Commonwealth Consolidated Acts Commonwealth Consolidated ActsContraventions by provider of principal product or service
(1) A person (the first person ) contravenes this subsection if:
(a) another person (the customer ) acquires, or enters into a commitment to acquire, a product or service (the principal product or service ) from the first person; and
(b) the first person also sells a financial product to the customer; and
(c) the financial product is an add - on insurance product in relation to the principal product or service.
Note: Failure to comply with this subsection is an offence (see section 12GB).
(2) A person (the first person ) contravenes this subsection if:
(a) another person (the customer ) acquires, or enters into a commitment to acquire, a product or service (the principal product or service ) from the first person; and
(b) a third person sells the customer a financial product that is an add - on insurance product in relation to the principal product or service.
Note: Failure to comply with this subsection is an offence (see section 12GB).
Exception for sale after add - on insurance deferral period
(3) Subsections (1) and (2) do not apply if:
(a) there is an add - on insurance deferral period in relation to the customer acquiring, or entering into a commitment to acquire, the principal product or service; and
(b) the add - on insurance product is sold to the customer after the end of the add - on insurance deferral period.
Note: A defendant bears an evidential burden in relation to the matter in subsection (3): see subsection 13.3(3) of the Criminal Code .
Contravention by third party provider
(4) A person (the third party provider ) contravenes this subsection if:
(a) the third party provider sells a financial product to a consumer (the customer ); and
(b) the financial product is an add - on insurance product in relation to a product or service (the principal product or service ) offered or provided by another person; and
(c) either:
(i) there is no add - on insurance deferral period in relation to the customer acquiring, or entering into a commitment to acquire, the principal product or service; or
(ii) there is such an add - on insurance deferral period, and the third party provider sells the add - on insurance product to the customer before the end of the period.
Note: Failure to comply with this subsection is an offence (see section 12GB).
Timing of sale
(5) For the purposes of this section, an add - on insurance product is taken to be sold to a customer no later than the first time at which no further action from the customer is required for the sale to occur (even if the sale does not occur until a later time).