Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 63

  (1)   A distribution of shareholders' capital in relation to a statutory fund:

  (a)   may only be made after the directors of the life company concerned have received the appointed actuary's written advice as to the likely consequences of the proposed distribution; and

  (b)   must not be made if:

  (i)   the distribution would have the result that the prudential standards in relation to solvency would not be satisfied in relation to the fund; or

  (ii)   the distribution would involve a contravention of a direction given by APRA under section   230B in relation to solvency.

  (2)   Except with the approval of APRA, a distribution of shareholders' capital in relation to a statutory fund must not be made if:

  (a)   the distribution would have the result that the prudential standards in relation to capital adequacy would not be satisfied in relation to the fund; or

  (b)   the distribution would involve a contravention of a direction given by APRA under section   230B in relation to capital adequacy.

  (3)   Shareholders' capital may only be distributed in the following ways:

  (a)   by transfer to shareholders' funds;

  (b)   by transfer to another statutory fund of the company;

  (c)   by distribution to owners of policies that provide for participating benefits.