Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section covers the situation in which a financial product:
(a) is issued to a person; and
(b) covers, or is designed to cover, a group of people; and
(c) may cover a particular person (the new group member ) if the person elects to be covered by the financial product.
(2) The issuer must take reasonable steps to ensure that the new group member is given a Product Disclosure Statement for the financial product in accordance with this Division before the new group member makes an election to be covered by the financial product.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).
(3) For the purposes of this section, a person is covered by a financial product if benefits are, or may be, provided under the financial product directly to:
(a) the person; or
(b) a relative of the person; or
(c) a person nominated by the person.