Federal Register of Legislation - Australian Government

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Life Insurance Act 1945

Act No. 28 of 1945 as amended, taking into account amendments up to Act No. 48 of 1994
Registered 27 Nov 2009
Start Date 07 Apr 1994
End Date 01 Jul 1995
Date of repeal 01 Jul 1995
Repealed by Life Insurance (Consequential Amendments and Repeals) Act 1995

LIFE INSURANCE ACT 1945 [Note: This Act is "repealed" by Act No. 5 of 1995]
(#DATE 23:05:1994)

- Updated as at 23 May 1994 *1* The Life Insurance Act 1945 as shown in this reprint comprises Act No. 28, 1945 amended as indicated in the Tables below. The Life Insurance Act 1945 was amended by the Life Insurance Regulations as amended. The amendments are incorporated in this reprint.
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Table of Acts
Act Date of Date of Application,
Number Assent commencement saving or
and year transitional
provisions
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Life Insurance Act 1945
28, 1945 16 Aug 1945 20 June 1946 (see s. 2
and Gazette 1946, p.1607)
Life Insurance Act 1950
65, 1950 14 Dec 1950 1 Jan 1951 -

Statute Law Revision Act 1950
80, 1950 16 Dec 1950 31 Dec 1950 Ss. 16
and 17
Life Insurance Act 1953
94, 1953 12 Dec 1953 9 Jan 1954 Ss. 15 (2)
and 28 (2)
Life Insurance Act 1958
3, 1958 3 Apr 1958 3 Apr 1958 S. 6 (2)

Life Insurance Act 1959
93, 1959 4 Dec 1959 4 Dec 1959 S. 3

Life Insurance Act 1961
29, 1961 25 May 1961 22 June 1961 S. 23

Life Insurance Act 1965
145, 1965 18 Dec 1965 Ss. 1, 2, 3 (c), 4, 6 Ss. 6
and 7: Royal Assent and 7
Remainder: 14 Feb 1966
Life Insurance Act 1973
78, 1973 19 June 1973 S. 3 (1): 1 Aug S. 6
1974 (see Gazette
1974, No. 62, p. 2)
Remainder: Royal Assent
Statute Law Revision Act 1973
216, 1973 19 Dec 1973 31 Dec 1973 Ss. 9 (1)
and 10
as amended by
20, 1974 25 July 1974 31 Dec 1973 -

Life Insurance Amendment Act 1977
32, 1977 18 May 1977 Ss. 1, 2, 3 (1), 4, Ss. 8 (2),
5, 8, 9, 15, 16, 24, 25, (3), 10
31 (1), 33, 34, 36 (2), 12
and 38: Royal Assent (2), 17
Ss. 3 (2), 11, 12, 14, 17-23, (3),
26-30, 31 (2), 32, 37 (4),30
and 39: 1 Oct 1978 (2), 32
(see Gazette 1978, No. S191) (2),
Ss. 6, 7, 10, 13 and 35: (a) (3)
and 39
Ss. 6 (2),
7 (2) and 13
(2) (rep. by
16, 1989,
s. 20) (a)
as amended by
Statute Law (Miscellaneous Provisions) Act (No. 1) 1985
65, 1985 5 June 1985 S. 3:
3 July 1985 (b) -

Insurance Legislation Amendment Act 1989
16, 1989 20 Apr 1989 (see 16, 1989 below) -

Life Insurance Amendment Act 1978
177, 1978 28 Nov 1978 28 Nov 1978 S. 6

Companies (Miscellaneous Amendments) Act 1981
92, 1981 18 June 1981 Part I (ss. 1, 2) -
: Royal Assent
S. 36: 1 July 1981
(see s. 2 and
Gazette 1981, No. S118)
Remainder: 1 July 1982
(see s. 2 and Gazette
1982, No. S124)

Statute Law (Miscellaneous Amendments) Act 1981
176, 1981 2 Dec 1981 Part XIX (s. 68) -
: 30 Dec 1981 (c)

Life Insurance Amendment Act 1983
143, 1983 22 Dec 1983 1 July 1985 (see -
Gazette 1985, No. S246)

Life Insurance Amendment Act 1984
74, 1984 25 June 1984 1 Jan 1986 (see s. 2 -
and Gazette 1985, No. S487)

Statute Law (Miscellaneous Provisions) Act (No. 1) 1985
65, 1985 5 June 1985 S. 3: (d) -

Insurance and Superannuation Commissioner (Consequential Provisions) Act 1987
99, 1987 5 Nov 1987 23 Nov 1987 (see s. 2 Ss. 32
and Gazette 1987, and 33
No. S310)

Statute Law (Miscellaneous Provisions) Act 1988
38, 1988 3 June 1988 S. 3: Royal Assent (e) S. 5 (1)

Industrial Relations (Consequential Provisions) Act 1988
87, 1988 8 Nov 1988 Ss. 1 and 2 -
: Royal Assent
Remainder: 1 Mar 1989
(see s. 2 (2) and
Gazette 1989, No. S53)

Insurance Legislation Amendment Act 1989
16, 1989 20 Apr 1989 Ss. 5, 6, 9-18, 22 Ss. 24 (2),
(2), 23, 26 (a), 27-32, 25 (2), 26
33 (a), 34 (2), (2), 30
38, 39, 45 (a), (2), 31 (2),
(b), (d), 47 and 48 32 (2), 38
: 20 Oct 1989 (2), (3), 42
Remainder: 18 May 1989 (2),43
(2), 47 (2)
and 48 (2)

