Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The main objects of this Act are:
(a) to protect the interests of the owners and prospective owners of life insurance policies in a manner consistent with the continued development of a viable, competitive and innovative life insurance industry; and
(b) to promote financial system stability in Australia.
(1A) An additional object of this Act is to protect the interests of persons entitled to other kinds of benefits provided in the course of carrying on life insurance business (including business that is declared to be life insurance business).
(2) The principal means adopted for the achievement of these objects are the following:
(a) restricting the conduct of life insurance business to companies that are able to meet certain requirements as to suitability;
(b) imposing on life companies requirements designed to promote prudent management of the life insurance business of such companies, including requirements designed to ensure the solvency and capital adequacy of statutory funds;
(c) providing for the supervision of life companies by APRA and ASIC;
(d) providing for APRA to manage or respond to circumstances in which the ability of a life company to meet its obligations may be threatened;
(e) making provision to ensure that, in the winding - up of a life company, the interests of policy owners are adequately protected;
(f) providing for the supervision of transfers and amalgamations of life insurance business by the Court.
(3) Generally, this Act achieves these objects by provisions applying to all life companies. However, there are a number of special provisions that apply only to friendly societies (see in particular Part 2A).