This Division extends to the case where there was a relevant failure in relation to a holder, or a person applying to become a holder, of an RSA as though:
(a) the insurance cover provided in relation to that RSA in respect of that person were provided by a contract between the insurer as insurer and the RSA provider as the insured; and
(b) that contract has been entered into at the time when the holder became the holder, or the person applying to become the holder, became the holder.