Insurance Laws Amendment Act 1991
1, 1992 6 Jan 1992 6 Jan 1992 S. 48
S. 47 (am.
by 48, 1994,
s. 41)
as amended by
48, 1994 7 Apr 1994 S. 40: Royal Assent (f) -
S. 41: 6 Jan 1992 (f)
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(a) Sections 6, 7, 10, 13 and 35 of the Life Insurance Amendment Act
1977 were repealed by section 20 of the Insurance Legislation Amendment
Act 1989 before a date was fixed for their commencement.
(b) The Life Insurance Amendment Act 1977 was amended by section 3
only of the Statute Law (Miscellaneous Provisions) Act (No. 1) 1985,
subsection 2 (1) of which provides as follows:
"(1) Subject to this section, this Act shall come into operation
on the twenty-eighth day after the day on which it receives the Royal
Assent."
(c) The Life Insurance Act 1945 was amended by Part XIX (section 68)
only of the Statute Law (Miscellaneous Amendments) Act 1981, subsection
2 (12) of which provides as follows:
"(12) The remaining provisions of this Act shall come into operation
on the twenty-eighth day after the day on which this Act receives the
Royal Assent."
(d) The Life Insurance Act 1945 was amended by section 3 only of the
Statute Law (Miscellaneous Provisions) Act (No. 1) 1985, subsections
2 (1) and (28) of which provide as follows:
"(1) Subject to this section, this Act shall come into operation on
the twenty-eighth day after the day on which it receives the Royal
Assent.
"(28) The repeal of section 20 of the Life Insurance Act 1945 effected
by this Act shall come into operation, or be deemed to have come into
operation, as the case requires, immediately before the commencement of
section 8 of the Life Insurance Amendment Act 1983."
In pursuance of subsection 2 (1) the date of the commencement was
3 July 1985.
In pursuance of subsection 2 (28) the date of commencement
was 1 July 1985 (see Gazette 1985, No. S246).
(e) The Life Insurance Act 1945 was amended by section 3 only of the
Statute Law (Miscellaneous Provisions) Act 1988, subsection 2 (1) of
which provides as follows:
"(1) Subject to this section, this Act commences on the day on which
it receives the Royal Assent."
(f) The Insurance Laws Amendment Act 1991 was amended by sections 40
and 41 only of the Insurance Laws Amendment Act 1994, subsections 2 (1)
and (2) of which provide as follows:
"(1) Sections 1, 2, 3, 10 and 40 commence on the day on which this Act
receives the Royal Assent.
"(2) Section 41 is taken to have commenced on 6 January 1992.".
Table of Amendments
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ad=added or inserted am=amended rep=repealed rs=repealed and substituted
----------------------------------------------------------------------------------
Provision affected How affected
----------------------------------------------------------------------------------
S. 3 am. No. 94, 1953
rs. No. 3, 1958
am. No. 29, 1961
rep. No. 216, 1973 (as am. by No. 20, 1974)
S. 4 am. No. 94, 1953; No. 3, 1958; No. 29, 1961; No.
78, 1973; No. 216, 1973 (as am. by No. 20, 1974);
No. 32, 1977; No. 92, 1981; No. 143, 1983; No. 65,
1985; No. 99, 1987; No. 87, 1988; No. 16, 1989;
No. 1, 1992
S. 4A ad. No. 32, 1977
am. No. 143, 1983; No. 16, 1989
S. 4B ad. No. 1, 1992
S. 5 am. No. 29, 1961; No. 32, 1977
S. 6 am. No. 216, 1973 (as am. by No. 20, 1974)
S. 7 rep. No. 216, 1973 (as am. by No. 20, 1974)
S. 9 am. No. 78, 1973
rs. No. 99, 1987
S. 9A ad. No. 177, 1978
am. No. 92, 1981; No. 143, 1983
rep. No. 99, 1987
Ss. 9B-9H ad. No. 177, 1978
rep. No. 99, 1987
S. 10 am. No. 177, 1978
S. 10A ad. No. 177, 1978
rep. No. 99, 1987
S. 11 am. No. 32, 1977; No. 143, 1983; No. 16, 1989
S. 13 rep. No. 16, 1989
S. 14 am. No. 3, 1958; No. 216, 1973 (as am. by No. 20,
1974); No. 32, 1977
S. 15 rs. No. 216, 1973 (as am. by No. 20, 1974)
am. No. 38, 1988
S. 16 am. No. 32, 1977
S. 17 am. No. 216, 1973 (as am. by No. 20, 1974); No. 16,
1989
S. 18 rep. No. 216, 1973 (as am. by No. 20, 1974)
S. 19 am. No. 65, 1950; No. 216, 1973 (as am. by No. 20,
1974); No. 143, 1983; No. 1, 1992
S. 19A ad. No. 1, 1992
S. 20 rep. No. 65, 1985
ad. No. 143, 1983
S. 21A ad. No. 16, 1989
S. 23A ad. No. 94, 1953
am. No. 32, 1977; No. 143, 1983
Div. 2 of Part III
(ss. 24-36) rep. No. 32, 1977
S. 24 rs. No. 216, 1973 (as am. by No. 20, 1974)
rep. No. 32, 1977
Ss. 25, 26 rep. No. 32, 1977
Ss. 27, 28 am. No. 216, 1973 (as am. by No. 20, 1974)
rep. No. 32, 1977
Ss. 29, 30 rep. No. 32, 1977
S. 31 am. No. 216, 1973 (as am. by No. 20, 1974)
rep. No. 32, 1977
Ss. 32-35 rep. No. 32, 1977
S. 36 am. No. 94, 1953
rep. No. 32, 1977
S. 37 am. No. 29, 1961; No. 216, 1973 (as am. by No. 20,
1974)
S. 37A ad. No. 29, 1961
S. 38 am. No. 29, 1961; No. 32, 1977
S. 39 am. No. 29, 1961
rs. No. 143, 1983
am. No. 16, 1989
S. 40 rs. No. 29, 1961
am. No. 32, 1977; No. 143, 1983
S. 40A ad. No. 29, 1961
Ss. 41, 42 rs. No. 29, 1961
S. 42AA ad. No. 32, 1977
S. 42A ad. No. 29, 1961
am. No. 32, 1977
S. 42B ad. No. 29, 1961
am. No. 216, 1973 (as am. by No. 20, 1974); No. 32,
1977; No. 143, 1983
S. 44 am. No. 94, 1953; No. 29, 1961; No. 32, 1977
S. 46 am. No. 29, 1961; No. 32, 1977
S. 47 am. No. 32, 1977
Div. 4A of Part III
(ss. 47A to 47D) ad. No. 16, 1989
Ss. 47A-47D ad. No. 16, 1989
S. 48 am. No. 94, 1953; No. 29, 1961; No. 32, 1977; No.
143, 1983; No. 16, 1989; No. 1, 1992
Ss. 49, 50 rs. No. 94, 1953
am. No. 29, 1961; No. 32, 1977; No. 16, 1989
S. 51 rs. No. 29, 1961
S. 52 am. No. 32, 1977; No. 143, 1983; No. 16, 1989; No.
1, 1992
S. 53A ad. No. 16, 1989
S. 54 rs. No. 143, 1983
S. 54A ad. No. 143, 1983
am. No. 16, 1989
S. 54B ad. No. 143, 1983
S. 54C ad. No. 1, 1992
S. 55 am. No. 94, 1953; No. 32, 1977; No. 143, 1983; No.
38, 1988
S. 56 am. No. 216, 1973 (as am. by No. 20, 1974); No. 32,
1977; No. 16, 1989
S. 57 am. No. 216, 1973 (as am. by No. 20, 1974)
S. 57A ad. No. 1, 1992
S. 58 am. No. 32, 1977; No. 143, 1983
Ss. 59, 60 am. No. 32, 1977
S. 62 am. No. 94, 1953; No. 32, 1977
S. 64 am. No. 32, 1977
S. 65 am. No. 94, 1953; No. 32, 1977
Ss. 66, 67 am. No. 32, 1977
S. 69 am. No. 143, 1983
S. 71 am. No. 29, 1961
rep. No. 32, 1977
S. 72 am. No. 32, 1977
S. 75 am. No. 143, 1983
S. 77 am. No. 16, 1989
S. 78 am. No. 32, 1977; No. 16, 1989
S. 79 am. No. 16, 1989
S. 80 rep. No. 16, 1989
S. 81 am. No. 94, 1953
rep. No. 16, 1989
S. 82 am. No. 32, 1977
rep. No. 16, 1989
S. 83 rs. No. 94, 1953
S. 84 am. No. 143, 1983
S. 85 rs. No. 94, 1953
am. No. 32, 1977; No. 143, 1983; No. 16, 1989
S. 86 am. No. 143, 1983; No. 74, 1984
S. 86A ad. No. 74, 1984
S. 87 am. No. 94, 1953; No. 32, 1977
S. 88 am. No. 32, 1977
S. 89 am. No. 80, 1950; No. 32, 1977
S. 90A ad. No. 94, 1953
S. 91 rs. No. 94, 1953
S. 92 am. No. 216, 1973 (as am. by No. 20, 1974); No.
143, 1983
S. 93 am. No. 32, 1977
S. 94 am. No. 94, 1953; No. 3, 1958; No. 29, 1961; No.
216, 1973 (as am. by No. 20, 1974); No. 32, 1977;
No. 143, 1983
S. 96 am. No. 32, 1977; No. 143, 1983
rs. No. 74, 1984
S. 97 am. No. 32, 1977; No. 143, 1983
S. 98 am. No. 32, 1977
Ss. 100, 101 am. No. 32, 1977; No. 143, 1983
S. 103 am. No. 94, 1953; No. 93, 1959; No. 216, 1973 (as
am. by No. 20, 1974); No. 32, 1977; No. 143, 1983
S. 103A ad. No. 94, 1953
am. No. 93, 1959; No. 216, 1973 (as am. by No. 20,
1974); No. 32, 1977; No. 143, 1983
S. 105 am. No. 80, 1950; No. 32, 1977
S. 106 rs. No. 94, 1953
am. No. 216, 1973 (as am. by No. 20, 1974); No. 32,
1977; No. 143, 1983; No. 16, 1989
S. 108 am. No. 216, 1973 (as am. by No. 20, 1974); No. 32,
1977; No. 143, 1983
S. 109 am. No. 32, 1977; No. 143, 1983
S. 110 am. No. 143, 1983
S. 111 am. No. 32, 1977; No. 143, 1983
S. 112 am. No. 216, 1973 (as am. by No. 20, 1974); No. 32,
1977; No. 143, 1983
S. 113 am. No. 32, 1977; No. 74, 1984
S. 114 am. No. 94, 1953; No. 32, 1977; No. 143, 1983; No.
16, 1989
S. 116 am. No. 94, 1953; No. 32, 1977
S. 118 am. No. 29, 1961; No. 216, 1973 (as am. by No. 20,
1974); No. 32, 1977
S. 119 rs. No. 94, 1953
am. No. 93, 1959; No. 216, 1973 (as am. by No. 20,
1974); No. 32, 1977; No. 143, 1983; No. 16, 1989
S. 123 am. No. 143, 1983
S. 124 am. No. 94, 1953; No. 143, 1983
S. 125 am. No. 216, 1973 (as am. by No. 20, 1974)
S. 127 am. No. 216, 1973 (as am. by No. 20, 1974); No. 32,
1977
S. 128 am. No. 216, 1973 (as am. by No. 20, 1974); No. 32,
1977; No. 143, 1983
S. 129 am. No. 94, 1953; No. 32, 1977
Part VI
(ss. 132-138) rep. No. 94, 1953
Ss. 132-137 rep. No. 94, 1953
S. 138 rep. No. 94, 1953
ad. No. 32, 1977
am. No. 143, 1983; No. 16, 1989; No. 1, 1992
S. 138A ad. No. 143, 1983
S. 139 am. No. 32, 1977
S. 139A ad. No. 32, 1977
am. No. 92, 1981; No. 143, 1983
S. 140 am. No. 94, 1953; No. 143, 1983
S. 141 am. No. 32, 1977
S. 144 am. No. 216, 1973 (as am. by No. 20, 1974); No. 32,
1977; No. 143, 1983
S. 145 am. No. 32, 1977; No. 176, 1981
S. 146 rs. No. 94, 1953
am. No. 16, 1989
S. 146A ad. No. 1, 1992
S. 147A ad. No. 94, 1953
S. 148 am. No. 32, 1977; No. 143, 1983
S. 149 am. No. 216, 1973 (as am. by No. 20, 1974)
S. 150 am. No. 216, 1973 (as am. by No. 20, 1974); No. 32,
1977; No. 143, 1983
Heading to
The Schedules rep. No. 32, 1977
First Schedule am. No. 94, 1953; No. 29, 1961; No. 216, 1973 (as
am. by No. 20, 1974); Statutory Rules 1946 No. 136
(as am. by 1959 No. 98; 1962 No. 3; 1978 No. 31)
Form A No. 28, 1945
am. No. 94, 1953
rs. Statutory Rules 1946 No. 136 (as am. by 1959
No. 98)
am. Statutory Rules 1946 No. 136 (as am. by 1959
No. 98; 1962 No. 3); No. 216, 1973 (as am. by No.
20, 1974)
Form B No. 28, 1945
rs. Statutory Rules 1946 No. 136 (as am. by 1959
No. 98)
am. No. 216, 1973 (as am. by No. 20, 1974)
Form C No. 28, 1945
rs. Statutory Rules 1946 No. 136 (as am. by 1959
No. 98)
am. No. 216, 1973 (as am. by No. 20, 1974)
Form D No. 28, 1945
am. No. 94, 1953
rs. Statutory Rules 1946 No. 136 (as am. by 1959
No. 98)
am. No. 29, 1961; Statutory Rules 1946 No. 136 (as
am. by 1959 No. 98; 1962 No. 3; 1978 No. 31); No.
216, 1973 (as am. by No. 20, 1974)
Form E No. 28, 1945
am. No. 94, 1953
rs. Statutory Rules 1946 No. 136 (as am. by 1959
No. 98); No. 29, 1961
am. No. 216, 1973 (as am. by No. 20, 1974)
Form F No. 28, 1945
rs. Statutory Rules 1946 No. 136 (as am. by 1959
No. 98); No. 29, 1961
am. No. 216, 1973 (as am. by No. 20, 1974)
Form G No. 28, 1945
rs. Statutory Rules 1946 No. 136 (as am. by 1959
No. 98); No. 29, 1961
am. No. 216, 1973 (as am. by No. 20, 1974)
Second Schedule am. No. 94, 1953; No. 29, 1961; No. 145, 1965; No.
216, 1973 (as am. by No. 20, 1974); No. 16, 1989
Form H No. 28, 1945
am. No. 94, 1953
rep. No. 29, 1961
Form I No. 28, 1945
am. No. 29, 1961; No. 216, 1973 (as am. by No. 20,
1974)
Form J No. 28, 1945
am. No. 94, 1953
rs. No. 29, 1961
am. No. 216, 1973 (as am. by No. 20, 1974)
Third Schedule am. No. 145, 1965; No. 32, 1977; Statutory Rules
1946 No. 136; No. 16, 1989
Fourth Schedule am. No. 216, 1973 (as am. by No. 20, 1974); No. 32,
1977; Statutory Rules 1946 No. 136 (as am. by 1978
No. 31; 1984 No. 248; 1985 No. 44)
Sixth Schedule am. No. 94, 1953; No. 93, 1959; No. 145, 1965; No.
216, 1973 as am. by No. 20, 1974); No. 32, 1977
Seventh Schedule rs. No. 216, 1973 (as am. by No. 20, 1974)
rep. No. 32, 1977
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LIFE INSURANCE ACT 1945 - TABLE OF PROVISIONS

TABLE

TABLE OF PROVISIONS
Section
PART I - PRELIMINARY
1. Short title
2. Commencement
4. Interpretation
4A. Actuaries
4B. Interpretation - eligible assets
5. Application of Act
6. Application of Act to Territories
8. Certain State Acts to cease to apply to life insurance
business
PART II - ADMINISTRATION
9. General administration of Act
10. Actuarial advice
11. Annual report and returns
12. Delegation by Commissioner
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
19. Registration of companies
19A. Capital and solvency requirements
20. Conditions
21. Foreign company to appoint principal officer
21A. Company not to be registered unless it has an appointed
actuary
22. Certificate of registration
23. Notification of change in particulars etc.
23A. Cancellation of registration
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
42AA. Apportionment of receipts and payments between life
insurance business carried on in Australia and outside
Australia
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 4A - Appointed Actuaries
47A. Appointment etc. of actuary
47B. Registered company required to appoint actuary
47C. Registered company to notify appointment
47D. Registered company to notify if appointed actuary ceases to
act
Division 5 - Actuarial Investigations
48. Actuarial reports, 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 etc. to be signed and lodged with
Commissioner
53. Copies to be furnished
Division 7 - Investigations by Commissioner
53A. Interpretation
54. Commissioner may demand information
54A. Power to require production of books
54B. Access to premises
54C. Inquiry by Commissioner and direction not to deal with
certain assets
55. Power to make investigation
56. Power to obtain information
57. Persons to observe secrecy
57A. Directions during or after investigation
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
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
83. Mis-statement of age
84. Incorrect statement in proposal not to avoid policy
85. Minors
86. Insurable interest
86A. Application of sections 83, 84 and 86
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 etc. 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. Interpretation
109. Limitation of amount payable on death of child
110. Production of prescribed certificate of death
111. Certificates of death
112. Offences and penalties
113. Savings as to insurable interest
Division 7 - Children's Advancement Policies
114. Interpretation
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 policies
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 etc.
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 VII - MISCELLANEOUS
138. Review of certain decisions
138A. Statements to accompany notification of decisions
139. Issue of shares or debentures by companies
139A. Documents lodged or furnished under laws relating to
acquisition of shares
140. Voting by post
141. Inspection of documents
142. Documents to be received in evidence
143. Publication of authorised, subscribed and paid-up capital
144. Modification of Schedules
145. Power to collect statistics
146. Service of notices
146A. Bankrupts and persons convicted of certain offences not to
be directors, principal executive officers etc. of registered
life insurers
147. Authority by principal officer of company
147A. Printing of documents
148. Offences
149. Penalties
150. Regulations
THE FIRST SCHEDULE
FORMS
THE SECOND SCHEDULE
PROVISIONS RELATING TO THE PREPARATION OF ABSTRACTS OF ACTUARY'S REPORTS
THE THIRD SCHEDULE
PROVISIONS RELATING TO THE PREPARATION OF STATEMENTS OF LIFE
INSURANCE BUSINESS
THE FOURTH SCHEDULE
RULES FOR CALCULATION OF VALUE OF LIABILITIES ON THE MINIMUM BASIS
THE FIFTH SCHEDULE
MEMORANDUM OF TRANSFER
THE SIXTH SCHEDULE
THE PURPOSES OF DIVISION 4 OF PART IV OF THIS ACT

LIFE INSURANCE ACT 1945 - LONG TITLE

SECT

An Act relating to Life Insurance and other matters

LIFE INSURANCE ACT 1945 - PART I
PART I - PRELIMINARY

LIFE INSURANCE ACT 1945 - SECT 1
Short title

SECT

1. This Act may be cited as the Life Insurance Act 1945.*1* SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .

LIFE INSURANCE ACT 1945 - SECT 2
Commencement

SECT

2. Except as otherwise provided by this Act, this Act shall commence on a date to be fixed by Proclamation.*1* SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .

LIFE INSURANCE ACT 1945 - SECT 4
Interpretation

SECT

4. (1) In this Act, unless the contrary intention appears:
"appointed actuary" means a person appointed in accordance with section 47A;
"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;
"books" includes any register or other record of information or any accounts or accounting records, however compiled, retrieved or stored, and also includes any document;
"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;
"Commissioner" means the Insurance and Superannuation Commissioner appointed under the Insurance and Superannuation Commissioner Act 1987, or a person for the time being acting as Insurance and Superannuation Commissioner under that Act;
"Commonwealth securities" has the same meaning as in the Income Tax Assessment Act 1936;
"company", except as provided in subsections (9) and (10), 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;
"Court" means the Federal Court of Australia;
"eligible asset" has the meaning given by section 4B;
"financial year", in relation to a company, means each period of 12 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 2 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 paragraph (a);
"insurance business" has the same meaning as in the Insurance Act 1973;
"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 an organisation within the meaning of the Industrial Relations Act 1988;
(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;
"minor" means a person who has not attained the age of 18 years;
"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;
"Rules of Court" means the Rules of Court in force under the Federal Court of Australia Act 1976;
"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 37;
"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;
"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.


(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, or any part of 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 part of another class of life insurance business, as the case requires; 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 part of 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, part of that other class of life insurance business or part of that 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 subsection (5) 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.


(7) Where a company carries on life insurance business as defined by subsection (1), business carried on by that company which, but for paragraph (d) of the definition of "life insurance business" in that subsection, would be life insurance business shall be deemed to be life insurance business carried on by that company.


(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.


(9) In this Act, "holding company", "related company" and "subsidiary" have the same respective meanings as they would have in the Companies Act 1981 if references in section 7 of that Act to corporations were references to companies.


(10) A reference in subsection (9) to a company, and a reference in any other provision of this Act to a holding company or a related company, is not confined to a company as defined in subsection (1).

LIFE INSURANCE ACT 1945 - SECT 4A
Actuaries

SECT

4A. (1) A reference in this Act to an actuary shall, unless the contrary intention appears, be read as a reference to:
(a) an appointed actuary; or
(b) a person who is ordinarily resident in Australia and:
(i) is a Fellow of the Institute of Actuaries of Australia; or
(ii) is a person in respect of whom there is in force an approval
by the Commissioner under subsection (3).


(3) The Commissioner may, at the request of a company, approve, by instrument in writing, a person who is not a Fellow of The Institute of Actuaries of Australia as an actuary for the purposes of this Act if the Commissioner is satisfied that the person has actuarial qualifications and experience that fit him to perform the functions of an actuary under this Act.

LIFE INSURANCE ACT 1945 - SECT 4B
Interpretation - eligible assets

SECT

4B. (1) A reference in this Act to an eligible asset of a company (in this section called the "first company") is a reference to an asset of the first company other than an asset invested in a related company.


(2) A reference in subsection (1) to an asset invested in a related company does not include a reference to an asset where:
(a) both of the following conditions are satisfied:
(i) the related company is a subsidiary of the first company;
(ii) no part of the asset is re-invested, whether directly or
indirectly, through one or more interposed bodies corporate, trusts or partnerships, with a company that:
(A) is related to the first company; and
(B) is not a subsidiary of the first company; or
(b) the investment consists of a loan to (including deposit with), or a share in, or debentures of:
(i) a bank as defined by subsection 5 (1) of the Banking Act 1959;
or
(ii) a bank constituted by a law of a State; or
(c) the investment consists of a loan to (including deposit with) a prescribed dealer in the short-term money market.


(3) In this section:
"debenture" has the same meaning as in section 39;
"investment" has the same meaning as in section 39;
"prescribed dealer in the short-term money market" has the same meaning as in section 39;
"share" has the same meaning as in section 39.

LIFE INSURANCE ACT 1945 - SECT 5
Application of Act

SECT

5. (1) This Act shall apply to State insurance extending beyond the limits of the State concerned.


(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 - SECT 6
Application of Act to Territories

SECT

6. This Act shall extend to any external Territory to which the Governor-General by Proclamation declares that this Act shall extend.

LIFE INSURANCE ACT 1945 - 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 - PART II
PART II - ADMINISTRATION

LIFE INSURANCE ACT 1945 - SECT 9
General administration of Act

SECT

9. Subject to any directions of the Treasurer, the Commissioner shall have the general administration of this Act.

LIFE INSURANCE ACT 1945 - SECT 10
Actuarial advice

SECT

10. 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 - SECT 11
Annual report and returns

SECT

11. (1) The Commissioner shall, within 3 months after each year ending on 30 June, 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 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 (1) (b), to be laid before each House of the Parliament within 15 sitting days of that House after the receipt of the report and copies or summaries by the Treasurer.

LIFE INSURANCE ACT 1945 - 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 - PART III
PART III - PROVISIONS RELATING TO COMPANIES

LIFE INSURANCE ACT 1945 - DIVISION 1
Division 1 - Registration

LIFE INSURANCE ACT 1945 - SECT 14
Persons other than companies not to carry on business

SECT

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.


(2) A person who contravenes subsection (1) is guilty of an offence against this Act.

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

SECT

15. A company, including a foreign company, shall not carry on any class of life insurance business in Australia unless it has been registered under this Act or it carries on that business on behalf of a company registered under this Act.
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 - 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 subsection (1), 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 - SECT 17
Application for registration

SECT

17. (1) Any company may make application to the Commissioner for registration under this Act.


(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 appointed actuary of the company;
(e) the countries outside Australia in which the company carries on life insurance business;
(f) the classes of life insurance business undertaken or to be undertaken by the company;
(g) the statutory funds established, or to be established, by the company; and
(h) such other information (if any) as is prescribed.


(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.

LIFE INSURANCE ACT 1945 - SECT 19
Registration of companies

SECT

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.


(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;
(aa) where the company is incorporated in Australia and has a share capital - that the sum of its paid-up share capital and the amount standing to the credit of its share premium account is not less than $10,000,000;
(ab) where the company is incorporated in Australia but does not have a share capital - that the value of the eligible assets of the company is not less than $10,000,000;
(ac) where the company is a foreign company - that the value of the eligible assets in Australia of the company is not less than $10,000,000;
(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 - SECT 19A
Capital and solvency requirements

SECT

19A. (1) A company that is incorporated in Australia, is registered under this Act and has a share capital must at all times have an adjusted paid-up share capital of not less than $10,000,000.


(2) The reference in subsection (1) to the adjusted paid-up share capital of a company is a reference to the sum of its paid-up share capital and the amount standing to the credit of its share premium account.


(3) A company that is incorporated in Australia and is registered under this Act but does not have a share capital must at all times have eligible assets (other than assets in a statutory fund) the value of which is not less than $10,000,000.


(4) A foreign company that is registered under this Act must at all times have eligible assets in Australia (other than assets in a statutory fund) the value of which is not less than $10,000,000.


(5) A company that is registered under this Act must at all times have eligible assets (other than assets in a statutory fund) the value of which exceeds the amount of its liabilities (other than liabilities in respect of share capital or liabilities that may be met by applying assets in a statutory fund) by $5,000,000.

LIFE INSURANCE ACT 1945 - SECT 20
Conditions

SECT

20. (1) The Commissioner or the Treasurer may at any time, by notice in writing served on a company, impose conditions to which the registration of the company is subject.


(2) Subject to subsection (4), where the registration of a company is subject to a condition, and it appears at any time to the Commissioner or the Treasurer that the condition is no longer necessary or should be varied, the Commissioner or the Treasurer shall, by notice in writing served on the company, revoke or vary the condition.


(3) Subject to subsection (4), where a company whose registration is subject to a condition applies to the Commissioner or the Treasurer, by notice in writing, for the condition to be revoked or varied, the Commissioner or the Treasurer shall:
(a) if it appears to him that the condition is no longer necessary or should be varied - revoke or vary the condition; or
(b) in any other case - refuse to revoke or vary the condition;
and shall serve on the company notice in writing of his decision.


(4) The Commissioner is not empowered by subsection (2) or (3) to revoke or vary a condition imposed or varied by the Treasurer.


(5) In this section, unless the contrary intention appears, "condition" includes, where a condition is varied, the condition as varied.


