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Life Insurance Policy Holders' Protection Levies Bill 1991

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House: House of Representatives Portfolio: Treasury Purpose To impose formally a levy on life insurance companies to compensate holders of life insurance policies of Occidental and Regal Life.

Background Due to the requirements of section 55 of the Constitution, separate Bills are introduced dealing with the imposition of a levy and the collection of that levy. For information on the Background to the levy, refer to the Digest for the Insurance Acquisition and Takeovers Bill 1991.

Main Provisions The object of the Bill is to raise funds to provide a degree of protection for holders of life insurance policies of Occidental and Regal Life (clause 3).

Clause 5 will allow regulations to be made imposing one or more levies on the assets in a leviable fund of a company.

The amount of levy payable will be calculated by multiplying the levy rate (which will be set by regulation) by the Australian assets in the relevant fund (clause 7).

Clause 8 provides that the levy or levies are not to discriminate between leviable funds or between companies.

The amount of raised by the levy or levies is not to exceed $65 million (clause 9), and levies are not to be imposed after the Fund is would up (clause 10).

Bills Digest Service 31 July 1991 Parliamentary Research Service For further information, if required, contact the Economics and Commerce Group on 06 2772460.

This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.

Commonwealth of Australia 1990

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Published by the Department of the Parliamentary Library, 1990.