Commonwealth Consolidated Regulations Commonwealth Consolidated RegulationsAdvice about how to structure or use insurance claim payouts
(1) For the purposes of paragraph 766B(7B)(b) of the Act, giving a recommendation or statement of opinion, or a report of either of those things, cannot reasonably be regarded as a necessary part of providing a claims handling and settling service if the recommendation, statement or report relates to:
(a) how an amount to be paid to a person in settlement of a claim under an insurance product should be structured; or
(b) the management or use of an amount paid, or to be paid, to a person in settlement of a claim under an insurance product.
Advice about other insurance products or financial products
(2) For the purposes of paragraph 766B(7B)(b) of the Act, giving a recommendation or statement of opinion, or a report of either of those things, cannot reasonably be regarded as a necessary part of providing a claims handling and settling service if the recommendation, statement or report:
(a) is given in response to a claim, or potential claim, made under an insurance product; and
(b) relates to other insurance products not held by the person making the claim or financial products.