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 2   Duty to take reasonable care not to make a misrepresentation

Insurance Contracts Act 1984

4   At the end of Part I

Add:

11AB Consumer insurance contracts

(1) For the purposes of this Act, a contract of insurance is a consumer insurance contract if the insurance is obtained wholly or predominantly for the personal, domestic or household purposes of the insured.

(2) A contract of insurance is also a consumer insurance contract if:

(a) it is for new business; and

(b) the insurer, before the contract is entered into, gives the insured a written notice stating that the contract is a consumer insurance contract.

(3) If it is alleged in a proceeding in relation to a contract of insurance that the contract is a consumer insurance contract, it is presumed that the contract is a consumer insurance contract unless the contrary is established.