Commonwealth Consolidated Acts Commonwealth Consolidated ActsNew interests in benefit funds
(1) A friendly society is taken to issue a policy to a person when it accepts an application by the person for an interest in a benefit fund of the friendly society in accordance with the benefit fund rules. However, acceptance of an application for an increase to, or a continuation of, an existing interest in a benefit fund does not constitute the issue of a policy.
Interests in benefit funds existing as at the transfer date
(2) An interest that a person holds in a benefit fund of a friendly society on the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 is taken to be a policy issued to the person by the friendly society.
Terms etc. of the policy
(3) If subsection (1) or (2) applies, then:
(a) the benefit fund rules are taken to be the terms of the policy referred to in that subsection; and
(b) the owner of the policy is taken to be:
(i) the person referred to in that subsection; or
(ii) if that person's rights to the interest in the benefit fund have been assigned under this Act or transferred by the operation of the benefit fund rules--the person who has those rights; and
(c) an amount that is required or permitted, by the benefit fund rules, to be paid in respect of those rights is taken to be a premium in respect of the policy; and
(d) the policy is taken to be referable to the benefit fund.
Note 1: Approved benefit fund rules have effect as a contract (see section 16Z).
Note 2: The policy that a friendly society is taken by subsection (1) or (2) to issue or to have issued will, depending on the terms of the benefit fund rules, be:
(a) a life policy (see section 9); or
(b) a sinking fund policy (see the definition in Schedule 1); or
(c) a section 12A or 12B policy (see the definition in Schedule 1); or
(d) some other kind of policy.
(4) Subsections (1), (2) and (3) have effect:
(a) for the purposes of this Act; and
(b) for the purposes of all other laws of the Commonwealth, subject to the expression of a contrary intention.
(5) In this section:
"policy" is not limited to a life policy, a sinking fund policy or a section 12A or 12B policy.