(1) This section applies if an insurer under a contract of insurance has failed to comply with the duty of the utmost good faith in the handling or settlement of a claim or potential claim under the contract.
(2) Despite any provision of Chapter 7 of the Corporations Act 2001 or any regulation made under that Chapter, ASIC may exercise its powers under Subdivision C of Division 4 of Part 7.6 of that Act or Subdivision A of Division 8 of that Part in relation to the insurer as if the insurer's failure to comply with the duty of the utmost good faith were a failure by the insurer to comply with a financial services law (within the meaning of the Corporations Act 2001 ).
Note: Subdivision C of Division 4 of Part 7.6 of the
Corporations Act 2001 deals with variation, suspension and cancellation of an
Australian financial services licence, and Subdivision A of Division 8
of that Part deals with banning persons from providing financial services.