Life Insurance Amendment Regulations 1999 (No. 1)
Statutory Rules 1999 No. 146
I, WILLIAM PATRICK DEANE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulations under the Life Insurance Act 1995.
Dated 29 June 1999.
WILLIAM DEANE
Governor-General
By His Excellency’s Command,
JOE HOCKEY
Minister for Financial Services and Regulation

Life Insurance Amendment Regulations 1999 (No. 1)1
Statutory Rules 1999 No. 1462
made under the
Life Insurance Act 1995

Contents
	Page
	1	Name of regulations	2
	2	Commencement	2
	3	Amendment of Life Insurance Regulations	2
Schedule 1	Amendments	3

1	Name of regulations
		These regulations are the Life Insurance Amendment Regulations 1999 (No. 1).
2	Commencement
		These regulations commence on the commencement of Schedule 4 to the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999.3
3	Amendment of Life Insurance Regulations
		Schedule 1 amends the Life Insurance Regulations.

Schedule 1	Amendments
(regulation 3)
[1]	Regulation 1.01
substitute
1	Name of regulations
		These regulations are the Life Insurance Regulations 1995.
[2]	Regulation 1.03
substitute
1.03	Definitions
		In these regulations:
Act means the Life Insurance Act 1995.
Friendly Societies Code has the meaning given by item 1 of Schedule 8 to the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999.
transfer date has the meaning given by section 2 of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999. 
[3]	After Part 2
insert
Part 2A	Special provisions relating to life companies that are friendly societies
2A.01	Modifications of the Act in its application to friendly societies
	(1)	The Act is modified in its application to friendly societies (including jointly regulated friendly societies) as set out in Schedule 5.
	(2)	The Act is further modified in its application to jointly regulated friendly societies as set out in Schedule 6.
Note   The Act applies to friendly societies subject to the provisions of Pt 2A of the Act. See also s 16ZC of the Act.
2A.02	Modification of Schedule 1, Part A, item 6
	(1)	This regulation applies to an application for registration as a society, under section 60 of a Friendly Societies Code, that is not determined before the transfer date.
	(2)	Item 6 of Part A of Schedule 1 has effect in relation to the application as if the following subparagraph were substituted for subparagraph 6 (b) (ii):
	(ii)	a 3 year projection;
2A.03	Modifications of Schedule 1, Part A, item 6
	(1)	This regulation applies in relation to an application for registration, under section 20 of the Act, that is made after the transfer date.
	(2)	Item 6 of Part A of Schedule 1 has effect in relation to the application as if the following paragraph were substituted for paragraph 6 (b):
	(b)	particulars of projections of the company’s life business for:
	(i)	whichever is the greater of the following periods:
	(A)	the period of the financing arrangements for that business;
	(B)	10 years; or
	(ii)	the period approved, in writing, by APRA;
[4]	After subregulation 4.00 (2)
insert
	(3)	This regulation does not apply to a life company that is a friendly society.
[5]	After regulation 4.00A
insert
4.00B	Charges over the assets of approved benefit funds (Act s 38 (3) (c))
	(1)	This regulation applies to a friendly society whose approved benefit fund rules provide that the society may apply the assets of an approved benefit fund, or mortgage or charge those assets.
	(2)	The friendly society may apply the assets of an approved benefit fund, or mortgage or charge those assets, if the application, mortgage or charge is made for the advantage of the approved benefit fund, in accordance with the approved benefit fund rules.
	(3)	Subregulation (2) does not apply to a charge over, or in relation to, an asset of an approved benefit fund that satisfies the requirements of subregulation 4.00A (1).
[6]	Regulation 4.02
omit
[7]	Regulation 9.01
after
to APRA
insert
(and to PHIAC, and the Minister for Health and Aged Care, if required)
[8]	Regulation 9.02, note 2
after
the Act.
insert
However, for a jointly regulated friendly society an affected policy owner is the owner of a policy that is referable to a health benefits fund or approved benefit fund affected by a scheme: see Sch 6, item 40.
