Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An add - on insurance product , in relation to another product or service (the principal product or service ), is a financial product that:
(a) is offered or sold to a consumer (the customer ) in connection with the customer acquiring, or entering into a commitment to acquire, the principal product or service; and
(b) is offered or sold by:
(i) the provider of the principal product or service; or
(ii) another person, in accordance with an arrangement to which the provider of the principal product or service is a party; and
(c) manages financial risk (within the meaning of section 12BAA) relating to the principal product or service; and
(d) either:
(i) is a contract of insurance; or
(ii) provides for the customer to benefit from a contract of insurance to which the provider of the financial product is a party.
(2) For the purposes of subsection (1), contract of insurance includes:
(a) a contract that would ordinarily be regarded as a contract of insurance even if some of its provisions are not by way of insurance; and
(b) a contract that includes provisions of insurance in so far as those provisions are concerned, even if the contract would not ordinarily be regarded as a contract of insurance.
(3) The regulations may provide that a customer is, for the purposes of this Subdivision, taken to have entered into a commitment to acquire a product or service of a specified class at a time specified in the regulations.