Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) In this Act:
(a) the expression "investment account benefits" refers to benefits payable under an investment account contract; and
(b) the expression "investment - linked benefits" refers to benefits payable under an investment - linked contract.
(2) An investment account contract is a contract that:
(a) provides for benefits to be paid:
(i) on death; or
(ii) on a specified date or specified dates or on death before the specified date, or the last of the specified dates, as the case may be; and
(b) provides for the benefits to be calculated by reference to:
(i) a running account under the contract; or
(ii) units the value of which are guaranteed by the contract not to be reduced; and
(c) provides for the account to be increased (for example, by the amounts of premiums paid or interest payable).
(3) In spite of subsection (2), a contract is not an investment account contract if it provides for the account to be reduced otherwise than by the amounts of withdrawals by the person responsible for the payment of premiums or by the amounts of charges payable under the contract.
(4) An investment - linked contract is a contract:
(a) the principal object of which is the provision of benefits calculated by reference to units the value of which is related to the market value of a specified class or group of assets of the party by whom the benefits are to be provided; and
(b) that provides for benefits to be paid:
(i) on death; or
(ii) on a specified date or specified dates or on death before the specified date, or the last of the specified dates, as the case may be.
(5) APRA, at the request of a life company, may make a written declaration:
(a) that contracts of a kind specified in the declaration and entered into by the company are, or would be, investment account contracts; or
(b) that contracts of a kind specified in the declaration and entered into by the company are, or would be, investment - linked contracts.
(6) 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.