Life Insurance (prudential standard) determination No. 1 of 2011 - Prudential Standard LPS 600 - Statutory Funds
Consequences of transfer of policy betweConsequences of transfer of policy between statutory funds
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Consequences of transfer of policy between statutory funds
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For the purposes of subsections 55(2) and (3) of the Act, the part of the liabilities (including policy liabilities) of the company, mentioned in subsection 55(2) of the Act, must be ascertained in a manner which, in the opinion of the appointed actuary, will not result in unfairness to the owners of the policies that remain referable to a fund or to the owners of the policies that cease to be referable to that fund (particularly having regard to the nature of the assets to be transferred).
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A notice mentioned in subsection 55(3) of the Act must:
(a) be in writing; and
(b) set out:
(i) the identifying details of the policy; and
(ii) the identity of all the statutory funds to which the policy is or has become referable; and
(iii) the identity of all the statutory funds to which the policy has ceased to be referable; and
(iv) the date on which the policy became referable to the fund or funds to which it has become referable; and
(v) where the policy is referable to 2 or more statutory funds:
(A) the benefits under the policy that are to be provided out of each fund; and
(B) either:
- the proportion of the premium that is related to the benefits to be provided out of each fund and is to be credited to the fund; or
- the way in which that proportion is to be calculated; and
(c) be given to the policy owner within 6 weeks after the occurrence of whichever of the circumstances described in paragraphs 55(3)(a) and 55(3)(b) of the Act is applicable.