Document ID: chunk:federal_register_of_legislation:C2013A00075:clause:4_21b:p1
Version: federal_register_of_legislation:C2013A00075
Segment Type: clause
Provision Reference: sch 4 cl 21B (pt 1/3)
Character Range: 20266–22939

21B  Eligible contracts of insurance—disclosure before contract renewed

Scope
 (1) This section applies in relation to the renewal of an eligible contract of insurance after the commencement of this section (regardless of when the contract was originally entered into).
 (2) However, this section does not apply in relation to the renewal of an eligible contract of insurance during the transition period unless, before the contract is renewed, the insurer has clearly informed the insured in writing of the general nature and effect of this section.
Note: Before the contract is renewed, the insurer must also clearly inform the insured in writing of the general nature and effect of the duty of disclosure (see section 22).

Position of the insurer
 (3) Before the contract is renewed, the insurer may do either or both of the following things:
 (a) request the insured to answer one or more specific questions that are relevant to the decision of the insurer whether to accept the risk and, if so, on what terms;
 (b) give the insured a copy of any matter previously disclosed by the insured in relation to the contract and request the insured:
 (i) to disclose to the insurer any change to that matter; or
 (ii) to inform the insurer that there is no change to that matter.
Note: Change, to a matter previously disclosed by an insured in relation to an eligible contract of insurance, is defined in subsection (13).
 (4) If the insurer does not:
 (a) make a request in accordance with paragraph (3)(a); or
 (b) give the insured a copy of any matter previously disclosed by the insured and make a request in accordance with paragraph (3)(b);
then the insurer is taken to have waived compliance with the duty of disclosure in relation to the renewed contract.
Note: This subsection is affected by subsection (12).
 (5) If the insurer:
 (a) makes a request in accordance with paragraph (3)(a); and
 (b) also requests (other than in accordance with paragraph (3)(b)) the insured to disclose to the insurer any other matter that would be covered by the duty of disclosure in relation to the renewed contract;
then the insurer is taken to have waived compliance with the duty of disclosure in relation to that other matter.
Note: This subsection is affected by subsection (12).
 (6) If the insurer:
 (a) gives the insured a copy of any matter previously disclosed by the insured and makes a request in accordance with paragraph (3)(b); and
 (b) also requests (other than in accordance with paragraph (3)(a)) the insured to disclose to the insurer any other matter that would be covered by the duty of disclosure in relation to the renewed contract;
then the insurer is taken