ASIC Corporations (Life Insurance Commissions) Instrument 2017/510 (Cth)

ASIC Corporations (Life Insurance Commissions) Instrument 2017/510 I, Stephen Yen PSM, delegate of the Australian Securities and Investments Commission, make the following legislative instrument. Date: 31 May 2017

Stephen Yen

Contents

Part 1—Preliminary 1 Name of legislative instrument 2 Commencement 3 Authority 4 Definitions Part 2—Determination 5 Acceptable benefit ratio 6 Acceptable repayment Part 3—Transitional 7 Acceptable benefit ratio

Part 1—Preliminary

1 Name of legislative instrument This is the ASIC Corporations (Life Insurance Commissions) Instrument 2017/510.

2 Commencement This instrument commences on 1 January 2018.

3 Authority This instrument is made under subsections 963BA(2) and (4) of the Corporations Act 2001.

4 Definitions In this instrument: Act means the Corporations Act 2001. client initiated increase means, in relation to a year in which a life risk insurance product is issued or is continued, a change to the terms and conditions of the product: (a) that results from the holder of the product: (i) exercising, in writing or by electronic means, an option given to the holder under the product; or (ii) requesting or agreeing to, in writing or by electronic means, a change to the terms and conditions of the product; and (b) that results in the policy cost payable for the product for the year being greater than the policy cost that would be payable if the change were not made; and (c) that is any of the following: (i) an increase in the level of cover provided to the person insured under the product, including: (A) an increase in the sum insured under the product; (B) an increase in the period during which a benefit is provided to the person insured under the product; (ii) the addition of another type of cover under the product; (iii) a change in the basis on which premiums are calculated under the product; Note: For example, a change from stepped premiums to level premiums. (iv) a decrease in a waiting period that applies in relation to cover provided under the product or a claim made under the product; (v) in the case of a product that provides insurance against the insured person losing the ability to work in an occupation: (A) a change in the type of occupation to which the insurance relates, other than a change that results from the insured person changing their occupation; or Note: For example, a change from insurance that covered the insured person losing the ability to work in any occupation to insurance that covered the insured person losing the ability to work in a specified occupation. (B) a change so that the amount payable to the insured person in the event of a claim does not depend on the income of the insured person at or about the time of the claim. Note: For example, a change in the type of cover provided under an income protection policy from indemnity to agreed value. policy cost has the same meaning as in section 960 of the Act.