Document ID: chunk:federal_register_of_legislation:C2024C00063:section:59
Version: federal_register_of_legislation:C2024C00063
Segment Type: section
Provision Reference: s 59
Character Range: 109274–110604

59  Cancellation procedure
 (1) An insurer who wishes to exercise a right to cancel a contract of insurance shall give notice in writing of the proposed cancellation to the insured.
 (2) The notice has effect to cancel the contract at whichever is the earlier of the following times:
 (a) the time when another contract of insurance between the insured and the insurer or some other insurer, being a contract that is intended by the insured to replace the first‑mentioned contract, is entered into;
 (b) whichever is the latest of the following times:
 (i) 4 pm on the applicable business day;
 (ii) if a time is specified for the purpose in the contract—that time;
 (iii) if a time is specified in the notice—that time.
 (2A) In subparagraph (2)(b)(i):
applicable business day means:
 (a) in respect of a contract that is not a contract of life insurance:
 (i) if the contract is in force because of section 58the fourteenth business day; or
 (ii) otherwisethe third business day; or
 (b) in respect of a contract of life insurancethe twentieth business day;
after the day on which the notice was given to the insured.
 (3) This section does not apply to a contract of life insurance if the life policy that is constituted by the contract may be forfeited in accordance with subsection 210(5) of the Life Insurance Act 1995.