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LIFE INSURANCE ACT 1995 !!!The following amendment (No. 9, 2006) has not been incorporated. - List of Sections

Section

Compilation Information

Long Title

LIFE INSURANCE ACT 1995
Part 1—Preliminary

1. Short title [ see Note 1]
2. Commencement [ see Note 1]
3. Objects of Act
4. Additional operation of Act
5. Exclusion of certain State insurance
6. Extension of Act to Norfolk Island
7. General administration of Act
8. Dictionary
LIFE INSURANCE ACT 1995
Part 2—Explanation of key concepts

9. Life policy
9A. Continuous disability policy
10. Issue and ownership of policies
11. Life insurance business
12. Classes of life insurance business
12A. Declarations that insurance or annuity business is life insurance business
12B. Declarations that other financial business is life insurance business
13. Business of a statutory fund
14. Investment account benefits, investment-linked benefits
participating benefits

16. Related companies
LIFE INSURANCE ACT 1995
Part 2A—Special provisions relating to life companies that are
friendly societies

LIFE INSURANCE ACT 1995
Division 1—Preliminary


16A. Overview
16B. Definitions
LIFE INSURANCE ACT 1995
Division 2—Friendly societies and how this Act applies to them


16C. What is a friendly society?
16D. Act applies to friendly societies in accordance with this Part
16E. Restriction on use of expression friendly society
LIFE INSURANCE ACT 1995
Division 3—Modified operation of key concepts


16F. Issue, ownership etc. of policies
LIFE INSURANCE ACT 1995
Division 4—Modified operation of provisions relating to
statutory funds


LIFE INSURANCE ACT 1995
Subdivision 1—Modifications


16G. Act generally applies as if references to a statutory fund were references to an approved benefit fund
16H. Modification of section 34
16I. Modification of section 38
16J. Modification of section 43
16K. Modification of section 45
LIFE INSURANCE ACT 1995
Subdivision 2—Approved benefit fund rules


16L. Approval of benefit fund rules
16M. Lodging of benefit fund rules with ASIC after approval by APRA
16N. When benefit fund rules approved by APRA come into force
16O. Benefit fund rules approved by APRA and in force form part of company's constitution
16P. Amendment of approved benefit fund rules not effective unless approved by APRA
16Q. Amendment of approved benefit fund rules on initiative of friendly society
16R. Amendment of approved benefit fund rules as required by APRA
16S. Lodging of amendment of benefit fund rules with ASIC after approval by APRA
16T. When amendment of benefit fund rules approved or determined by APRA come into force
16U. Approval of consequential amendments of company's constitution
16V. Consequential amendments of constitution as required by APRA
16W. Lodging of consequential amendments with ASIC after approval by APRA
16X. When consequential amendments approved or determined by APRA come into force
16Y. Consequential amendments approved by APRA and in force take effect as amendments of company's constitution
16Z. Contractual effect of approved benefit fund rules and policies
LIFE INSURANCE ACT 1995
Division 5—Other modifications


16ZA. Assignment of an interest in a benefit fund that is, because of section 16F, taken to be a policy
16ZB. Certain friendly societies may continue to carry on health insurance business—modified operation of this Act
16ZC. Other modifications
LIFE INSURANCE ACT 1995
Part 2B—Special provisions relating to Australian branches of
foreign life insurance companies

16ZD. Eligible foreign life insurance company
16ZE. Act does not apply to foreign life insurance business of eligible foreign life insurance company
16ZF. Compliance Committee of eligible foreign life insurance company
16ZG. Address for service of eligible foreign life insurance companies
LIFE INSURANCE ACT 1995
Part 3—Registration of life companies

17. When registration is required
18. Certain activities not regarded as carrying on life business
19. Certain persons taken to carry on life business etc.
20. Application for registration
21. Decision on application for registration
22. Conditions of registration
25. Notification of changes in information supplied to APRA
26. Cancellation of registration: defunct company
27. Voluntary deregistration
28. Return of certificate of registration
LIFE INSURANCE ACT 1995
Part 4—Statutory funds of life companies

