{"id":"F2023L00222","name":"ASIC Corporations (Design and Distribution Obligations—Reissued Life Policies Class Exemption) Instrument 2023/183","slug":"asic-corporations-design-and-distribution-obligations-reissued-life-policies-class-exemption-instrum","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":441757,"registerId":"F2023L00222-fast-fetch-1775956978207","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Design and Distribution Obligations—Reissued Life Policies Class Exemption) Instrument 2023/183","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: 20230213 DRAFT- ASIC Corporations (Design and Distribution Obligations - Reissued Life Policies Class Exemption) Instrument\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (Design and Distribution Obligations—Reissued Life Policies Class Exemption) Instrument 2023/183\n\nI, Rhys Bollen, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 14 March 2023\n\n \n\n \n\nRhys Bollen\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc129679255)\n\n[1 Name of legislative instrument](#_Toc129679256)\n\n[2 Commencement](#_Toc129679257)\n\n[3 Authority](#_Toc129679258)\n\n[4 Definitions](#_Toc129679259)\n\n[Part 2—Exemption](#_Toc129679260)\n\n[5 Exemption for the reissue of life policies originally issued before 5 October 2021](#_Toc129679261)\n\n[6 Exemption for the reissue of life policies originally issued on or after 5 October 2021](#_Toc129679262)\n\n[Part 3—Repeal](#_Toc129679263)\n\n[7 Repeal](#_Toc129679264)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Design and Distribution Obligations—Reissued Life Policies Class Exemption) Instrument 2023/183.\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 994L(2)(b) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nowner, in relation to a life policy, has the same meaning as in subsection 10(2) of the Life Insurance Act 1995.\n\nPart 2—Exemption\n\n5 Exemption for the reissue of life policies originally issued before 5 October 2021\n\n(1) Part 7.8A of the Act does not apply in relation to a contract (the reissued policy) that constitutes a life policy in relation to which all of the following apply:\n\n(a) the reissued policy (whether individually or together with one or more other reissued policies) replaces one or more contracts (each a previous policy) that each constitutes a life policy that was issued before 5 October 2021;              \n\nNote: 5 October 2021 is the day on which the exemption in section 5 of ASIC Corporations (Deferral of Design and Distribution Obligations) Instrument 2020/486 ceased to have effect.\n\n(b) the reissued policy is issued at the request of the owner of the previous policies and the owner will also be the owner of the reissued policy, unless to correct an administrative error in a previous policy;\n\n(c) the only differences between the terms and effect of the reissued policy (either individually or together with one or more other reissued policies) and the previous policies are to give effect to:\n\n(i) the replacement of the previous policies; or\n\n(ii) a matter referred to in paragraph (d);\n\n(d) the reissued policy is issued for one or more of the following reasons:\n\n(i) to correct an administrative error in a previous policy;\n\n(ii) to reinstate a previous policy after the previous policy lapses due to non-payment of premium;\n\n(iii) to exercise an option to buy back cover following payment of a sum insured;\n\n(iv) to remove or reduce a cover option other than the sum insured;\n\n(v) to change an income protection policy from agreed value to indemnity based cover;\n\n(vi) to combine two or more previous policies into a single policy covering all the previous policies;\n\n(vii) to separate a previous policy into two or more standalone policies, each providing separate coverage.\n\n6 Exemption for the reissue of life policies originally issued on or after 5 October 2021\n\n(1) Part 7.8A of the Act does not apply in relation to a contract (the reissued policy) that constitutes a life policy in relation to which all of the following apply:\n\n(a) the reissued policy replaces a contract (the previous policy) that constitutes a life policy that was issued on or after 5 October 2021;\n\n(b)  the reissued policy is issued at the request of the owner of the previous policy and the owner will also be the owner of the reissued policy, unless to correct an administrative error in the previous policy;\n\n(c) the only differences between the terms and effect of the reissued policy and the previous policy are to give effect to:\n\n(i)  the replacement of the previous policy; or\n\n(ii) a matter referred to in paragraph (d);\n\n(d) the reissued policy is issued for either or both of the following reasons:\n\n(i) to correct an administrative error in the previous policy;\n\n(ii) to reinstate the previous policy after the previous policy lapses due to non-payment of premium.\n\n\nPart 3—Repeal\n\n7 Repeal\n\nThis instrument is repealed at the start of the day that is 5 years after the day this instrument commences.