Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.1.33

Handling insurance claims

             (1)  For paragraph 766A(2)(b) of the Act, a circumstance in which a person is taken not to provide a financial service within the meaning of paragraph 766A(1)(a) of the Act is the giving of advice that consists only of a recommendation or statement of opinion provided in the course of, and as a necessary or incidental part of, either or both of:

                     (a)  the handling of claims or potential claims in relation to an insurance product; and

                     (b)  the settlement of claims or potential claims in relation to an insurance product.

             (2)  For paragraph 766A(2)(b) of the Act, a circumstance in which a person is taken not to provide a financial service within the meaning of paragraph 766A(1)(b) of the Act is a dealing in an insurance product that is a necessary or incidental part of either or both of:

                     (a)  the handling of claims or potential claims in relation to that product; and

                     (b)  the settlement of claims or potential claims in relation to that product.

Examples of services:

1                 Negotiations on settlement amounts.

2                 Interpretation of relevant policy provisions.

3                 Estimates of loss or damage.

4                 Estimate of value or appropriate repair.

5                 Recommendations on mitigation of loss.

6                 Recommendations, in the course of handling a claim as described in subregulations (1) and (2), on increases in limits or different cover options to protect against the same loss in the future.

7                 Claims strategy such as the making of claims under alternate policies.

             (3)  In this regulation:

insurance product includes a self-insurance arrangement through which a person manages financial risk.



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