Document ID: chunk:federal_register_of_legislation:F2024C01051:body:0:p6
Version: federal_register_of_legislation:F2024C01051
Segment Type: other
Provision Reference: 
Character Range: 13813–16516

arrangement that affects the rights of the issuer of the risk management product to recover the payment from the body.
(b) take reasonable steps to promptly bring to the attention of each person to whom the body provides financial services relating to the risk management product and who may reasonably believe they will be covered by the product, if:
           (i) it is not reasonable to expect that the cover will apply for the period represented to the person; or
           (ii) the product is, or is likely to be, cancelled or not renewed,
           unless either:
           (iii) the risk management product has been issued to the person and the terms of the product require the product issuer to give the person notice, before cancellation or non-renewal of the product, that the product will be cancelled or not renewed; or
           (iv) substantially similar cover applies or will apply for the period (or remainder of the period) represented to the person; and
(c) enter an obligation under which the body is liable to compensate any person who suffers loss or damage as a result of the body failing to comply with paragraph (b);
           Note: This obligation may be created in any way, provided it is capable of being enforced.  It may, for example, be created by the terms of a contract or by deed poll.
(d) establish a facility by which each person to whom the body provides financial services relating to the risk management product and who may reasonably believe they will be covered by the product may, by taking reasonable steps, verify with the product issuer or a financial services licensee or an authorised representative acting on behalf of the issuer or licensee, without charge, that the product has been issued to the person or the body and remains current; and
(e) take reasonable steps to give, as soon as practicable after the body has reason to believe that the financial services to which the risk management product relates will be provided to a person (and, if the person may elect whether to be covered, before the election is made), the following information and statements in writing to the person:
           (i)  factual information about the nature of the cover provided by the product, including the period for which the cover will apply, and the role of the body in providing the financial services to which the product relates;
           (ii) a statement that the body will ensure that a person who requests a copy of the terms and conditions of the product will receive, without charge, a copy within a reasonable time after the request;
           (iii) information about any amount payable by the person to obtain the cover under the product (if the