Section 121AB — Income Tax Assessment Act 1936: Insurance company definitions

(1) A mutual insurance company is an insurance company: (a) whose profits are divisible only among its policyholders; or (b) that satisfies all of the following conditions: (i) it is limited by guarantee; (ii) it did not divide its profits among its members during the 10 years ending on 9 May 1995; (iii) on a winding-up, its profits are not divisible among its members; or (c) that satisfies all of the following conditions: (i) at 7.30 pm, by legal time in the Australian Capital Territory, on 9 May 1995, it was a friendly society (within the meaning of this Act as in force at that time); (ii) it was an insurance company on 1 July 1999; (iii) it does not have capital divided into shares held by its members; or (d) if the insurance company is a mutual entity (within the meaning of the Corporations Act 2001)—that would be covered by paragraph (a), (b) or (c) if the following were disregarded: (i) any MCIs (within the meaning of that Act) issued by the entity; (ii) any dividends or profits paid or payable in respect of such MCIs; (iii) any members of the entity who are members by virtue of holding such MCIs. (2) An insurance company is a life insurance company or a general insurance company. (3) A life insurance company is a company registered under section 21 of the Life Insurance Act 1995. (4) A general insurance company is a company whose sole or principal business is insurance business within the meaning of subsection 3(1) of the Insurance Act 1973, but does not include a life insurance company.