[9]	Regulation 10.01
after
life policy
insert
(other than a policy that is issued by a friendly society)
[10]	After regulation 10.02
insert
10.03	Division 4 of Part 10 of the Act not to apply to certain policies (Act s 206 (2))
		Division 4 of Part 10 of the Act (relating to surrender values, paid-up policies and non-forfeiture of policies) does not apply to policies issued by friendly societies.
[11]	Regulation 13.01
omit
[12]	Schedule 1, Part B, paragraph (a)
substitute
	(a)	a copy of the constitution of the company;
[13]	Schedule 1, Part B, paragraph (j) and following note
substitute
	(j)	for a company that does not propose to operate as a friendly society — examples of promotional material for each kind of policy to be issued by the company, including the following material:
	(i)	customer information brochures;
	(ii)	policy documents;
	(iii)	policy information statements;
	(iv)	annual statements;
	(k)	for a company that proposes to operate as a friendly society — the following material:
	(i)	proposed benefit fund rules;
	(ii)	disclosure documents.
Note   The Schedule to the Act defines constitution in relation to a company.
[14]	Schedule 3, item 6.1, definition of Australian policy owners’ retained profits
omit
the articles of association
insert
the constitution
[15]	Schedule 3, item 7.3
omit
the articles of association
insert
the constitution
[16]	After Schedule 4
insert
Schedule 5	Modifications of the Act in relation to friendly societies
(regulation 2A.01)
1	Section 15
omit
2	Paragraph 30 (f)
substitute
	(f)	surpluses in an approved benefit fund may only be distributed in accordance with section 56.
3	Subsection 35 (1)
omit
4	Subsection 35 (2)
omit
A policy document
insert
Approved benefit fund rules
5	Subsections 35 (3), (4) and (5)
omit
6	Paragraph 36 (b)
omit
7	Paragraph 38 (2) (c)
omit
Division 6
insert
Division 5
8	Subsection 38 (7)
omit
or 6.
insert
or 5.
9	Subsection 45 (1)
omit
or 6.
insert
or 5.
10	Part 4, Divisions 5 and 6
substitute
Division 5	Distribution of surplus in approved benefit fund
56	Distribution of surplus
	(1)	If the appointed actuary of a friendly society advises the society, in writing, that there is a surplus in an approved benefit fund of the society, the society may, if the rules of the approved benefit fund so provide, do 1 or more of the following:
	(a)	pay, apply or allocate all or part of the surplus to the members of the approved benefit fund;
	(b)	transfer all or part of the surplus to another approved benefit fund of the society;
	(c)	transfer all or part of the surplus to the management fund of the society.
	(2)	If the surplus includes an asset other than money, the value of the asset is the fair value of the asset determined in accordance with subsection 45 (3).
	(3)	A distribution under subsection (1) must comply with any applicable prudential standard.
11	Subsection 68 (8)
substitute
	(8)	A direction to a friendly society ceases to have effect if:
	(a)	an order is made for the winding-up of the society; or
	(b)	a special resolution is passed for the voluntary winding-up of the society under subsection 180 (2), and APRA:
	(i)	is notified of the special resolution; and
	(ii)	gives written permission to the society for the direction to cease to have effect.
12	Subsection 73 (8)
substitute
	(8)	A direction to a friendly society ceases to have effect if:
	(a)	an order is made for the winding-up of the society; or
	(b)	a special resolution is passed for the voluntary winding-up of the society under subsection 180 (2), and APRA:
	(i)	is notified of the special resolution; and
	(ii)	gives written permission to the society for the direction to cease to have effect.
13	Subsection 73F (9)
substitute
	(9)	A direction to a friendly society ceases to have effect if:
	(a)	an order is made for the winding-up of the society; or
	(b)	a special resolution is passed for the voluntary winding-up of the society under subsection 180 (2), and APRA:
	(i)	is notified of the special resolution; and
	(ii)	gives written permission to the society for the direction to cease to have effect.
14	Sections 75 and 76
substitute
75	Financial records — friendly societies
		A friendly society must keep such records of the income and outgoings of the management fund and each approved benefit fund of the society as will record properly the affairs and transactions of the society in respect of each fund.
15	Section 81
omit
If a life company
insert
	(1)	If a friendly society
16	Section 81
insert
	(2)	However, unless Prudential Rules otherwise require, subsection (1) does not apply to the treatment of an asset of the management fund of the friendly society.
17	Paragraph 82 (5) (c)
substitute
	(c)	be given to APRA:
	(i)	for financial statements prepared for subsection (1) — within the period required by subsection 118 (3); and
	(ii)	in any other case — within 3 months after the time as at which they are prepared.
18	Subsection 113 (1)
substitute
	(1)	A friendly society must arrange for its appointed actuary to:
	(a)	investigate the financial condition of:
	(i)	each approved benefit fund of the society; and
	(ii)	the management fund of the society, to the extent required by prudential standards;
		as at the end of every financial year of the society; and
	(b)	give the society a written report of the results of the investigation.
19	Subsection 115 (1)
substitute
	(1)	Nothing in this Division prevents a friendly society from having its appointed actuary investigate the financial condition of:
	(a)	an approved benefit fund of the society; or
	(b)	the management fund of the society to the extent required by prudential standards;
		as at a time other than the end of a financial year.
20	Subsections 118 (3) and (4)
substitute
	(3)	Financial statements mentioned in subsection 82 (1) must be given to APRA:
	(a)	for financial statements for a financial year ending on or before the transfer date that have not been given to the appropriate SSA before the transfer date — at least 14 days before the expiration of 5 months after the end of the financial year to which the financial statements relate; and
	(b)	for financial statements for a financial year ending between the transfer date and the end of 31 December 2000 — within the period applying to the company for lodgement of its annual report under subsection 319 (3) of the Corporations Law; and
	(c)	for financial statements for a subsequent financial year — within 3 months after the end of the financial year to which the financial statements relate.
	(4)	A return prepared under section 117 must be given to APRA:
	(a)	for a return for a financial year ending on or before the transfer date that has not been given to the appropriate SSA before the transfer date — at least 14 days before the expiration of 5 months after the end of the financial year to which the return relates; and
	(b)	for a return for a financial year ending between the transfer date and the end of 31 December 2000 — within the period applying to the company 
for lodgement of its annual report under subsection 319 (3) of the Corporations Law; and
	(c)	for a return for a subsequent financial year — within 3 months after the end of the financial year to which the return relates.
Note   Part 12.6 of the Corporations Regulations 1990 makes provision in relation to the form and content of the financial statements and returns mentioned in para (3) (a) and (4) (a).
21	Subsection 119 (1)
substitute
	(1)	A friendly society must give APRA a copy of a financial condition report prepared under section 113 or 115:
	(a)	for a report for a period ending on or before the transfer date that has not been given to the appropriate SSA before the transfer date — at least 14 days before the expiration of 5 months after the end of the period to which the report relates; and
	(b)	for a report for a period ending between the transfer date and the end of 31 December 2000 — within the period applying to the company 
for lodgement of its annual report under subsection 319 (3) of the Corporations Law; and
	(c)	for a report for a subsequent period — within 3 months after the end of the period to which the report relates.
Note   Part 12.6 of the Corporations Regulations 1990 makes provision in relation to the form and content of the report mentioned in para (a).
22	Subsection 134 (4)
substitute
	(4)	A direction to a friendly society ceases to have effect if:
	(a)	an order is made for the winding-up of the society; or
	(b)	a special resolution is passed for the voluntary winding-up of the society under subsection 180 (2), and APRA:
	(i)	is notified of the special resolution; and
	(ii)	gives written permission to the society for the direction to cease to have effect.
23	Subsection 150 (9)
substitute
	(9)	A direction to a friendly society ceases to have effect if:
	(a)	an order is made for the winding-up of the society; or
	(b)	a special resolution is passed for the voluntary winding-up of the society under subsection 180 (2), and APRA:
	(i)	is notified of the special resolution; and
	(ii)	gives written permission to the society for the direction to cease to have effect.
