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.
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