Commonwealth: Life Insurance Act 1995 (Cth)

Life Insurance Act 1995 No. 4, 1995 Compilation No. 69 Compilation date: 21 February 2025 Includes amendments: Act No. 14, 2025 About this compilation This compilation This is a compilation of the Life Insurance Act 1995 that shows the text of the law as amended and in force on 21 February 2025 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Part 1—Preliminary 1 Short title 2 Commencement 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 7A Determination that certain provisions do not apply 7B Breach of condition of a determination under section 7A 8 Dictionary 8A Approved manner and form of applications and notices 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 15 Participating, non‑participating benefits 15A Relevant group of bodies corporate 16 Related bodies corporate and subsidiaries Part 2A—Special provisions relating to life companies that are friendly societies Division 1—Preliminary 16A Overview 16B Definitions 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 Division 3—Modified operation of key concepts 16F Issue, ownership etc. of policies Division 4—Modified operation of provisions relating to statutory funds Subdivision 1—Modifications 16G Act generally applies as if references to a statutory fund were references to an approved benefit fund 16GA Modification of section 30 16H Modification of section 34 16HA Modification of section 35 16HB Modification of section 36 16I Modification of section 38 16J Modification of section 43 16K Modification of section 45 16KA Other modifications of Part 4 Subdivision 2—Approved benefit fund rules 16L Approval of benefit fund rules 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 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 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 Division 5—Modified operation of provisions relating to financial management 16ZAA Modification of Part 6 Division 6—Modified operation of provisions relating to policies 16ZAB Modification of section 198 16ZA Assignment of an interest in a benefit fund that is, because of section 16F, taken to be a policy 16ZAAA Modification of section 201 16ZAAB Modification of section 213 16ZAAC Modification of Division 7 of Part 10 16ZAAD Modification of section 226 16ZAAE Modification of section 227 16ZAAF Modification of section 229 Division 7—Other modifications 16ZAAG Modification of section 242 16ZB Certain friendly societies may continue to carry on health insurance business—modified operation of this Act 16ZC Other modifications Part 2B—Special provisions relating to Australian branches of foreign life insurance companies 16ZD Eligible foreign life insurance company 16ZE Limited application of Act to eligible foreign life insurance companies 16ZF Compliance Committee of eligible foreign life insurance company 16ZG Address for service of eligible foreign life insurance companies Part 3—Registration of life companies and their NOHCs Division 1—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 on registration 23 Breach of registration conditions 26 When APRA may revoke registration 27 Voluntary deregistration 27A Assignment of liabilities to enable revocation Division 2—Registration of NOHCs of life companies 28A Registration as a NOHC 28B Conditions on a NOHC registration 28BA Breach of conditions on a NOHC registration 28C When APRA may revoke a NOHC registration 28D When APRA must revoke a NOHC registration 28E Continuation of body corporate's NOHC registration 28 Continuation of effect of company's registration 28AA APRA may give notice to ensure that life company has a registered NOHC Part 4—Statutory funds of life companies 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 38A Charges relating to derivatives 38B Friendly societies mortgaging and charging assets of approved benefit funds 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 43A Investment of statutory funds—investment in subsidiaries of life company 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 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 Division 3—Restructure and termination of statutory funds 52 Restructure of statutory funds 53 Termination of statutory funds 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 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. Division 6—Distribution of retained profits and shareholders' capital 61 Interpretation 62 Distribution of retained profits 63 Distribution of shareholders' capital Part 6—Financial management of life companies etc. Division 1—Preliminary 74 Interpretation Division 2—Financial records and statements 75 Financial records—Australian and Australian/overseas funds 76 Financial records—overseas funds 76A Keeping records 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 Requirement for life company to have an auditor 83A Additional auditors 83B Compliance with prudential standards 84 Appointment of auditor 85 Ending an appointment as auditor 86 Life company must enable auditors 87 Notification of appointment etc. of auditor 88 Obligations of auditors of certain bodies to report to bodies and APRA 88A Auditor may give information to APRA 88B Duty of auditor to give information when required 89 Qualified privilege of auditors 90 Auditor must notify APRA of attempts to unduly influence etc. the auditor 91 Giving auditor false or misleading information Division 3—Appointed actuaries 93 Appointment 94 Ending an appointment as actuary 95 Notification of appointment etc. 96 Compliance with prudential standards 97 Role of actuary 98 Actuary's obligation to report to APRA 98A Appointed actuary may give information to APRA 98B Duty of appointed actuary to give information when required 99 Qualified privilege of appointed actuary Division 8—Miscellaneous 114 Method of valuing policy liabilities 124 Policy owner's right to copy of reporting documents 125 Referring matters to professional associations for auditors and actuaries 125A APRA may direct removal of auditor or actuary Part 7—Monitoring and investigation of life companies and registered NOHCs Division 1—Preliminary 126 Interpretation 127 Appointment of authorised persons 128 Associated body corporate 129 Related bodies corporate Division 2—Monitoring life companies and registered NOHCs 130 Purpose of Division 131 Requirement to give information to Regulator 132 Requirement to produce records 132A Requirement to notify APRA of certain matters 133 Access to premises 133A Enforceable undertakings Division 3—Investigation by APRA 135 Giving of show cause notice 136 Grounds for giving of show cause notice 137 Decision to investigate 138 Investigation of associated body corporate 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 149 Regulator must give body corporate written summary of conclusions 151 Identity cards 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 Division 5—Protections in relation to information 156F Self‑incrimination Part 8—Judicial management, other external administration and winding up 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 Moratorium—effect of judicial management on court and tribunal proceedings 161A Moratorium—effect of judicial management on enforcement process regarding property 161B Moratorium—effect of judicial management on disposal of property 161C Moratorium—Restrictions on exercise of third party property rights 161D Moratorium—effect of judicial management on supply of essential services 161E Moratorium—effect of judicial management on annual general meeting 163 Appointment of judicial manager 164 Remuneration of judicial manager 165 Effect of judicial management on powers of officers etc. 165A Effect on external administrator of judicial manager managing company 165B Judicial management not ground for denial of obligations 166 Continued application of other Parts of Act 167 Court's control of judicial manager 168 Powers of judicial manager 168A Judicial manager's additional powers to facilitate recapitalisation 168B Considering report before acting under section 168A 168C Act under section 168A not ground for denial of obligations 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 Immunity 179A Exceptions to Part IV of the Competition and Consumer Act 2010 Division 1AA—Statutory management of life company Subdivision A—General provisions relating to statutory management 179AA Consequences of inability or failure of life company etc. to meet certain requirements 179AB Start of control of body corporate's business by Life Insurance Act statutory manager 179AC Life Insurance Act statutory managers—termination of control Subdivision B—Provisions dealing with control of a body corporate's business by a Life Insurance Act statutory manager 179AD Life Insurance Act statutory manager's powers and functions 179AE Safeguards on exercise of Life Insurance Act statutory manager's powers and functions 179AF Life Insurance Act statutory manager's additional powers to facilitate recapitalisation 179AG Considering report before acting under section 179AF 179AH Act under section 179AF not ground for denying obligation 179AI APRA may require a person to give information etc. for the purposes of this Division 179AJ Administrator in control—additional powers to recommend action by APRA 179AK Life Insurance Act statutory manager's liabilities and duties 179AL Transaction by Life Insurance Act statutory manager not voidable under section 588FE of the Corporations Act 2001 179AM Administrator in control—additional duties 179AN Administrator in control—additional duties where action may affect financial system stability in Australia 179AO Termination of Life Insurance Act statutory manager's appointment 179AP Effect on directors of Life Insurance Act statutory manager taking control of a body corporate's business 179AQ Effect on external administrator of Life Insurance Act statutory manager taking control of a body corporate's business 179AR Moratorium—effect of Life Insurance Act statutory management on court and tribunal proceedings 179AS Moratorium—effect of Life Insurance Act statutory management on enforcement process regarding property 179AT Moratorium—effect of Life Insurance Act statutory management on disposal of property 179AU Moratorium—Restrictions on exercise of third party property rights 179AV Moratorium—effect of Life Insurance Act statutory management on supply of essential services 179AW Moratorium—effect of Life Insurance Act statutory management on annual general meeting 179AX Life Insurance Act statutory manager being in control not grounds for denial of obligations 179AY Application of other provisions 179AZ Costs of statutory management 179AZA APRA must report to Minister and publish information about statutory management 179AZB Exceptions to Part IV of the Competition and Consumer Act 2010 Division 1A—Other external administration 179B Relationship of this Division with Chapter 5 of the Corporations Act 2001 179C Involving APRA in proposed appointment of external administrators of life companies and NOHCs 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 183B Application by APRA—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 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 given to APRA in case of transfer or amalgamation Part 10—Provisions relating to policies Division 1—Issue of policies 198 Alteration of proposal and policy forms 199 Capacity of young persons to insure etc. 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 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 Division 3—Protection of policies 204 Protection of interest of insured 205 Protection of policy money on person's death 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 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 216AA Publication etc. of information in unclaimed money register 216A Disclosure of information relating to unclaimed money 217 No deduction in respect of other policies Division 6—Children's advancement policies 218 Interpretation 219 Property in child's advancement policy 220 Death or bankruptcy of policy owner Division 7—Lost or destroyed policy documents 221 Lost or destroyed policy—issue of replacement policy document 222 Form of replacement policy document 223 Other matters relating to certain replacement policy documents 224 Claim under policy where policy document lost or destroyed 225 Application of sections 221, 222, 223 and 224 to replacement policy document 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 Part 10A—Prudential standards and directions Division 1—Prudential standards 230A APRA may make prudential standards for life companies, registered NOHCs and subsidiaries 230AAA Obligation to comply with the prudential standards Division 1A—Conversion and write‑off provisions 230AAB Definitions 230AAC Conversion and write‑off provisions 230AAD Conversion or write‑off etc. not grounds for denial of obligations Division 2—Directions Subdivision A—Recapitalisation directions 230AA Who this Subdivision applies to 230AB Recapitalisation direction by APRA 230AC Additional contents of a recapitalisation direction 230AD Compliance with a recapitalisation direction 230AE APRA must obtain expert's report on the fair value of shares etc. 230AF Determination of the fair value of shares by an expert 230AG Determination of the fair value of rights by an expert 230AH Ascertaining the fair value of other capital instruments 230AI Contravention of certain provisions does not affect the validity of recapitalisation direction etc. 230AJ Recapitalisation direction not grounds for denial of obligations 230AK Supply of information about issue and revocation of recapitalisation directions 230AL Non‑compliance with a recapitalisation direction 230AM Exceptions to Part IV of the Competition and Consumer Act 2010 Subdivision B—Other 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 230F Non‑compliance with a direction Subdivision C—Secrecy and disclosure provisions relating to all directions 231 APRA may determine that