15Participating, non‑participating benefits

15 Participating, non‑participating benefits

(1) Subject to this section, a participating benefit is any benefit other than a non‑participating benefit. (2) Subject to this section, a non‑participating benefit is a benefit that has the following features: (a) the benefit does not include any entitlement to share in any distribution by the life company of profits or surplus; (b) the amount of the benefit is specified in the policy document or is to be calculated according to a formula that: (i) is set out in the policy document; and (ii) does not include any element that is in any way dependent on, or to be ascertained according to, a decision of the life company concerned. (3) A benefit is a non‑participating benefit if it is declared by the prudential standards to be a non‑participating benefit. (4) APRA, at the request of a life company, may make a written declaration: (a) that benefits of a specified kind, when provided for by policies issued by the company, are, or would be, participating benefits; or (b) that benefits of a specified kind, when provided for by policies issued by the company, are, or would be, non‑participating benefits. (5) If APRA makes a declaration: (a) this Act has effect accordingly; and (b) APRA must give a copy of the declaration to the life company at whose request the declaration was made.