Corporations Amendment (Life Insurance Remuneration Arrangements) Regulations 2017 (F2017L00212)

Schedule 1   Amendments

Corporations Regulations 2001

4   After regulation 7.7A.12EA

Insert:

Subdivision 3 - Monetary benefits that relate to life risk insurance products

7.7A.12EB Life risk insurance products - clawback requirements related to cancellation etc.

For the purposes of subparagraph 963BA(3)(a)(i) of the Act, the prescribed circumstances are that the life risk insurance product, or the relevant one of the life risk insurance products, is cancelled or is not continued because:

(a) the person insured dies; or

(b) the person insured commits an act of self-harm; or

(c) the person insured reaches an age that, under the terms of the life risk insurance product under which the person is insured, has the result that the product is cancelled or is not continued; or

(d) an administrative error has been made.

7.7A.12EC Life risk insurance products - clawback requirements related to reduction of policy cost

For the purposes of subparagraph 963BA(3)(a)(ii) of the Act, the prescribed circumstances are that the policy cost for the life risk insurance product, or the relevant one of the life risk insurance products, is reduced because:

(a) the person who issued the product and the person to whom the product is issued agree thatthere is a reduction in a risk in relation to a person insured under the product; or

(b) the person who issued the product reduces the premium for the product without changing the risks covered, or the benefits available, in relation to any person insured under the product; or

(c) each of the following is satisfied:

(i) a rebate is paid or a discount applied;

(ii) it is reasonable in all the circumstances to conclude that the rebate is paid or discount applied to induce the person to whom the product is issued to acquire, or to continue to hold, the product; or

(d) a benefit payable in relation to a person insured under the product has been, or is being, paid; or

(e) an administrative error has been made.