Commonwealth Consolidated Acts Commonwealth Consolidated ActsWhere a provision included in an instalment contract of general insurance has the effect of limiting the liability of the insurer by reference to non - payment of an instalment of the premium, the insurer may not refuse to pay a claim, in whole or in part, by reason only of the operation of that provision unless:
(a) at least one instalment of the premium has remained unpaid for a period of at least 14 days; and
(b) before the contract was entered into, the insurer clearly
informed the insured, in writing, of the effect of the provision.