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: Provided that the value placed upon the aggregate liabilities of any statutory fund by reason of the adoption of any basis of valuation shall not be less than it would have been if it had been calculated on the Minimum Basis in accordance with the rules set forth in the Fourth Schedule; (b) The actuary who makes the valuation shall certify that, in his opinion, the value placed upon the aggregate liabilities of any statutory fund by the valuation is not less than the value which would have been placed upon those aggregate liabilities if it had been calculated on the Minimum Basis in accordance with the rules set forth in the Fourth Schedule; (c) Where the balance-sheet of the company includes amongst the assets of a statutory fund any sums representing expenses of organization or extension, or the purchase of business or goodwill or any other intangible assets, and the amount of the other assets of the statutory fund (after deducting debts due by the company in respect of that statutory fund) is less than the amount of the statutory fund as shown in the balance-sheet, the amount of the statutory fund shown in the appropriate valuation balance-sheet shall be reduced by the amount of the deficiency: Provided that, for a period of seven years after the commencement of this Act, this paragraph shall apply with such modifications of its provisions as the Commissioner thinks just, if in the balance-sheet of the company which was last issued before the commencement of this Act any such sums were included: Provided further that in no case shall any modification of the provisions of this paragraph be allowed by the Commissioner if the amount of the statutory fund as shown in the appropriate valuation balance-sheet would by reason of the modification exceed in amount the liabilities of the company in respect of the fund; and (d) Where, prior to the commencement of this Act, debentures have been issued or loans raised which are charged on any of the assets of any statutory fund of the company, there shall be inserted in the valuation balance-sheet relating to that statutory fund a note giving the particulars of the charge and stating that the result shown by the valuation is subject to the liability arising from the charge. Payment of dividends and bonuses from statutory fund. 50.—(1.) A company shall not pay or apply any part of a statutory fund— (a) as dividends or otherwise as profits to shareholders; or (b) as bonuses to policy owners, except in accordance with this section. (2.) If, as a result of the latest valuation made in respect of a company in pursuance of this Division, the valuation balance-sheet of any statutory fund of the company discloses that the amount of the statutory fund is not greater than the amount of the liabilities of the company in respect of that fund, the company may pay or apply part of the fund as bonuses to policy owners in respect of bonuses which were included as a liability of the company in that valuation and which were attached to policies at the date of the commencement of this Act or which became attached to policies as a result of an allocation of surplus made in pursuance of the next succeeding sub\-section. (3.) If, as a result of the latest valuation made in respect of a company in pursuance of this Division, the valuation balance-sheet of any statutory fund of the company discloses that the amount of the statutory fund is greater than the amount of the liabilities of the company in respect of that fund, the company may allocate the surplus or any part of it, in any manner consistent with the provisions of the instruments constituting the company and the articles of association or other rules of the company: Provided that— (a) the company shall not allocate any surplus unless the allocation has been approved by an actuary; and V. 4773, s. 14. (b) in respect of that part of the surplus which is derived from participating policies registered by the company in Australia, the amount allocated to or for the benefit of the shareholders of the company shall not exceed twenty-five per centum of the amount allocated to or for the benefit of the owners of those policies.