Variation of life company registration conditions 2022 – QInsure Limited
Life Insurance Act 1995
To: QInsure Limited ABN 79 607 345 853 (QInsure Limited)
Since QInsure Limited is registered under section 21 of the Act on 1 July 2016 as a life company, I, Brandon Kong Leong Khoo, a delegate of APRA, under paragraph 22(1)(b) of the Act, vary the conditions imposed on QInsure Limited’s registration.
The conditions imposed on QInsure Limited’s registration following this variation are set out in the Schedule.
The varied conditions on QInsure Limited’s registration commence on and from the date of the successor fund transfer of Sunsuper Superannuation Fund into the Australian Retirement Trust ABN 60 905 115 063 (formerly QSuper) and the change of trustee of the Australian Retirement Trust ABN 60 905 115 063 from the QSuper Board ABN 32 125 059 006 to Sunsuper Pty Ltd ABN 88 010 720 840 (to be renamed Australian Retirement Trust Pty Ltd).
Dated: 23 February 2022
Brandon Kong Leong Khoo
Executive Director
Insurance Division
Interpretation
In this instrument:
Act means the Life Insurance Act 1995.
APRA means the Australian Prudential Regulation Authority.
life company has the meaning given by the Act.
.
Schedule
- QInsure may only carry on life insurance business for the purposes of providing benefits to members in the Government Division in the event of the:
(a) death of the member or the member being found to have a terminal illness;
(b) injury to, or disability of the member as a result of accident or sickness; or
(c) the member being found to have a stated condition or disease.
2. QInsure must not provide benefits to members in the Government Division other than by way of issuing a policy to the trustee of the Australian Retirement Trust ABN 60 905 115 063.
Interpretation
In these conditions:
Government Division means the division within the Australian Retirement Trust ABN 60 905 115 063 (formerly QSuper) that comprises:
(a) members of QSuper prior to the successor fund transfer of Sunsuper Superannuation Fund into the Australian Retirement Trust;
(b) employees of the Queensland Government or its associated entities who become members of the Australian Retirement Trust after the successor fund transfer mentioned in (a) above;
(c) spouses and children of (a) and (b) above who join the Australian Retirement Trust; and
(d) any other member permitted to be a member of the Government Division pursuant to the rules of the Government Division within the Australian Retirement Trust.
life insurance business has the meaning given by the Act.
member means a member or beneficiary of the Government Division.
successor fund has the meaning given in regulation 1.03 of the Superannuation Industry (Supervision) Regulations 1994.
Notes
Note 1: A decision under subsection 22(1) is a reviewable decision. If you are dissatisfied with this decision, you may request APRA to reconsider it in accordance with section 236 of the Act. The request for reconsideration must be made in writing, must set out the reasons for making the request, and must be given to APRA within 21 days after the day on which you first received notice of this decision, or within such further period as APRA allows. If you are dissatisfied with the outcome of APRA’s reconsideration of the decision, you may, subject to the Administrative Appeals Tribunal Act 1975, apply to the Administrative Appeals Tribunal for review of the reconsidered decision.
Note 2: APRA is required to publish this notice in the Gazette.
Overview
The Variation of life company registration conditions 2022 was enacted to amend the registration conditions for QInsure Limited under the Life Insurance Act 1995. This legislation was introduced to address the need to modify the registration terms for QInsure Limited following significant changes in its operational structure, such as the successor fund transfer of Sunsuper Superannuation Fund into the Australian Retirement Trust and the change of trustee. Enacted by the Australian Prudential Regulation Authority (APRA), the policy objective behind this variation is to ensure that QInsure Limited’s life insurance business aligns with the new operational framework, specifically catering to members in the Government Division of the Australian Retirement Trust. The changes ensure that QInsure Limited can only provide life insurance benefits to members in the Government Division under specified circumstances and through designated trustees, thereby maintaining regulatory compliance and protecting policyholder interests.
Scope and Application
The Variation of Life Company Registration Conditions 2022 applies specifically to QInsure Limited, a life insurance company registered under section 21 of the Life Insurance Act 1995. The Act governs the conduct and operations of life insurance companies in Australia, ensuring compliance with regulatory standards set by the Australian Prudential Regulation Authority (APRA). This variation in conditions imposed on QInsure Limited’s registration was enacted to align with the transfer of the Sunsuper Superannuation Fund into the Australian Retirement Trust and the change of trustee from the QSuper Board to Sunsuper Pty Ltd (soon to be renamed Australian Retirement Trust Pty Ltd). The new conditions restrict QInsure Limited’s life insurance business to providing benefits exclusively to members of the Government Division within the Australian Retirement Trust under specific circumstances, such as death, terminal illness, injury, disability, or stated conditions or diseases. Benefits must be provided by issuing policies to the trustee of the Australian Retirement Trust and not directly to individual members. The revised conditions commence from the date of the successor fund transfer and trustee change. The Act's application is overseen by APRA, which retains the authority to review and reconsider its decisions if requested by QInsure Limited or other interested parties within the specified timeframes.
Key Provisions
The 2022 Variation of Life Company Registration Conditions issued by Brandon Kong Leong Khoo, under the Life Insurance Act 1995, modifies the conditions of QInsure Limited's registration as a life company. This variation is effective from the date of the successor fund transfer of Sunsuper Superannuation Fund into the Australian Retirement Trust and the change of trustee of the Australian Retirement Trust. The primary changes (Schedule) are that QInsure Limited can only provide life insurance benefits to members in the Government Division of the Australian Retirement Trust for specific circumstances, such as death, terminal illness, injury or disability due to accident or sickness, or specific stated conditions or diseases (Schedule, clause 1). Moreover, QInsure Limited must provide these benefits exclusively by issuing a policy to the trustee of the Australian Retirement Trust (Schedule, clause 2).
QInsure Limited, as a life company, is obligated to adhere to the new conditions outlined in the Schedule. This includes restricting the provision of life insurance benefits strictly to members in the Government Division under the specified circumstances and ensuring that these benefits are provided only through a policy issued to the trustee of the Australian Retirement Trust. The definition of the "Government Division" is also clarified within the conditions, encompassing former QSuper members, Queensland Government employees, their spouses and children, and other permitted members under the rules of the Government Division.
Failure to comply with the conditions set out in the Schedule could result in legal consequences. Although the specific penalties are not detailed in the instrument, breaches of conditions under the Life Insurance Act 1995 can typically lead to enforcement actions by APRA, which may include administrative penalties, corrective measures, or in severe cases, revocation of the life company registration. Dissatisfied parties have the right to request a reconsideration of the decision within 21 days, as stipulated in section 236 of the Act, and can further appeal to the Administrative Appeals Tribunal if necessary. This legislative instrument underscores the importance of adhering to regulatory conditions to maintain the integrity and compliance of life insurance operations within Australia.