Document ID: chunk:federal_register_of_legislation:C2024C00063:section:29:p2
Version: federal_register_of_legislation:C2024C00063
Segment Type: section
Provision Reference: s 29 (pt 2/2)
Character Range: 61465–63261

a way as to place the insurer in the position (subject to subsection (7)) in which the insurer would have been if the relevant failure had not occurred.
Note: This subsection does not apply in relation to a contract with a surrender value, or a contract that provides insurance cover in respect of the death of a life insured (see subsection (10)).
 (7) The position of the insurer under a contract (the relevant contract) that is varied under subsection (6) must not be inconsistent with the position in which other reasonable and prudent insurers would have been if:
 (a) they had entered into similar contracts of life insurance to the relevant contract; and
 (b) there had been no relevant failure in relation to the similar contracts.
 (8) For the purposes of subsection (7), a contract of life insurance (the similar contract) is similar to another contract of life insurance (the relevant contract) if:
 (a) the similar contract provides insurance cover that is the same as, or similar to, the kind of insurance cover provided by the relevant contract; and
 (b) the similar contract was entered into at, or close to, the time the relevant contract was entered into.

Date of effect of variation of contract
 (9) A variation of a contract under subsection (4) or (6) has effect from the time when the contract was entered into.

Exception for contracts with a surrender value or that provide cover on death
 (10) If the contract is a contract with a surrender value, or a contract that provides insurance cover in respect of the death of a life insured:
 (a) the insurer may vary the contract under subsection (4) before the expiration of 3 years after the contract was entered into, but not after that period; and
 (b) subsections (6), (7) and (8) do not apply in relation to the contract.