(6) If a direction given or issued under section 40, 52 or 58 is inconsistent with a condition imposed under this section, the direction is invalid to the extent of the inconsistency.

LIFE INSURANCE ACT 1945 - 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 - SECT 21A
Company not to be registered unless it has an appointed actuary

SECT

21A. A company shall not be registered unless it has an appointed actuary.

LIFE INSURANCE ACT 1945 - 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 - SECT 23
Notification of change in particulars etc.

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 - SECT 23A
Cancellation of registration

SECT

23A. (1) Where a company has been registered under this Act for a period of not less than 12 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 subsection (1) 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 22.

LIFE INSURANCE ACT 1945 - DIVISION 3
Division 3 - Statutory Funds

LIFE INSURANCE ACT 1945 - SECT 37
Establishment of statutory funds

SECT

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.


(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.


(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.


(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).


(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 - SECT 37A
Determination by company that policy referable to statutory fund

SECT

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 - SECT 38
Formation and application of statutory funds

SECT

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.


(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.


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


(4) Subject to subsection (5), a transaction shall not be invalidated by reason only that it has been entered into in contravention of subsection (3), but nothing in this subsection 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 subsection (3) 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 - SECT 39
Investment of statutory funds

SECT

39. (1) Subject to this Act, the assets of a fund of 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 that impose restrictions upon the manner in which the assets of the company may be invested) in such manner as the company thinks fit.


(2) Subject to subsections (3) and (4), a company shall not, except with the approval of the Commissioner, invest any assets of a fund of the company:
(a) in a related company (other than a subsidiary); or
(b) under a trust scheme.


(3) Subsection (2) does not prevent a company from investing, without obtaining the approval of the Commissioner, any assets of a fund of the company:
(a) by way of a loan to (including deposit with) or any shares in or debentures of, a bank as defined by subsection 5 (1) of the Banking Act 1959 or a bank constituted by a law of a State; or
(b) by way of a loan to (including deposit with) a prescribed dealer in the short-term money market.


(4) Subsection (2) does not prevent a company from investing, without obtaining the approval of the Commissioner, any moneys of a fund of the company under trust schemes if the sum of those moneys and the value of the assets of the fund consisting of investments under trust schemes does not exceed 5% of the value of the assets of the fund.


(5) In determining whether to grant or refuse approval under subsection (2) to a proposed investment of assets of a fund of a company (in this subsection referred to as the "investing company") in a related company or under a trust scheme, the Commissioner shall have regard to all matters that he considers relevant and, in particular, to the following matters:
(a) the proportion that the value of the assets of the fund consisting of investments in related companies or under trust schemes, as the case may be, bears, respectively, to the total value of the assets of that fund and to the total value of the assets of all funds of the investing company;
(b) the proportion that the value of assets of the fund invested in the related company or under the scheme, as the case may be, bears to the total value of the assets of the investing company;
(c) the overall financial strength of the investing company, including, in particular, the nature and the degree of diversity of the assets of the company;
(d) the viability of the related company or the scheme, as the case may be, including its past profitability and its likely future profitability;
(e) in the case of a proposed investment in a related company - the nature of the business carried on by the company;
(f) in the case of a proposed investment under a trust scheme - the nature of the assets of the scheme; and
(g) whether or not the proposed investment is likely to be in the best interests of the investing company and its policy owners.


(6) A transaction shall not be invalidated by reason only that it has been entered into in contravention of subsection (2), but nothing in this subsection shall affect the liability of any person to a penalty in respect of any such contravention.


(7) A company shall, within 6 weeks after each 31 December and 30 June, lodge with the Commissioner a statement, in accordance with the prescribed form, of such particulars of investments made by the company:
(a) in related companies (including subsidiaries); and
(b) under trust schemes;
as are specified in the form.


(8) Where, in relation to the investment of moneys of a fund of a company, reference is made in this section to a related company, or to a subsidiary, the reference shall, unless the contrary intention appears, be read as a reference to a company that is related to, or a reference to a company that is a subsidiary of, as the case may be, the first-mentioned company.


(9) A reference in this section to investment in a company shall be read as a reference to an investment by way of a loan to, or in shares in or debentures of, that company.


(10) For the purposes of a provision of this section:
(a) the value as at a particular date (whether or not that date is referred to in that provision) of the assets, or of particular assets, of a fund of a company is the amount disclosed as the value of the assets, or of the particular assets, as the case may be:
(i) in the last balance-sheet prepared by the company under
paragraph 44 (1) (d) and lodged under subsection 52 (2);
(ii) if no balance-sheet has been so lodged, in the last audited
balance-sheet of the company; or
(iii) if there is no such audited balance-sheet, in a balance-sheet
that is prepared by the company as at a date fixed by the Commissioner by notice in writing and is audited by a person approved under section 47;
(b) the value as at a particular date (whether or not that date is referred to in that provision) of the assets of a company is that amount disclosed as the value of the assets:
(i) in the last balance-sheet prepared by the company under
paragraph 44 (1) (d) and lodged under subsection 52 (2);
(ii) if no balance-sheet has been so lodged, in the last audited
balance-sheet of the company; or
(iii) if there is no such audited balance-sheet, in a balance-sheet
that is prepared by the company as at a date fixed by the Commissioner by notice in writing and is audited by a person approved under section 47;
(c) an investment by way of a loan shall be deemed to be made on the day on which the loan agreement is entered into; and
(d) assets of a fund of a company includes assets consisting of investments made before the commencement of this section.


(11) In this section:
"debenture" includes debenture stock, bonds, notes and any other document evidencing or acknowledging indebtedness of a body corporate in respect of money that is or may be deposited with or lent to the body corporate, whether constituting a charge on property of the body corporate or not, but does not include:
(a) a document that merely acknowledges the receipt of money by a body corporate in a case where, in respect of the money, the body corporate issues, in compliance with section 97 of the Companies Act 1981, a document prescribed by subsection (2) of that section and complies with the other requirements of that section;
(b) a cheque, order for the payment of money or bill of exchange; or
(c) for the purposes of the application of this definition to a provision of this Act in respect of which the regulations provide that the word "debenture" does not include a prescribed document or a document included in a prescribed class of documents - that document or a document included in that class of documents, as the case may be;
"fund", in relation to a company, means a statutory fund maintained by that company;
"moneys", in relation to a fund, means moneys that are assets of that fund;
"share", in relation to a company, means a share in the capital of the company, and includes stock;
"trust scheme" means a contract, scheme or arrangement made for the purpose of, or having the effect of, providing facilities for the participation by persons, as beneficiaries under a trust, in profits or income arising from the acquisition, holding, management or disposal of property of any description, including choses in action and money.

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

SECT

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 6 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 (3) (b), 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 subsection (4) in relation to assets included in a prescribed class of assets if, after the transfer of assets under paragraph (3) (b), 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 subsections (4) and (5), Commonwealth securities and public securities other than Commonwealth securities are prescribed classes of assets.


(7) A company shall, on or within 6 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 subsection (7) is in any respect unsatisfactory, incomplete, inaccurate or misleading or otherwise fails to comply with the requirements of that subsection;
(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) Where it appears at any time to the Commissioner that a direction given to a company under subsection (8) is no longer necessary or should be varied, the Commissioner shall, by notice in writing served on the company, revoke or vary the direction.


(11) Where a company to which a direction under subsection (8) has been given applies to the Commissioner, by notice in writing, for the direction to be revoked or varied, the Commissioner shall:
(a) if it appears to him that the direction is no longer necessary or should be varied - revoke or vary the direction; or
(b) in any other case - refuse to revoke or vary the direction;
and shall serve on the company notice in writing of his decision.


(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 by the Administrative Appeals Tribunal 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, by the Administrative Appeals Tribunal 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.


(14) In this section, unless the contrary intention appears, "direction" includes, where a direction is varied, the direction as varied.

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

SECT

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 - DIVISION 4
Division 4 - Accounts, Balance-sheets and Audit

LIFE INSURANCE ACT 1945 - SECT 41
Separate accounts for each class of life insurance business

SECT

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 - SECT 42
Apportionment of receipts and payments between life insurance business
and other business

SECT

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 - SECT 42AA
Apportionment of receipts and payments between life insurance business
carried on in Australia and outside Australia

SECT

42AA. Where a company carries on life insurance business both in Australia and outside Australia and an amount is received or paid partly in respect of life insurance business carried on in Australia and partly in respect of life insurance business carried on outside Australia, the company shall, for the purposes of this Division, apportion the amount in an equitable manner between life insurance business carried on in Australia and life insurance business carried on outside Australia.

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

SECT

42A. Subject to section 42B, 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 section 42) 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 - SECT 42B
Apportionment of payments in respect of income tax

SECT

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:
(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 subsection (1) 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 42, 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 - 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 - SECT 44
Accounts and balance-sheet

SECT

44. (1) 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.

LIFE INSURANCE ACT 1945 - SECT 45
Audit

SECT

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 - SECT 46
Certificate as to apportionment

SECT

46. If an apportionment has been made under this Division, the certificate of the auditors under section 45 shall state whether they are satisfied that the apportionment has been made in an equitable manner.

LIFE INSURANCE ACT 1945 - 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.

LIFE INSURANCE ACT 1945 - DIVISION 4A
Division 4A - Appointed Actuaries

LIFE INSURANCE ACT 1945 - SECT 47A
Appointment etc. of actuary

SECT

47A. (1) A company may appoint a person to be the appointed actuary of the company if, and only if, the person is ordinarily resident in Australia and:
(a) the person is a Fellow of the Institute of Actuaries of Australia of not less than 5 years standing; or
(b) there is in force an approval of the person by the Commissioner under subsection (4).


(2) The appointment shall be in writing.


(3) A company is not entitled to appoint a person to be the appointed actuary of the company if the appointment would result in there being more than one appointed actuary of the company at a particular time.


(4) The Commissioner may, at the request of the company concerned, approve a person in writing for the purposes of paragraph (1) (b) if the Commissioner is satisfied that the person has actuarial qualifications and experience that fit the person to perform the functions of an appointed actuary.


(5) A person ceases to be the appointed actuary of a company if:
(a) the person dies;
(b) the person ceases to be eligible for appointment as an appointed actuary;
(c) the company, in writing, accepts the written resignation of the person; or
(d) the company terminates the appointment by notice in writing to the person.

LIFE INSURANCE ACT 1945 - SECT 47B
Registered company required to appoint actuary

SECT

47B. (1) A company that is registered under this Act as at the commencement of this Division shall, not later than 3 months after that commencement, appoint a person under section 47A to be the appointed actuary of the company.


(2) A company that is registered under this Act shall, within 6 weeks after a person ceases to be the appointed actuary of the company, appoint a person under section 47A to be the appointed actuary of the company.
Penalty: $5,000.

LIFE INSURANCE ACT 1945 - SECT 47C
Registered company to notify appointment

SECT

47C. A company registered under this Act shall, within 14 days after appointing a person to be the appointed actuary of the company, give notice in writing to the Commissioner setting out:
(a) the name of the appointee;
(b) the date of birth of the appointee;
(c) details of the relevant qualifications and work experience of the appointee;
(d) the date of the appointment; and
(e) such other information (if any) as is prescribed.
Penalty: $2,000.

