Re Metlife Insurance Limited and Challenger Life No. 2 Limited [2007] FCA 937

Re Metlife Insurance Limited and Challenger Life No. 2 Limited [2007] FCA 937

Dispensation under s 191(5) was appropriate because the applicants had taken and would continue to take appropriate steps to maintain or ascertain policy owners' current mailing addresses, the proposed general notification regime might draw the scheme to the attention of policy owners without known addresses, and the proposed alternative notification regime and extended cooling off period would practically satisfy the purpose of s 191(2)(c) for new policy owners. The absence of objection by APRA was also taken into account.

Jurisdiction
Australia
Judgment Date
22 June 2007
Procedural Posture
Application for Confirmation of a Life Insurance Business Transfer Scheme Under Pt 9 of the Life Insurance Act 1995 (cth) / Interlocutory Applications for Dispensation From Notification Requirements Under S 191(5) of the Life Insurance Act 1995 (cth)
Outcome
Limited dispensation from the notification requirements was granted to each applicant, and the application was otherwise adjourned for hearing.
Legal Topics
['transfer of Life Insurance Business' 'statutory Funds' 'notification to Affected Policy Owners' 'dispensation From Statutory Notification Requirements' 'meaning of Affected Policy Owner']
['life Insurance' 'insurance Regulation' 'corporations and Financial Services Regulation'] ['transfer of Life Insurance Business' 'statutory Funds' 'notification to Affected Policy Owners' 'dispensation From Statutory Notification Requirements' 'meaning of Affected Policy Owner']

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Procedural Posture

Application for Confirmation of a Life Insurance Business Transfer Scheme Under Pt 9 of the Life Insurance Act 1995 (cth) / Interlocutory Applications for Dispensation From Notification Requirements Under S 191(5) of the Life Insurance Act 1995 (cth)

Legal Issues

  1. 1 ['Whether compliance with s 191(2)(c) of the Life Insurance Act 1995 (Cth) should be dispensed with for policy owners for whom no current mailing address is recorded or who cease to maintain the recorded mailing address.' 'Whether compliance with s 191(2)(c) of the Life Insurance Act 1995 (Cth) should be dispensed with for persons who become owners of relevant policies less than 15 days before the hearing and up to the transfer date.' 'Whether, for present purposes, policy owners referable to the relevant statutory funds should be treated as affected policy owners.']

Ratio Decidendi

Dispensation under s 191(5) was appropriate because the applicants had taken and would continue to take appropriate steps to maintain or ascertain policy owners' current mailing addresses, the proposed general notification regime might draw the scheme to the attention of policy owners without known addresses, and the proposed alternative notification regime and extended cooling off period would practically satisfy the purpose of s 191(2)(c) for new policy owners. The absence of objection by APRA was also taken into account.

Court Disposition

Limited dispensation from the notification requirements was granted to each applicant, and the application was otherwise adjourned for hearing.

Orders

  • ['Pursuant to s 191(5) of the Life Insurance Act 1995 (Cth), the requirements of s 191(2)(c) were dispensed with insofar as they required an approved summary of the scheme to be given to owners of policies issued by the first applicant referable to its Statutory Funds No. 2 and 3 for whom the first applicant had no...