\n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation maintains a narrow, targeted scope consistent with its purpose. It provides specific exemptions for administrative reissues of life insurance policies without expanding into broader product areas or creating new regulatory frameworks. The split between pre- and post-5 October 2021 policies reflects the original intent to grandfather existing arrangements while applying stricter standards to newer products."},"complexity_factors":["Only 4 defined terms in the interpretation section (Act, owner, plus implicit references to 'life policy' and 'Part 7.8A')","Clear binary structure splitting pre- and post-5 October 2021 policies","Enumerated lists of permitted reasons for reissue (7 reasons for pre-2021 policies, 2 for post-2021)","Simple conditional logic using 'all of the following apply' tests","No nested exceptions or complex cross-referencing — only references to the Corporations Act 2001 and Life Insurance Act 1995 for definitions","Straightforward sunset provision (5-year repeal)","Total length is approximately 2.5 pages with generous white space"],"plain_english_summary":"This ASIC exemption lets life insurers reissue or replace certain existing life policies without complying with the full Design and Distribution Obligations, so long as the reissue is at the policyholder’s request, the owner remains the same (except to correct errors), and changes are limited to the purpose (e.g., corrections, reinstatements). It’s narrower for policies issued from 5 Oct 2021 and expires after five years."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument reinstates a targeted class exemption for the reissue of life policies and does not expand exemption scope beyond the narrowly enumerated reasons and conditions set out in the instrument (see ss5–6). It distinguishes treatment by original issue date (before vs on/after 5 October 2021) and limits relief to owner‑requested or administrative corrections, so the operational footprint is confined. Who pays: insurers bear documentation and compliance risk; who decides: insurers and policyowners (owner requests plus insurer characterisation of reason); behaviour change: fewer DDO processes for routine reissues, requiring robust internal recordkeeping and justification. Repeal after 5 years (s7) creates a finite policy window."},"complexity_factors":["Narrow, subject‑specific relief limited to reissued life policies rather than a broad rule (scope concentrated in s5–s6).","Two parallel tests depending on whether the original policy was issued before or on/after 5 October 2021, with differing lists of permitted reasons (compare s5(d) and s6(d)).","Multiple conditional requirements must be met simultaneously (replacement, owner-request or administrative correction, and only specified differences permitted) which creates a binary legal assessment for each reissue (s5(1)(a)–(c); s6(1)(a)–(c)).","Interplay with Part 7.8A of the Corporations Act means implementers must check when DDOs still apply versus when this exemption operates (operational complexity from interaction with existing regulatory regime).","Practical compliance relies on insurer documentation and factual characterisation of the reason for reissue, producing implementation and evidentiary risk (administrative discretion concentrated with insurers; see s5(1)(b)–(d), s6(1)(b)–(d)).","Sunset clause creates temporal complexity for planning and systems (instrument repeals after 5 years — s7).","Statutory authority is by delegated instrument under paragraph 994L(2)(b) of the Corporations Act, so legal effect depends on that enabling power (s3).","Defined term dependence (eg, ‘owner’ as per Life Insurance Act subsection 10(2)) requires cross‑referencing other legislation (definition in s4)."],"plain_english_summary":"This instrument exempts certain reissued life insurance policies from the Corporations Act design and distribution obligations where a new policy replaces an old one at the owner's request or to correct/administer previous cover. It applies to policies issued before and on/after 5 October 2021, and it contains a five‑year repeal. It affects insurers (who decide and document reissues) and policyowners (whose requests trigger the exemption) by narrowing when DDO compliance is required and shifting practical compliance risk to insurers' administrative and documentation practices."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-design-and-distribution-obligations-reissued-life-policies-class-exemption-instrum","history":"/api/acts/asic-corporations-design-and-distribution-obligations-reissued-life-policies-class-exemption-instrum/history","analysis":"/api/acts/asic-corporations-design-and-distribution-obligations-reissued-life-policies-class-exemption-instrum/analysis","conflicts":"/api/acts/asic-corporations-design-and-distribution-obligations-reissued-life-policies-class-exemption-instrum/conflicts","importantCases":"/api/acts/asic-corporations-design-and-distribution-obligations-reissued-life-policies-class-exemption-instrum/important-cases","documents":"/api/acts/asic-corporations-design-and-distribution-obligations-reissued-life-policies-class-exemption-instrum/documents"}}