Document ID: chunk:federal_register_of_legislation:C2013A00075:clause:4_31a
Version: federal_register_of_legislation:C2013A00075
Segment Type: clause
Provision Reference: sch 4 cl 31A
Character Range: 33903–35340

31A  Non‑disclosure by life insured
 (1) This section applies in relation to a contract of life insurance under which a person (other than the insured) would become a life insured.
 (2) If, during the negotiations for the contract but before it was entered into, the person (the life insured) failed to disclose to the insurer a matter that was known to the life insured, being a matter that:
 (a) the life insured knew to be a matter relevant to the decision of the insurer whether to accept the risk and, if so, on what terms; or
 (b) a reasonable person in the circumstances could have been expected to know to be a matter so relevant, having regard to factors including, but not limited to:
 (i) the nature and extent of the insurance cover to be provided under the relevant contract of insurance; and
 (ii) the class of persons who would ordinarily be expected to apply for insurance cover of that kind;
this Act has effect as if the failure to disclose the matter had been a failure by the insured to comply with the duty of disclosure in relation to the matter.
 (3) Subsection (2) does not apply in relation to a failure by the life insured to disclose a matter:
 (a) that diminishes the risk; or
 (b) that is of common knowledge; or
 (c) that the insurer knows or in the ordinary course of the insurer's business as an insurer ought to know; or
 (d) as to which compliance with the duty of disclosure is waived by the insurer.