a direction is covered by secrecy provision 231A Secrecy relating to directions 231B Disclosure of publicly available information 231C Disclosure allowed by APRA 231D Disclosure to legal representative for purpose of seeking legal advice 231E Disclosure allowed by APRA Act secrecy provision 231F Disclosure in circumstances set out in the regulations 231G Disclosure for purpose 231H Exceptions operate independently 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 240 Register of Life Companies and Non‑Operating Holding Companies 241 Inspection of Register etc. 242 Non‑shareholder members of life company—voting by post 245 Disqualified persons not to be directors, principal executive officers etc. of life companies 245A Court power of disqualification 245B Court power to revoke or vary a disqualification etc. 245C Privilege against exposure to penalty—disqualification under section 245A 246 Principal executive officer 246A Protection from liability—general 246B Protection from liability—directions and secrecy 246C Protection from liability—provisions do not limit each other 247 Protection of person who discloses information etc. under compulsion 248 Offences 250 Conduct by directors, employees and agents 251 Compensation for acquisition of property 251AA Act has effect despite the Corporations Act 251A Authorising contracts etc. for protecting policy owners' interests and financial system stability 251B Borrowing funds for payments under authorised contracts etc. 253 Regulations Part 12—How this Act affects existing life companies etc. 254 Companies registered under Life Insurance Act 1945 264 Saving provision: sections 83, 84 and 94 of the Life Insurance Act 1945 265 Transitional provision—industrial policies Schedule 1—Dictionary Schedule 2—Modifications relating to friendly societies Part 1—Modification of Part 4 of this Act 1 Modification of Part 4 of this Act Part 2—Modification of Part 6 of this Act 2 Sections 75 and 76 of this Act Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act relating to life insurance, and for related purposes Part 1—Preliminary 1 Short title This Act may be cited as the Life Insurance Act 1995. 2 Commencement (1) Subject to subsection (2), this Act commences on a day to be fixed by Proclamation. (2) If this Act does not commence under subsection (1) within the period of 6 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period. 3 Objects of Act (1) The main objects of this Act are: (a) to protect the interests of the owners and prospective owners of life insurance policies in a manner consistent with the continued development of a viable, competitive and innovative life insurance industry; and (b) to promote financial system stability in Australia. (1A) An additional object of this Act is to protect the interests of persons entitled to other kinds of benefits provided in the course of carrying on life insurance business (including business that is declared to be life insurance business). (2) The principal means adopted for the achievement of these objects are the following: (a) restricting the conduct of life insurance business to companies that are able to meet certain requirements as to suitability; (b) imposing on life companies requirements designed to promote prudent management of the life insurance business of such companies, including requirements designed to ensure the solvency and capital adequacy of statutory funds; (c) providing for the supervision of life companies by APRA and ASIC; (d) providing for APRA to manage or respond to circumstances in which the ability of a life company to meet its obligations may be threatened; (e) making provision to ensure that, in the winding‑up of a life company, the interests of policy owners are adequately protected; (f) providing for the supervision of transfers and amalgamations of life insurance business by the Court. (3) Generally, this Act achieves these objects by provisions applying to all life companies. However, there are a number of special provisions that apply only to friendly societies (see in particular Part 2A). 4 Additional operation of Act (1) Without prejudice to its effect apart from this subsection, this Act also has the effect it would have if each reference to a company were, by express provision, confined to a company that is a corporation to which paragraph 51(xx) of the Constitution applies. (2) Without prejudice to its effect apart from this subsection, this Act also has the effect it would have if each reference to a subsidiary of a life company were, by express provision, confined to such a subsidiary that: (a) is a corporation to which paragraph 51(xx) of the Constitution applies; or (b) carries on banking with respect to which the Parliament has the power to make laws under paragraph 51(xiii) of the Constitution. (3) Without prejudice to its effect apart from this subsection, this Act also has the effect it would have if each reference to a subsidiary of a registered NOHC were, by express provision, confined to such a subsidiary that: (a) is a corporation to which paragraph 51(xx) of the Constitution applies; or (b) carries on banking with respect to which the Parliament has the power to make laws under paragraph 51(xiii) of the Constitution. (4) Without prejudice to its effect apart from this subsection, this Act also has the effect it would have if each reference to a holding company of a life company were, by express provision, confined to such a holding company that: (a) is a corporation to which paragraph 51(xx) of the Constitution applies; or (b) carries on banking with respect to which the Parliament has the power to make laws under paragraph 51(xiii) of the Constitution. 5 Exclusion of certain State insurance This Act does not apply with respect to State insurance that does not extend beyond the limits of the State concerned. 6 Extension of Act to Norfolk Island This Act extends to the Territory of Norfolk Island. 7 General administration of Act (1) Subject to subsection (3): (a) APRA has the general administration of: (i) Parts 3 to 6; and (ii) Parts 8 to 9; and (iii) sections 206 to 210; and (iiia) Part 10A; and (iv) Part 12; and (b) ASIC has the general administration of Part 10 (other than sections 206 to 210). (2) Parts 1 to 2, 7 and 11 confer powers and duties on APRA for the purposes of APRA's administration of its provisions and powers and duties on ASIC for the purposes of its administration of its provisions. Note: Generally neither APRA nor ASIC is referred to in these provisions. Regulator is used instead. See the definition of Regulator in the Dictionary in Schedule 1. (3) The Minister may give APRA or ASIC directions about the performance or exercise of its functions or powers under this Act. 7A Determination that certain provisions do not apply (1) APRA may, in writing, determine that any or all of the following provisions of this Act do not apply to a person while the determination is in force: (a) a provision of Part 2, 2A, 2B or 3; (b) a provision of Division 1, 3, 4, 5 or 6 of Part 4; (c) section 75; (d) section 76; (e) section 78; (f) section 79; (g) section 80; (h) section 81; (j) section 230AAA. (2) The determination: (a) may be expressed to apply to a particular person or to a class of persons; and (b) may specify the period during which the determination is in force; and (c) may be made subject to specified conditions. (3) If APRA makes a determination that applies to a particular person, APRA must also give the person written notice of the determination. (4) APRA may, in writing, vary or revoke a determination under this section. (5) The following instruments made under this section are not legislative instruments: (a) a determination that applies to a particular person; (b) an instrument varying or revoking a determination that applies to a particular person. (6) Otherwise, an instrument made under this section is a legislative instrument. 