LIFE INSURANCE ACT 1945 - SECT 47D
Registered company to notify if appointed actuary ceases to act

SECT

47D. A company registered under this Act shall, within 14 days after a person ceases to be the appointed actuary of the company, give notice in writing to the Commissioner of the date on which the person so ceased.
Penalty: $2,000.

LIFE INSURANCE ACT 1945 - DIVISION 5
Division 5 - Actuarial Investigations

LIFE INSURANCE ACT 1945 - SECT 48
Actuarial reports, abstracts and statements of life insurance business

SECT

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 12 months:
(a) cause the appointed 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 written report of the results of the investigation;
(b) cause an abstract of the report of the appointed 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 appointed 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.


(3) The company shall cause a separate abstract and a separate statement or, in the case of an investigation referred to in subsection (2), 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 - SECT 49
Provisions as to valuations

SECT

49. (1) The provisions 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 or, if those rules have been amended by the regulations, in accordance with those rules as so amended.


(4) The appointed 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 or, if those rules have been amended by the regulations, in accordance with those rules as so amended.


(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 - SECT 50
Payments of dividends and bonuses from statutory funds

SECT

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 40 or 40A.


(2) If, as a result of the latest valuation in respect of a company which is either:
(a) a valuation made in pursuance of subsection 48 (1); or
(b) a valuation (not being a valuation in pursuance of that subsection) 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 subsections 48 (2), (3)
and (4) and section 49 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 the appointed actuary and subject to subsection (3) of this 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.


(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 subsection (2) 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.


(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 (2) (a) or (b), bonuses which were attached to policies at the date of commencment 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 subsections (2) and (3), 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 - DIVISION 6
Division 6 - Documents to be furnished to the Commissioner

LIFE INSURANCE ACT 1945 - SECT 51
Returns of policies

SECT

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 - SECT 52
Accounts, balance-sheets etc. to be signed and lodged with Commissioner

SECT

52. (1) Every account, balance-sheet, abstract, statement and return which a company is required by sections 44, 48 and 51 to prepare shall be printed and shall be signed by the chairman of directors and 2 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 10 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 44 or section 51 - within 3 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 48 - within 15 weeks after the date as at which the investigation was made;
or within such extended period, not exceeding 3 months, as the Commissioner allows.


(2A) Where a company has lodged with the Commissioner an abstract of a report prepared under section 48, the Commissioner may, by notice served on the company, direct the company to lodge with him, within such time as is specified in the notice, a copy of the report.


(2B) Where any document that is required by this section to be lodged with the Commissioner was required to be prepared by the appointed actuary of the company concerned, the company shall cause to be lodged with that document a statement, in accordance with the prescribed form, of the pecuniary interests of the actuary in respect of the company that are required by the form to be included in the form.


(2C) If the company lodges a statement for the purposes of subsection (2B) that the company believes, on reasonable grounds, to comply with the requirements of that subsection, the company shall be taken to have complied with that subsection even if the statement does not comply with the requirements of that subsection.


(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 14 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 record, statement or return affected by the variation, and the company shall comply with any directions so given.


(4) Where it appears at any time to the Commissioner that a direction given to a company under subsection (3) is no longer necessary or should be varied, the Commissioner shall, by notice in writing served on the company, revoke or vary the direction.


(5) Where a company to which a direction under subsection (3) has been given applies to the Commissioner, by notice in writing, for the direction to be revoked or varied, the Commissioner shall:
(a) if it appears to him that the direction is no longer necessary or should be varied - revoke or vary the direction; or
(b) in any other case - refuse to revoke or vary the direction;
and shall serve on the company notice in writing of his decision.


(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.


(7) In this section, unless the contrary intention appears, "direction" includes, where a direction is varied, the direction as varied.

LIFE INSURANCE ACT 1945 - SECT 53
Copies to be furnished

SECT

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 - DIVISION 7
Division 7 - Investigations by Commissioner

LIFE INSURANCE ACT 1945 - SECT 53A
Interpretation

SECT

53A. In this Division:
"officer", in relation to a company, means a person who is, or has been, an officer of the company and includes a person who is or has been:
(a) a director, secretary or employee of the company;
(b) the appointed actuary of the company;
(c) a person acting as actuary for the company;
(d) an auditor or agent of the company; or
(e) a shareholder of the company.

LIFE INSURANCE ACT 1945 - SECT 54
Commissioner may demand information

SECT

54. The Commissioner may demand in writing from a company:
(a) information that relates to any matter in connection with the business of the company or of a subsidiary of the company; or
(b) a copy of any document in the possession of the company that relates to any such matter.

LIFE INSURANCE ACT 1945 - SECT 54A
Power to require production of books

SECT

54A. (1) For the purpose of ascertaining whether a company has complied, or is complying with the provisions of this Act, the Commissioner or a person authorized by him, in writing, for the purposes of this section may require an officer of the company to produce to him any books required by or under this Act to be kept by the company and may inspect, take extracts from and make copies of any such books.


(2) For the purpose of facilitating consideration of an application made, whether before or after the commencement of this subsection, by a company for registration under this Act, the Commissioner or a person authorized by him, in writing, for the purposes of this section may require an officer of the company to produce to him any books of the company and may inspect, take extracts from and make copies of any such books.


(3) An officer of a company shall comply with a requirement made under subsection (1) or (2).


(5) A person shall not obstruct or hinder the Commissioner or person authorized by him for the purposes of this section while the Commissioner or that person is exercising a power under this section.
Penalty: $1,000 or imprisonment for 3 months.

LIFE INSURANCE ACT 1945 - SECT 54B
Access to premises

SECT

54B. (1) For the purpose of ascertaining whether a company has contravened or failed to comply with the provisions of this Act, an authorized person may, with the consent of the occupier of any premises, enter the premises for the purpose of searching for, inspecting, taking extracts from and making copies of any books of the company.


(2) Where an authorized person has reason to believe that:
(a) a company has contravened or failed to comply with the provisions of this Act; and
(b) there are, on any premises, books of the company;
the authorized person may make an application to a Justice of the Peace for a warrant authorizing the authorized person to enter the premises for the purpose of searching for, inspecting, taking extracts from and making copies of any books of the company.


(3) If, on an application under subsection (2), the Justice of the Peace is satisfied by information on oath or affirmation:
(a) that there is reasonable ground for believing that:
(i) the company has contravened or failed to comply with the
provisions of this Act; and
(ii) there are, on the premises, books of the company; and
(b) that the issue of the warrant is reasonably required for the purposes of this Act;
the Justice of the Peace may grant a warrant authorizing the authorized person, with such assistance as the authorized person thinks necessary, to enter the premises, during such hours of the day or night as the warrant specifies or, if the warrant so specifies, at any time, and if necessary by force, for the purpose of searching for, inspecting, taking extracts from and making copies of any such books.


(4) Where an authorized person has entered any premises in pursuance of subsection (1) or in pursuance of a warrant granted under subsection (3), he may search for, inspect, take extracts from and make copies of any books of the company.


(5) A person shall not, without reasonable excuse, obstruct or hinder an authorized person acting in pursuance of a warrant granted under subsection (3) or in pursuance of subsection (4).
Penalty: $1,000 or imprisonment for 3 months.


(6) A reference in this section to an authorized person shall be read as a reference to the Commissioner or a person authorized by him, in writing, for the purposes of this section.

LIFE INSURANCE ACT 1945 - SECT 54C
Inquiry by Commissioner and direction not to deal with certain assets

SECT

54C. (1) This section applies to a company registered under this Act if it appears to the Commissioner that the company is, or is likely to become, unable to meet its liabilities.


(2) The Commissioner may, by notice in writing served on the company, direct it to give to the Commissioner, within such period as is specified in the notice, such information in writing about the affairs of the company as is specified in the notice.


(3) The period specified in a notice under subsection (2) must end later than 7 days after the date of service of the notice.


(4) The Commissioner may, by written notice served on the company, direct it, in relation to an asset specified in the notice:
(a) in any case - not to dispose of or otherwise deal with the asset during such period as is specified in the notice; or
(b) if the asset is in Australia - not to remove the asset from Australia during such period as is specified in the notice.


(5) The period specified in a notice under subsection (4) must end earlier than 6 months after the date of service of the notice.


(6) A failure to comply with subsection (4) does not affect the validity of a transaction.


(7) A direction under subsection (4) in respect of a company ceases to have effect if the company is commenced to be wound up.


(8) A company which contravenes a direction given to it under this section is guilty of an offence punishable on conviction by a fine not exceeding $1,000,000.

LIFE INSURANCE ACT 1945 - SECT 55
Power to make investigation

SECT

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 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 a provision of this Act, a direction given to the company under this Act or a condition imposed on the company under section 20;
(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;
(da) a company has not, within one month after the day on which the Commissioner demanded from it in writing any document that the Commissioner was entitled under this Act to demand, given the document to the Commissioner;
(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 14 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 - SECT 56
Power to obtain information

SECT

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:
(i) an officer of the company; or
(ii) any person who is, or has at any time been, the owner of a
policy issued by the company or the personal representative of the owner; and
(c) for the purpose of paragraph (b), may administer oaths or take affirmations.


(2) A person specified in paragraph (1) (b) 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.


(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 subsection (2), give any false information.
Penalty: $100.

LIFE INSURANCE ACT 1945 - SECT 57
Persons to observe secrecy

SECT

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: $200 or imprisonment for 6 months.

LIFE INSURANCE ACT 1945 - SECT 57A
Directions during or after investigation

SECT

57A. (1) If an investigation under this Division in respect of any company is being or has been made and it appears to the Commissioner:
(a) that the company is, or is about to become, unable to meet its liabilities; or
(b) the company has contravened a provision of this Act; or
(c) the company has contravened a condition or direction applicable to it under this Act;
the Commissioner may, by written notice served on the company, give directions to the company about its life insurance business.


(2) The directions the Commissioner may give under this section include, but are not limited to, directions that the company is not to issue any further policies (other than paid up policies as required by this Act).


(3) A direction issued to a company under this section must not remain in force for more than 12 months.


(4) Subsection (3) does not prevent the Commissioner from issuing further directions to the company.


(5) If it appears to the Commissioner that a direction is no longer necessary or should be varied, the Commissioner must, by notice served on the company, revoke or vary the direction.


(6) If a company to which a direction has been issued applies to the Commissioner, in writing, for the direction to be revoked or varied, the Commissioner must:
(a) if it appears to the Commissioner that the direction is no longer necessary or should be varied - revoke or vary the direction; or
(b) in any other case - refuse to revoke or vary the direction.


(7) The Commissioner must serve on the company written notice of a decision made under subsection (6).


(8) A failure to comply with a direction under this section does not affect the validity of a transaction.


(9) A direction under this section in respect of a company ceases to have effect if the company is commenced to be wound up.


(10) A company which contravenes a direction given to it under this section is guilty of an offence punishable on conviction by a fine not exceeding $20,000.


(11) In this section:
"direction" includes, if a direction is varied, the direction as varied.

