Commonwealth Numbered Acts

LIFE INSURANCE ACT 1995

TABLE OF PROVISIONS

           Long Title

   1.      Short title  
   2.      Commencement  
   3.      Object of Act  
   4.      Additional operation of Act  
   5.      Exclusion of certain State insurance  
   6.      Extension of Act to Norfolk Island  
   7.      General administration  
   8.      Dictionary  
   9.      Life policy  
   10.     Issue and ownership of policies  
   11.     Life insurance business  
   12.     Classes of life insurance business  
   13.     Business of a statutory fund  
   14.     Investment account benefits, investment-linked benefits  
   15.     Participating, non-participating benefits  
   16.     Related companies  
   17.     Prohibition of persons other than registered companies carrying on life business  
   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  
   23.     Continuing capital requirements  
   24.     Modification of application of section 23 to particular companies  
   25.     Notification of changes in information supplied to Commissioner  
   26.     Cancellation of registration: defunct company  
   27.     Voluntary deregistration  
   28.     Return of certificate of registration  
   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 Commissioner 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  
   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.     Division, amalgamation etc. of statutory funds  
   47.     Ascertainment of income and outgoings of a statutory fund  
   48.     Duty of directors in relation to statutory funds  
   49.     Commissioner may give notice  
   50.     Liability of directors  
   51.     Commissioner's power to sue in the name of a company  
   52.     Division of statutory fund  
   53.     Amalgamation of statutory funds  
   54.     Notice to policy owners of establishment or amalgamation of statutory funds  
   55.     Consequences of transfer of policy from one statutory fund to another  
   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.  
   61.     Interpretation  
   62.     Distribution of retained profits  
   63.     Distribution of shareholders' capital  
   64.     Purpose of Division  
   65.     Solvency standard  
   66.     Purpose of solvency standard  
   67.     Obligation to comply with standard  
   68.     Commissioner's power to give solvency directions to particular life companies  
   69.     Purpose of Division  
   70.     Capital adequacy standard  
   71.     Purpose of capital adequacy standard  
   72.     Obligation to comply with standard  
   73.     Commissioner's power to give capital directions to particular life companies  
   74.     Interpretation  
   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  
   82.     Financial statements  
   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 Commissioner  
   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  
   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 Commissioner  
   99.     Qualified privilege of appointed actuary  
   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  
   113.    Annual actuarial investigations  
   114.    Method of valuing policy liabilities  
   115.    Additional actuarial investigations  
   116.    Actuarial advice regarding policies  
   117.    Annual statistical returns  
   118.    Lodgment of financial statements and annual statistical returns  
   119.    Lodgment of financial condition report  
   120.    Statement of actuary's pecuniary interests  
   121.    Rejection of financial statement  
   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  
   125.    Approval of certain reinsurance arrangements  
   126.    Interpretation  
   127.    Appointment of authorised persons  
   128.    Associated company  
   129.    Related companies  
   130.    Purpose of Division  
   131.    Requirement to give information to Commissioner  
   132.    Requirement to produce records  
   133.    Access to premises  
   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.    Commissioner'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.    Commissioner must give company written summary of conclusions  
   150.    Commissioner may give directions during or after investigation  
   151.    Identity cards  
   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  
   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 Commissioner for instructions to judicial manager  
   170.    Request by Commissioner 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  
   180.    Winding-up of life companies  
   181.    Order on application by Commissioner  
   182.    Operation of Corporations Law  
   183.    Notification to Commissioner regarding applications by liquidator  
   184.    Application by Commissioner for directions  
   185.    Commissioner'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  
   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  
   198.    Alteration of proposal and policy forms  
   199.    Capacity of young persons to insure etc.  
   200.    Assignment of life policy  
   201.    Mortgages and trusts  
   202.    Effect of notice of trust etc.  
   203.    Transfer of policy after change of trustee  
   204.    Protection of interest of insured  
   205.    Protection of policy money on person's death  
   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  
   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  
   218.    Interpretation  
   219.    Property in child's advancement policy  
   220.    Death or bankruptcy of policy owner  
   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  
   226.    Registers  
   227.    Registration of life policies  
   228.    Effect of suicide on policy  
   229.    Condition as to war risk void  
   230.    Policies not invalidated by contraventions of the Act  
   231.    Annual report  
   232.    Delegation  
   233.    Operation of State and Territory laws  
   234.    Prohibition of mixed insurance business  
   235.    Injunctions  
   236.    Review of certain decisions  
   237.    Constitution and procedure of Tribunal  
   238.    Prospectus to be given to Commissioner  
   239.    Documents relating to takeover schemes  
   240.    Register of Life Companies  
   241.    Inspection of Register etc.  
   242.    Non-shareholder members of life company-voting by post  
   243.    Inspection of documents  
   244.    Commissioner's power to obtain statistics etc.  
   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  
   249.    False or misleading documents  
   250.    Conduct by directors, servants and agents  
   251.    Secrecy  
   252.    Commissioner's rules  
   253.    Regulations  
   254.     Companies registered under Life Insurance Act 1945  
   255.    Continuing capital requirements  
   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  
           SCHEDULE 1
            
           (Assented to 23 February 1995)