Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.9 - FINANCIAL PRODUCT DISCLOSURE AND OTHER PROVISIONS RELATING TO ISSUE AND SALE OF FINANCIAL PRODUCTS  

Division 5 - Ongoing requirements for product disclosure after person becomes a member  

Subdivision 5.8A - Information in relation to inactive superannuation accounts  

REGULATION 7.9.44C   NOTICES ABOUT INSURANCE - RIGHT TO CEASE INSURANCE COVER  

7.9.44C(1)    
This regulation is made for the purposes of paragraph 1017DA(1)(a) of the Act.

Application

7.9.44C(2)    
This regulation applies if:

(a) a member of a regulated superannuation fund holds a choice product or a MySuper product offered by the fund; and

(b) the fund provides a benefit to, or in respect of, the member under the product by taking out or maintaining insurance; and

(c) either:

(i) the member has made an election, under subsection 68AAA(2) of the SIS Act, that the benefit will be provided to, or in respect of, the member under the product by taking out or maintaining insurance even if the member ' s account is inactive in relation to the product for a continuous period of 16 months; or

(ii) if under the governing rules of the fund the benefit will not be provided to, or in respect of, the member under the product by taking out or maintaining insurance if the member ' s account is inactive for a period of less than 16 months - the member has made an election under the governing rules of the fund that the benefit will be provided in that way even if the member ' s account is inactive in relation to the product for that lesser period.

7.9.44C(3)    
However, this regulation does not apply in relation to:

(a) a defined benefit member; or

(b) an ADF Super member (within the meaning of the Australian Defence Force Superannuation Act 2015 ); or

(c) a person who would be an ADF Super member apart from the fact that the regulated superannuation fund is or was, for the purposes of Part 3A of the Superannuation Guarantee (Administration) Act 1992 , a chosen fund for contributions for the person ' s superannuation by the Commonwealth; or

(d) a member to whom the employer-sponsor contribution exception applies under section 68AAE of the SIS Act.

7.9.44C(4)    
Each trustee of the regulated superannuation fund must ensure that the member is given a notice about rights to cease insurance in relation to the benefit:

(a) within 2 weeks after the day on which the member makes the election mentioned in subparagraph (2)(c)(i) or (ii) in relation to the benefit; and

(b) after the first notice about rights to cease insurance in relation to the benefit is given, at regular intervals of no more than 15 months.

7.9.44C(5)    
For the purposes of subregulation (4), a notice about rights to cease insurance in relation to a benefit is a notice in writing given to the member:

(a) explaining that the member has elected for the benefit to continue to be provided:

(i) under the governing rules of the fund; or

(ii) because of the application of section 68AAA of the SIS Act; and

(b) stating the date on which, and the manner in which, the member made that election; and

(c) explaining what the member needs to do if the member wishes to cease to obtain the benefit.