24	Subsection 198 (1)
omit
or policy document
25	Paragraph 201 (1) (b)
omit
or endorsed on the policy
26	Subsection 213 (2)
omit everything after paragraph (b), insert
		the company may register the applicant as the owner of the policy, provided that the approved benefit fund rules allow for registration in the circumstances mentioned in paragraph 213 (1) (a) and that the requirements of the rules are followed.
27	Subsection 213 (3)
omit
The company may endorse the policy
insert
However, the company may register the applicant
28	Part 10, Division 7
omit
29	Subsection 226 (1)
substitute
	(1)	A friendly society must keep a register of members for each approved benefit fund of the society.
	(1A)	The register must include:
	(a)	the name and address of each member of the approved benefit fund; and
	(b)	the date of each member’s admission to membership; and
	(c)	for each membership terminated — the date and circumstances of the termination.
	(1B)	The register must be kept in parts so that the information for a member living in a particular State or Territory is kept in a part of the register for that State or Territory.
	(1C)	A society that, immediately before the transfer date, did not keep its register in parts as described in subsection (1B) must comply with that subsection:
	(a)	within 18 months starting on the transfer date; or
	(b)	a longer period that APRA, in writing, allows.
30	Section 227
omit
31	Subsection 229 (2)
omit
32	Section 242
omit
33	Schedule — Dictionary, after definition of friendly society
insert
health benefits fund, for a friendly society, means a health benefits fund conducted by a society that is a registered health benefits organisation under the National Health Act 1953.
Note   Income from the health insurance business of a registered health benefits organisation is to be credited to its health benefits fund: see s 68 of the National Health Act 1953.
34	Schedule — Dictionary, after definition of life policy
	insert
management fund, for a friendly society, means the fund of the society that consists of the assets and liabilities of the society that do not form part of an approved benefit fund, or of a health benefits fund (if any), of the society.
35	Schedule — Dictionary, after definition of spouse
	insert
SSA has the meaning given by item 1 of Schedule 8 to the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999.
36	Schedule — Dictionary, after definition of trade union
	insert
transfer date has the meaning given by the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999.
Schedule 6	Further modifications of the Act in relation to jointly regulated friendly societies
(regulation 2A.01)
1	After subsection 127 (1)
insert
	(1A)	The Regulator may appoint a person who is eligible to be appointed as an inspector under section 82R of the National Health Act 1953 as an authorised person for the purposes of the application of a specified provision of this Act to the health insurance business of a jointly regulated friendly society.
2	Paragraph 130 (c)
substitute
	(c)	conditions on the registration of the company; and
	(d)	the National Health Act 1953; and
	(e)	regulations made under that Act; and
	(f)	conditions on the registration of the company under that Act; and
	(g)	directions given to the company by the Minister under that Act.
3	After subsection 131 (1)
insert
	(1A)	In subsection (1), business includes health insurance business.
4	Before section 134
insert
133A	Definitions for Division 3
		In this Division:
life insurance business includes health insurance business.
policy includes a health insurance policy.
5	After subsection 134 (1)
insert
	(1A)	For subsection (1):
	(a)	a direction applies to an asset of the health insurance business of a company that is a jointly regulated friendly society only if the direction was given because of liabilities of the health insurance business of the society; and
	(b)	a direction applies to an asset of the life insurance business of a company that is a jointly regulated friendly society only if the direction was given because of liabilities of the life insurance business of the society.
	(1B)	APRA must not give a direction under subsection (1) in relation to an asset of the health insurance business of a jointly regulated friendly society without the written approval of PHIAC or the Minister for Health and Aged Care.
6	Subparagraph 136 (b) (iii)
substitute
	(iii)	a condition imposed, under section 22, on the registration of the company; or
	(iv)	the National Health Act 1953; or
	(v)	regulations made under that Act; or
	(vi)	conditions on the registration of the company under that Act; or
	(vii)	directions given to the company by the Minister under that Act; or
	(viii)	the Private Health Insurance Incentives Act 1997; or
	(ix)	the Private Health Insurance Incentives Act 1998.
7	After subsection 137 (2)
insert
	(3)	However, the Regulator must not decide, under subsection (2), to investigate the health insurance business of a company that is a jointly regulated friendly society without the written approval of PHIAC or the Minister for Health and Aged Care.