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

SECT

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, 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 12 months, but nothing in this subsection shall prevent the Commissioner from issuing any further direction to the company.


(3) Where it appears at any time to the Commissioner that a direction issued to a company under paragraph (1) (b) is no longer necessary or should be varied, the Commissioner shall, by notice in writing served on the company, revoke or vary the direction.


(4) Where a company to which a direction under paragraph (1) (b) has been issued applies to the Commissioner, by notice in writing, for the direction to be revoked or varied, the Commissioner shall:
(a) if it appears to him that the direction is no longer necessary or should be varied - revoke or vary the direction; or
(b) in any other case - refuse to revoke or vary the direction;
and shall serve on the company notice in writing of his decision.


(5) In this section, unless the contrary intention appears, "direction" includes, where a direction is varied, the direction as varied.

LIFE INSURANCE ACT 1945 - DIVISION 8
Division 8 - Judicial Management and Winding-up

LIFE INSURANCE ACT 1945 - SECT 59
Application for judicial management or winding-up

SECT

59. (1) If the Commissioner, by reason of the conclusions arrived at by him as a result of an investigation under Division 7 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 subsection (1).


(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 - SECT 60
Judicial management

SECT

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 section 59 shall be subject to the provisions of this section and of sections 61, 62, 63, 64, 65 and 66.


(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 - 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 - SECT 62
Report by judicial manager

SECT

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 interest 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 (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 - 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 - SECT 64
Decision of Court on report of judicial manager

SECT

64. (1) The Court shall on the hearing of an application made under subsection 62 (2):
(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 - SECT 65
Transfer of business to another company

SECT

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 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 - 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 60 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 - SECT 67
Winding-up

SECT

67. (1) An order of the Court for the winding-up of a company made after the hearing of an application under section 59 or made in pursuance of section 64, shall be subject to the provisions and of sections 68, 69 and 70.


(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 - SECT 68
Ascertainment of value of liability under policies

SECT

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 - SECT 69
Application of certain assets

SECT

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 10 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 - SECT 70
Liability of directors and officers

SECT

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 - SECT 72
Winding-up of part of business of company

SECT

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 59, or in pursuance of section 64, 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 59 - by the person who made the application; or
(b) if the order is made in pursuance of section 64 - 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 67, 68, 69, 70 and 71 shall apply, with such alterations as are necessary, in a winding-up in accordance with a scheme under this section.

LIFE INSURANCE ACT 1945 - DIVISION 9
Division 9 - Transfer and Amalgamation

LIFE INSURANCE ACT 1945 - SECT 73
Transfer or amalgamation

SECT

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 - SECT 74
Preparation of scheme

SECT

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 - SECT 75
Submission, confirmation and effect of schemes

SECT

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 15 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 15 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 - 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:
(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 - PART IV
PART IV - PROVISIONS RELATING TO POLICIES

LIFE INSURANCE ACT 1945 - DIVISION 1
Division 1 - Issue of Policies

LIFE INSURANCE ACT 1945 - SECT 77
Certain forms to be submitted for approval

SECT

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 is 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 - 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 the appointed 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 the appointed actuary as to the suitability of the rate of premium chargeable under any class of policy issued by the company and, if the appointed actuary considers that the rate is not suitable, a report as to the rate of premium which the appointed actuary approves as suitable in respect of that class of policy.


(3) Where any requirement is made under subsection (2) 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 appointed actuary to the rate of premium.


(4) The appointed 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 - 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 the appointed 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 greater.

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

SECT

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 - SECT 84
Incorrect statement in proposal not to avoid policy

SECT

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 3 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 - SECT 85
Minors

SECT

85. (1) A minor who has attained the age of 10 years but has not attained the age of 16 years may, with the written consent of a parent of the minor 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 16 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 subsection (3), 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 not a minor.


(3) A minor who has attained the age of 16 years is not competent to assign or mortgage a policy except with the consent in writing of a parent of the minor or of a person standing in loco parentis to the minor.

LIFE INSURANCE ACT 1945 - SECT 86
Insurable interest

SECT

86. (1) An insurable interest shall be deemed to be had by:
(a) a parent of a child under 21 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) Subject to section 86A, 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 - SECT 86A
Application of sections 83, 84 and 86

SECT

86A. Sections 83, 84 and 86 do not apply to or in relation to a policy to or in relation to which the Insurance Contracts Act 1984 applies.

LIFE INSURANCE ACT 1945 - DIVISION 2
Division 2 - Assignments and Mortgages of Policies

LIFE INSURANCE ACT 1945 - SECT 87
Assignments of policies

SECT

87. (1) Subject to section 91, 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:
(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 89 be affected by express, implied or constructive notice of any trust, right, equity or interest.


(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 - SECT 88
Mortgages and trusts

SECT

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 section 89, be affected by express, implied or constructive notice of any such mortgage or trust.

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

SECT

89. (1) Notwithstanding anything contained in sections 87 and 88, 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.


(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 a Registrar, a District Registrar, a Deputy Registrar or a Deputy 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 Judge of the Court orders.

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

SECT

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 - SECT 91
Policies held by trustees

SECT

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 - DIVISION 3
Division 3 - Protection of Policies

LIFE INSURANCE ACT 1945 - SECT 92
Interest of insured protected in certain cases

SECT

92. (1) Subject to the Bankruptcy Act 1966, 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.


(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, 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 - SECT 93
Insurance by married women

SECT

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 section 92 shall extend to any such policy bona fide effected by a married woman.

LIFE INSURANCE ACT 1945 - SECT 94
Family insurance policies

SECT

94. (1) Subject to the Bankruptcy Act 1966, 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 subsection (4), 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, subsection (1).


(4) If, at any time, there is no trustee and the policy is not vested in any person in pursuance of subsection (3) and it is expedient to appoint trustees or new trustees, trustees or new trustees may be appointed by the Supreme Court of a State or Territory.


(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 subsection (6), 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.


(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.


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

LIFE INSURANCE ACT 1945 - SECT 95
Application of Division

SECT

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.


(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 - SECT 96
Paid-up policies

SECT

96. Where a policy owner who desires to discontinue further premium payments on a policy on which not less than 3 years' premiums have been paid in cash makes application to the company for a paid-up policy:
(a) the company shall vary the policy so as to provide for the payment, in lieu of the amount originally payable, of an amount not less than the amount determined in accordance with the rules set out in Part I of the Sixth Schedule; and
(b) the policy as so varied shall be taken, for the purposes of that Part of that Schedule, to be a paid-up policy.

LIFE INSURANCE ACT 1945 - SECT 97
Surrender of policies

SECT

97. (1) The owner of a policy which has been in force for at least 6 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 subsection (1) to a paid-up policy which has been issued in lieu of another policy, the period of 6 years shall be calculated from the date of issue of the original policy.

LIFE INSURANCE ACT 1945 - SECT 98
Calculation of surrender values

SECT

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 - SECT 99
Relaxation of obligations as to surrender values

SECT

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 - SECT 100
Non-forfeiture of ordinary policies in certain cases on non-payment of
premiums

SECT

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 3 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 favourable 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 subsection (1), (2) or (3), an ordinary policy on which not less than 3 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 28 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 28 days has elapsed after the service of the notice.

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

SECT

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 4 weeks after it became due.


(2) An industrial policy on which not less than one year's but less than 2 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 8 weeks after it became due.


(3) An industrial policy on which not less than 2 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 12 weeks after it became due.


(4) In the event of an industrial policy on which not less than 3 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 - 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 - DIVISION 5
Division 5 - Payment of Policy Moneys

LIFE INSURANCE ACT 1945 - SECT 103
Probate or administration may be dispensed with in certain cases

SECT

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 $6,000 or such other amount as is prescribed for the purposes of this section; or
(b) there are 2 or more policies under which moneys are so payable and the aggregate of those moneys does not, excluding bonus additions, exceed $6,000 or such other amount as is prescribed for the purposes of this section;
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 - SECT 103A
Death of owner of policy not being life insured

SECT

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 subsection (2), the owner of the policy.


(2) Subsection (1) 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) whether the deceased owner died before or after the commencement of this section.


(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 $3,000 or such other amount as is prescribed for the purposes of this section; or
(b) a policy which is one of 2 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 $3,000 or such other amount as is prescribed for the purposes of this section.


(5) For the purposes of subsection (4), 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 - SECT 104
Company not bound to see to application of moneys paid by it

SECT

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 - SECT 105
Power to pay money into court

SECT

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.


(2) The receipt of a Registrar, a District Registrar, a Deputy Registrar or a Deputy 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 - SECT 106
Unclaimed moneys

SECT

106. (1) A company shall, within 3 months after 31 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 31 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 subsection (4), 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.


(8) The Treasurer shall cause particulars of every sum of not less than the statutory threshold shown in a statement delivered to him under this section to be published in the Gazette.


(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 Commissioner or an officer of the Australian Public Service authorized by him to act under this section;
"statutory threshold" means $200 or such higher amount as is prescribed;
"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 - SECT 107
No deductions in respect of other policies

SECT

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

LIFE INSURANCE ACT 1945 - SECT 108
Interpretation

SECT

108. In this Division, unless the contrary intention appears:
"prescribed amount", in relation to a child, means $500 or such other amount as is, under the regulations, applicable to the child for the purposes of this Division;
"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 8% per year or such other rate as is prescribed for the purposes of this definition, 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 - SECT 109
Limitation of amount payable on death of child

SECT

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 10 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 10 years of age by any other company or by any friendly society, exceeds the prescribed amount as defined by section 108.

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

SECT

110. A company shall not pay any sum (apart from repayment of premiums) on the death of a child under 10 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 - SECT 111
Certificates of death

SECT

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 10 years for the payment in the whole of any sum of money exceeding the prescribed amount as defined by section 108.


(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 10 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 - SECT 112
Offences and penalties

SECT

112. It shall be an offence against this Act:
(a) if a company pays any money on any policy taken out on the death of a child under 10 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 10 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, insuring payment of a sum of money (apart from repayment of premiums) on the death of a child under 10 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 10 years of age (apart from repayment of premiums) does not exceed the prescribed amount as defined by section 108.
Penalty: $100.

LIFE INSURANCE ACT 1945 - SECT 113
Savings as to insurable interest

SECT

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 (otherwise than by reason of his being a parent or person in loco parentis of the child) in the life of the child.

LIFE INSURANCE ACT 1945 - DIVISION 7
Division 7 - Children's Advancement Policies

LIFE INSURANCE ACT 1945 - SECT 114
Interpretation

SECT

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 18 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 25 years; or
(b) an age (not less than 10 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 116, 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 - 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 - 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.


(2) Subject to subsection (4), 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.


(4) On the death or bankruptcy, during the child's lifetime 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 subsection 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 subsection 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 - DIVISION 8
Division 8 - General

LIFE INSURANCE ACT 1945 - SECT 117
Registries and Registers

SECT

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 - SECT 118
Registration of policies

SECT

118.


(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.


(6) All expenses incurred in connexion with any transfer of a policy in pursuance of subsection (4) or (5) shall be borne by the policy owner.


