Commonwealth Consolidated Acts

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INSURANCE CONTRACTS ACT 1984 - SECT 14A

Powers of ASIC--insurer's failure to comply with the duty of the utmost good faith in relation to handling or settlement of claims

  (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.


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