Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 53

  (1)   The prudential standards may provide that:

  (a)   a life company may apply to APRA to terminate one or more of its statutory funds; and

  (b)   if the application is approved, the termination is to take place.

  (2)   Without limiting the generality of subsection   (1), the prudential standards may provide for the following:

  (a)   requirements for making the application;

  (b)   criteria for approving or refusing to approve the application;

  (c)   requirements to notify interested parties of the outcome of the application;

  (d)   matters connected with how the termination takes place, including the following:

  (i)   distribution or application of assets;

  (ii)   settling of liabilities;

  (iii)   the timing of the termination;

  (e)   requirements for the company to give APRA information following the termination.

  (3)   APRA cannot approve the application if it considers that:

  (a)   the termination will result in unfairness to the owners of policies referable to the fund or funds when those owners are viewed as a group; or

  (b)   the company is being wound up when the application is made.