*Securities CommissionDiscussion paper
PART III - PUBLIC POLICY DISCUSSION


APPENDICES


 

APPENDIX ONE
THE TEXT OF SECTIONS 7A AND 7B OF THE SECURITIES ACT 1978

    SECT. 7A. EXEMPTION FOR AUTHORISED LIFE INSURANCE COMPANIES--

    (1) Nothing in sections 33 (2), 33 (3), 35, 37, 37A, 39 to 44, and 44B to 54 of this Act shall apply in respect of any life insurance policy issued by an authorised life insurance company in accordance with its authorisation.

    (2) The Commission may, by notice in the Gazette, declare a life insurance company to be an authorised life insurance company for the purposes of this Act.

    (3) An authorisation may be for--
    (a) Specified life insurance policies:
    (b) A specified class or specified classes of life insurance policy:
    (c) Life insurance policies generally:
    (d) Life insurance policies generally other than--

    1. Specified life insurance policies:
    2. A specified class or specified classes of life insurance policy--
    and may be on such terms and conditions as the Commission thinks fit.

    (4) The Commission may, by notice in the Gazette, vary or revoke any authorisation.

    (5) Before issuing any notice the Commission shall do everything reasonably possible on its part to advise all persons and organisations, who in its opinion will be affected by the proposed notice, of the proposed terms of it; and give such persons and organisations a reasonable opportunity to make submissions to the Commission.

    (6) Subsection (5) of this section shall not apply in respect of any particular notice if the Commission considers that it is desirable in the public interest that the notice be made urgently.

    (7) Failure to comply with subsection (5) of this section shall in no way affect the validity of any notice made under this section.

    SECT. 7B. TERMS AND CONDITIONS OF AUTHORISATION--
    The terms and conditions of authorisation of a life insurance company may include terms and conditions--

    (a) Requiring the company to observe standards for the carrying on of life insurance business prescribed or approved by the Commission:

    (b) Requiring the company to publish in such manner and at such times as may be specified by the Commission financial statements, which the Commission may require to be audited, containing such information as the Commission may specify.


 
APPENDIX TWO
 
THE REQUIREMENTS OF THE SIXTH SCHEDULE TO THE LIFE INSURANCE ACT 1908

STATEMENT RESPECTING THE VALUATION OF THE LIABILITIES UNDER LIFE POLICIES AND ANNUITIES OF THE, TO BE MADE BY THE ACTUARY

...

1. The date up to which the valuation is made.

2. The principles upon which the valuation and distribution of profits among the policyholders are made, and whether these principles were determined by the instrument constituting the company, or by its regulations or bylaws, or otherwise.

3. The table or tables of mortality used in the valuation.

4. The rate or rates of interest assumed in the calculations.

5. The proportion of the annual premium income (if any) reserved as a provision for future expenses and profits. (If none, state how this provision is made.)

6. The Consolidated Revenue Account since the last valuation, or, in case of a company which has made no valuation, since the commencement of the business. (...)

7. The liabilities of the company under life policies and annuities at the date of the valuation, showing the number of policies, the amount assured, and the amount of premiums payable annually under each class of policies, both with and without participation in profits, and also the net liabilities and assets of the company, with the amount of surplus or deficiency. ( ...)

8. The time during which a policy must be in force in order to entitle it to share in the profits.

9. The results of the valuation, showing-

  1. The total amount of profit made by the company.
  2. The amount of profit divided among the policyholders, and the number and amount of the policies which participated.
  3. Specimens of bonuses allotted to policies for [$200] effected at the respective ages of 20, 30, 40, and 50, and having been respectively in force for 5 years, 10 years, and upwards, at intervals of 5 years respectively, together with the amounts apportioned under the various modes in which the bonus might be received.

...
 

 

INDEX || BACK