US Free Trade Agreement Implementation Act 2004 (120 of 2004)

Schedule 4   Life insurance amendments

Life Insurance Act 1995

1   After Part 2A

Insert:

Part 2B - Special provisions relating to Australian branches of foreign life insurance companies

16ZD Eligible foreign life insurance company

(1) A body corporate is an eligible foreign life insurance company if:

(a) it is a foreign corporation within the meaning of paragraph 51(xx) of the Constitution; and

(b) it is authorised in a foreign country, or part of a foreign country, to carry on life insurance business; and

(c) it has established, or proposes to establish, an Australian branch; and

(d) it is not an existing life company that is registered under this Act; and

(e) the conditions specified in the regulations are satisfied in relation to the body corporate.

(2) The conditions specified in the regulations for the purposes of paragraph (1)(e) may include either or both of the following kinds of conditions:

(a) a condition that the body corporate be authorised to carry on life insurance business in a specified country, or a specified part of a foreign country;

(b) a condition that the body corporate be incorporated in a specified country, or a specified part of a foreign country.

Note: For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003.

(3) Subsection (2) does not limit the regulations that may be made for the purposes of paragraph (1)(e).

(4) In this section:

Australian branch , in relation to a body corporate, means a permanent establishment (as defined in subsection 6(1) of the Income Tax Assessment Act 1936) in Australia through which the body corporate carries on or proposes to carry on life insurance business.

16ZE Act does not apply to foreign life insurance business of eligible foreign life insurance company

This Act does not apply in relation to life insurance business carried on outside Australia by an eligible foreign life insurance company.

16ZF Compliance Committee of eligible foreign life insurance company

(1) A committee is the Compliance Committee of an eligible foreign life insurance company if:

(a) the members of the committee have powers of management in relation to the Australian branch of the company that carries out life insurance business in Australia; and

(b) those powers of management are sufficient to enable those members to ensure that the company complies with this Act; and

(c) the committee is established and operated in accordance with requirements set out in the prudential standards.

(2) The prudential standards may set out the following requirements in relation to the establishment and operation of Compliance Committees:

(a) requirements relating to the composition of Compliance Committees;

(b) requirements relating to the resignation of members of Compliance Committees;

(c) requirements relating to the disclosure of interests of members of Compliance Committees;

(d) requirements relating to the termination of appointment of members of Compliance Committees;

(e) requirements relating to the residency in Australia of members of Compliance Committees.

(3) Subsection (2) does not limit the requirements that may be set out in the prudential standards for the purposes of paragraph (1)(c).

(4) An eligible foreign life insurance company that is a life company must establish and operate a Compliance Committee.

16ZG Address for service of eligible foreign life insurance companies

(1) A document or notice required or permitted to be served on, or given to, an eligible foreign life insurance company for the purposes of this Act may be served or given by:

(a) leaving it at its address for service (see subsection (2)); or

(b) sending it by registered post to that address.

(2) An address becomes the address for service for the eligible foreign life insurance company when written notice of the address is given to APRA. (The address continues to be the address for service until APRA is given written notice of another address.)