality shall be assumed according to the ultimate table based on the experience of insured lives for the years 1924 to 1929, and published on behalf of The Institute of Actuaries and The Faculty of Actuaries in Scotland under the short title of A 1924-29 Table; and''.
5.-Sixth Sch., Part II-By regulation 8 of the Life Insurance Regulations (see Note 1 above) it is declared that, in its application to ordinary policies, rule 2 applies with the substitution for paragraph (c) of the following paragraph:

''(c) the rates of mortality shall be assumed according to the ultimate table based on the experience of insured lives for the years 1924 to 1929, and published on behalf of The Institute of Actuaries and The Faculty of Actuaries in Scotland under the short title of A 1924-29 Table; and''.