8	After section 138
insert
138A	Investigation of jointly regulated friendly society
		The Regulator must not start an investigation under this Division in respect of a jointly regulated friendly society if an investigation in respect of the society is in progress under section 82R of the National Health Act 1953.
Note   It is intended that regulations under the National Health Act 1953 will provide that an investigation of a jointly regulated friendly society must not be started under s 82R of that Act if an investigation of the society is in progress under this Division. 
9	Section 149
omit
After an investigation
insert
	(1)	After an investigation
10	Section 149
insert
	(2)	For an investigation of the health insurance business of a company that is a jointly regulated friendly society, the summary must also be given to PHIAC and the Minister for Health and Aged Care and must include:
	(a)	a statement of the Regulator’s opinion on the question whether the company is, or is about to become, unable to meet its liabilities, and the facts on which that opinion is based; and
	(b)	the Regulator’s recommendation about:
	(i)	the question whether the company should be permitted to continue to conduct the health benefits fund; and
	(ii)	the question whether the affairs of the company should be reorganised to enable it to better conduct the health benefits fund and, if so, the way in which they should be so reorganised; and
	(iii)	such other matters affecting the company or the interests of contributors to the health benefits fund conducted by the company as the Regulator thinks fit.
	(3)	The Regulator may refer a report on the conclusions it reached as a result of an investigation of the health insurance business of a company to the Registration Committee established by section 70 of the National Health Act 1953.
11	Paragraph 150 (1) (c)
substitute
	(c)	has contravened a condition or direction applicable to it under this Act; or
	(d)	has contravened:
	(i)	the National Health Act 1953; or
	(ii)	regulations made under that Act; or
	(iii)	conditions on the registration of the company under that Act; or
	(iv)	directions given to the company by the Minister under that Act; or
	(v)	the Private Health Insurance Incentives Act 1997; or
	(vi)	the Private Health Insurance Incentives Act 1998.
12	After subsection 150 (1)
insert
	(1A)	The Regulator must not give a direction under subsection (1) that relates to the health insurance business of a jointly regulated friendly society without the written approval of PHIAC or the Minister for Health and Aged Care.
13	Before section 157
insert
156A	Definitions for Division 1
		In this Division:
business includes health insurance business.
policy means:
	(a)	if the provision in which it occurs is being applied to, or for the purposes of, the health insurance business of a jointly regulated friendly society — a health insurance policy; and
	(b)	if the provision in which it occurs is being applied to, or for the purposes of, the life insurance business of a jointly regulated friendly society — a policy that, by subsection 16F (1) or (2), is taken to be issued by a friendly society; and
	(c)	if the provision in which it occurs is being applied to, or for the purposes of, all of the business of a jointly regulated friendly society — a policy mentioned in paragraph (a) or (b).
14	After subsection 157 (1)
insert
	(1A)	However, APRA must not apply to the Court under subsection (1) for an order that relates to the health insurance business of a jointly regulated friendly society without the written approval of PHIAC or the Minister for Health and Aged Care.
15	After subsection 157 (5)
insert
	(6)	On an application by a jointly regulated friendly society that relates to the health insurance business of the society, PHIAC and the Minister for Health and Aged Care are entitled to be heard.
16	Paragraph 158 (a)
substitute
	(a)	that the business of the company has been investigated under Division 3 of Part 7 of this Act or section 82R of the National Health Act 1953; and
17	Subparagraphs 159 (a) (ii) and (iii)
substitute
	(ii)	the company has failed to comply with any of the following that apply to it:
	(A)	the solvency standard;
	(B)	a direction under section 68;
	(C)	a direction under section 73BE of the National Health Act 1953;
	(D)	a condition of registration under Division 3 of Part VI of that Act; or
18	Paragraph 159 (b)
omit
life insurance
19	Section 162
omit
A company
insert
	(1)	A company
20	Section 162
insert
	(2)	However, subsection (1) does not apply to a jointly regulated friendly society if the judicial management relates only to its health benefits fund.
Note   Part VIA of the National Health Act 1953 makes provision for judicial management of health benefits funds.