LIFE INSURANCE ACT 1995
Division 1—General requirements


29. What is a statutory fund?
30. Outline of requirements regarding statutory funds
31. Requirement that company have statutory funds
32. Duty of company in relation to statutory funds
33. Notice to APRA when fund established
34. Assets of statutory fund
35. Identification of policies referable to statutory fund
36. Payments to statutory fund
37. Capital payments to statutory funds
38. Expenditure and application of statutory fund
39. Prohibition of reinsurance between funds
40. Mortgages etc. of assets
41. Effect of non-compliance with section 38-general
41A. Effect of non-compliance with section 38-certain classes of transactions
42. Investment performance guarantee—limit of certain liabilities
43. Investment of statutory funds
44. Reporting of restricted investments
45. Transfer of assets between funds
46. Restriction on restructure or termination of statutory funds
47. Ascertainment of income and outgoings of a statutory fund
LIFE INSURANCE ACT 1995
Division 2—Duties and liabilities of directors etc.


48. Duty of directors in relation to statutory funds
49. APRA may give notice
50. Liability of directors
51. APRA's power to sue in the name of a company
LIFE INSURANCE ACT 1995
Division 3—Restructure and termination of statutory funds


52. Restructure of statutory funds
53. Termination of statutory funds
54. Prudential Rules may deal with transitional matters
LIFE INSURANCE ACT 1995
Division 4—Additional requirements for transfer of policies
between statutory funds by endorsement


55. Additional requirements for transfer of policies between statutory funds by endorsement
LIFE INSURANCE ACT 1995
Division 5—Allocation of profits and losses and capital
payments


56. Interpretation
57. Obligation to allocate operating profit or loss
58. Operating profit etc.
59. Allocation of operating profit etc.
60. Basis of allocation of operating profit etc.
LIFE INSURANCE ACT 1995
Division 6—Distribution of retained profits and
shareholders' capital


61. Interpretation
62. Distribution of retained profits
63. Distribution of shareholders' capital
LIFE INSURANCE ACT 1995
Part 5—Solvency and capital standards

LIFE INSURANCE ACT 1995
Division 1—Solvency standard applicable to statutory funds


64. Purpose of Division
65. Solvency standard
66. Purpose of solvency standard
67. Obligation to comply with standard
68. APRA's power to give solvency directions to particular life companies
LIFE INSURANCE ACT 1995
Division 2—Capital adequacy standard applicable to statutory
funds


69. Purpose of Division
70. Capital adequacy standard
71. Purpose of capital adequacy standard
72. Obligation to comply with standard
73. APRA's power to give capital directions to particular life companies
LIFE INSURANCE ACT 1995
Division 3—Management capital standard


73A. Purpose of Division
73B. Management capital standard
73C. Purpose of management capital standard
73D. Modified application of management capital standard for particular companies
73E. Obligation to comply with standard
73F. APRA's power to give management capital directions to particular life companies
LIFE INSURANCE ACT 1995
Part 6—Financial management of life companies

LIFE INSURANCE ACT 1995
Division 1—Preliminary


74. Interpretation
LIFE INSURANCE ACT 1995
Division 2—Financial records and statements


75. Financial records—Australian and Australian/overseas funds
76. Financial records—overseas funds
77. Financial year of a life company
78. Treatment of income and outgoings relating to mixed business
79. Treatment of income or outgoings relating to 2 or more categories of business etc.
80. Basis of apportionment
81. Treatment of appreciation and depreciation of assets
83. Audit
84. Appointment of auditor
85. Approval of auditors
86. Revocation of approval of auditor
87. Notification of appointment etc. of auditor
88. Auditor's obligation to report to company and APRA
89. Qualified privilege of auditors
90. Obligation on life company to have audit committee
91. Membership and meetings of audit committee
92. Functions and powers of audit committee
LIFE INSURANCE ACT 1995
Division 3—Appointed actuaries


93. Appointment
94. Cessation of appointment
95. Notification of appointment etc.
96. Compliance with actuarial standards
97. Powers of appointed actuary
98. Actuary's obligation to report to APRA
99. Qualified privilege of appointed actuary
LIFE INSURANCE ACT 1995
Division 4—Life Insurance Actuarial Standards Board


100. Establishment
101. Actuarial standards
102. Powers of the Board
103. Membership
104. Acting Chairperson
105. Leave of absence of members
106. Resignation
107. Ending of appointments for misbehaviour etc.
108. Remuneration and allowances
109. Meetings
110. Conduct of meetings
111. Resolutions without formal meetings
112. Annual report
LIFE INSURANCE ACT 1995
Division 5—Actuarial investigations and advice


113. Annual actuarial investigations
114. Method of valuing policy liabilities
115. Additional actuarial investigations
116. Actuarial advice regarding policies
LIFE INSURANCE ACT 1995
Division 6—Annual returns etc.