7B Breach of condition of a determination under section 7A (1) A person commits an offence if: (a) a determination under section 7A applies to a person; and (b) the person does or fails to do an act; and (c) doing or failing to do the act results in a breach of a condition to which the determination is subject. Penalty: 60 penalty units. (2) Strict liability applies to subsection (1). Note: For strict liability, see section 6.1 of the Criminal Code. 8 Dictionary (1) A dictionary of expressions used in the Act is contained in Schedule 1. (2) Unless the contrary intention appears, an expression defined in the dictionary has the meaning there set out. 8A Approved manner and form of applications and notices (1) This section applies in relation to making an application or giving a notice if another provision of this Act refers to making the application or giving the notice in accordance with this section. (2) The application is made, or the notice is given, in accordance with this section if the application or notice: (a) is made or given: (i) if APRA has approved a manner for making the application or giving the notice under subsection (3)—in the approved manner; or (ii) otherwise—in writing; and (b) if APRA has approved a form for making the application or giving the notice under subsection (3): (i) is made or given in the approved form; and (ii) includes the information required by the form; and (iii) is accompanied by the documents (if any) required by the form; and (c) includes the information (if any) prescribed by regulations made for the purposes of this paragraph in relation to the application or notice; and (d) is accompanied by the documents (if any) prescribed by regulations made for the purposes of this paragraph in relation to the application or notice. (3) For the purposes of paragraph (2)(a) or (b), APRA may, in writing, approve a manner or form for making the application or giving the notice. (4) Without limiting subsection (3), a form approved under that subsection may be: (a) the form of a statutory declaration; or (b) a form that requires a matter to be verified by a statutory declaration. Part 2—Explanation of key concepts 9 Life policy (1) Subject to subsection (2), each of the following constitutes a life policy for the purposes of this Act: (a) a contract of insurance that provides for the payment of money on the death of a person or on the happening of a contingency dependent on the termination or continuance of human life; (b) a contract of insurance that is subject to payment of premiums for a term dependent on the termination or continuance of human life; (c) a contract of insurance that provides for the payment of an annuity for a term dependent on the continuance of human life; (d) a contract that provides for the payment of an annuity for a term not dependent on the continuance of human life but exceeding the term prescribed by the regulations for the purposes of this paragraph; (e) a continuous disability policy; (f) a contract (whether or not it is a contract of insurance) that constitutes an investment account contract; (g) a contract (whether or not it is a contract of insurance) that constitutes an investment‑linked contract. (2) A contract that provides for the payment of money on the death of a person is not a life policy if: (a) by the terms of the contract, the duration of the contract is to be not more than one year; and (b) payment is only to be made in the event of: (i) death by accident; or (ii) death resulting from a specified sickness. 9A Continuous disability policy (1) Subject to this section, a continuous disability policy is a contract of insurance: (a) that is, by its terms, to be of more than 3 years' duration; and (b) under which a benefit is payable in the event of: (i) the death, by accident or by some other cause stated in the contract, of the person whose life is insured (the insured); or (ii) injury to, or disability of, the insured as a result of accident or sickness; or (iii) the insured being found to have a stated condition or disease. (2) A contract of insurance that is, by its terms, to be of a duration of not more than 3 years is taken to comply with paragraph (1)(a) if: (a) contracts of insurance of the same kind as the contract are usually of more than 3 years' duration; and (b) the contract is of a lesser duration only because of the age of the owner of the policy at the time when it was entered into. (3) A contract of insurance is not a continuous disability policy if the terms of the contract permit alteration, at the instance of the life company concerned, of the benefits provided for by the contract or the premiums payable under the contract. (4) A contract of insurance the terms of which permit alteration, at the instance of the life company concerned, of the benefits provided for by the contract is not thereby excluded by subsection (3) from being a continuous disability policy if, by those terms, the only alterations that are permitted to be made are alterations that improve the benefits and are made following an offer made by the life company and accepted by the owner of the policy. (5) A contract of insurance the terms of which permit alteration, at the instance of the life company concerned, of the premiums payable under the contract is not thereby excluded by subsection (3) from being a continuous disability policy if the terms of all contracts of the same kind as the contract only permit such alterations if they are made on a simultaneous and consistent basis. (6) A contract of consumer credit insurance within the meaning of the Insurance Contracts Act 1984 is not a continuous disability policy. (7) A contract of insurance entered into in the course of carrying on health insurance business is not a continuous disability policy. 10 Issue and ownership of policies (1) For the purposes of this Act: (a) a life company issues a policy when the company enters into the contract that constitutes the policy; and (b) a policy is issued to the person with whom the life company enters into the contract. (2) For the purposes of this Act, the owner of a policy is: (a) the person to whom the policy is issued; or (b) if the rights of that person under the policy have been assigned under this Act or transferred by the operation of the policy, the person who has those rights. 