21	After section 166
insert
166A	Continued application of National Health Act
		The appointment of a judicial manager under this Part that relates to the health insurance business of a jointly regulated friendly society does not affect the continued operation of the National Health Act 1953 in relation to the society or the obligation of the society to comply with that Act.
22	After subsection 167 (5)
insert
	(6)	PHIAC and the Minister for Health and Aged Care are entitled to be heard on an application that relates to the health insurance business of a jointly regulated friendly society.
23	After subsection 169 (2)
insert
	(3)	PHIAC and the Minister for Health and Aged Care are entitled to be heard on an application that relates to the health insurance business of a jointly regulated friendly society.
24	After subsection 170 (2)
insert
	(3)	PHIAC, or the Minister for Health and Aged Care, may ask a judicial manager for information about the conduct of a judicial management that relates to the health insurance business of a jointly regulated friendly society.
	(4)	The judicial manager must comply with the request.
25	After subsection 172 (6)
insert
	(7)	PHIAC and the Minister for Health and Aged Care are entitled to be heard on any application made under subsection (1) or (2) that relates to the health insurance business of a jointly regulated friendly society.
26	After paragraph 175 (2) (a)
insert
	(ab)	to transfer the business, or part of the business, of the company to an organisation registered under the National Health Act 1953;
27	After paragraph 175 (2) (c)
insert
	(ca)	to wind up the health benefits fund of the company under the National Health Act 1953;
28	Subsection 175 (4)
omit
paragraph (2) (a), (b) or (d),
insert
paragraph 2 (a), (ab), (b), (ca) or (d),
29	Before section 180
insert
179A	Definition for Division 2
		In this Division:
policy, in relation to a company that is a jointly regulated friendly society, includes a health insurance policy.
30	After subsection 180 (4)
insert
	(5)	To avoid doubt, this section does not prevent the winding-up of the health benefits fund of a jointly regulated friendly society under Part VIA of the National Health Act 1953.
31	Subsection 181 (1)
omit
subsection (2)
insert
subsections (2) and (2A)
32	After subsection 181 (2)
insert
	(2A)	However, APRA must not apply to the Court under subsection (1) for an order that a life company that is a jointly regulated friendly society be wound up without the written approval of PHIAC or the Minister for Health and Aged Care.
33	After subsection 183 (3)
insert
	(4)	PHIAC and the Minister for Health and Aged Care are entitled to be heard on an application that relates to the health insurance business of a jointly regulated friendly society.
34	After subsection 184 (4)
insert
	(5)	PHIAC and the Minister for Health and Aged Care are entitled to be heard on an application that relates to the health insurance business of a jointly regulated friendly society.
35	After subsection 185 (2)
insert
	(3)	PHIAC, or the Minister for Health and Aged Care, may ask a liquidator for information in writing about the winding-up of the health insurance business of a jointly regulated friendly society.
	(4)	The judicial manager must comply with the request.
36	After subsection 186 (2A)
insert
	(2B)	If the company is a jointly regulated friendly society, the liquidator must also take account of health benefits fund rules of the society in making determinations under subsection (1), to the extent that those rules are consistent with any directions of the Court.
37	Subsections 187 (1), (2) and (3)
substitute
	(1)	Subject to this section, in the winding-up of a life company that is a jointly regulated friendly society, the assets of an approved benefit fund of the society and of the health benefits fund of the society must first be applied in accordance with the applicable Corporations Law in discharging debts and claims referred to in subsection 556 (1) of that Law.
	(2)	However, subsection (1) has effect only to the extent that debts or claims are liabilities that are referable to the business of the approved benefit fund or health benefits fund.
