Northern Territory Numbered Acts Northern Territory Numbered ActsAfter section 37
insert
(1) In this Act:
"accident insurance" means insurance insuring the payment of benefits:
(a) on the death of a person only from accident or violence or otherwise than from a natural cause; or
(b) as compensation for personal injury.
"life insurance" means insurance insuring the payment of benefits on death (other than accident insurance) or on the happening of a contingency dependent upon the termination or continuance of human life, and includes:
(a) insurance under an instrument evidencing a contract that is subject to payment of premiums for a term dependent upon the termination or continuance of human life; and
(b) insurance under an instrument securing the grant of an annuity for a term dependent upon the termination or continuance of human life.
(2) If a life policy also provides for the payment of benefits on the occurrence of a contingency or event that does not relate to or depend on the termination or continuance of human life ( life insurance rider ), then the additional insurance provided under or in accordance with the life policy is taken to be a life insurance rider and not life insurance.
(3) Subsection (2) applies:
(a) whether or not the life insurance and the life insurance rider are separate or distinct matters; and
(b) whether or not payment of benefits under the life insurance rider component of the policy:
(i) will or may reduce the benefits payable under the life insurance component of the policy; or
(ii) will or may terminate the policy.
(4) The Commissioner may apportion the amount or proportion of a premium or other amount payable for a life policy that relates to a life insurance rider if:
(a) there is no separately identifiable part of the premium or other amount apportioned to the rider; or
(b) the Commissioner is not satisfied that the separately identifiable part of the premium or other amount has been correctly apportioned to the rider.