Life Insurance Regulations (Amendment) (Cth)

Statutory Rules 1983 No. 2401

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Life Insurance Regulations2 (Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Life Insurance Act 1945.

Dated 20 October 1983.

N. M. STEPHEN

Governor-General

By His Excellency’s Command,

C. J. HURFORD

Minister of State for Housing and Construction for and on behalf of the Treasurer

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Interpretation

1. Regulation 3 of the Life Insurance Regulations is amended by omitting sub-regulation (1) and substituting the following sub-regulation:

“(1) In these Regulations, unless the contrary intention appears—

‘quarter’ means the period of 3 months commencing on 1 January, 1 April, 1 July and 1 October in any year;

‘the Act’ means the Life Insurance Act 1945.”.

2. Regulations 12 to 20 (inclusive) of the Life Insurance Regulations are repealed and the following regulations substituted:

When statistics to be collected

“12. For the purposes of sub-section 145 (1) of the Act, the following times are prescribed, namely—

(a) in respect of the statistics prescribed in paragraph 13 (a)—the expiration of the period within which Form 3 is required to be furnished;

(b) in respect of the statistics prescribed in paragraph 13 (b)—the expiration of the period within which Form 6 is required to be furnished; and

(c) in respect of the statistics prescribed in paragraph 13 (c)—the expiration of the period within which Form 7 is required to be furnished.

Statistics to be collected

“13. For the purposes of sub-section 145 (1) of the Act, the following statistics are prescribed, namely—

(a) the particulars, in respect of a quarter, specified in Form 3 relating to—

(i) ordinary life insurance business, other than ordinary risk premium business, in Australia;

(ii) ordinary risk premium business in Australia;

(iii) industrial business in Australia;

(iv) superannuation business, other than superannuation risk premium business, in Australia; and

(v) superannuation risk premium business in Australia;

(b) the particulars, in respect of a quarter, specified in Form 6; and

(c) the particulars, in respect of a month, specified in Form 7.

Form in which statistics to be furnished

“14. For the purposes of sub-section 145 (2) of the Act, the following forms are prescribed, namely—

(a) Form 3, in respect of the particulars specified in that form;

(b) Form 6, in respect of the particulars specified in that form; and

(c) Form 7, in respect of the particulars specified in that form.

When statistics to be furnished

“15. For the purposes of sub-section 145 (2) of the Act, the following times are prescribed, namely—

(a) in respect of the particulars specified in Form 3—once each quarter, being a time that occurs within 6 weeks of the expiration of the quarter to which the particulars relate;

(b) in respect of the particulars specified in Form 6—once each quarter, being a time that occurs within 6 weeks of the expiration of the quarter to which the particulars relate;

(c) in respect of the particulars specified in Form 7—once each month, being a time that occurs within 6 weeks of the expiration of the month to which the particulars relate.”.

3. After regulation 25 of the Life Insurance Regulations the following regulations are inserted:

Payment of policy moneys without requiring production of probate, &c

“26. For the purposes of section 103 of the Act, the amount of $10,000 is prescribed.

Policies to which section 103a does not apply

“26a. For the purposes of section 103a of the Act, the amount of $5,000 is prescribed.

Payment on death of children

“26b. (1) For the purposes of the definition of ‘prescribed amount’ in section 108 of the Act, the amount of $ 1,000 is applicable.

“(2) For the purposes of the definition of ‘repayment of premiums’ in section 108 of the Act, the rate of 12 per cent per annum is prescribed.

Where no need to advertise issue of special policy

“26c. For the purposes of section 119 of the Act, the amount of $5,000 is prescribed.”.

Substantial compliance with certain forms sufficient

4. Regulation 29 of the Life Insurance Regulations is amended by omitting “3a, 4, 5”.

5. After regulation 29 of the Life Insurance Regulations the following regulation is inserted:

Directions and instructions to be followed

“29a. A form in Schedule 1 shall be completed in accordance with such directions and instructions as are specified in, or relate to, the form.”.

First Schedule

6. The First Schedule to the Life Insurance Regulations is amended—

(a) by omitting Forms 3 to 5 (inclusive) and substituting the following form:

FORM 3 Regulations 13 and 14

Life Insurance Act 1945

Return of policies for the quarter ended 

Name of company...............................................................

Statutory fund.....................................................................

Type of business................ Ordinary*

Ordinary risk premium*

Superannuation*

Superannuation risk premium*

Industrial*

*Strike out whichever is inapplicable

 

PART 1 NEW AND EXISTING BUSINESS

Type of policy
Individual whole of life, endowment and endowment insurance	Individual term	Individual investment account and investment linked	Individual accident sickness and disability	Group life and credit life(1)	Other	Total	Annuities

Business in force at beginning of quarter

No. of policies .................

