Commonwealth Consolidated Acts

INSURANCE CONTRACTS ACT 1984 - SECT 38

  (1)   Where, under a provision included in an interim contract of insurance, the liability of the insurer is dependent upon the submission to, or the acceptance by, the insurer of a proposal for a contract of insurance intended to replace the interim contract of insurance, the provision is void.

  (2)   Where:

  (a)   an insurer has entered into an interim contract of insurance; and

  (b)   before the insurance cover provided by the contract has expired, the insured has submitted a proposal to the insurer for a contract of insurance intended to replace the interim contract of insurance;

the insurer remains liable in accordance with the interim contract of insurance until the earliest of the following times:

  (c)   the time when insurance cover commences under another contract of insurance (whether or not it is an interim contract of insurance) between the insured and the insurer or some other insurer, being insurance cover that is intended to replace the insurance cover provided by the interim contract of insurance;

  (d)   the time when the interim contract of insurance is cancelled;

  (e)   if the insured withdraws the proposal--the time of withdrawal.

  (3)   Sections   35, 37, 37C, 40 and 44 and subsection   68(1) do not apply in relation to interim contracts of insurance.