Life Insurance Amendment Regulations 2010 (No. 1) (Cth)

Life Insurance Amendment Regulations 2010 (No. 1)¹

Select Legislative Instrument 2010 No. 24

I, QUENTIN BRYCE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Life Insurance Act 1995.

Dated 25 February 2010

QUENTIN BRYCE

Governor-General

By Her Excellency’s Command

CHRIS BOWEN

Minister for Financial Services, Superannuation and Corporate Law

Name of Regulations

These Regulations are the Life Insurance Amendment Regulations 2010 (No. 1).

Commencement

These Regulations commence as follows:

(a)on the commencement of Schedule 1 to the Financial Sector Legislation Amendment (Enhancing Supervision and Enforcement) Act 2009 — regulations 1 to 3 and Schedule 1;

(b)6 months after the day on which they are registered — Schedule 2.

Amendment of Life Insurance Regulations 1995

Schedules 1 and 2 amend the Life Insurance Regulations 1995.

Schedule 1 Amendments commencing on the commencement of Schedule 1 to the Financial Sector Legislation Amendment (Enhancing Supervision and Enforcement) Act 2009

(regulation 3)

[1] Regulation 11.00

omit

[2] Schedule 5, item 16

omit

Rules

insert

Rules, prudential standards or reporting standards

Schedule 2 Amendment commencing 6 months after registration

(regulation 3)

[1] Schedule 2

substitute

Schedule 2 Modification of Division 4 of Part 10 of the Act (Surrender values, paid-up policies and non-forfeiture of policies)

(regulation 10.04)

Item	Class of life policy	Description of policy within the class	Modification of application of Division 4 of Part 10 of the Act
1	Increased ordinary	An ordinary policy under which the contract of insurance (the original contract) is varied at the request of the policy owner, by increasing: (a) both the amount of the sum insured and the amount of each premium; or (b) if additional amounts of premium are paid — the amount of the sum insured.	Section 210 of the Act is taken to apply to an increase of the original contract as if the increase were a policy: (a) that was effected on the date of the increase; and (b) under which the sum insured is the amount of the increase; and (c) under which the period for which premiums have been paid started on the date of the increase.
2	Industrial	A policy that, immediately before the commencement of the Act, was an industrial policy within the meaning of subsection 4 (1) of the Life Insurance Act 1945 and that is treated as ordinary business under the Act.	Despite section 210 of the Act, section 101 of the Life Insurance Act 1945, as in force immediately before the commencement of the Act, continues to apply to policies to which that section applied at that time.

Item

Class of life policy

Description of policy within the class

Modification of application of Division 4 of Part 10 of the Act

Increased ordinary

An ordinary policy under which the contract of insurance (the original contract) is varied at the request of the policy owner, by increasing:

(a) both the amount of the sum insured and the amount of each premium; or

(b) if additional amounts of premium are paid — the amount of the sum insured.

Section 210 of the Act is taken to apply to an increase of the original contract as if the increase were a policy:

(a) that was effected on the date of the increase; and

(b) under which the sum insured is the amount of the increase; and

Industrial

A policy that, immediately before the commencement of the Act, was an industrial policy within the meaning of subsection 4 (1) of the Life Insurance Act 1945 and that is treated as ordinary business under the Act.

Despite section 210 of the Act, section 101 of the Life Insurance Act 1945, as in force immediately before the commencement of the Act, continues to apply to policies to which that section applied at that time.

Note

All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See