New Zealand Legislation: Acts

42 Maximum gross sum for contracts of insurance

• (1) No member or person claiming through a member shall receive from any registered society or branch or from any registered society including its branches taken together more than $100,000 by way of gross sum together with any bonuses or additions declared upon assurances not exceeding that sum, or more than $5,000 a year by way of annuity together with any bonus or addition declared upon that annuity.

  (2) The Governor-General may, from time to time by Order in Council, amend any amount specified in subsection (1) of this section as being a maximum gross sum of assurances or annuity.

  (3) In this section, the term assurance includes all life and endowment assurance, and any assurance payable on the member's death provided by the society or branch in respect of any shares in or loans by a credit union.

  Compare: 1909 No 12 s 51; 1972 No 61 s 2(1); 1975 No 21 s 4

  Section 42(1): amended, on 30 October 2008, by clause 3 of the Friendly Societies and Credit Unions (Maximum Gross Sum) Order 2008 (SR 2008/353).

  Subsection (1) was amended by clause 2 Friendly Societies and Credit Unions Order 1987 (SR 1987/30) by substituting the expression “$30,000” for the expression “$15,000”. This amount was further increased, as from 29 June 1990, by clause 2 Friendly Societies and Credit Unions Order 1990 (SR 1990/144) by substituting the expression “$45,000” for the expression “$30,000”.

  Subsection (1) was amended, as from 9 April 1998, by clause 2 Friendly Societies and Credit Unions Order 1998 (SR 1998/41) by substituting the expression “$60,000” for the expression “$45,000”.

  Subsection (1) was amended, as from 5 August 2004, by clause 3 Friendly Societies and Credit Unions (Maximum Annuity) Order 2004 (SR 2004/210) by substituting the expression “$5,000” for the expression “$750”.