Life Insurance Regulations (Amendment)

Statutory Rules

1978 No. 31

REGULATIONS UNDER THE LIFE INSURANCE ACT 1945*

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 this twenty-eighth day of February 1978.

ZELMAN COWEN

Governor-General

By His Excellency’s Command,

JOHN HOWARD

Treasurer

AMENDMENTS OF THE LIFE INSURANCE REGULATIONS†

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

2. The Life Insurance Regulations are amended by inserting after regulation 27a. the following regulation:

Alteration to Form D in First Schedule the Life Insurance Act 1945

“ 27b. Form D in the First Schedule to the Act is altered by omitting from the table—

‘ Government Securities—

Australia ’

and substituting—

‘ Government Securities—

Australia

Papua New Guinea ’.”.

* Notified in the Commonwealth of Australia Gazette on 6 March 1978.

† Statutory Rules 1946, No. 136 as amended by Statutory Rules 1959, No. 98; 1962, Nos. 3 and 12; 1966, No. 36; 1969, No. 51; 1971, No. 100; and 1974, Nos. 68 and 224.

3. The Life Insurance Regulations are amended by inserting after regulation 28 the following regulation:

Alterations to Fourth Schedule to the Life Insurance Act 1945

“ 28a. The provisions of the Fourth Schedule to the Act are altered—

(a) by omitting rules (1) and (2) and substituting the following rules:

‘ (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 for the Institute of Actuaries and the Faculty of Actuaries under the title “ The a (55) 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 for the Institute of Actuaries and the Faculty of Actuaries under the title “ The a (55) 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) modified 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 7 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—

(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 5.5 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.’;

(b) by omitting ‘ one year ’ (wherever occurring) from paragraph (a) of the definition of ‘ adjusted net premiums ’ in rule 4 and substituting ‘ 2 years ’; and

(c) by omitting ‘ Three per centum of the sum insured ’ from paragraph (b) of the definition of ‘ adjusted net premiums ’ in rule 4 and substituting ‘ 3.5 per centum of the sum insured ’.”.

First Schedule

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

(a) by omitting from the table in Part I of Form 4 “ Papua and New Guinea ”;

(b) by omitting from the table in Part II. of Form 4 “ Papua and New Guinea ”;

(c) by omitting Form 5 and substituting the Form set out in the Schedule to these Regulations;

(d) by omitting from the table in Part I of Form 6—

“ Government Securities—

Australia ”

and substituting

“ Government Securities—

Australia

Papua New Guinea ”;

(e) by omitting from the table in Part I of Form 7 “ Papua and New Guinea ”;

(f) by omitting from the table in Part II of Form 7 “ Papua and New Guinea ”; and

(g) by omitting from the table in Part III of Form 7 “ Papua and New Guinea ”.

SCHEDULE  Regulation 4

FORM 5  Regulation 15

COMMONWEALTH OF AUSTRALIA

Life Insurance Act 1945

AUSTRALIAN LIFE INSURANCE STATISTICS

ANNUAL RETURN OF LOANS AND REAL ESTATE AS AT

Name of Company

PART I

Loans made by Company and outstanding at

PART II

Value of Real Estate owned by the Company at