LIFE INSURANCE.
No. 93 of 1959.
An Act to amend the Life Insurance Act 1945-1958.
[Assented to 4th December, 1959.]
BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Life Insurance Act 1959.
(2.) The Life Insurance Act 1945–1958 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Life Insurance Act 1945–1959.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Application of amendments.
3.—(1.) The Principal Act as amended by the next two succeeding sections extends to cases in which the death of the deceased person occurred before the commencement of this Act.
(2.) The Principal Act as amended by section six of this Act applies to applications for the issue of a special policy made after the commencement of this Act.
Probate or administration may be dispensed with in certain cases.
4. Section one hundred and three of the Principal Act is amended by omitting from paragraphs (a) and (b) of sub-section (1.) the words “Five hundred” and inserting in their stead the words “One thousand”.
Death of owner of policy not being life insured.
5. Section one hundred and three a of the Principal Act is amended by omitting from paragraphs (a) and (b) of sub-section (4.) the words “Two hundred” and inserting in their stead the words “Four hundred”.
Lost policy.
6. Section one hundred and nineteen of the Principal Act is amended by omitting from sub-section (4.) the words “Two hundred” and inserting in their stead the words “Five hundred”.
The Sixth Schedule.
7. Part II. of the Sixth Schedule to the Principal Act is amended by omitting from paragraph (a) of rule two the word “Five” and inserting in its stead the words “Four and one-half”.
Overview
The Life Insurance Act 1959 was enacted to amend the Life Insurance Act 1945-1958, addressing certain gaps and updating provisions within the legislation. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia and received Royal Assent on 4 December 1959. The primary policy objective of this Act is to refine and update specific financial thresholds and provisions relating to life insurance policies, ensuring they remain relevant and effectively serve the needs of policyholders and beneficiaries. The Act extends its amendments to cases where the death of the deceased occurred before its commencement, and it also applies to applications for special policies made after its commencement. The Act seeks to provide clarity and adjust monetary limits to accommodate changes in economic conditions and societal standards since the original Act was enacted.
Scope and Application
The Life Insurance Act 1959 amends the Life Insurance Act 1945-1958, extending its application to cases where the death of the deceased occurred prior to the Act's commencement, while also applying to applications for special policy issuance made after the Act's commencement. This Act applies to life insurance policies governed by the Principal Act and aims to provide amendments and improvements to the existing legal framework. The Act applies to entities and individuals involved in the issuance, administration, and claims process of life insurance policies, with a particular focus on the financial thresholds that trigger specific legal requirements and exemptions. The Act does not explicitly state geographic or jurisdictional limitations beyond the scope of the Principal Act, which generally applies nationally across Australia. While the Act itself does not mention exclusions or exemptions, it does modify certain financial thresholds, thereby altering the conditions under which probate or administration may be dispensed with or claims may be made on lost policies. The Act's amendments can also be extended or further specified through subordinate instruments issued under its authority.
Key Provisions
The Life Insurance Act 1959 amends the Life Insurance Act 1945-1958 in several key ways. The Act raises the monetary thresholds for certain provisions, allowing for the dispensing of probate or administration in cases where the deceased person’s estate is worth more than the previously stipulated amount. For instance, Section 4 of the Act increases the amount from five hundred to one thousand pounds for cases where the death of the deceased occurred prior to the Act's commencement. This means that estates worth more than one thousand pounds will require probate or administration, whereas previously it was five hundred pounds. Similarly, Section 5 raises the threshold for the death of the policy owner who is not the life insured, changing the limit from two hundred to four hundred pounds.
The Act also imposes specific obligations on the entities and individuals it governs. For example, life insurance companies must now comply with the new monetary thresholds outlined in Sections 4 and 5, ensuring that they appropriately apply the provisions regarding probate and administration. Additionally, Section 6 increases the limit for lost policies from two hundred to five hundred pounds, thereby affecting how insurance companies handle claims for lost policies.
Failure to comply with the provisions of this Act may lead to various civil and criminal consequences. Although the Act itself does not explicitly state penalties for non-compliance, it is reasonable to infer that breaches could result in legal actions under related statutes or regulations. For instance, if an insurance company fails to adhere to the updated thresholds, they may face litigation from policyholders or regulatory penalties imposed by the relevant authorities. The precise nature and extent of penalties would depend on the specific circumstances and the applicable laws at the time of any alleged breach.