119. Lodgment of financial condition report
120. Statement of actuary's pecuniary interests
122. Financial statements to be accompanied by reports to shareholders and policy owners
123. Reporting of reinsurance arrangements
124. Policy owner's right to copy of financial statements and annual return
LIFE INSURANCE ACT 1995
Division 7—Miscellaneous


125. Approval of certain reinsurance arrangements
LIFE INSURANCE ACT 1995
Division 8—APRA's power to make exemption orders


125A. APRA's power to make specific exemption orders
125B. APRA's power to make class exemption orders
LIFE INSURANCE ACT 1995
Part 7—Monitoring and investigation of life companies

LIFE INSURANCE ACT 1995
Division 1—Preliminary


126. Interpretation
127. Appointment of authorised persons
128. Associated company
129. Related companies
LIFE INSURANCE ACT 1995
Division 2—Monitoring life companies


130. Purpose of Division
131. Requirement to give information to Regulator
132. Requirement to produce records
133. Access to premises
LIFE INSURANCE ACT 1995
Division 3—Investigation by Commissioner


134. Directions regarding company assets
135. Giving of show cause notice
136. Grounds for giving of show cause notice
137. Decision to investigate
138. Investigation of associated company
139. Investigation procedure
140. Access to premises for purposes of investigation
141. Requirement to produce records
142. Regulator's power to require assistance
143. Application for warrant to seize records not produced
144. Grant of warrant
145. Powers if records produced or seized
146. Powers if records not produced
147. Offences related to investigations
148. Self-incrimination
149. Regulator must give company written summary of conclusions
150. Regulator may give directions during or after investigation
151. Identity cards
LIFE INSURANCE ACT 1995
Division 3A—Life companies required to comply with
determinations of the Superannuation Complaints Tribunal


151A. Life companies must comply with determinations of the Superannuation Complaints Tribunal
LIFE INSURANCE ACT 1995
Division 4—Special provisions relating to the execution of
warrants


152. Interpretation
153. Use of equipment to examine or process things
154. Use of electronic equipment at premises
155. Compensation for damage to electronic equipment
156. Copies of seized things to be provided
LIFE INSURANCE ACT 1995
Part 8—Judicial management and winding-up

LIFE INSURANCE ACT 1995
Division 1—Judicial management


157. Application for order for judicial management
158. Order for judicial management after investigation
159. Order for judicial management on other grounds
160. Commencement of judicial management
161. Stay of proceedings during judicial management
162. No judicial management except in accordance with this Act
163. Appointment of judicial manager
164. Remuneration of judicial manager
165. Management vests in judicial manager
166. Continued application of other Parts of Act
167. Court's control of judicial manager
168. Powers of judicial manager
169. Application by APRA for instructions to judicial manager
170. Request by APRA for information
171. Duration of judicial management
172. Cancellation of judicial management
173. Judicial manager must conduct management efficiently and economically
174. Disclaimer of onerous property
175. Report by judicial manager
176. Order of Court on report of judicial manager
177. Transfer of business to another company
178. Resignation
179. Indemnity
LIFE INSURANCE ACT 1995
Division 2—Winding-up


180. Winding-up of life companies
181. Order on application by APRA
182. Operation of Corporations Act
183. Notification to APRA regarding applications by liquidator
183A. Application by liquidator for directions—voluntary winding up of friendly society
184. Application by APRA for directions
185. APRA's power to ask for information
186. Determination of amounts to be treated as liabilities of life company
187. Application of statutory fund assets
188. Liability of directors for loss to statutory fund
LIFE INSURANCE ACT 1995
Part 9—Transfers and amalgamations of life insurance
business

189. Interpretation
190. Transfer or amalgamation of life insurance business
191. Steps to be taken before application for confirmation
192. Actuarial report on scheme
193. Application to Court
194. Confirmation of scheme
195. Effect of confirmation etc.
196. Costs of actuary's report
197. Documents to be lodged in case of transfer or amalgamation
LIFE INSURANCE ACT 1995
Part 10—Provisions relating to policies

