Life Insurance (prudential standard) determination No. 1 of 2011 - Prudential Standard LPS 600 - Statutory Funds
Notification of interested personsNotification of interested persons
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Notification of interested persons
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A life company that restructures a statutory fund must, within 6 weeks of the restructure having effect, give written notice of the restructure of the fund to the owner of every policy referable to any of the funds involved in the restructure.
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A notice under paragraph 14 must set out the following matters:
(a) the name and identifying details of the funds involved in the restructure;
(b) the date of the restructure;
(c) the identifying details of each policy owner’s policy that is referable to either the transferring fund or the receiving fund;
(d) where the benefits under the policy are to be provided out of more than one statutory fund:
(i) the benefits under the policy that are to be provided out of each fund; and
(ii) 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.
- A notice under paragraph 14 must be accompanied by:
(a) a document describing (in summary form) the reasons for the restructure and containing relevant extracts from any report by the appointed actuary on the proposed restructure under item 2 of Schedule 1 to Form 1 which deal with implications for policy owners; and
(b) a revision to the policy document by way of endorsement or written notice setting out matters in paragraphs 15(a) and 15(b) of this Prudential Standard.