{"id":"F2023L00749","name":"ASIC Corporations (Confirming Transactions—Deceased Life Insurance Policyholder) Instrument 2023/437","slug":"asic-corporations-confirming-transactions-deceased-life-insurance-policyholder-instrument-2023-437","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":441922,"registerId":"F2023L00749-fast-fetch-1775957084704","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Confirming Transactions—Deceased Life Insurance Policyholder) Instrument 2023/437","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\nmeta-generator: Aspose.Words for .NET 22.10.0\ntitle: ASIC Corporations (Confirming Transactions - Deceased Life Insurance Policyholder) Instrument 2023-437\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (Confirming Transactions—Deceased Life Insurance Policyholder) Instrument 2023/437\n\nI, Rhys Bollen, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 6 June 2023\n\n \n\nRhys Bollen\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc136937640)\n\n[1 Name of legislative instrument](#_Toc136937641)\n\n[2 Commencement](#_Toc136937642)\n\n[3 Authority](#_Toc136937643)\n\n[4 Definitions](#_Toc136937644)\n\n[Part 2—Declaration](#_Toc136937645)\n\n[5 Confirmation of transactions to a third person in circumstances where the holder of the financial product is deceased](#_Toc136937646)\n\n[Part 3—Repeal](#_Toc136937647)\n\n[6 Repeal](#_Toc136937648)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Confirming Transactions—Deceased Life Insurance Policyholder) Instrument 2023/437.\n\n2 Commencement\n\nThis instrument commences on the day after it is registered on the Federal Register of Legislation.\n\nNote: The register may be accessed at [www.legislation.gov.au](http://www.legislation.gov.au).\n\n3 Authority\n\nThis instrument is made under paragraph 1020F(1)(c) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nholder has the same meaning as in paragraph 1017F(1)(a) of the Act.\n\nlife company has the meaning given by section 8 of the Life Insurance Act 1995.\n\nrelevant life policy means a life policy in relation to which all of the following are satisfied:\n\n(a) the person to whom the policy was issued (initial owner of the policy) is the same person as the life insured under the policy;\n\n(b) the initial owner of the policy has deceased;\n\n(c) when the initial owner deceased, they did not hold the policy jointly with any other person;\n\n(d) the rights of the initial owner have not been assigned under the Life Insurance Act 1995 or transferred by the operation of the policy;\n\n(e) on the death of the initial owner, the issuer of the policy has the obligation to pay a sum of money under the policy to a person (third party payee) other than the initial owner or their estate.\n\nNote:  The third party payee could include a third party beneficiary for the purposes of subsection 48A(1) of the Insurance Contracts Act 1984, or a person to whom the sum of money is required to be paid in accordance with section 211 or section 212 of the Life Insurance Act 1995.\n\nPart 2—Declaration\n\n5 Confirmation of transactions to a third person in circumstances where the holder of the financial product is deceased\n\n(1) Part 7.9 of the Act applies in relation to a financial product that is a relevant life policy as if section 1017F were modified or varied as follows:\n\n(a) in subparagraph (1)(b)(ii):\n\n(i) after “transaction” (first occurring), insert “(other than a transaction referred to in subparagraph (iia))”; and\n\n(ii) omit “; and”, substitute “; or”;\n\n(b) after subparagraph (1)(b)(ii), insert:\n\n “(iia) for a product that is a life policy—a transaction by which the issuer of the product pays a sum of money under the product to a person (third party payee) who is not the holder of the product; and\n\nNote: Subparagraphs (b)(i) and (ii) may also apply in relation to a product that is a life policy.”;\n\n(c) in subsection (1)(d), before “the holder”, insert “in the case of a transaction referred to in subparagraph (b)(i) or (ii)—”;\n\n(d) after subsection (1)(d), insert:\n\n“(da)  in the case of a transaction referred to in subparagraph (b)(iia)—the third party payee has not waived their right to be provided with confirmation of the transaction”;\n\n(e) in subsection (2), after “the holder”, insert “(or, in the case of a transaction specified in column 2 of item 4A, the third party payee)”;\n\n(f) after item 4 of the table in subsection (2), insert:\n\n| “4A | transaction by which the issuer pays a sum of money under the product to a third party payee | the issuer of the product”; |\n| --- | --- | --- |\n\n\n(g) in subsections (5), (5A) and (7), after “holder” (wherever occurring), insert “or third party payee”;\n\n(h) after paragraph (8)(a), insert:\n\n“(aa) in the case of a transaction referred to in subparagraph (b)(iia), identify the third party payee;”;\n\n(i) in subparagraph (8)(c)(iii), after “holder”, insert “or the third party payee”.