Sum insured(2) (3)......................

Annual premiums ($).......

Business issued in quarter

No. of policies..................

Sum insured (2) (3).............

Single premiums (4) ($)....

Annual premiums ($).......

Business in force at end of quarter

No. of policies..................

Sum insured (2) (3).............

Annual premiums ($).......

Surrenders in quarter

No. of policies..................

Annual premiums ($).......

Forfeitures in quarter

No. of policies..................

Annual premiums ($).......

 

PART 2 DISCONTINUANCES DURING QUARTER

Cause of discontinuance
Death or disability	Maturity	Surrender (5), (6)	Forfeiture(6)	Net transfers and conversion (7)	Other events provided for in policy (8)	Other	Total

Other than annuity

No. of policies..................

Sum insured (2) (3)....................

Annual premiums ($).......

Annuity

No. of policies..................

Annual amount ($)...........

Annual premiums ($).......

Dated..................................................................

Signature of principal officer (9)..................................................................

 

(1) Include only particulars in relation to blanket policies providing term life insurance or disability insurance. Particulars in relation to other blanket policies shall be included under the heading “Other”.

(2) Particulars in relation to the following benefits shall not be included beside this item: benefits, other than the basic sum insured, attaching to family income policies; benefits payable on death by accident or specified sickness only; and continuous disability insurance benefits.

(3) All amounts except annuities shall be in $m and given to 2 decimal places. Annuities shall be in $.

(4) Beside this item include only particulars in relation to premiums paid on policies without expectation, arising from those policies or otherwise, of the payment of further premiums. Particulars in relation to other premiums shall be included beside the item “Annual Premiums”.

(5) Where a policy that has acquired a surrender value lapses after overdue premiums are advanced out of the surrender value, particulars in relation to that policy shall be included under this heading.

(6) Where the sum insured under a policy is reduced and, as a consequence, the amount of premium payable under that policy is reduced, particulars in relation to this shall

(a) where the policy has a surrender value be included under the heading “Surrender”; and

(b) in any other case be included under the heading “Forfeiture”.

(7) Particulars in relation to transfers and conversions between statutory funds and business transferred or amalgamated shall be included under this heading.

(8) Include under this heading any variation in the number of policies, sums insured and annual premiums resulting from the happening of those events.

(9) The returns may be signed by an officer of the company who has been authorized for that purpose by the Principal Officer in accordance with section 147 of the Act.

 

DIRECTIONS

1. A company shall prepare separate returns in duplicate in relation to

(a) each type of business carried on by that company in Australia; and

(b) each statutory fund established by that company under section 37 of the Act in respect of business carried on by that company in Australia.

2. A company shall not include the following particulars in a return:

(a) amounts in respect of reinsurances on the coinsurance method of the risks of the company;

(b) bonus additions;

(c) policies renewed in the exercise of rights under those policies; or

(d) policies in respect of which the first premium has not been paid.

3. Where a policy is cancelled and all premiums paid are refunded, the necessary entries shall be treated as deductions from the figures in Part 1 relating to the type of policy in which the policy is included.

4. Where a policy that has been cancelled is reinstated, the necessary entries shall be treated as deductions from the figures relating to the cause under which the discontinuance of the policy was included.

5. Where an increased premium is paid in order to renew a policy, the renewal of the policy shall be classified as new business.

6. The following rules shall be observed in relation to a term, accident, sickness or disability insurance policy discontinued as a result of non-payment of renewal premiums:

(a) where that policy is a rider to a policy, it shall be included under the same heading as the basic insurance;

(b) where that policy is a separate policy

(i) where the policy has a surrender value, it shall be included under the heading “Surrender”; and

(ii) in any other case, it shall be included under the heading “Forfeiture”; and

(c) where that policy is a separate renewable policy discontinued at the end of its original term, it shall be included under the heading “Other events provided for in policy”.

7. Where an option is exercised under a convertible individual insurance policy or a rider term insurance policy to change the type of policy in force—

(a) the new type of policy shall be included under the appropriate heading in Part 1; and

(b) any variation in the number of policies, sum insured and annual premium shall be included in Part 2 under the heading “Other events provided for in policy”.

 

and

(b) by omitting Forms 6 and 7 and substituting the following forms:

 

FORM 6 Regulations 13 and 14

Life Insurance Act 1945

Return of ledger balances of certain assets and certain liabilities in Australia for the quarter ended 

Name of company..................................................................................................................