11 Life insurance business (1) A reference in this Act to life insurance business is a reference to: (a) business that consists of any or all of the following: (i) the issuing of life policies; (ii) the issuing of sinking fund policies; (iii) the undertaking of liability under life policies; (iv) the undertaking of liability under sinking fund policies; and (b) any business that relates to business referred to in paragraph (a). Note: Declarations under sections 12A and 12B have the effect of extending the kinds of business that are life insurance business for the purposes of this Act. (2) In order to avoid doubt and without limiting paragraph (1)(b), it is declared that the reference in that paragraph to business that relates to business referred to in paragraph (1)(a) includes business relating to the investment, administration and management of the assets of a statutory fund. (3) For the purposes of this Act, the following do not constitute life insurance business: (a) business in relation to benefits provided by a trade union for its members or their dependants; (b) business in relation to the benefits provided for its members or their dependants by an association of employees that is registered as an organisation, or recognised, under the Fair Work (Registered Organisations) Act 2009; (c) business in relation to any scheme or arrangement under which superannuation benefits, pensions or payments to employees or their dependants (and not to any other persons) on retirement, disability or death are provided by an employer or by employees, or by both, wholly through an organisation established by the employer or employees or by both; (d) in the case of a person who issues policies to his or her employees, and not to any other persons, in Australia, the business that consists of the issue of those policies or the undertaking of liability under those policies; (e) business in relation to a scheme or arrangement for the provision, by a person other than a life company, of benefits consisting of: (i) the provision of funeral, burial or cremation services, with or without the supply of goods connected with such services; or (ii) the payment of money, on the death of a person, for the purpose of meeting the whole or a part of the expenses of and incidental to the funeral, burial or cremation of the person; and no other benefits, except benefits incidental to the scheme or arrangement. Note: This subsection has effect subject to sections 12A and 12B (under which certain business may be declared to be life insurance business for the purposes of this Act). 12 Classes of life insurance business (1) For the purposes of this Act, the following are the classes of life insurance business: (a) ordinary business; (b) superannuation business. The expressions "ordinary business" and "superannuation business" are defined in the Dictionary. (2) APRA may, at the request of a life company, declare, in writing, that life insurance business carried on by the life company and included in one class of life insurance business is to be treated, for the purposes of this Act, as if it were included in the other class of life insurance business. (3) If APRA makes a declaration: (a) this Act has effect accordingly; and (b) APRA must give a copy of the declaration to the life company at whose request the declaration was made. 12A Declarations that insurance or annuity business is life insurance business (1) APRA may, on the application of a company, declare, in writing, that insurance business (other than health insurance business or business of insurance against loss of, or damage to, property) or business relating to the payment of annuities: (a) that is carried on by the company; or (b) that the company proposes to carry on; is to be treated, for the purposes of this Act, as if it were life insurance business. (2) The application must comply with any applicable requirements in the prudential standards. (3) APRA must only make the declaration if it is satisfied that: (a) the company is a life company; or (b) the company is not currently a life company, but the only business it proposes to carry on if the declaration is made is: (i) the business in respect of which the declaration is sought; or (ii) that business and other business that will be, or is likely to be declared to be, life insurance business. (4) In deciding whether to make the declaration, APRA may also have regard to the following matters: (a) whether the business in respect of which the declaration is sought is similar in nature to other life insurance business; (b) whether it would be appropriate for the business to be regulated under this Act; (c) whether it would be more appropriate for the business to be regulated under some other law (for example, the Insurance Act 1973); (d) the tax treatment of benefits provided in the course of the business; (e) if the company is not registered under section 21—whether the company would be able to be registered under section 21; (f) any other matter that APRA considers is relevant. (5) The declaration must also state the class of life insurance business in which the business is to be treated as being included. (6) If APRA makes a declaration: (a) this Act has effect accordingly; and (b) APRA must give a copy of the declaration to the company. 12B Declarations that other financial business is life insurance business (1) This section applies to business consisting of the provision of eligible financial benefits. For this purpose, an eligible financial benefit is a benefit in relation to which the following conditions are satisfied: (a) the benefit is to be provided by a company to a person in accordance with a contract; (b) the person's entitlement to the benefit is conditional on amounts being paid in accordance with the contract; (c) the benefit is an amount of money (and is not, for example, the provision of a service or facility); (d) the benefit is not an excluded benefit under any of the following subparagraphs: (i) the benefit is an excluded benefit if the contract is entered into in the course of banking business, as defined in section 5 of the Banking Act 1959, carried on by the company; (ii) the benefit is an excluded benefit if the right to the benefit constitutes an interest in a registered scheme, as defined in section 9 of the Corporations Act 2001; (iii) the benefit is an excluded benefit if the right to the benefit constitutes an interest in a regulated superannuation fund, an approved deposit fund, a pooled superannuation trust or a public sector superannuation scheme, as defined in section 10 of the Superannuation Industry (Supervision) Act 1993; (iv) the benefit is an excluded benefit if it is provided under a contract of insurance entered into in the course of carrying on