STATUTORY RULES
1966 No. 36
REGULATIONS UNDER THE LIFE INSURANCE ACT 1945-1965.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Life Insurance Act 1945-1965.
Dated this third day of February, 1966.
CASEY
Governor-General.
By His Excellency’s Command,
Treasurer.
Amendment of the Life Insurance Regulations.†
Modification of provisions of Act in case of certain policies.
1.—(1.) Regulation 8 of the Life Insurance Regulations is amended by omitting from sub-paragraph (ii) of paragraph (a) and sub-paragraph (iii) of paragraph (d) the word “pound” (wherever occurring) and inserting in its stead the word “dollar”.
(2.) This regulation shall come into operation on the fourteenth day of February, 1966.
Currency in which returns to be expressed.
2.—(1.) Where a company is required, in pursuance of sub-regulation (1.) of regulation 19 of the Life Insurance Regulations, to furnish a return in respect of its financial year, being a year that ends on or after the thirtieth day of September, 1965, and that return has not been furnished before the date of commencement of this regulation, the company shall express the return in the currency provided for by the Currency Act 1965.
(2.) Where a company is required, in pursuance of sub-regulation (2.) of regulation 19 of the Life Insurance Regulations, to furnish a return in Form 6 in the First Schedule to those Regulations in respect of a period ending on, or on a date before, the thirty-first day of December, 1965, the company shall, whether the Form is furnished before, on or after the fourteenth day of February, 1966, express the Form in the currency provided for by the Coinage Act 1909-1947.
(3.) Where a company is required, in pursuance of sub-regulation (3.) of regulation 19 of the Life Insurance Regulations, to furnish a return in respect of the month of January, 1966 (and that return has not been furnished before the date of commencement of this regulation) or in respect of any subsequent month, the company shall express that return in the currency provided for by the Currency Act 1965.
Penalty: Fifty pounds.
* Notified in the Commonwealth Gazette on 10 February, 1966.
† Statutory Rules 1946, No. 136, as amended by Statutory Rules 1959, No. 98; and 1962, Nos. 3 and 12.
By Authority: A. J. Arthur, Commonwealth Government Printer, Canberra
8751/65.—Price 6d. (5c) 9/1.2.1966
Overview
The Life Insurance Act 1945-1965 was enacted to regulate the life insurance industry in Australia, ensuring the protection of policyholders and maintaining the financial stability of life insurance companies. The Act provided the legislative framework for the industry, with the 1966 Statutory Rules being the first amendments introduced under this Act. These Regulations were made by the Governor-General in accordance with the advice of the Federal Executive Council, thereby reflecting the legislative authority of the Commonwealth Parliament. The primary policy objective of these Regulations is to ensure that the currency used in financial reporting by life insurance companies aligns with the national currency standards set by the Currency Act 1965 and the Coinage Act 1909-1947, thus maintaining consistency and accuracy in financial disclosures.
Scope and Application
The Statutory Rules 1966 No. 36, made under the Life Insurance Act 1945-1965, amend the Life Insurance Regulations to transition from the use of pounds to dollars in financial reporting by insurance companies. This legislative instrument applies to insurance companies operating within the Commonwealth of Australia, impacting their financial reporting obligations. The regulation specifies that returns related to financial years ending on or after 30 September 1965 must be expressed in the currency provided for by the Currency Act 1965, while returns for periods ending before 31 December 1965 must be in the currency provided for by the Coinage Act 1909-1947. The transition to the new currency is set to take effect on 14 February 1966, with a penalty of fifty pounds for non-compliance. The Act does not specify exclusions or exemptions within this regulation, and its application is restricted to financial reporting requirements of insurance companies within the Commonwealth.
Key Provisions
The main operative sections of this legislation include the amendments to Regulation 8 of the Life Insurance Regulations, which modify the currency in which certain financial returns must be expressed (Regulation 1). Specifically, the word "pound" is replaced with "dollar" in sub-paragraph (ii) of paragraph (a) and sub-paragraph (iii) of paragraph (d). Regulation 2 further specifies that for financial years ending after 30 September 1965, companies must express returns in the currency provided by the Currency Act 1965, while for periods ending before 31 December 1965, returns must be in the currency provided by the Coinage Act 1909-1947. For returns concerning January 1966 onwards, the currency stipulated by the Currency Act 1965 must be used.
These regulations impose specific obligations on life insurance companies regarding the currency in which they must express their financial returns. Companies must ensure that their returns for financial years ending after 30 September 1965 are expressed in the currency provided by the Currency Act 1965. For periods ending before 31 December 1965, they must use the currency as outlined in the Coinage Act 1909-1947. Any returns for the month of January 1966 or subsequent months must adhere to the Currency Act 1965. Failure to comply with these currency requirements can result in penalties.
Breaching these currency requirements can lead to civil consequences, including a penalty of fifty pounds. This penalty is stipulated in the final provision of the legislation, underscoring the importance of adherence to the specified currency formats. The imposition of such penalties serves as a deterrent against non-compliance, ensuring that life insurance companies accurately follow the stipulated currency requirements in their financial reporting.