Treasury Laws Amendment (Modernising Business Communications and Other Measures) Act 2023 (69 of 2023)

Schedule 3   Rationalisation of ending ASIC instruments

Part 3   Product Disclosure Statement requirements for general insurance quotes

Division 1   Amendments

Corporations Act 2001

30   After section 1012G

Insert:

1012GA Product Disclosure Statement for certain general insurance product quotes may be provided later, or is not required

(1) A regulated person, in making an offer to issue, or an offer to arrange for the issue of, a general insurance product to a client, may deal with the product under this section only if:

(a) the offer is made by or at the same time as giving a quote to the client in the course of, or because of, a telephone call with the client that is not unsolicited contact (within the meaning of section 992A); and

(b) in the course of the phone call, but before the offer is made, the regulated person orally communicates the following information to the client in a clear, concise and effective manner:

(i) if the insurance cover under the product is subject to exclusions or limitations - that fact, and the fact that information about those exclusions and limitations is contained in the Product Disclosure Statement for the product;

(ii) that the level of insurance cover under the product may be different from the level of insurance cover under other general insurance products; and

(c) the regulated person asks the client whether the client wants to be given a Product Disclosure Statement for the product, but does not influence the client's decision to elect to be given the Product Disclosure Statement.

(2) In the course of the telephone call:

(a) if the client informs the regulated person that the client wants to be given the Product Disclosure Statement - the regulated person must give the Product Disclosure Statement to the client as soon as practicable after the time the offer is made; or

(b) if the client informs the regulated person that the client does not want to be given the Product Disclosure Statement - the regulated person does not have to give the client the Product Disclosure Statement in relation to the making of the offer.

Note: The regulated person may need to give a Product Disclosure Statement to the client at or before the time specified in section 1012B if, in the course of the telephone call or later, the client applies for, or otherwise offers to acquire, the product, or the product is issued to the client.

(3) In this section:

quote means, in relation to a general insurance product, a statement of the cost (and not merely an estimate of the likely cost) of the product if the cost is calculated by a regulated person having regard to information given to them by a client.