Life Insurance Act 1945 (Cth)
LIFE INSURANCE ACT 1945 [Note: This Act is "repealed" by Act No. 5 of 1995]
(#DATE 23:05:1994)
(#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.
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
----------------------------------------------------------------------------------
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 titleSECT
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
CommencementSECT
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
InterpretationSECT
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
ActuariesSECT
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 assetsSECT
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 ActSECT
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 TerritoriesSECT
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 ActSECT
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 adviceSECT
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 returnsSECT
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 CommissionerSECT
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 businessSECT
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 registeredSECT
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 businessSECT
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 registrationSECT
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 companiesSECT
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 requirementsSECT
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
ConditionsSECT
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 officerSECT
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 actuarySECT
21A. A company shall not be registered unless it has an appointed actuary.
LIFE INSURANCE ACT 1945 - SECT 22
Certificate of registrationSECT
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 registrationSECT
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 fundsSECT
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 fundSECT
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 fundsSECT
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 fundsSECT
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 businessSECT
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 circumstancesSECT
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 businessSECT
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 businessSECT
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 AustraliaSECT
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 businessSECT
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 taxSECT
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.
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.
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