Document ID: chunk:federal_register_of_legislation:C2024C00063:section:27aa
Version: federal_register_of_legislation:C2024C00063
Segment Type: section
Provision Reference: s 27AA
Character Range: 55149–56259

27AA  Meaning of relevant failure
 (1) In this Act, a relevant failure in relation to a contract of insurance is:
 (a) if the contract is, or would be, a consumer insurance contract—a misrepresentation made by the insured in breach of the duty to take reasonable care not to make a misrepresentation; or
 (b) otherwise:
 (i) a failure by the insured to comply with the duty of disclosure; or
 (ii) a misrepresentation made by the insured to the insurer before the contract was entered into.
 (2) Without limiting subsection (1), if, in relation to a contract of life insurance under which a person other than the insured would become a life insured:
 (a) the life insured made a misrepresentation during the negotiations for the contract but before it was entered into; and
 (b) the misrepresentation would have been a breach of the duty to take reasonable care not to make a misrepresentation if that duty had applied to the life insured in relation to the contract;
then the misrepresentation is a relevant failure in relation to the contract (whether or not the contract is a consumer insurance contract).