LIFE INSURANCE ACT 1995
Division 1—Issue of policies


198. Alteration of proposal and policy forms
199. Capacity of young persons to insure etc.
LIFE INSURANCE ACT 1995
Division 2—Assignments and mortgages


200. Assignment of policy
201. Mortgages and trusts
202. Effect of notice of trust etc.
203. Transfer of policy after change of trustee
LIFE INSURANCE ACT 1995
Division 2A—Restriction on assignment or commutation of
payments under structured settlements and structured orders


203A. Definitions
203B. Application of Division to tax-exempt annuities and lump sums
203C. Assignments or commutations of tax-exempt annuities are generally not effective
203D. Assignments or commutations of tax-exempt lump sums are not effective
203E. Relationship with Division 2
LIFE INSURANCE ACT 1995
Division 3—Protection of policies


204. Protection of interest of insured
205. Protection of policy money on person's death
LIFE INSURANCE ACT 1995
Division 4—Surrender values, paid-up policies and
non-forfeiture of policies


206. Application of Division
207. Surrender of policies
208. Relaxation of company's obligations to surrender
209. Paid-up policies
210. Non-forfeiture of policies in certain cases of non-payment of premiums
LIFE INSURANCE ACT 1995
Division 5—Payment of policy money


211. Probate or administration not necessary in certain cases—a single policy
212. Probate or administration not necessary in certain cases—2 or more policies
213. Death of policy owner who is not the life insured
214. Company not bound to see to the application of money paid by it
215. Power to pay money into Court
216. Unclaimed money
217. No deduction in respect of other policies
LIFE INSURANCE ACT 1995
Division 6—Children's advancement policies


218. Interpretation
219. Property in child's advancement policy
220. Death or bankruptcy of policy owner
LIFE INSURANCE ACT 1995
Division 7—Lost or destroyed policy documents


221. Lost or destroyed policy—issue of replacement policy document
222. Form of replacement policy document
223. Notice before issuing replacement policy document
224. Claim under policy where policy document lost or destroyed
225. Application of sections 221, 222, 223 and 224 to replacement policy document
LIFE INSURANCE ACT 1995
Division 8—General


226. Registers
227. Registration of policies
228. Effect of suicide on policy
229. Condition as to war risk void
230. Policies not invalidated by contraventions of the Act
LIFE INSURANCE ACT 1995
Part 10A—Prudential standards and directions

LIFE INSURANCE ACT 1995
Division 1—Prudential standards


230A. APRA may make prudential standards for life companies
LIFE INSURANCE ACT 1995
Division 2—Directions


230B. APRA may give directions in certain circumstances
230C. Direction not grounds for denial of obligations
230D. Supply of information about issue and revocation of directions
230E. Secrecy requirements
230F. Non-compliance with a direction
LIFE INSURANCE ACT 1995
Part 11—Miscellaneous

233. Operation of State and Territory laws
233A. Transfer by life insurance company to statutory fund
234. Prohibition of mixed insurance business
235. Injunctions
236. Review of certain decisions
237. Constitution and procedure of Tribunal
238. Disclosure document to be given to APRA
239. Documents relating to off-market takeover bids
240. Register of Life Companies
241. Inspection of Register etc.
242. Non-shareholder members of life company—voting by post
245. Bankrupts and persons convicted of certain offences not to be directors, principal executive officers etc. of life companies
246. Principal executive officer
247. Protection of person who discloses information etc. under compulsion
248. Offences
250. Conduct by directors, servants and agents
251. Compensation for acquisition of property
252. Prudential Rules
253. Regulations
LIFE INSURANCE ACT 1995
Part 12—How this Act affects existing life companies
etc.

254. Companies registered under Life Insurance Act 1945
256. Approved auditor
257. Approved actuary
258. Documents required to be lodged
259. Reinsurance between statutory funds
260. Scheme for transfer or amalgamation
261. Modification of operation of Divisions 5 and 6 of Part 4
262. Existing benefit society business
263. Judicial management and winding-up
264. Saving provision: sections 83, 84 and 94 of the Life Insurance Act 1945
LIFE INSURANCE ACT 1995
Schedule—Dictionary

LIFE INSURANCE ACT 1995
Notes to the Life Insurance Act 1995

Table A

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