Document ID: chunk:federal_register_of_legislation:C2025C00135:section:15
Version: federal_register_of_legislation:C2025C00135
Segment Type: section
Provision Reference: s 15
Character Range: 48094–49450

15  Participating, non‑participating benefits
 (1) Subject to this section, a participating benefit is any benefit other than a non‑participating benefit.
 (2) Subject to this section, a non‑participating benefit is a benefit that has the following features:
 (a) the benefit does not include any entitlement to share in any distribution by the life company of profits or surplus;
 (b) the amount of the benefit is specified in the policy document or is to be calculated according to a formula that:
 (i) is set out in the policy document; and
 (ii) does not include any element that is in any way dependent on, or to be ascertained according to, a decision of the life company concerned.
 (3) A benefit is a non‑participating benefit if it is declared by the prudential standards to be a non‑participating benefit.
 (4) APRA, at the request of a life company, may make a written declaration:
 (a) that benefits of a specified kind, when provided for by policies issued by the company, are, or would be, participating benefits; or
 (b) that benefits of a specified kind, when provided for by policies issued by the company, are, or would be, non‑participating benefits.
 (5) If APRA makes a declaration:
 (a) this Act has effect accordingly; and
 (b) APRA must give a copy of the declaration to the life company at whose request the declaration was made.