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

2   Application

(1) The amendments made by this Part apply to a contract of life insurance that is originally entered into after the commencement of this item.

(2) If:

(a) a contract of life insurance that was originally entered into before the commencement of this item is varied after that commencement to:

(i) increase a sum insured under the contract in respect of one or more of the life insureds; or

(ii) provide one or more additional kinds of insurance cover; and

(b) the variation was not an automatic variation but was required to be expressly agreed between the insurer and the insured before the contract was varied;

then:

(c) the contract is treated, to the extent of the variation, as if it had been originally entered into after the commencement of this item; and

(d) the amendments made by this Schedule apply to the contract to the extent of the variation.