health insurance business; (v) the benefit is an excluded benefit if it is a benefit of a kind specified in regulations for the purposes of this subparagraph. (2) APRA may, on the application of a company, declare, in writing, that business: (a) that: (i) is carried on by the company; and (ii) is business to which this section applies; or (b) that: (i) the company proposes to carry on; and (ii) will, when it is carried on, be business to which this section applies; is to be treated, for the purposes of this Act, as if it were life insurance business. (3) The application must comply with any applicable requirements in the prudential standards. (4) APRA must only make the declaration if it is satisfied that: (a) the company is a life company; or (b) the company is not currently a life company, but the only business it proposes to carry on if the declaration is made is: (i) the business in respect of which the declaration is sought; or (ii) that business and other business that will be, or is likely to be declared to be, life insurance business. (5) In deciding whether to make the declaration, APRA may also have regard to the following matters: (a) whether the business in respect of which the declaration is sought is similar in nature to other life insurance business; (b) whether it would be appropriate for the business to be regulated under this Act; (c) whether it would be more appropriate for the business to be regulated under some other law (for example, Chapter 5C of the Corporations Act 2001); (d) the tax treatment of benefits provided in the course of the business; (e) if the company is not registered under section 21—whether the company would be able to be registered under section 21; (f) any other matter that APRA considers is relevant. (6) The declaration must also state the class of life insurance business in which the business is to be treated as being included. (7) If APRA makes a declaration: (a) this Act has effect accordingly; and (b) APRA must give a copy of the declaration to the company. 13 Business of a statutory fund (1) A reference in this Act to the business of a statutory fund of a life company is a reference to the life insurance business to which the fund relates. (2) For the purposes of this Act: (a) a liability (including a policy liability) is taken to be referable to the business of a statutory fund if the liability is of a kind that, under Part 4, may be discharged out of the assets of the fund; and (b) an expense is taken to be referable to the business of a statutory fund if the expense is of a kind that, under Part 4, may be met out of the assets of the fund. 14 Investment account benefits, investment‑linked benefits (1) In this Act: (a) the expression "investment account benefits" refers to benefits payable under an investment account contract; and (b) the expression "investment‑linked benefits" refers to benefits payable under an investment‑linked contract. (2) An investment account contract is a contract that: (a) provides for benefits to be paid: (i) on death; or (ii) on a specified date or specified dates or on death before the specified date, or the last of the specified dates, as the case may be; and (b) provides for the benefits to be calculated by reference to: (i) a running account under the contract; or (ii) units the value of which are guaranteed by the contract not to be reduced; and (c) provides for the account to be increased (for example, by the amounts of premiums paid or interest payable). (3) In spite of subsection (2), a contract is not an investment account contract if it provides for the account to be reduced otherwise than by the amounts of withdrawals by the person responsible for the payment of premiums or by the amounts of charges payable under the contract. (4) An investment‑linked contract is a contract: (a) the principal object of which is the provision of benefits calculated by reference to units the value of which is related to the market value of a specified class or group of assets of the party by whom the benefits are to be provided; and (b) that provides for benefits to be paid: (i) on death; or (ii) on a specified date or specified dates or on death before the specified date, or the last of the specified dates, as the case may be. (5) APRA, at the request of a life company, may make a written declaration: (a) that contracts of a kind specified in the declaration and entered into by the company are, or would be, investment account contracts; or (b) that contracts of a kind specified in the declaration and entered into by the company are, or would be, investment‑linked contracts. (6) If APRA makes a declaration: (a) this Act has effect accordingly; and (b) APRA must give a copy of the declaration to the life company at whose request the declaration was made. 15 Participating, non‑participating benefits (1) Subject to this section, a participating benefit is any benefit other than a non‑participating benefit. (2) Subject to this section, a non‑participating benefit is a benefit that has the following features: (a) the benefit does not include any entitlement to share in any distribution by the life company of profits or surplus; (b) the amount of the benefit is specified in the policy document or is to be calculated according to a formula that: (i) is set out in the policy document; and (ii) does not include any element that is in any way dependent on, or to be ascertained according to, a decision of the life company concerned. (3) A benefit is a non‑participating benefit if it is declared by the prudential standards to be a non‑participating benefit. (4) APRA, at the request of a life company, may make a written declaration: (a) that benefits of a specified kind, when provided for by policies issued by the company, are, or would be, participating benefits; or (b) that benefits of a specified kind, when provided for by policies issued by the company, are, or would be, non‑participating benefits. (5) If APRA makes a declaration: (a) this Act has effect accordingly; and (b) APRA must give a copy of the declaration to the life company at whose request the declaration was made. 15A Relevant group of bodies corporate For the purposes of this Act: (a) a life company and its subsidiaries together constitute a relevant group of bodies corporate; and (b) a registered NOHC and its subsidiaries together also constitute a relevant group of bodies corporate. 