Financial Services Reform Act 2001 (122 of 2001)

Schedule 1   Financial Services and Markets

Part 1   Main amendments

Corporations Act 2001

1   Chapter 7 - Part 7.8 - Division 4

Division 4 - Special provisions relating to insurance

985A Definitions etc.

(1) In this Division:

contract of insurance includes a contract of life insurance.

Note: Contract of life insurance has a meaning affected by subsection (2).

insured , in relation to a contract of life insurance, meansa person (other than the insurer) who is entitled to a benefit under the contract, whether that person is the life insured or some other person.

Note: Intending insured has a corresponding meaning.

(2) For the purposes of this Division, if:

(a) a life policy (within the meaning of theLife Insurance Act 1995) would not ordinarily be regarded as a contract of life insurance; and

(b) liability under the policy is borne by a company registered under that Act; and

(c) the policy was entered into after the commencement of section 9D of theInsurance (Agents and Brokers) Act 1984 as in force before the commencement of this Chapter;

the policy is taken to be a contract of life insurance.

985B Status of amounts paid to financial services licensees in respect of contracts of insurance

(1) If:

(a) a contract of insurance is arranged or effected by a financial services licensee; and

(b) the licensee is not the insurer;

payment to the licensee of money payable (whether in respect of a premium or otherwise) by the insured under or in relation to the contract is a discharge, as between the insured and the insurer, of the liability of the insured to the insurer in respect of that money.

(2) Payment to a financial services licensee by or on behalf of an intending insured of money (whether in respect of a premium or otherwise) in respect of a contract of insurance to be arranged or effected by the licensee with an insurer (not being the licensee) is a discharge, as between the insured and the insurer, of any liability of the insured under or in respect of the contract, to the extent of the amount of the payment.

(3) Payment by an insurer to a financial services licensee of money payable to an insured, whether in respect of a claim, return of premiums or otherwise, under or in relation to a contract of insurance, does not discharge any liability of the insurer to the insured in respect of that money.

(4) An agreement, so far as it purports to alter or restrict the operation of subsection (1), (2) or (3), is void.

(5) Subsection (4) does not make void an agreement between a financial services licensee and an insured in so far as the agreement allows the licensee to set off against money payable to the insured money payable by the insured to the licensee in respect of premiums.

985C Regulations may impose other requirements etc. if financial services licensee is not the insurer

(1) The regulations may impose requirements to be complied with by a financial services licensee in relation to, or make other provision dealing with, a situation specified in subsection (2) that arises in relation to a contract or proposed contract of insurance under which the licensee is not the insurer.

(2) The situations are as follows:

(a) the licensee receives an amount as a premium or instalment of premium;

(b) the licensee does not receive an amount as a premium or instalment of premium by a particular time;

(c) the licensee is not aware of the amount of a premium or instalment of premium that is to be paid;

(d) the licensee receives money from the insured or intending insured but the risk or part of the risk has not been accepted by a particular time;

(e) the licensee receives money from the insurer for payment to or on behalf of the insured.