Life Insurance Laws Australia Back
Within Australia, life insurance is a subset of the larger insurance market that is subject to various legal frameworks. The Life Insurance Act of 1995 and the Insurance Act of 1973, which both provide minimum capital and solvency requirements for businesses wishing to operate in the insurance sector, are the main federal legislation affecting the insurance industry.
The prudential features of general, life, and health insurance are governed by the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA).
Important facets of Australian life insurance law include:
- The 1995 Life Insurance Act: This statute allows the APRA and ASIC to regulate life insurance firms. It lays up the conditions necessary for life insurance businesses to operate, including as the control of international life insurance providers doing business in Australia.
- Life Insurance Regulations of 1995: These regulations specify the maximum interest rate that a company may charge on past-due premiums, the procedures for handling unclaimed money, and the administrative requirements connected with a company's application to the court for confirmation of a scheme for transfer or amalgamation of life insurance business.
- The Financial Sector (Shareholdings) Act of 1998 contains laws pertaining to shareholdings in life insurance businesses and is connected to industry oversight.
- The Insurance Acquisitions and Takeovers (Notices) Regulations of 1992 and the Insurance Acquisitions and Takeovers Act of 1991: In Australia, these rules govern the purchase and takeover of insurance firms.
- Act of 1999 for the Financial Sector (Transfer and Restructure) and Regulations 1999 Concerning the Financial Sector (Transfers of Business): These laws and rules make it easier to transfer and restructure life insurance companies.
The financial sector's data collecting practices, including life insurance, are governed by the Financial Sector (collecting of Data) Act of 2001 and the Financial Sector (Collection of Data-Consequential and Transitional Provisions) Act of 2001. State-based rules that impact the insurance sector and insurance contracts exist in addition to this federal legislation. Although restrictions affecting insurance businesses and their contracts exist, the Australian insurance industry is founded on the principles of commercial contract law.