Document ID: chunk:federal_register_of_legislation:C2004A04861:front:0:p5
Version: federal_register_of_legislation:C2004A04861
Segment Type: other
Provision Reference: 
Character Range: 10332–13038

1995;

'contract of life insurance' means a contract that constitutes a life policy within the meaning of the Life Insurance Act 1995;".

43. Subsections 11(3) and (5):

Omit the subsections.

44. Subsection 16(2):

Omit the subsection.

45. Division 2 of Part III:

Omit the Division, substitute:

"Division 2—other contracts of insurance

Insurable interest not required

"18.(1) This section applies to:

    (a) a contract of life insurance; or

    (b) a contract that provides for the payment of money on the death of a person by sickness or accident.

"(2) A contract to which this section applies is not void by reason only that the insured did not have, at the time when the contract was entered into, an interest in the subject-matter of the contract.".

46. Subsections 48(4) and (5):

Omit the subsections.

47. After section 48:

Insert:

Life policy for the benefit of another person

"48A.(1) This section applies to a contract of life insurance effected on the life of a person but expressed to be for the benefit of another person specified in the contract (the 'third party').

"(2) The following provisions have effect in relation to a contract to which this section applies:

    (a) any money that becomes payable under the contract is payable to the third party, even though he or she is not a party to the contract;

SCHEDULE—continued

    (b) money paid under the contract does not form part of the estate of the person whose life is insured.

"(3) Nothing in this section restricts the capacity of a person to exercise any right or power under a contract of life insurance to which the person is a party. In particular, nothing in this section restricts the capacity of a person:

    (a) to surrender a contract of life insurance to which the person is a party; or

    (b) to borrow money on the security of a contract of life insurance; or

    (c) to obtain a variation of a contract of life insurance, including a variation having the result that the contract ceases to be a contract to which this section applies.".

48. Subsection 59(3):

Omit the subsection, substitute:

"(3) This section does not apply to a contract of life insurance if the life policy that is constituted by the contract may be forfeited in accordance with subsection 210(5) of the Life Insurance Act 1995".

49. Subsection 64(2):

Omit "Where", substitute "Subject to subsection (6) and section 64B, where".

50. Subsection 64(3):

Omit the subsection, substitute:

"(3) A reference in this section to a policy document does not include a reference to a replacement policy document issued as mentioned in subsection 221(3) of the Life Insurance Act 1995".

51. Section 64:

Add at the end:

"(6) If: