Div 3Spouse members—death insurance

Division 3—Spouse members—death insurance 40—Application for death insurance (1) A spouse member under the age of 70 years may, if the spouse member is the spouse of a member, apply to the Board for death insurance. (2) A spouse member who is not the spouse of a member is not entitled to death insurance cover and any such cover enjoyed by a spouse member will cease if the spouse member ceases to be the spouse of a member. (3) If the Board grants an application for death insurance or for an increase or decrease in the level of death insurance, the Board must fix the date for the commencement of the insurance or of the increase or decrease in the level of the insurance. 41—Variation of death insurance Subject to regulation 42, a spouse member who has death insurance may apply to the Board to increase or decrease the level of the insurance. 42—Amount of death insurance benefits and amount of premiums (1) There will be 2 classes of death insurance: (a) standard insurance cover under the Table in Schedule 2 where the value of a unit of cover, as designated in column 2, is determined on the basis of the spouse member's age; (b) fixed benefit insurance cover where the value of a unit of cover is fixed at $10 000 irrespective of the spouse member's age (up to age 69). (2) Insurance cover under this Division ceases in relation to a spouse member when the spouse member reaches the age of 70 years. (3) The amount of the premium payable per unit of insurance cover provided under this regulation is to be fixed by the Board on the recommendation of an actuary. (4) The Board may allow a rebate of the premium payable under this regulation in respect of death insurance cover. (5) An applicant for death insurance may apply for standard insurance cover or fixed benefit insurance cover. (6) However, a spouse member may not, at any 1 time, take out both standard and fixed benefit insurance cover. (7) The aggregate value of units of cover granted to a spouse member must not exceed $1 500 000. 43—Payment of premiums by spouse members (1) Premiums payable by a spouse member may be debited against any of the spouse member's spouse accounts. (2) If the debiting of a premium for death insurance under subregulation (1) would result in a debit balance in 1 or more of the spouse member's accounts— (a) premiums will be debited against the spouse member's accounts to the extent of any credit balance in those accounts until the insurance is cancelled under paragraph (b); and (b) the spouse member's death insurance is cancelled on the expiration of the designated period unless, before the end of that period, 1 or more of the member's accounts is sufficiently in credit for the purposes of this regulation. (3) For the purposes of this regulation— (a) the designated period is a period commencing on the day on which debiting of a premium would, if it were to occur, first result in a debit balance in an account of a spouse member and ending on a day determined by the Board; and (b) an account of a spouse member is sufficiently in credit if there are sufficient funds in the account to satisfy any arrears in premiums between the day that the debiting of a premium would have first resulted in a debit balance in the account and the end of the designated period.