(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 - SECT 119
Lost policies

SECT

119. (1) Where:
(a) the owner of a policy; or
(b) a person claiming the benefit of the provisions of section 103 or 103A 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 subsection (1) of this section is made by a person referred to in paragraph (b) of that subsection, the company shall not issue a special policy unless the company is satisfied that the provisions of section 103 or 103A 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.


(4) Before issuing a special policy the company shall, if the amount insured, exclusive of bonus additions, exceeds $3,000 or such other amount as is prescribed for the purposes of this section, give at least 10 days' 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 103 or 103A, 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 paragraph (a) 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 6 months after receipt of an application in writing from the policy owner, 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.


(8A) Where:
(a) the owner of a policy or a person claiming the benefit of section 103 or 103A in respect of a policy:
(i) claims that the policy is lost or has been destroyed; and
(ii) makes a claim under the policy, or makes any other request or
claim in respect of the policy, that would result in the termination of the policy; and
(b) the company liable under the policy:
(i) satisfies the claim or complies with the request referred to in
subparagraph (a) (ii);
(ii) records details of its action in the appropriate register of
policies; and
(iii) before satisfying the claim or complying with the request
referred to in subparagraph (a) (ii), has given at least 10 days' notice of its intention so to do;
the original policy is void.


(8B) A notice under subparagraph (8A) (b) (iii) shall be given:
(a) in a newspaper circulating:
(i) in whichever of the following districts is applicable:
(A) if the person who made the claim or the request referred to
in subparagraph (8A) (a) (ii) is the owner of the policy - the district in which the person resides;
(B) if the person who made the claim or request referred to in
subparagraph (8A) (a) (ii) is a person claiming the benefit of section 103 or 103A in respect of the policy - the district in which the deceased policy owner ordinarily resided at the time of his or her death; or
(ii) in the district in which the policy is considered by the
company to have been lost or destroyed; and
(b) if the newspaper in which notice is given in accordance with paragraph (a) does not circulate in the State or Territory in which the policy is registered - in a newspaper circulating in that State or Territory.


(8C) The expenses of the advertisement shall be paid by the person who made the claim or the request referred to in subparagraph (8A) (a) (ii).


(9) If the owner of a special policy or a person claiming the benefit of the provisions of section 103 or 103A 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 - SECT 120
Effect of suicide or capital punishment on policy

SECT

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 - 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 - 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 - PART V
PART V - PROVISIONS RELATING TO INDUSTRIAL INSURANCE BUSINESS

LIFE INSURANCE ACT 1945 - SECT 123
Objection to policies

SECT

123. (1) If, within 28 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 16 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 - SECT 124
Return of industrial policies and premium receipt books after
inspection

SECT

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 28 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 - SECT 125
Penalties for falsification

SECT

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 - SECT 126
As to avoidance of policy by reason of particulars in proposal written
or filled in by agent or servant of company

SECT

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 - SECT 127
Particulars to be set forth in policies

SECT

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.

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

SECT

128. (1) Subject to subsection (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.


(1A) If the policy owners concerned do not object, a company may:
(a) issue one premium receipt book in respect of 2 or more policies if held by the same policy owner or by 2 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.


(2) A company shall not issue or permit to be used one premium receipt book in respect of 2 or more policies held by different policy owners not members of the same household.


(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 127 (a) and (b);
(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 - SECT 129
Premium receipt book to show date to which premiums paid etc.

SECT

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 section 128 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 - SECT 130
Guarantor not to be liable to refund commissions on lapsed policies

SECT

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 - SECT 131
Production of company's certificate as to agent's or guarantor's
indebtedness not to be conclusive evidence thereof

SECT

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.

LIFE INSURANCE ACT 1945 - PART VII
PART VII - MISCELLANEOUS

LIFE INSURANCE ACT 1945 - SECT 138
Review of certain decisions

SECT

138. (1) In this section:
"person affected by a reviewable decision", in relation to a reviewable decision, means the company in relation to which the decision was made and:
(a) in the case of a refusal under section 4A to approve a person as an actuary for the purposes of this Act - that person;
(b) in the case of a refusal under section 47 to approve of a person performing the functions of an auditor under Division 4 of Part III or a revocation of an approval given in respect of a person under that section - that person; or
(c) in the case of a refusal under subsection 47A (4) to approve a person, or a revocation of an approval given in respect of a person under that subsection - that person;
"reviewable decision" means:
(aa) a refusal to give an approval under subsection 4A (3);
(b) a refusal under subsection 19 (1) to register a company;
(ba) a decision under section 20;
(c) a cancellation under subsection 23A (2) of the registration of a company;
(d) a refusal to give an approval under subsection 39 (2);
(e) a direction given under subsection 40 (8) or a decision under subsection 40 (10) or (11);
(f) a refusal under section 47 to approve of a person performing the functions of an auditor under Division 4 of Part III or a revocation of an approval given in respect of a person under that section;
(fa) a refusal to give an approval under subsection 47A (4), or a revocation of an approval given under that subsection;
(g) a rejection under subsection 52 (3) of an account, balance-sheet, abstract, statement or return, a direction given under subsection 52 (3) or a decision under subsection 52 (4) or (5);
(ga) a direction given under subsection 57A (1) or a decision under subsection 57A (5) or (6);
(h) a direction given under subsection 58 (1) or a decision under subsection 58 (3) or (4); or
(i) a direction given under subsection 54C (4).


(2) A person affected by a reviewable decision of the Commissioner who is dissatisfied with the decision may, by notice given to the Commissioner within the period of 21 days after the day on which the decision first comes to the notice of the person, or within such further period as the Commissioner allows, request the Commissioner to reconsider the decision.


(3) There shall be set out in the request reasons for making the request.


(4) Upon receipt of the request, the Commissioner shall reconsider the decision and may, subject to subsections (5) and (6), confirm or revoke the decision or vary the decision in such manner as he thinks fit.


(5) The Commissioner shall not, under subsection (4), confirm, revoke or vary a decision of a kind referred to in paragraph (b) or (c) of the definition of "reviewable decision" in subsection (1) without the approval of the Treasurer.


(6) Where the Commissioner does not confirm, revoke or vary a decision before the expiration of the period of 21 days after the day on which he received the request under subsection (2) to reconsider the decision, he shall, upon the expiration of that period, be deemed to have confirmed the decision under subsection (4).


(7) Where the Commissioner confirms, revokes or varies a decision before the expiration of the period referred to in subsection (6), he shall, by notice served on the person who made the request, inform the person of the result of his reconsideration of the decision and his reasons for confirming, varying or revoking the decision, as the case may be.


(8) Applications may be made to the Administrative Appeals Tribunal for review of decisions of the Commissioner that have been confirmed or varied under subsection (4).


(9) Where a decision is deemed, by reason of the operation of subsection (6), to be confirmed, section 29 of the Administrative Appeals Tribunal Act 1975 applies as if the prescribed time for making application for review of the decision were the period commencing on the day on which the decision is deemed to be confirmed and ending on the twenty-eighth day after that day.


(10) Where a person makes a request under subsection (2) in respect of a reviewable decision, section 41 of the Administrative Appeals Tribunal Act 1975 applies as if the making of the request were the making of an application to the Administrative Appeals Tribunal for a review of that decision.


(11) For the purposes of a review of a reviewable decision, the Tribunal shall, subject to subsections 21 (1A) and 23 (1) of the Administrative Appeals Tribunal Act 1975, be constituted by a presidential member and 2 non-presidential members.


(12) In giving a direction as to the persons who are to constitute the Tribunal for the purposes of a review of a reviewable decision, or for the purposes of a request under subsection 41 (2) of the Administrative Appeals Tribunal Act 1975 in respect of such a decision, the President shall ensure that each non-presidential member of the Tribunal as so constituted is a person who, in the opinion of the President, has special knowledge or skill in relation to life insurance business.


(13) A non-presidential member of the Tribunal shall not sit as a member of the Tribunal for the purposes of a review of a reviewable decision, or for the purposes of a request under subsection 41 (2) of the Administrative Appeals Tribunal Act 1975 in respect of such a decision, if he is a director or employee of a company, body corporate or body carrying on (whether in Australia or elsewhere) life insurance business or insurance business.


(14) An order shall not be made under subsection 41 (2) of the Administrative Appeals Tribunal Act 1975 in respect of a reviewable decision except by the Tribunal.


(15) The hearing of a proceeding relating to a reviewable decision shall take place in private and the Tribunal may, by order:
(a) give directions as to the persons who may be present; and
(b) give directions of a kind referred to in paragraph 35 (2) (b) or (c) of the Administrative Appeals Tribunal Act 1975.


(16) In relation to a decision of the Treasurer under section 20, references in this section to the Commissioner shall be read as references to the Treasurer.

LIFE INSURANCE ACT 1945 - SECT 138A
Statements to accompany notification of decisions

SECT

138A. (1) Where notice in writing is given to a person affected by a reviewable decision that the reviewable decision has been made, that notice shall include a statement to the effect that:
(a) the person may, if he is dissatisfied with the decision, seek a reconsideration of the decision by the Treasurer or the Commissioner, as the case may be, in accordance with subsection 138 (2); and
(b) a person whose interests are affected by the decision may, subject to the Administrative Appeals Tribunal Act 1975, if he is dissatisfied with a decision made by the Treasurer or the Commissioner upon that reconsideration confirming or varying the first-mentioned decision, make application to the Administrative Appeals Tribunal for review of the decision so confirmed or varied.


(2) Where the Treasurer or the Commissioner confirms or varies a reviewable decision under subsection 138 (4) and gives to a person notice in writing of the confirmation or variation of the decision, that notice shall include a statement to the effect that a person whose interests are affected by the decision may, subject to the Administrative Appeals Tribunal Act 1975, if he is dissatisfied with the decision so confirmed or varied, make application to the Administrative Appeals Tribunal for review of the decision.


(3) Any failure to comply with the requirements of subsection (1) or (2) in relation to a reviewable decision or a decision under subsection 138 (4) does not affect the validity of that decision.


(4) In this section, "person affected by a reviewable decision" and "reviewable decision" have the same respective meanings as in subsection 138 (1).

LIFE INSURANCE ACT 1945 - SECT 139
Issue of shares or debentures by companies

SECT

139. (1) A person shall not publish in respect of any company or in respect of a company proposed to be formed a prospectus, notice, circular, advertisement or other invitation offering to the public for subscription any shares in, or debentures of, 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 promotor 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.


(3) In this section:
"debenture", in relation to a company, includes debenture stock, bonds, notes and any other document evidencing or acknowledging indebtedness of the company, whether constituting a charge on the property of the company or not;
"share", in relation to a company, means a share in the capital of the company, and includes stock.

LIFE INSURANCE ACT 1945 - SECT 139A
Documents lodged or furnished under laws relating to acquisition of
shares

SECT

139A. (1) A company, being a company registered under this Act or the holding company of a company so registered, shall, within 7 days after:
(a) the company lodges a document, or a copy of a document, with a person holding an office established by or under a law of the Commonwealth, of a State or of a Territory or with a body so established; or
(b) a document, or a copy of a document, is furnished to the company;
for the purposes of the Companies (Acquisition of Shares) Act 1980 or the corresponding law of a State or of a Territory other than the Australian Capital Territory, lodge a copy of that document with the Commissioner.

