Financial Sector Reform (Hayne Royal Commission Response) Act 2020 (135 of 2020)

Schedule 2   Insurer avoidance of life insurance contracts, and duty to take reasonable care not to make a misrepresentation

Part 1   Insurer avoidance of life insurance contracts

Insurance Contracts Act 1984

1   Subsection 29(3)

Repeal the subsection, substitute:

(3) If:

(a) the failure was not fraudulent or the misrepresentation was not made fraudulently; and

(b) the insurer would not have been prepared to enter into a contract of life insurance with the insured on any terms, if the duty of disclosure had been complied with or the misrepresentation had not been made;

the insurer may, within 3 years after the contract was entered into, avoid the contract.