16 Related bodies corporate and subsidiaries Except for the purposes of Part 7, the question whether: (a) one body corporate is a subsidiary of another; or (b) one body corporate is related to another; is to be determined, in the same way as it would be determined under the Corporations Act 2001. Part 2A—Special provisions relating to life companies that are friendly societies Division 1—Preliminary 16A Overview (1) The concept of a friendly society is defined for the purposes of this Act in section 16C. (2) A friendly society will be a life company if it carries on life insurance business in Australia. (3) In working out whether a friendly society does carry on life insurance business (within the meaning of section 11), the effect of Division 3 must be taken into account. The effect of any relevant declarations under section 12A or 12B must also be taken into account. (4) This Act applies to life companies that are friendly societies subject to: (a) the modified operation of key concepts set out in Division 3; and (b) the modifications relating to statutory funds set out in Division 4; and (c) the modifications relating to financial management set out in Division 5; and (d) the modifications relating to policies set out in Division 6; and (e) any other modifications set out in Division 7 or in regulations for the purposes of section 16ZC. (5) In addition to the modifications set out in this Part and in regulations for the purposes of section 16ZC, this Act includes some other special provisions in relation to friendly societies. See in particular various provisions in Division 2 of Part 8 about winding up of friendly societies. (6) Unless a contrary intention appears, a reference in this Act to a particular provision of this Act also includes, if that provision has been modified as mentioned in subsection (4), a reference to that provision as so modified. Note: So, for example, if a provision referred to in subsection 7A(1) has been modified, a determination under that section may be made in relation to the provision as so modified. 16B Definitions (1) For the purposes of this Act: adequately adopted, in relation to benefit fund rules or an amendment of benefit fund rules, has the meaning given by subsection (2). approved benefit fund means a benefit fund for which there are approved benefit fund rules. approved benefit fund rules means rules (as amended from time to time by amendments in force under section 16T) in relation to which the following conditions are satisfied: (a) an approval under section 16L is in force in relation to the rules; and (b) the rules are in force under section 16N. benefit fund means a fund: (a) that is established to provide benefits in accordance with rules of a friendly society; and (b) that is established in the records of the friendly society. benefit fund rules, in relation to a benefit fund, means the rules referred to in paragraph (a) of the definition of benefit fund. friendly society has the meaning given by section 16C. jointly regulated friendly society has the meaning given by subsection 16ZB(2). (2) For the purposes of this Act, benefit fund rules of a company have, or an amendment of benefit fund rules of a company has, been adequately adopted if: (a) the rules have, or the amendment has, been adopted by or on behalf of the company, or by or on behalf of the members or a class of the members of the company, in a way set out in the prudential standards for the purposes of this subsection; and (b) APRA considers that adoption of the rules or the amendment in that way adequately takes into account the interests of members of the company. APRA may consult ASIC in considering the matters referred to in paragraph (b). Division 2—Friendly societies and how this Act applies to them 16C What is a friendly society? (1) For the purposes of this Act, a friendly society is a body: (a) that is registered as a company under the Corporations Act 2001; and (b) that is either: (i) taken to be registered under this Act because of item 11 of Schedule 8 to the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999; or (ii) covered by a determination under subsection (2). (2) APRA may, in writing, determine that a specified body that is registered as a company under the Corporations Act 2001 is a friendly society for the purposes of this Act. Note: A company may be specified by name, by inclusion in a specified class or in some other way. (3) APRA may, in writing, vary or revoke a determination made under subsection (2). (4) APRA must comply with any applicable requirements in the prudential standards relating to the circumstances in which the powers under subsections (2) and (3) may be exercised. (5) If APRA: (a) makes a determination under subsection (2); or (b) varies or revokes a determination under subsection (3); APRA must cause notice of that action to be published in the Gazette. If the action relates to a particular company, otherwise than because the company is included in a specified class of companies, APRA must also give the company written notice of the action. (6) If APRA: (a) makes a determination under subsection (2); or (b) varies or revokes a determination under subsection (3); APRA must also give notice of that action to ASIC. 16D Act applies to friendly societies in accordance with this Part This Act applies to a friendly society subject to the provisions of this Part. Note: As noted in subsection 16A(5), this Act also contains some other special provisions in relation to friendly societies. 16E Restriction on use of expression friendly society (1) A body corporate commits an offence if: (a) it assumes or uses, in Australia, the expression friendly society in relation to a financial business carried on by the body corporate (whether or not in Australia); and (b) it is not a friendly society; and (c) APRA did not consent to that assumption or use of that expression. Penalty: 50 penalty units. Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above. (1A) Subsection (1) is an offence of strict liability. Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. Note 2: For strict liability, see section 6.1 of the Criminal Code. (2) If a body corporate assumes or uses the expression friendly society in circumstances that give rise to the body corporate committing an offence against subsection (1), the body corporate commits an offence against that subsection in respect of: (a) the first day on which the offence is committed; and (b) each subsequent day (if any) on which the circumstances that gave rise to the body corporate committing the offence continue (including the day of conviction for any such offence or any later day). Note: This subsection is not intended to imply that section 4K of the Crimes Act 1914 does not apply to offences against this Act or the regulations. (3) A consent may be expressed to apply to a particular body corporate or to bodies corporate included in a class of bodies corporate. (4) APRA may, at any time: (a) impose conditions, or additional conditions, on a consent; or (b) vary or revoke conditions imposed on a consent; or (c) revoke a consent. (5) The form of the granting of a consent, or the taking of action under subsection (4) in relation to a consent, is to be as follows: (a) if the consent applies to a particular body corporate—notice in writing served on the body corporate; (b) if the consent applies to a class of bodies corporate—notice in writing published in the Gazette. (6) If APRA: (a) grants a consent; or (b) takes action under subsection (4) in relation to a consent; APRA must also give ASIC notice of the granting of the consent or the taking of that action. (7) A body corporate commits an offence if: (a) it has been given a consent under this section; and (b) it contravenes a condition to which the consent is subject. Penalty: 50 penalty units. Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above. (7A) Subsection (7) is an offence of strict liability. Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. Note 2: For strict liability, see section 6.1 of the Criminal Code. (8) If a body corporate does or fails to do an act in circumstances that give rise to the body corporate committing an offence against subsection (7), the body corporate commits an offence against that subsection in respect of: (a) the first day on which the offence is committed; and (b) each subsequent day (if any) on which the circumstances that gave rise to the body corporate committing the offence continue (including the day of conviction for any such offence or any later day). Note: This subsection is not intended to imply that section 4K of the Crimes Act 1914 does not apply to offences against this Act or the regulations. (9) In this section: financial business means a business that: (a) consists of, or includes, the provision of financial services; or (b) relates, in whole or in part, to the provision of financial services. Division 3—Modified operation of key concepts 16F Issue, ownership etc. of policies New interests in benefit funds (1) A friendly society is taken to issue a policy to a person when it accepts an application by the person for an interest in a benefit fund of the friendly society in accordance with the benefit fund rules. However, acceptance of an application for an increase to, or a continuation of, an existing interest in a benefit fund does not constitute the issue of a policy. Interests in benefit funds existing as at the transfer date (2) An interest that a person holds in a benefit fund of a friendly society on the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 is taken to be a policy issued to the person by the friendly society. Terms etc. of the policy (3) If subsection (1) or (2) applies, then: (a) the benefit fund rules are taken to be the terms of the policy referred to in that subsection; and (b) the owner of the policy is taken to be: (i) the person referred to in that subsection; or (ii) if that person's rights to the interest in the benefit fund have been assigned under this Act or transferred by the operation of the benefit fund rules—the person who has those rights; and (c) an amount that is required or permitted, by the benefit fund rules, to be paid in respect of those rights is taken to be a premium in respect of the policy; and (d) the policy is taken to be referable to the benefit fund. Note 1: Approved benefit fund rules have effect as a contract (see section 16Z). Note 2: The policy that a friendly society is taken by subsection (1) or (2) to issue or to have issued will, depending on the terms of the benefit fund rules, be: (a) a life policy (see section 9); or (b) a sinking fund policy (see the definition in Schedule 1); or (c) a section 12A or 12B policy (see the definition in Schedule 1); or (d) some other kind of policy. (4) Subsections (1), (2) and (3) have effect: (a) for the purposes of this Act; and (b) for the purposes of all other laws of the Commonwealth, subject to the expression of a contrary intention. (5) In this section: policy is not limited to a life policy, a sinking fund policy or a section 12A or 12B policy. Division 4—Modified operation of provisions relating to statutory funds Subdivision 1—Modifications 16G Act generally applies as if references to a statutory fund were references to an approved benefit fund (1) Subject to subsection (2), this Act applies to a friendly society as if each reference to a statutory fund were instead a reference to an approved benefit fund. Note: An approved benefit fund is a benefit fund for which there are approved benefit fund rules (see the definition in section 16B). Benefit fund rules are approved benefit fund rules if an approval under section 16L is in force in relation to the rules and the rules are in force under section 16N. (2) Subsection (1) has effect subject to: (a) the other provisions of this Subdivision; and (b) the expression of a contrary intention in a particular provision; and (c) the expression of a contrary intention in a particular provision of regulations for the purposes of section 16ZC. (3) Other laws of the Commonwealth have effect in relation to friendly societies as if any reference in such a law to a statutory fund of a life company also included a reference to an approved benefit fund of a friendly society, subject to the expression of a contrary intention. 16GA Modification of section 30 Section 30 has effect in relation to a friendly society as if paragraph 30(f) were omitted and the following paragraph were substituted: (f) surpluses in an approved benefit fund may only be distributed in accordance with section 56. 16H Modification of section 34 Section 34 has effect in relation to a friendly society as if subsections (2), (3) and (4) were omitted and the following subsections were substituted: (2) Assets or investments obtained by the application of assets (other than money) of an approved benefit fund are themselves assets of the fund. If an investment is a joint investment (see subsection (4A)), the asset is an asset of each of the contributing funds in proportion to their respective contributions. (3) Subject to subsections (4) and (4A), a friendly society must keep assets of an approved benefit fund distinct and separate from assets of other approved benefit funds and from all other money, assets or investments of the friendly society. (4) A friendly society may maintain a single bank account for money that constitutes assets of 2 or more approved benefit funds if the account is maintained in accordance with the prudential standards. (4A) A friendly society may invest assets of 2 or more approved benefit funds in a single investment if: (a) the approved benefit fund rules of each of those funds provide for the assets of the fund to be invested together with the assets of the other fund or funds; and (b) the investment complies with the applicable requirements (if any) in the prudential standards relating to assets of one fund being invested together with assets of another fund or funds. The investment is referred to as a joint investment, each of the funds is referred to as a contributing fund and the assets of a fund that are invested in the investment are referred to as the fund's contribution. 16HA Modification of section 35 (1) Subsection 35(1) does not apply in relation to a friendly society. (2) Subsection 35(2) has effect in relation to a friendly society as if the reference in that subsection to a policy document were a reference to approved benefit fund rules. (3) Subsections 35(3), (4) and (5) do not apply in relation to a friendly society. 16HB Modification of