Commonwealth Consolidated Acts

INSURANCE CONTRACTS ACT 1984 - SECT 22

  (1)   The insurer must, before a contract of insurance is entered into, clearly inform the insured in writing:

  (a)   of the general nature and effect of the duty of disclosure; and

  (c)   if the contract is a contract of life insurance--of the effect of subsection   27AA(2); and

  (d)   that the duty of disclosure applies until the proposed contract is entered into.

  (2)   If the proposed contract is a contract of life insurance, the insurer must also, before the contract is entered into, clearly inform, in writing, any person (other than the insured) who, under the contract, would become a life insured of the matters referred to in subsection   (1).

  (3)   If:

  (a)   an insurer complies with subsection   (1) in relation to a proposed contract of insurance; and

  (b)   the insurer accepts an offer by the insured to enter into the proposed contract, or makes a counter - offer to enter into another contract of insurance with the insured; and

  (c)   the insurer's acceptance or counter - offer is made more than 2 months after the insured's most recent disclosure for the purpose of complying with the duty of disclosure in relation to the proposed contract;

then the insurer must give to the insured, with the acceptance or counter - offer, a reminder notice stating that the duty of disclosure applies until the proposed or other contract is entered into.

  (4)   If the regulations prescribe a form of writing to be used:

  (a)   for informing a person of the matters referred to in subsection   (1); or

  (b)   for the reminder notice referred to in subsection   (3);

the writing to be used may be in accordance with the prescribed form.

  (5)   An insurer who has not complied with subsection   (1) and (if applicable) subsection   (2) may not exercise a right in respect of a failure to comply with the duty of disclosure, unless the failure was fraudulent.

  (6)   If:

  (a)   an insurer is required to comply with subsection   (3) in relation to a contract of insurance; and

  (b)   the insurer does not do so;

then the insurer may not exercise a right in respect of a failure to comply with the duty of disclosure in relation to a new matter relating to the contract, unless the failure was fraudulent.

  (7)   For the purposes of subsection   (6), a new matter relating to a contract of insurance is a matter of which the insured first becomes aware after the insured's most recent disclosure for the purpose of complying with the duty of disclosure in relation to the contract.