Div 5Actuarial Investigations.

Division 5.—Actuarial Investigations.

Actuarial reports and abstracts and statements of life insurance business.

Imp. Act 1909, ss. 5–6. Eng. Bill 1927, Cl. 8. V. 4602, ss. 532–533. Q., ss. 12–13. S.A., ss. 48–49. W.A., ss. 19–20. T., ss. 17–18.

48.—(1.) Every company shall, as at the date of the expiration of the financial year expiring next after the date of commencement of this Act or as at such later date as the Commissioner approves, and thereafter at intervals of five years, or at such shorter intervals as it notifies to the Commissioner to be the intervals adopted by it for the purposes of this Division—

(a) cause an actuary to make an investigation into its financial condition, including a valuation of its liabilities in respect of its life insurance business and to furnish it with a report of the results of the investigation;

(b) cause an abstract of the report of the actuary to be prepared in accordance with the provisions set forth in the Second Schedule or in accordance with those provisions as amended by the regulations; and

(c) cause a statement of its life insurance business to be prepared in accordance with the provisions set forth in the Third Schedule or in accordance with those provisions as amended by the regulations.

(2.) Where a company causes such an investigation to be made at any other time, and the results of the investigation are made public, the company shall cause an abstract of the report of the actuary to be prepared in accordance with the provisions set forth in the Second Schedule or in accordance with those provisions as amended by the regulations, but subject to such modifications (if any) as the Commissioner approves.

(3.) The company shall cause a separate abstract and a separate statement to be prepared for each statutory fund maintained by the company and, where a statutory fund is maintained in respect of both ordinary insurance business and industrial insurance business, the company shall cause separate abstracts and statements to be prepared in respect of the ordinary life insurance business and in respect of the industrial insurance business.

(4.) The valuation balance-sheet annexed to any abstract shall, in accordance with a method approved by the Commissioner, show the net liabilities in respect of policies on registers in Australia separately from the net liabilities in respect of other policies.

Provisions as to valuations.

Imp. Act 1923, s. 18.

49. The following provisions shall apply in regard to valuations made, in respect of any company, in pursuance of this Division:—

(a) The basis of valuation adopted shall be such as to place a proper value upon the liabilities, regard being had to the mortality experience among the persons whose lives have been insured by the company, to the average rate of interest from investments and to the expenses of management (including commission), and shall be such as to secure that no policy shall be treated as an asset: