Commonwealth Consolidated Acts

INSURANCE CONTRACTS ACT 1984 - SECT 27A

  (1)   If:

  (a)   a contract of life insurance includes 2 or more groups of provisions (for example, provisions that are grouped into 2 or more separate parts); and

  (b)   each group of provisions could form a single contract of life insurance;

then this Division applies as if each group of provisions were a separate contract of life insurance.

  (2)   If:

  (a)   a contract of life insurance includes 2 or more groups of provisions (for example, provisions that are grouped into 2 or more separate parts); and

  (b)   because of subsection   (1), this Division applies as if each group of provisions were a separate contract of life insurance; and

  (c)   the contract also includes provisions ( related provisions ) that relate to or affect the operation of one or more of the groups of provisions referred to in paragraph   (a);

then the related provisions are, for the purposes of this Division, to be regarded as provisions included in each relevant separate contract of life insurance referred to in paragraph   (b).

  (3)   If a contract of life insurance provides insurance cover in relation to 2 or more life insureds, this Division applies as if the insurance cover provided in relation to each life insured were provided by a separate contract of life insurance.

  (4)   If a contract of life insurance provides:

  (a)   insurance cover in relation to a life insured that is underwritten on particular terms; and

  (b)   insurance cover in relation to that life insured that:

  (i)   is not underwritten; or

  (ii)   is underwritten on different terms;

then this Division applies as if the insurance cover referred to in paragraph   (a) and the insurance cover referred to in paragraph   (b) were each provided by a separate contract of life insurance.

Note:   The effect of this section in relation to a contract of life insurance to which subsection   (1), (3) or (4) applies is that different remedies may be available to the insurer in respect of each separate contract of life insurance that is taken to exist by virtue of the relevant subsection.