Document ID: chunk:federal_register_of_legislation:C2020A00135:clause:3_12do
Version: federal_register_of_legislation:C2020A00135
Segment Type: clause
Provision Reference: sch 3 cl 12DO
Character Range: 37494–38985

12DO  Meaning of add‑on insurance product
 (1) An add‑on insurance product, in relation to another product or service (the principal product or service), is a financial product that:
 (a) is offered or sold to a consumer (the customer) in connection with the customer acquiring, or entering into a commitment to acquire, the principal product or service; and
 (b) is offered or sold by:
 (i) the provider of the principal product or service; or
 (ii) another person, in accordance with an arrangement to which the provider of the principal product or service is a party; and
 (c) manages financial risk (within the meaning of section 12BAA) relating to the principal product or service; and
 (d) either:
 (i) is a contract of insurance; or
 (ii) provides for the customer to benefit from a contract of insurance to which the provider of the financial product is a party.
 (2) For the purposes of subsection (1), contract of insurance includes:
 (a) a contract that would ordinarily be regarded as a contract of insurance even if some of its provisions are not by way of insurance; and
 (b) a contract that includes provisions of insurance in so far as those provisions are concerned, even if the contract would not ordinarily be regarded as a contract of insurance.
 (3) The regulations may provide that a customer is, for the purposes of this Subdivision, taken to have entered into a commitment to acquire a product or service of a specified class at a time specified in the regulations.