(1) This Division extends to the case where there was a relevant failure in respect of a proposed life insured under a group life contract, as if:
(a) the insurance cover provided by the group life contract in respect of the life insured were provided by an individual contract of life insurance between the insurer and the insured; and
(b) the group life contract had been entered into at the time when the proposed life insured became a life insured under the group life contract.
(2) For the purposes of this Division, if the relevant failure occurred after the proposed life insured became a member of the relevant superannuation, retirement or other group life scheme but before the insurance cover was provided by the group life contract in respect of the life insured, then the failure is taken to have occurred before the proposed life insured became a life insured under the group life contract.