Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Where a statement that was made by a person in connection with a proposed contract of insurance was in fact untrue but was made on the basis of a belief that the person held, being a belief that a reasonable person in the circumstances would have held, the statement shall not be taken to be a misrepresentation.
(2) A statement that was made by a person in connection with a proposed contract of insurance shall not be taken to be a misrepresentation unless the person who made the statement knew, or a reasonable person in the circumstances could be expected to have known, that the statement would have been relevant to the decision of the insurer whether to accept the risk and, if so, on what terms.
(3) This section extends to the provision of insurance cover in respect of:
(a) a person who is seeking to become a member of a superannuation, retirement or other group life scheme; or
(b) a person who is a holder, or is applying to become a holder,
of an RSA.