Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This Subdivision does not apply, and is taken never to have applied, to a contract made on or after 5 April 2021 that constitutes a life policy within the meaning of the Life Insurance Act 1995 and:
(a) replaces as mentioned in subsection (2) of this section:
(i) a contract that constitutes a life policy within the meaning of that Act and was made before 5 April 2021; or
(ii) a contract to which this Subdivision does not apply because of one or more previous applications of this section; or
(b) links, as mentioned in subsection (3) of this section, 2 or more contracts, each of which is a contract of a kind referred to in subparagraph (a)(i) or (ii) of this subsection; or
(c) is one of 2 or more contracts that unlink, as mentioned in subsection (4) of this section, a contract of a kind referred to in subparagraph (a)(i) or (ii) of this subsection.
Note: 5 April 2021 is the day on which Schedule 1 to the Financial Sector Reform (Hayne Royal Commission Response--Protecting Consumers (2019 Measures)) Act 2020 commenced.
(2) For the purposes of paragraph (1)(a), a contract (the replacement policy ) replaces another contract (the previous policy ) if:
(a) the replacement policy reinstates the previous policy and is issued at the request of the owner of the previous policy after the previous policy lapses; or
(b) the replacement policy is a reissue of the previous policy to correct an administrative error in the previous policy; or
(c) the replacement policy is issued, at the request of the owner of the previous policy, for one or more of the following reasons:
(i) to change the ownership of the policy;
(ii) to extend or vary, in accordance with a term of the previous policy, the cover provided under the policy;
(iii) to change the terms relating to premiums paid under the policy.
(3) For the purposes of paragraph (1)(b), a contract (the replacement policy ) links 2 or more contracts (the previous policies ) if the only differences between the terms and effect of the replacement policy and those of the previous policies taken together are attributable to linking the cover under the respective previous policies to form the cover under the replacement policy.
(4) For the purposes of paragraph (1)(c), 2 or more contracts (the replacement policies ) unlink a contract (the previous policy ) if the only differences between the terms and effect of the replacement policies taken together and those of the previous policy are attributable to unlinking elements of the cover under the previous policy to form the cover under the respective replacement policies.