LIFE INSURANCE ACT 1945 - SECT 140
Voting by post

SECT

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 3 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.


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

LIFE INSURANCE ACT 1945 - SECT 141
Inspection of documents

SECT

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 subsection 52 (2), and make a copy of, or extract from, the document.

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

SECT

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 - SECT 143
Publication of authorised, subscribed and paid-up capital

SECT

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 - SECT 144
Modification of Schedules

SECT

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 3 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.


(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 52:
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 - 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) The Commissioner may publish, in such form as he determines, any statistics collected under this section.

LIFE INSURANCE ACT 1945 - SECT 146
Service of notices

SECT

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 address last known to the Commissioner; 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:
"address" means any premises or place (including a post office box or bag service) to which postal articles may be addressed;
"company" includes a body corporate that has ceased to carry on life insurance business in Australia.

LIFE INSURANCE ACT 1945 - SECT 146A
Bankrupts and persons convicted of certain offences not to be directors,
principal executive officers etc. of registered life insurers

SECT

146A. (1) For the purposes of this section, a person is a disqualified person if, at any time, whether before or after the commencement of this section:
(a) the person has been convicted of an offence against or arising out of this Act; or
(b) the person has been convicted of an offence against or arising out of a law of the Commonwealth, a State, a Territory or a foreign country, being an offence in respect of:
(i) conduct relating to insurance; or
(ii) dishonest conduct; or
(c) the person has:
(i) become bankrupt; or
(ii) applied to take the benefit of a law for the relief of
bankrupt or insolvent debtors; or
(iii) compounded with his or her creditors.


(2) A disqualified person must not:
(a) be, or act as, a director or principal executive officer or the appointed actuary of a company (other than a foreign company) registered under this Act; or
(b) be, or act as, a local executive officer or the appointed actuary of a foreign company registered under this Act.
Penalty: Imprisonment for 2 years.


(3) A company (other than a foreign company) registered under this Act must not permit a disqualified person to be, or act as, a director or principal executive officer or the appointed actuary of the company.
Penalty: $25,000.


(4) A foreign company registered under this Act must not permit a disqualified person to be, or act as, a local executive officer or the appointed actuary of the company.
Penalty: $25,000.


(5) In a prosecution under subsection (3) or (4), it is a defence if the defendant proves that:
(a) the defendant did not know, and had no reasonable grounds to suspect, that the person was a disqualified person; and
(b) the defendant had made all reasonable efforts to ascertain whether the person was a disqualified person.


(6) A failure to comply with this section does not affect the validity of an appointment or transaction.


(7) A reference in subsection (1) to a person who has been convicted of an offence includes a reference to a person in respect of whom an order has been made under section 19B of the Crimes Act 1914, or under a corresponding provision of a law of a State, a Territory or a foreign country, in relation to the offence.


(8) In this section:
"local executive officer", in relation to a foreign company, means:
(a) a natural person:
(i) who is a resident of Australia; and
(ii) who is solely or principally responsible for the management of
the life insurance business of the company in Australia; or
(b) the principal officer of the company appointed under section 21;
"principal executive officer", in relation to a company, means the principal executive officer of the company for the time being, by whatever name called, and whether or not he or she is a director.

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

SECT

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 - SECT 148
Offences

SECT

148. (1) Any company which contravenes or fails to comply with:
(a) any provision of this Act;
(aa) a condition imposed under section 20;
(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 55;
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 3 years from the commission of the offence.


(5) For the purposes of subsection (4), 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 - SECT 149
Penalties

SECT

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 - SECT 150
Regulations

SECT

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 4 Schedules; and
(c) for prescribing penalties not exceeding $100 for any breach or contravention of the regulations.

LIFE INSURANCE ACT 1945 - SCHEDULE 1

SCH

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 Amounts Paid or
beginning of year Outstanding under
Policies-
Insurance Premiums- Claims- Death
Single Premiums Maturity
Other Premiums Other
Consideration for Surrenders (including
Annuities Granted- surrenders of
Single Premiums bonus)
Other Premiums
Bonuses paid in Cash
Total Premiums, &c. Annuities
Interest Dividends and Total Policy
Rents Payments, &c.
Less Rates and Taxes Expenses and Other
thereon
Out go-
Commission
Net Interest, &c. Salaries
Travelling Expenses
Values allowed on Contribution to
conversion from other Staff
classes of life Superannuation
insurance business Fund or Scheme
Transfers from Reserves Directors' Fees
(to be specified) Auditors' Fees
Appreciation of Assets Medical Fees
Profit on Sale of Assets Legal Expenses
Other Income (to be Office Rent
specified) 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.
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 Claims under insurance
beginning of year contracts paid and
Reserve for Unexpired Risks outstanding, including
Additional Reserve (if any) medical and legal expenses
directly incurred in settling
Total Reserves claims
Premiums Expenses and Other Outgo-
Interest, Dividends and Rents Commission
Rates and Taxes thereon Salaries
Travelling Expenses
Net Interest, &c. Contributions to Staff
Transfers from Reserves (to Superannuation Fund
be specified) Directors' Fees
Appreciation of Assets Auditors' Fees
Profit on Sale of Assets Medical Fees
Other Income (to be specified) 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.
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.
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 Dividends paid to
shareholders,
beginning of year - - not charged to other Accounts - -
Interest, Dividends and Expenses not charged to other
Rents not
carried to other Accounts Accounts (to be specified)
Profits transferred from Revenue
and other Accounts (to be Transfers to Revenue and other
specified) Accounts (to be specified)
Balance at end of year, as shown
Other Income (to be specified) 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 OMITTED)
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 Insurance
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.
FORM F
Section 51
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
Section 51
Class of Life Insurance Business
Name of Company Insurances 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 Insurance
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 - SCHEDULE 2

SCH

THE SECOND SCHEDULE Section 48
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 the appointed actuary of the
company concerned 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 appointed 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 appointed 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 and 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 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 Net
of Sums Yearly Yearly Sums Yearly Liab
ility
Policies insured Bonuses Premiums Premiums insured Bonuses Premiums
$ $ $ $ $ $ $ $
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
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 Deficiency (if any)
Territory
Other
Surplus (if any)

LIFE INSURANCE ACT 1945 - SCHEDULE 3

SCH

THE THIRD SCHEDULE Section 48<
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 I prepared under the
Second Schedule shall not be included in statements prepared under this
Schedule.
4. Every statement prepared under this Schedule shall be signed by the
appointed 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.
6. 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.
7. 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) 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 - SCHEDULE 4

SCH

THE FOURTH SCHEDULE Section 49
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 in calculating-
(a) in respect of a life policy, being a deferred annuity policy-the
liability under the policy in respect of the period during which an
annuity shall be payable; or
(b) in respect of a life policy, being an annuity policy under which
an annuity has become payable-the liability under the policy in respect
of the period during which the annuity shall continue to be payable,
shall be rates assumed in accordance with-
(c) if the policy is effected upon the life of a male person-the
ultimate table of mortality for male lives included in the tables
published by the Institute of Actuaries and the Faculty of Actuaries
under the title "a (90) TABLES FOR ANNUITANTS";
(d) if the policy is effected upon the life of a female person-the
ultimate table of mortality for female lives included in the tables
published by the Institute of Actuaries and the Faculty of Actuaries
under the title "a (90) TABLES FOR ANNUITANTS"; or
(e) if the policy is effected upon the joint lives of 2 or more
persons-
(i) in respect of each male person upon whose life the policy is
effected-the ultimate table of mortality referred to in paragraph (c);
and
(ii) in respect of each female person upon whose life the policy is
effected-the ultimate table of mortality referred to in paragraph (d).
(1A) The rates of mortality used in calculating-
(a) in respect of a life policy, being a deferred annuity policy-the
liability under the policy in respect of the period of deferment
provided for under the policy; or
(b) in respect of a life policy other than an annuity policy-the
liability under the policy in respect of the period of insurance under
the policy, shall be rates assumed in accordance with-
(c) if the policy is effected upon the life of a male person-the
ultimate table of mortality included in the tables published for the
Institute of Actuaries and the Faculty of Actuaries under the title "A
1949-52 Tables for Assured Lives";
(d) if the policy is effected upon the life of a female person-the
ultimate table of mortality referred to in paragraph (c) modified by
adding 3 years to each of the ages specified in the last column of that
table; or
(e) if the policy is effected upon the joint lives of 2 or more
persons-
(i) in respect of each male person upon whose life the policy is
effected-the ultimate table of mortality referred to in paragraph (c);
and
(ii) in respect of each female person upon whose life the policy is
effected-the ultimate table of mortality referred to in paragraph (c)
modifed by adding 3 years to each of the ages specified in the last
column of that table.
(2) The rate of interest used in calculating the liability under a
superannuation policy shall be-
(a) where-
(i) the liability under the policy, being a deferred annuity policy,
is in respect of the period during which an annuity shall be payable; or
(ii) the liability under the policy, being an annuity policy under
which an annuity has become payable, is in respect of the period during
which the annuity shall continue to be payable, an assumed rate of 12
per centum per annum; or
(b) where-
(i) the liability under the policy, being a deferred annuity policy,
is in respect of the period of deferment provided for under the policy;
or
(ii) the liability under the policy, not being an annuity policy, is
in respect of the period of insurance under the policy, an assumed rate
of 6 per centum per annum.
(2A) The rate of interest used in calculating the liability under an
ordinary policy other than a superannuation policy shall be-
(a) where the liability under the policy, being a deferred annuity
policy, is in respect of the period during which an annuity shall be
payable-an assumed rate of 8 per centum per annum;
(ab) where the liability under the policy, being an annuity policy
under which an annuity has become payable, is in respect of the period
during which the annuity shall continue to be payable-an assumed rate of
12 per centum per annum; or
(b) where-
(i) the liability under the policy, being a deferred annuity policy,
is in respect of the period of deferment provided for under the policy;
or
(ii) the liability under the policy, not being an annuity policy, is
in respect of the period of insurance under the policy, an assumed rate
of 4.25 per centum per annum.
(2B) The rate of interest used in calculating the liability under an
industrial policy other than a superannuation policy shall be an assumed
rate of 4.25 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 rule (3)-
"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 2
years after the date of the issue of the policy) if-
(i) the policy had been issued 2 years 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 2 years 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 3.5 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 - SCHEDULE 5

SCH

THE FIFTH SCHEDULE Section 87
MEMORANDUM OF TRANSFER
Transferee
Date of Transfer
Signature of
Transfer
Witness
Name in full
Address
Occupation
Signature of
Transferee
Witness
Date of Registration
of Transfer by Company
Signature of Principal
Officer of Company or
person authorized by him

LIFE INSURANCE ACT 1945 - SCHEDULE 6

SCH

THE SIXTH SCHEDULE Sections 96, 98, 101
PART I
Rules for ascertaining the amount of a Paid-up policy in certain
cases for the purposes of Division 4 of Part IV
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 rule 2, 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 sub-rule (1), "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-
(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 AM33 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,
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
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 rule 1-
(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 AM33 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, 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.