\n\n(2) Part 7.9 of the Act applies in relation to a financial product that is a relevant life policy as if subregulation 7.9.63G(2) of the Corporations Regulations 2001 were modified or varied by, after “holder”, inserting “or third party payee”.\n\nPart 3—Repeal\n\n6 Repeal\n\nThis instrument is repealed at the start of 1 July 2028.\n\n \n\n \n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument maintains a narrow, targeted scope addressing a specific gap in transaction confirmation requirements for deceased life insurance policyholders. It does not expand beyond this discrete technical fix."},"complexity_factors":["Multiple nested conditions in the definition of 'relevant life policy' (5 separate criteria must all be satisfied)","Complex modification of existing legislation through 'as if' modifications to section 1017F of the Corporations Act","Cross-references to three other Acts: Corporations Act 2001, Life Insurance Act 1995, and Insurance Contracts Act 1984","Detailed table modifications and multiple insertion points requiring careful parsing of original text","Temporary nature with automatic sunset clause (repeal date)","Only 6 defined terms but heavy reliance on external statutory definitions"],"plain_english_summary":"This temporary amendment fixes a paperwork gap by requiring life insurers to send transaction confirmations to third‑party beneficiaries when a policyholder dies and the payout goes directly to someone other than the deceased or their estate (unless waived). It affects life insurers and named beneficiaries and expires automatically on 1 July 2028."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"The instrument expands the operational scope of Part 7.9 confirmations beyond holders to include third party payees in a narrow class of life policies (the 'relevant life policy' defined at s4(a)–(e)). It modifies section 1017F text (via s5(1)) and the application of subreg 7.9.63G(2) (s5(2)), adds a new table item (4A) requiring issuers to provide confirmations when paying a third party payee, and adds a payee‑waiver rule (s5(1)(da)). The change is time‑limited by repeal on 1 July 2028 (s6)."},"complexity_factors":["Targeted amendment to a single existing regime (Part 7.9) but implemented by multiple textual changes across subparagraphs and subsections (see s5(1)(a)–(i)), increasing drafting and compliance detail.","Narrow, technical eligibility rule for covered products: 'relevant life policy' defined by five conjunctive conditions (s4(a)–(e)), requiring issuers to determine factual circumstances of the original owner and assignments.","Introduces third party payee as a new recipient of statutory confirmations, changing recurring references from 'holder' to 'holder or third party payee' throughout specified provisions (s5(1)(g), (i)).","Creates a new table item (4A) obliging issuers to provide confirmations for payments to third party payees (s5(1)(f)), requiring operational updates to issuer notification processes.","Adds a waiver concept for third party payees (s5(1)(da)) — issuers must record or verify whether the payee has waived confirmation, creating evidentiary and process burdens.","Requires explicit identification of the third party payee in confirmations (s5(1)(h) inserted after (8)(a)), increasing information‑collection duties on issuers.","Cross‑references and regulatory interaction: also modifies application of Corporations Regulations subreg 7.9.63G(2) to include 'third party payee' (s5(2)), so compliance must consider both Act and Regulations.","Temporal limitation and legal provenance: instrument made under para 1020F(1)(c) of the Corporations Act (s3) and repeals automatically on 1 July 2028 (s6), which affects long‑term compliance planning."],"plain_english_summary":"This instrument amends Part 7.9 of the Corporations Act so that, for certain life insurance policies where the original owner (who was also the insured) died holding the policy alone, issuers must provide transaction confirmations when they pay the policy proceeds to a third‑party payee who is not the holder. It affects life insurers (issuers) and third‑party payees (beneficiaries): issuers must identify and notify the payee unless the payee has waived confirmation. It commences the day after registration and is repealed from 1 July 2028."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-confirming-transactions-deceased-life-insurance-policyholder-instrument-2023-437","history":"/api/acts/asic-corporations-confirming-transactions-deceased-life-insurance-policyholder-instrument-2023-437/history","analysis":"/api/acts/asic-corporations-confirming-transactions-deceased-life-insurance-policyholder-instrument-2023-437/analysis","conflicts":"/api/acts/asic-corporations-confirming-transactions-deceased-life-insurance-policyholder-instrument-2023-437/conflicts","importantCases":"/api/acts/asic-corporations-confirming-transactions-deceased-life-insurance-policyholder-instrument-2023-437/important-cases","documents":"/api/acts/asic-corporations-confirming-transactions-deceased-life-insurance-policyholder-instrument-2023-437/documents"}}