STATUTORY RULES.
1962. No. 12.
REGULATION UNDER THE LIFE INSURANCE ACT 1945-1961.*
WHEREAS by sub-section (2.) of section ninety-five of the Life Insurance Act 1945-1961 it is provided, amongst other things, that the Governor-General may, on the recommendation of the Insurance Commissioner, by regulation declare that the provisions of Division 4 of Part IV. of that Act shall apply in respect of any policy or class of policies with such modifications as are declared in the regulation:
And whereas by regulation 8 of the Life Insurance Regulations it is declared, on the recommendation of the Insurance Commissioner, that the provisions of Division 4 of Part IV. of that Act shall apply in respect of each of the classes of policies specified in that regulation, subject to the modifications declared in the paragraph of that regulation in which that class is specified:
And whereas the Insurance Commissioner has recommended that the provisions of Division 4 of Part IV. of that Act apply in respect of ordinary policies subject to such modifications as are set forth in the following regulation:
Now therefore I, the Governor-General in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the Life Insurance Act 1945-1961.
Dated this 31st day of January, 1962.
DE L’ISLE
Governor-General.
By His Excellency’s Command,
Treasurer.
Amendment of the Life Insurance Regulations.†
Modifications of provisions of Act in case of certain policies.
Regulation 8 of the Life Insurance Regulations is amended by adding at the end thereof the following paragraph:—
“(g) Ordinary Policies:—The modifications are—
(a) for paragraph (b) of rule 5 of Part I. of the Sixth Schedule to the Act, substitute the following paragraph:—
‘(b) the rates of mortality shall be assumed according to the ultimate table based on the experience of insured lives for the years 1924 to 1929, and published on
* Notified in the Commonwealth Gazette on 8th February, 1962.
† Statutory Rules 1946, No. 136, as amended by Statutory Rules 1959, No. 98; and 1962, No. 3.
10019/61.—Price 3d. 9/15.12.1961.
behalf of The Institute of Actuaries and The Faculty of Actuaries in Scotland under the short title of A 1924-29 Table; and’; and
(b) for paragraph (c) of rule 2 of Part II. of the Sixth Schedule to the Act, substitute the following paragraph:—
‘(c) the rates of mortality shall be assumed according to the ultimate table based on the experience of insured lives for the years 1924 to 1929, and published on behalf of The Institute of Actuaries and The Faculty of Actuaries in Scotland under the short title of A 1924-29 Table; and’.”.
By Authority: A. J. Arthur, Commonwealth Government Printer, Canberra.
Overview
Statutory Rules 1962 No. 12, made under the Life Insurance Act 1945-1961, was enacted to address the need for updated mortality rate tables in the valuation of life insurance policies. This regulation was introduced following a recommendation by the Insurance Commissioner, and it was approved by the Governor-General on the advice of the Federal Executive Council. The primary objective of this regulation is to modify the mortality rates used in the calculation of certain life insurance policies, specifically ordinary policies, to reflect more recent actuarial data. The regulation replaces the previously used mortality tables with those based on the experience of insured lives from 1924 to 1929, as published by The Institute of Actuaries and The Faculty of Actuaries in Scotland under the title "A 1924-29 Table." This legislative instrument aims to ensure that the life insurance industry operates on the basis of more current and relevant data, thereby maintaining the integrity and fairness of insurance contracts.
Scope and Application
The Life Insurance Act 1945-1961 and its subsequent regulations govern the application of specific provisions concerning life insurance policies within the Commonwealth of Australia. This legislative instrument applies to ordinary policies, modifying the rates of mortality that are assumed for these policies. The modifications are made by amending Regulation 8 of the Life Insurance Regulations, which adjusts the mortality tables to those based on the experience of insured lives for the years 1924 to 1929, published as the A 1924-29 Table. The regulation is enacted at the federal level and is applicable to all life insurance companies operating within Australia. The modifications pertain specifically to the mortality rates assumed in the calculation of premiums and benefits under ordinary life insurance policies, thereby directly affecting insurance providers and policyholders. The regulation does not explicitly state any exclusions or exemptions, indicating that the modifications apply broadly to all ordinary policies unless otherwise specified by subordinate instruments.
Key Provisions
The main operative sections of this statutory rule, made under the Life Insurance Act 1945-1961, focus on the amendment of the Life Insurance Regulations concerning ordinary policies (section 1). Specifically, the regulation modifies the mortality rates assumptions for such policies by substituting the existing rates with those based on the ultimate table for the years 1924 to 1929, as published by The Institute of Actuaries and The Faculty of Actuaries in Scotland under the title "A 1924-29 Table". These modifications are detailed in the new paragraph added to regulation 8 of the Life Insurance Regulations (section 2(g)).
The obligations imposed by this regulation primarily concern the entities and individuals involved in the issuance and management of life insurance policies. Insurers are required to adjust the mortality rates they use for ordinary policies to align with the new standards set forth in this regulation (section 2(g)(a) and (b)). This adjustment must be made in accordance with the specified mortality table, ensuring consistency and reliability in the calculation of policy premiums and benefits.
Breaches of this regulation may result in legal consequences. Although specific penalties are not outlined in the statutory rule, non-compliance with regulations made under the Life Insurance Act 1945-1961 could potentially lead to enforcement actions by regulatory authorities. Such actions may include fines, corrective orders, or other regulatory measures aimed at ensuring compliance with the legislative requirements. The precise penalties would depend on the nature and severity of the breach, as well as any additional provisions stipulated in the Life Insurance Act 1945-1961 or related regulations.