National Consumer Credit Protection Act 2009
SCHEDULE 1
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NATIONAL CREDIT CODE
On termination of a credit contract, any relevant credit-related insurance contract financed under the credit contract for consumer credit insurance in force is also terminated.
148(2)
If a credit contract is terminated, the credit provider is required to pay the debtor or credit the debtor with a proportionate rebate of premium paid under any relevant credit-related insurance contract for consumer credit insurance in force immediately before the credit contract is terminated.
148(3)
The credit provider may, in turn, recover the amount paid to the debtor from the insurer.
148(4)
The regulations may prescribe the manner of calculating the proportionate rebate of premium for the purposes of this section, including the rebate payable where this section does not apply to the whole of a credit-related insurance contract.
148(5)
This section has effect despite any provision of the credit-related insurance contract.
148(6)
This section does not apply to a credit-related insurance contract, to the extent that it provides a benefit in the event of the death of the debtor, if a credit contract is terminated on the death of a debtor. However, it does apply to the credit-related insurance contract to the extent that it provides other benefits.
Note:
See section 3 of the National Credit Act.
PART 8 - RELATED INSURANCE CONTRACTS 148 Termination of consumer credit insurance contract if credit contract terminated 148(1)On termination of a credit contract, any relevant credit-related insurance contract financed under the credit contract for consumer credit insurance in force is also terminated.
148(2)
If a credit contract is terminated, the credit provider is required to pay the debtor or credit the debtor with a proportionate rebate of premium paid under any relevant credit-related insurance contract for consumer credit insurance in force immediately before the credit contract is terminated.
148(3)
The credit provider may, in turn, recover the amount paid to the debtor from the insurer.
148(4)
The regulations may prescribe the manner of calculating the proportionate rebate of premium for the purposes of this section, including the rebate payable where this section does not apply to the whole of a credit-related insurance contract.
148(5)
This section has effect despite any provision of the credit-related insurance contract.
148(6)
This section does not apply to a credit-related insurance contract, to the extent that it provides a benefit in the event of the death of the debtor, if a credit contract is terminated on the death of a debtor. However, it does apply to the credit-related insurance contract to the extent that it provides other benefits.
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