Corporations Amendment (Life Insurance Remuneration Arrangements) Act 2017 (6 of 2017)

Schedule 1   Amendments

Corporations Act 2001

11   After subsection 963B(3) (after the note)

Insert:

(3A) The benefit ratio for a benefit given to a financial services licensee, or a representative of a financial services licensee, in relation to a life risk insurance product, or life risk insurance products, for a year is the ratio between:

(a) the benefit; and

(b) the policy cost payable for the product or products, or that part of the policy cost payable for the product or products to which the benefit relates, for the year.

(3B) The policy cost for a life risk insurance product, or products, for a year is the sum of:

(a) the premiums payable for the product, or products, for that year; and

(b) any fees payable for that year to the issuer of the product or products for that issue; and

(c) any additional fees payable because the premium for the product, or products, is paid periodically rather than in a lump sum; and

(d) any other amount prescribed by the regulations for the purposes of this paragraph.

(3C) However, the policy cost for a life risk insurance product, or products, does not include any amount prescribed by the regulations for the purposes of this subsection.