Document ID: chunk:federal_register_of_legislation:C2013A00075:clause:4_21a
Version: federal_register_of_legislation:C2013A00075
Segment Type: clause
Provision Reference: sch 4 cl 21A
Character Range: 27362–29193

21A  Eligible contracts of insurance—disclosure before contract originally entered into

Scope
 (1) This section applies in relation to the original entering into of an eligible contract of insurance.
Note: This section does not apply in relation to the renewal, extension, reinstatement or variation of an eligible contract of insurance. Section 21B applies in relation to the renewal of an eligible contract of insurance.

Position of the insurer
 (2) Before the contract is originally entered into, the insurer may request the insured to answer one or more specific questions that are relevant to the decision of the insurer whether to accept the risk and, if so, on what terms.
 (3) If the insurer does not make a request in accordance with subsection (2), the insurer is taken to have waived compliance with the duty of disclosure in relation to the contract.
 (4) If the insurer:
 (a) makes a request in accordance with subsection (2); and
 (b) requests the insured to disclose to the insurer any other matter that would be covered by the duty of disclosure in relation to the contract;
then the insurer is taken to have waived compliance with the duty of disclosure in relation to that other matter.

Position of the insured
 (5) If:
 (a) the insurer makes a request in accordance with subsection (2); and
 (b) in answer to each specific question included in the request, the insured discloses each matter that:
 (i) is known to the insured; and
 (ii) a reasonable person in the circumstances could be expected to have disclosed in answer to that question;
then the insured is taken to have complied with the duty of disclosure in relation to the contract.

Definition
 (6) In this section:
eligible contract of insurance means a contract of insurance that is specified in the regulations for the purposes of this section.