PART 1 LEDGER BALANCES OF ASSETS

Class of assets	Assets in Australia of statutory funds maintained under the Act solely in respect of superannuation business carried on in Australia	Assets in Australia of other statutory funds maintained under the Act in respect of any life insurance business carried on in or outside Australia	Total
$	$	$

Fined assets

Freehold and leasehold property...........................................................

Office furniture, fittings, equipment and motor vehicles......................

Total fixed assets.................................................

Loans (excluding advances of premiums)

On mortgage of real estate.....................................................................

(a) Rural (not including mortgages where the security relates only to a dwelling) 

(b) Housing (including mortgages of rural property where the security relates only to a dwelling but not including mortgages where the security relates to flats, apartments or shops with dwellings) 

(c) Other..........................................................................................

On policies.............................................................................................

To controlled companies.......................................................................

To building or housing societies............................................................

Other......................................................................................................

Total loans...................................................................................

Investments

Government securities...........................................................................

Australia..........................................................................................

Papua New Guinea..........................................................................

New Zealand...................................................................................

Great Britain....................................................................................

Other...............................................................................................

Securities of local government and semi-governmental bodies............

Company securities

Debentures......................................................................................

Secured and unsecured notes..........................................................

Preference shares............................................................................

Ordinary shares...............................................................................

Holdings in controlled companies...................................................

Other......................................................................................................

Total investments.........................................................................

Cash

On deposit.............................................................................................

Banks..............................................................................................

Short-term money market (1).........................................................................................

Other...............................................................................................

On current account and in hand............................................................

Total cash........................................................................................

Grand total.......................................................................................

   

PART 2 LEDGER BALANCES OF LIABILITIES

Class of liabilities		Liabilities in Australia of statutory funds maintained under the Act solely in respect of superannuation business carried on in Australia	Liabilities in Australia of other statutory funds maintained under the Act in respect of any life insurance business carried on in or outside Australia	Total
$		$	$

Bank overdraft.......................................................................

Deposits.................................................................................

Total..........................................................................

Dated......................................................

Signature of principal officer(2)...........................................................................

 

(1) Ledger balances of cash invested by way of loans upon the security of Commonwealth .securities to persons specified as short term money market dealers in a notice given to the company by the Commissioner (being a notice that has not been cancelled).

(2) The returns may be signed by an officer of the company who has been authorized for that .purpose by the Principal Officer in accordance with section 147 of the Act

 

DIRECTIONS

1. A company shall prepare returns in duplicate.

2. Amounts shown in this return shall be the balance according to the company’s ledger as at the date of expiration of the quarter to which the return relates without adjustment for any accrued outstanding interest or other particulars that have not been brought into account at that date.

 

FORM 7 Regulations 13 and 14

Life Insurance Act 1945

Return for the month of...............................................................

Name of company........................................................................

PART I NEW INSURANCES ISSUED (EXCLUDING ANNUITIES)

Ordinary life insurance business other than superannuation business			Industrial insurance business other than superannuation business			Superannuation business
Slate or Territory	Number of policies	Sum insured (1))	Annual premiums	Number of policies	Sum insured (1))	Annual premiums	Number of policies	Sum insured (1))	Annual premiums
$	$	$	$	$	$

New South Wales..............................

Victoria..............................................

Queensland........................................

South Australia..................................

Western Australia..............................

Tasmania............................................

Australian Capital Territory...............

Northern Territory..............................

Total................................

 

PART 2 INSURANCES DISCONTINUED OR REDUCED (EXCLUDING ANNUITIES)

Ordinary life insurance business other than superannuation business			Industrial insurance business other than superannuation business			Superannuation business
Slate or Territory	Number of policies	Sum insured (1))	Annual premiums	Number of policies	Sum insured (1))	Annual premiums	Number of policies	Sum insured (1))	Annual premiums
$	$	$	$	$	$

New South Wales..................................

Victoria..................................................

Queensland............................................

South Australia......................................

Western Australia..................................

Tasmania................................................

Australian Capital Territory...................

Northern Territory..................................

Total.......................................

 

PART 3 NEW LOANS (EXCLUDING ADVANCES OF PREMIUMS) PAID OVER

On mortgage of real estate
Stale or Territory	Rural (not including mortgages where the security relates only to a dwelling)	Housing (including mortgages of rural property where the security relates only to a dwelling but not including mortgages where the security relates to flats, apartments or shops with dwellings)	Other	On policies	To controlled companies	To building or housing societies	Other	Total
$	$	$	$	$	$	$	$

New South Wales..................................

Victoria..................................................

Queensland............................................

South Australia......................................

Western Australia..................................

Tasmania................................................

Australian Capital..................................

