Commonwealth Consolidated Acts

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Obligation to take reasonable steps to ensure that Product Disclosure Statement is given to person electing to be covered by group financial product

             (1)  This section covers the situation in which a financial product:

                     (a)  is issued to a person; and

                     (b)  covers, or is designed to cover, a group of people; and

                     (c)  may cover a particular person (the new group member ) if the person elects to be covered by the financial product.

             (2)  The issuer must take reasonable steps to ensure that the new group member is given a Product Disclosure Statement for the financial product in accordance with this Division before the new group member makes an election to be covered by the financial product.

Note:          Failure to comply with this subsection is an offence (see subsection 1311(1)).

             (3)  For the purposes of this section, a person is covered by a financial product if benefits are, or may be, provided under the financial product directly to:

                     (a)  the person; or

                     (b)  a relative of the person; or

                     (c)  a person nominated by the person.

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