	(3)	If any assets remain after the application of subsection (1), the assets must be applied according to the following rules:
	(a)	the assets of an approved benefit fund are to be applied:
	(i)	first, in discharge of policy liabilities of the company referable to the approved benefit fund; and
	(ii)	if any assets remain, in discharge of other liabilities that are referable to the business of the approved benefit fund;
	(b)	the assets of the health benefits fund are to be applied:
	(i)	first, in discharge of policy liabilities of the company referable to the health benefits fund; and
	(ii)	if any assets remain, in discharge of other liabilities that are referable to the business of the health benefits fund;
	(c)	if any assets of the funds remain after an application of assets according to paragraphs (a) and (b), the assets are to be applied in such manner as the Court directs;
	(d)	directions given for the purpose of paragraph (c) are to be such directions as the Court considers equitable, having regard to:
	(i)	the interests of the owners of policies referable to the approved benefit fund or funds; and
	(ii)	the interests of the owners of policies referable to the health benefits fund; and
	(iii)	the interests of creditors of the company whose debts have not been discharged by application of the assets according to subparagraphs (a) (ii) and (b) (ii).
38	Subsection 188 (1)
omit each mention of
statutory fund
insert
health benefits fund or approved benefit fund
39	After subsection 190 (1)
insert
	(1A)	However, no part of the health insurance business of a life company that is a jointly regulated friendly society may be:
	(a)	transferred to another organisation; or
	(b)	amalgamated with the business of another organisation;
		except under a scheme confirmed by the Court.
40	Subsection 191 (1), definition of affected policy owner
omit
statutory fund
insert
health benefits fund or approved benefit fund
41	Paragraph 191 (2) (a)
after
given to APRA
insert
(and to PHIAC and the Minister for Health and Aged Care if the scheme affects the health benefits fund of a jointly regulated friendly society)
42	After subsection 192 (2)
insert
	(3)	If the report relates to the health insurance business of a company that is a jointly regulated friendly society, APRA must give a copy of the report to PHIAC and the Minister for Health and Aged Care.
43	After subsection 193 (3)
insert
	(4)	PHIAC and the Minister for Health and Aged Care are entitled to be heard on an application that affects the health benefits fund of a jointly regulated friendly society.
44	After subsection 197 (1)
insert
	(1A)	If any part of the health insurance business carried on by a life company that is a jointly regulated friendly society is transferred to, or amalgamated with the business of, another organisation, the organisation must give APRA such documents as are required by the regulations to be given for subsection (1).
45	After subsection 230A (5)
insert
	(5A)	APRA must not determine, vary or revoke a standard that relates only to life insurance companies that are jointly regulated friendly societies without the written approval of PHIAC or the Minister for Health and Aged Care.
46	Subsection 230A (13), before definition of Territory
insert
policy owner, in relation to the health insurance business of a life company that is also a registered organisation under the National Health Act 1953, means a person who is a contributor to the health benefits fund of the organisation in accordance with the organisation’s rules.
47	After paragraph 230B (1) (a)
insert
	(ab)	the company has contravened:
	(i)	the National Health Act 1953; or
	(ii)	regulations made under that Act; or
	(iii)	conditions on the registration of the company under that Act; or
	(iv)	directions given to the company by the Minister under that Act; or
	(v)	the Private Health Insurance Incentives Act 1997; or
	(vi)	the Private Health Insurance Incentives Act 1998; or
48	After subsection 230B (9)
insert
	(10)	However, APRA must not give a direction under this section that relates to the health insurance business of a jointly regulated friendly society without the written approval of PHIAC or the Minister for Health and Aged Care.
	(11)	In this section:
policy owner, in relation to the health insurance business of a life company that is also a registered organisation under the National Health Act 1953, means a person who is a contributor to the health benefits fund of the organisation in accordance with the organisation’s rules.
49	Schedule — Dictionary, before definition of policy
	insert
PHIAC means the Private Health Insurance Administration Council established by section 82B of the National Health Act 1953.
Notes
1.	These regulations amend Statutory Rules 1995 No. 141, as amended by 1995 Nos. 317 and 431; 1996 Nos. 89 and 305; 1997 Nos. 100, 119 and 239; 1998 No. 191.
2.	Made by the Governor-General on 29 June 1999, and notified in the Commonwealth of Australia Gazette on 30 June 1999. 
3.	Schedule 4 to the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 commences on the transfer date. The transfer date is the date specified as the transfer date for the purposes of that Act by Proclamation made by the Governor-General under subsection 3 (16) of that Act.