Commonwealth Consolidated Acts

INSURANCE CONTRACTS ACT 1984 - SECT 75

  (1)   Where an insurer:

  (a)   does not accept an offer to enter into a contract of insurance;

  (b)   cancels a contract of insurance;

  (c)   indicates to the insured that the insurer does not propose to renew the insurance cover provided under a contract of insurance; or

  (d)   by reason of some special risk relating to the insured or to the subject - matter of the contract, offers insurance cover to the insured on terms that are less advantageous to the insured than the terms that the insurer would otherwise offer;

the insurer shall, if the insured so requests in writing given to the insurer, give to the insured a statement in writing setting out the insurer's reasons for not accepting the offer, for cancelling the contract, for not renewing the insurance cover or for offering insurance cover on less advantageous terms, as the case may be.

Penalty:   300 penalty units.

  (2)   In relation to a contract of general insurance, if the state of health of the insured was the reason, or one of the reasons, that the insurer did not accept the offer, cancelled the contract, did not renew the insurance cover or offered insurance cover on less advantageous terms, as the case may be, the insurer may require the insured to inform the insurer in writing of the name of a legally qualified medical practitioner to whom the statement may be given on behalf of the insured and, where the statement is given to the medical practitioner so nominated, the insurer shall be taken to have complied with subsection   (1) in relation to the request.

  (3)   In relation to a contract of life insurance where the insured is not the life insured, subsection   (1) does not apply if the state of health of the life insured was the only reason that the insurer did not accept the offer, cancelled the contract, did not renew the insurance cover or offered insurance cover on less advantageous terms, as the case may be.

Note:   A defendant bears an evidential burden in relation to the matters in subsection   (3), see subsection   13.3(3) of the Criminal Code .

  (4)   In relation to a contract of life insurance where the insured is not the life insured, a statement given under subsection   (1) shall not include any reference to the state of health of the life insured.

  (5)   Where an insurer:

  (a)   does not accept an offer to enter into a contract of life insurance;

  (b)   cancels such a contract;

  (c)   indicates to the insured that the insurer does not propose to renew the insurance cover provided under such a contract; or

  (d)   by reason of some special risk relating to the life insured, offers life insurance cover to the insured on terms that are less advantageous to the insured than the terms that the insurer would otherwise offer;

the insurer shall, if the life insured so requests in writing given to the insurer, give to the life insured a statement in writing setting out the insurer's reasons for not accepting the offer, for cancelling the contract, for not renewing the insurance cover or for offering life insurance cover on less advantageous terms, as the case may be, being reasons that relate to the state of health of the life insured.

Penalty:   300 penalty units.

  (6)   The insurer may require the life insured to inform the insurer in writing of the name of a legally qualified medical practitioner to whom the statement may be given on behalf of the life insured and, where the statement is given to the medical practitioner so nominated, the insurer shall be taken to have complied with subsection   (5) in relation to the request.

  (7)   It is a defence to a prosecution for an offence arising under this section if the insurer proves that compliance with this section would have unreasonably put at risk the interests of the insurer or of some other person.

Note:   A defendant bears a legal burden in relation to a matter mentioned in subsection   (7), see section   13.4 of the Criminal Code .