Financial Sector Reform (Hayne Royal Commission Response - Protecting Consumers (2019 Measures)) Act 2020 (2 of 2020)

Schedule 1   Unfair contract terms in insurance contracts

Australian Securities and Investments Commission Act 2001

7   In the appropriate position

Insert:

Part 29 - Application provisions relating to the Financial Sector Reform (Hayne Royal Commission Response - Protecting Consumers (2019 Measures)) Act 2020

325 Application - unfair contract terms

(1) The amendments of this Act made by Schedule 1 to the Financial Sector Reform (Hayne Royal Commission Response - Protecting Consumers (2019 Measures)) Act 2020 apply in relation to a contract entered into on or after the commencement of that Schedule.

(2) The amendments do not apply to a contract entered into before the commencement of that Schedule. However:

(a) if the contract is renewed on or after that commencement - the amendments apply to the contract as renewed, on and from the day (the renewal day ) on which the renewal takes effect, in relation to conduct that occurs on or after the renewal day; or

(b) if a term of the contract is varied on or after that commencement and paragraph (a) has not already applied in relation to the contract - the amendments apply to the term as varied, on and from the day (the variation day ) on which the variation takes effect, in relation to conduct that occurs on and after the variation day.

(3) If paragraph (2)(b) of this section applies to a term of a contract, subsection 12BF(2) and section 12BK of this Act apply to the contract.

(4) Despite paragraphs (2)(a) and (b) and subsection (3) of this section, the amendments do not apply to a contract, or a term of a contract, to the extent that the operation of the amendments would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph of the Constitution).