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Life Insurance (Conduct and Disclosure) Bill 1998

1996-97-98

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

Life Insurance (Conduct and Disclosure) Bill 1998

 

No.      , 1998

 

(Treasury)

 

 

A Bill for an Act relating to the conduct of, and the disclosure of information by, life companies, life brokers and life insurance advisers, and for related purposes

   

   

   



Contents

Part 1—Preliminary                                                                                                               

1............ Short title............................................................................................

2............ Commencement..................................................................................

3............ Object of the Act................................................................................

4............ Definitions..........................................................................................

5............ Agents................................................................................................

6............ Issuing promotional material..............................................................

7............ Engaging in a life insurance activity....................................................

8............ General information does not constitute an implied recommendation

9............ Additional operation of the Act.........................................................

10.......... Exclusion of certain State insurance...................................................

11.......... Extension to Norfolk Island...............................................................

12.......... General administration.......................................................................

13.......... Application of the Criminal Code .....................................................

14.......... Act not to affect operation of other Acts..........................................

15.......... Schedule(s).........................................................................................

Part 2—Duties of life companies                                                                                   

16.......... Effect of Part......................................................................................

17.......... Duty of life companies to provide information.................................

18.......... Disclosure rules..................................................................................

19.......... ASIC may give directions...................................................................

20.......... Revocation or variation of directions...............................................

21.......... ASIC may issue stop orders............................................................

22.......... False or misleading information: civil liability..................................

23.......... Order to disclose information or publish advertisement etc............

24.......... False or misleading information: criminal liability............................

Part 3—Conduct of life companies and their life insurance advisers      

25.......... Effect of Part....................................................................................

26.......... Definitions........................................................................................

27.......... Disclosure statements......................................................................

28.......... Life insurance advice must contain certain information...................

29.......... Life insurance advice must have a reasonable basis..........................

30.......... Life company must not issue or vary life policies in certain cases..

31.......... Life company’s civil liability if section 28 or 29 is contravened.....

32.......... False or misleading statements etc.: civil liability............................

33.......... False or misleading statements etc.: criminal liability......................

Part 4—Conduct of life brokers and their life insurance advisers            

34.......... Effect of Part....................................................................................

35.......... Application of Part..........................................................................

36.......... Definitions........................................................................................

37.......... Disclosure statements......................................................................

38.......... Life insurance advice must contain certain information...................

39.......... Life insurance advice must have a reasonable basis..........................

40.......... Life broker must not arrange for issue or variation of a life policy in certain cases 

41.......... Life broker’s civil liability if section 38 or 39 is contravened..........

42.......... False or misleading statements etc.: civil liability............................

43.......... False or misleading statements etc.: criminal liability......................

Part 5—Code of Practice for the Life Insurance Industry                            

44.......... Effect of Part....................................................................................

45.......... Establishment of the Code...............................................................

46.......... ASIC may give directions.................................................................

47.......... Revocation or variation of directions...............................................

Part 6—Compliance provisions                                                                                     

Division 1—Compliance committees                                                                 

48.......... Obligation of life company to have compliance committee.............

49.......... Membership of compliance committee............................................

50.......... Functions and powers of compliance committee.............................

Division 2—Monitoring life companies and life brokers                        

51.......... Purpose of Division.........................................................................

52.......... Definition.........................................................................................

53.......... Appointment of authorised persons................................................

54.......... Requirement to give information to ASIC........................................

55.......... Requirement to produce records......................................................

56.......... Self-incrimination.............................................................................

57.......... Access to premises...........................................................................

Part 7—Miscellaneous                                                                                                      

58.......... Statistics...........................................................................................

59.......... Jurisdiction of courts under this Act................................................

60.......... Rebuttable presumption...................................................................

61.......... Transactions not invalidated............................................................

62.......... Operation of State and Territory laws.............................................

63.......... Injunctions........................................................................................

64.......... Review of certain decisions..............................................................

65.......... Constitution and procedure of Tribunal...........................................

66.......... Institution of proceedings for offences............................................

67.......... False or misleading documents.........................................................

68.......... ASIC may begin and carry on certain civil actions...........................

69.......... Regulations.......................................................................................

Schedule 1—Amendment of the Australian Securities and Investments Commission Act 1989                       

Schedule 2—Interim provisions                                                              

 



A Bill for an Act relating to the conduct of, and the disclosure of information by, life companies, life brokers and life insurance advisers, and for related purposes

The Parliament of Australia enacts: