Corporations Act 2001
Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .
View history note
Hide history noteCCH note - modifying legislative instruments: The application of Pt 7.7 is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: Class Order 14/1262: Relief for 31 Day Notice Term Deposits; the ASIC Corporations (Disclosure of Lack of Independence) Instrument 2021/125 (as amended by ASIC Corporations (Amendment) Instrument 2024/554); and the ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669 (as amended by ASIC Corporations (Amendment) Instrument 2024/554).
For other legislative instruments or class orders that affect the application of Pt 7.7, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
CCH Note: Division 3A is modified by the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716.
CCH Note: Subdivision C is modified by the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716.
CCH Note: Section 948F is modified by the ASIC Corporations (Incidental Retail Cover) Instrument 2022/716.
A Cash Settlement Fact Sheet must contain: (a) a statement outlining the options for settlement legally available to the client under the insurance product; and (b) a statement setting out the sum insured under the insurance product; and (c) a statement setting out:
(i) the total amount of the cash settlement being offered; and
(d) a statement that the client should consider obtaining independent legal or financial advice before settling; and (e) if, despite accepting the offer, the client would be entitled under the insurance product to have the payout reviewed - an outline of the rights of review; and (f) any other information prescribed by the regulations.
(ii) the amount of each component of the total amount of cash settlement being offered (such as components representing the sum insured, additional payments relating to emergencies and ex gratia payments); and
948F(2)
The Cash Settlement Fact Sheet must be given in writing.
948F(3)
The Cash Settlement Fact Sheet must be dated. The date must be the date on which the Cash Settlement Fact Sheet was prepared or its preparation completed.
948F(4)
The Cash Settlement Fact Sheet may also contain other information.
948F(5)
The information included in the Cash Settlement Fact Sheet must be worded and presented in a clear, concise and effective manner.
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