Key Documents
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry recommended that section 29(3) of the Insurance Contracts Act be amended so that an insurer may only avoid a contract of life insurance on the basis of non-disclosure or misrepresentation if it can show that it would not have entered into a contract on any terms (see recommendation 4.6).
This consultation seeks stakeholder views on the exposure draft Bill and draft explanatory material that implements this reform.
The draft legislation seeks to strengthen consumer protection by including the extra condition for life insurers and prevent the insurer from inappropriately cancelling a contract in circumstances where the life insurer would still provide coverage.