Territory.................................................

Northern Territory..................................

Total.......................................

   

PART 4 PREMIUMS RECEIVED, AND CLAIMS, SURRENDERS, ETC., PAID

Particulars	Ordinary life insurance business other than superannuation business	Industrial insurance business other than superannuation business	Superannuation business	Total
$	$	$	$

Receipts(2)

Insurance premiums....................................

Consideration for annuities..........................

Total...................................................

Payments(3)

Claims......................................................

Surrenders................................................

Annuities..................................................

Bonuses paid in cash................................

Total...................................................

 

PART 5 RATES OF INTEREST CHARGED ON NEW LOANS

On mortgage of real estate
Particulars	Rural (not including Mortgages where the security relates only to a dwelling)	Housing (including mortgages of rural property where the security relates only to a dwelling but not including mortgages where the security relates to flats, apartments or shops with dwellings)	Other	On policies	To controlled  companies	To building or housing societies	Other	Total

Rate at end of month(4)..........................................................

Date from which charged...................................

Previous rate(4).............................................................................

Dated....................................................................

Signature of principal officer(5)...........................................................................

 

(1) Particulars in relation to the following benefits are not to be included below this heading, benefits, other than the basic sum insured, attaching to family income policies: benefits payable on death by accident or specified sickness only; and continuous disability insurance benefits.

(2) Amounts received after deduction of any amounts paid in respect of reinsurance of the risks of the company.

(3) Amounts payable before deduction of any debts owing to the company but after deduction of any amounts received in respect of reinsurance of the risks of the company.

(4) Rate to be shown in per cent per annum.

(5) The returns may be signed by an officer of the company who has been authorized for that purpose by the Principal Officer in accordance with section 147 of the Act.

 

DIRECTIONS

1. A company shall prepare returns in duplicate,

2. A company shall not include the following particulars in a return:

(a) amounts in respect of reinsurances on the coinsurance method of the risks of the company; or

(b) bonus additions.

Further amendments

7. The Life Insurance Regulations are further amended as set out in the Schedule.

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SCHEDULE Regulation 7

Provision amended

Amendment

Regulation 2...............................

Repeal.

Sub-regulation 3 (2)..................

Omit “the First Schedule to these Regulations”, substitute “Schedule 1”.

Regulation 8...............................

Omit “sub-section (2) of section ninety-five”, substitute “sub-section 95 (2)”.

Sub-paragraph 8 (a) (i).............

Omit “of this paragraph”.

Sub-paragraph 8 (a) (ii)............

Omit “One dollar” (wherever occurring), substitute “$1”.

Sub-paragraph 8 (a) (iii)...........

Omit “the last preceding sub-paragraph”, substitute “sub-paragraph (a)(ii)”

Sub-paragraph 8 (d) (iii)...........

Omit “One dollar” (wherever occurring), substitute “$1”.

Regulation 11............................

Omit “sub-section (2) of section one hundred”, substitute “sub-section 100 (2)”.

Regulation 21............................

Omit “section one hundred and forty-five”, substitute “section 145”.

Regulation 22............................

Omit “three months”, substitute “3 months”.

Regulation 23............................

(a) Omit “the thirty-first day of May”, substitute “31 May”.

(b) Omit “sections forty-four and fifty-one”, substitute “sections 44 and 51”.

(c) Omit “ten”, substitute “10”.

Regulation 24............................

Omit “sub-section (2) of section fifty-seven”, substitute “sub-section 57 (2)”.

Regulation 25............................

Omit “paragraph (b) of sub-section (1) of section seventy-five” substitute “paragraph 75 (1) (b)”.

Regulation 27............................

(a) Omit “Life Insurance Act 1945-1958”, substitute “the Act”.

(b) Omit “the Second Schedule to these Regulations”, substitute “Schedule 2”.

Regulation 29............................

Omit “is” (third occurring).

Regulation 30............................

Omit “Fifty pounds”, substitute “$100”.

Heading to First Schedule.......

Omit “FIRST SCHEDULE”, substitute “SCHEDULE 1”.

Heading to Second Schedule..

Omit “SECOND

SCHEDULE”, substitute “SCHEDULE 2”.

Second Schedule.......................

Omit “£” (wherever occurring), substitute “$”.

NOTES

1. Notified in the Commonwealth of Australia Gazette on 28 October 1983.

2. Statutory Rules 1946 No. 136 as amended by 1959 No. 98; 1962 Nos. 3 and 12; 1966 No. 36; 1969 No. 51; 1971 No. 100; 1974 Nos. 68 and 224; 1978 No. 31; 1980 No. 54; 1981 No. 262.