Variation of life company registration conditions 2024 – ART Life Insurance Ltd
Life Insurance Act 1995
To: ART Life Insurance Ltd ABN 79 607 345 8531 (ART Life)
Since ART Life is registered under section 21 of the Act as a life company, I, Sean Carmody, a delegate of APRA, under paragraph 22(1)(b) of the Act, vary the conditions imposed on ART Life’s registration.
The conditions imposed on ART Life’s registration following this variation are set out in the Schedule.
This instrument commences on the day it is made. Dated: 30 August 2024
Sean Carmody 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.
life insurance business has the meaning given by the Act.
1 Formerly QInsure Limited.
Schedule
- ART Life may only carry on life insurance business for the purposes of providing benefits to members of Australian Retirement Trust ABN 60 905 115 063 (ART) in the event of the:
- death of the member or the member being found to have a terminal illness;
- injury to, or disability of the member as a result of accident or sickness; or
- the member being found to have a stated condition or disease.
- ART Life must not provide benefits to members of ART other than by way of issuing a policy to Australian Retirement Trust Pty Ltd ABN 88 010 720 840 as trustee of ART.
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 Review Tribunal Act 2024, apply to the Administrative Review Tribunal for review of the reconsidered decision.
Note 2: APRA is required to publish this notice in the Gazette.
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Overview
The Variation of life company registration conditions 2024, published under the Life Insurance Act 1995, addresses the specific conditions governing the registration of ART Life Insurance Ltd, formerly known as QInsure Limited, as a life company. Enacted by the Australian Prudential Regulation Authority (APRA), this legislation aims to ensure that ART Life Insurance Ltd operates within the constraints of providing life insurance benefits exclusively to members of Australian Retirement Trust. This variation follows a review under paragraph 22(1)(b) of the Act and establishes new terms for the company's registration, specifying the purposes for which it may conduct its business and the limitations on its operations. The policy objective is to maintain regulatory oversight and protect the interests of policyholders by ensuring that ART Life adheres to the prescribed conditions set forth in the Schedule.
Scope and Application
The Variation of Life Company Registration Conditions 2024, issued under the Life Insurance Act 1995, applies specifically to ART Life Insurance Ltd, a company registered under section 21 of the Act as a life insurance provider. The conditions of registration for ART Life have been varied by Sean Carmody, an Executive Director of the Insurance Division and a delegate of the Australian Prudential Regulation Authority (APRA). This legislation restricts ART Life's activities to providing life insurance benefits solely to members of Australian Retirement Trust (ART) in specific circumstances, such as death, terminal illness, injury, or disability resulting from accidents or sickness, or the presence of a stated condition or disease. Furthermore, ART Life is mandated to provide these benefits exclusively through policies issued to Australian Retirement Trust Pty Ltd, acting as trustee for ART. This instrument, which includes a detailed schedule outlining the specific conditions, commences on the date of its issuance. The Act’s application is geographically confined to the Commonwealth of Australia, and any decisions made under this legislation are subject to review processes as stipulated within the Act and the Administrative Review Tribunal Act 2024.
Key Provisions
Pursuant to the Life Insurance Act 1995, the Delegate of the Australian Prudential Regulation Authority (APRA) has varied the conditions imposed on ART Life Insurance Ltd's registration. The primary sections of this legislation relevant to this variation are section 21, which pertains to the registration of life companies, and section 22, which provides the authority for varying the conditions of such registration. The variation itself is detailed in the Schedule of the instrument. The Schedule specifies that ART Life Insurance Ltd may only engage in life insurance business to provide benefits to members of Australian Retirement Trust (ART) under certain circumstances, including the death of the member, a terminal illness, injury or disability due to accident or sickness, or the presence of a stated condition or disease. Furthermore, ART Life Insurance Ltd is required to provide these benefits exclusively through policies issued to Australian Retirement Trust Pty Ltd acting as trustee of ART.
The obligations and requirements imposed by this variation on ART Life Insurance Ltd are quite specific. Firstly, ART Life Insurance Ltd must align its life insurance business strictly with the conditions set out in the Schedule, meaning it can only provide benefits to ART members under the stipulated circumstances. Additionally, any benefits must be provided through policies issued to Australian Retirement Trust Pty Ltd as the trustee of ART, and not directly to individual members or in any other form. This ensures a structured and regulated approach to how ART Life Insurance Ltd can operate within the bounds of its registration. Compliance with these conditions is crucial for maintaining its registration and operational legitimacy under the Life Insurance Act 1995.
Failure to adhere to the conditions set out in this variation may result in various consequences, including potential civil or criminal penalties. Under the Life Insurance Act 1995, breaches of the Act or its conditions can lead to significant fines or even imprisonment, depending on the severity and intent of the breach. Specifically, section 236 of the Act allows for reconsideration of decisions made under section 22, providing a formal process for ART Life Insurance Ltd to appeal if it believes the conditions are unjust or incorrectly applied. If dissatisfied with the reconsideration outcome, ART Life Insurance Ltd can further seek review by the Administrative Review Tribunal. This multi-tiered review process underscores the importance of compliance and the potential repercussions of non-compliance with the Act’s provisions.