16FIssue, ownership etc. of policies

#### 16F Issue, ownership etc. of policies New interests in benefit funds (1) A friendly society is taken to issue a policy to a person when it accepts an application by the person for an interest in a benefit fund of the friendly society in accordance with the benefit fund rules. However, acceptance of an application for an increase to, or a continuation of, an existing interest in a benefit fund does not constitute the issue of a policy. Interests in benefit funds existing as at the transfer date (2) An interest that a person holds in a benefit fund of a friendly society on the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 is taken to be a policy issued to the person by the friendly society. Terms etc. of the policy (3) If subsection (1) or (2) applies, then: (a) the benefit fund rules are taken to be the terms of the policy referred to in that subsection; and (b) the owner of the policy is taken to be: (i) the person referred to in that subsection; or (ii) if that person’s rights to the interest in the benefit fund have been assigned under this Act or transferred by the operation of the benefit fund rules—the person who has those rights; and (c) an amount that is required or permitted, by the benefit fund rules, to be paid in respect of those rights is taken to be a premium in respect of the policy; and (d) the policy is taken to be referable to the benefit fund. > Note 1: Approved benefit fund rules have effect as a contract (see section 16Z). > Note 2: The policy that a friendly society is taken by subsection (1) or (2) to issue or to have issued will, depending on the terms of the benefit fund rules, be: (a) a life policy (see section 9); or (b) a sinking fund policy (see the definition in Schedule 1); or (c) a section 12A or 12B policy (see the definition in Schedule 1); or (d) some other kind of policy. (4) Subsections (1), (2) and (3) have effect: (a) for the purposes of this Act; and (b) for the purposes of all other laws of the Commonwealth, subject to the expression of a contrary intention. (5) In this section: > policy is not limited to a life policy, a sinking fund policy or a section 12A or 12B policy.