Document ID: chunk:federal_register_of_legislation:C2024C00063:section:46
Version: federal_register_of_legislation:C2024C00063
Segment Type: section
Provision Reference: s 46
Character Range: 88850–89714

46  Pre‑existing defect or imperfection
 (1) This section applies where a claim under a contract of insurance (other than a contract of insurance that is included in a class of contracts declared by the regulations to be a class of contracts in relation to which this section does not apply) is made in respect of a loss that occurred as a result, in whole or in part, of a defect or imperfection in a thing.
 (2) Where, at the time when the contract was entered into, the insured was not aware of, and a reasonable person in the circumstances could not be expected to have been aware of, the defect or imperfection, the insurer may not rely on a provision included in the contract that has the effect of limiting or excluding the insurer's liability under the contract by reference to the condition, at a time before the contract was entered into, of the thing.