Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.9.16

More detailed information in Product Disclosure Statement: consumer credit insurance product

             (1)  For paragraph 1013D(4)(c) of the Act, the more detailed information that must be included in a Product Disclosure Statement that relates to a consumer credit insurance product is:

                     (a)  a brief explanation of the purposes of consumer credit insurance; and

                     (b)  an outline statement of general areas covered by the consumer credit insurance product, or the kind of consumer credit insurance product; and

                     (c)  a statement that it is important that the insured read the Product Disclosure Statement carefully to understand the extent of cover provided by the consumer credit insurance product, and its limitations; and

                     (d)  if all of the following matters apply under the consumer credit insurance product:

                              (i)  a person who applies for, or obtains, consumer credit insurance is not obliged to buy the consumer credit insurance;

                             (ii)  cover is provided under the consumer credit insurance product in respect of losses caused by certain contingencies;

                            (iii)  the extent of loss to the consumer credit insurance product applies is measured by reference to the liability of the insured under the credit agreement to which the consumer credit insurance applies;

                            a statement to that effect, accompanied by examples of the contingencies; and

                     (e)  a table of the benefit limits applicable under the consumer credit insurance product; and

                      (f)  a statement that the insured:

                              (i)  is required to be truthful; and

                             (ii)  is able to arrange consumer credit insurance through a different insurer; and

                     (g)  a statement of the commission paid or payable in relation to the provision of the consumer credit insurance product.

             (2)  In this regulation:

consumer credit insurance product means a general insurance product provided by a class of contracts of insurance that is:

                     (a)  declared, in accordance with the Insurance Contracts Act 1984 to be a class of contracts to which Division 1 of Part V of that Act applies; and

                     (b)  identified as consumer credit insurance as part of that declaration.



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