Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) For the purposes of paragraph 37B(2)(a) of the Act, flood means the covering of normally dry land by water that has escaped or been released from the normal confines of any of the following:
(a) a lake (whether or not it has been altered or modified);
(b) a river (whether or not it has been altered or modified);
(c) a creek (whether or not it has been altered or modified);
(d) another natural watercourse (whether or not it has been altered or modified);
(e) a reservoir;
(f) a canal;
(g) a dam.
Note: T he meaning of flood set out in subsection ( 1) will apply in the prescribed contract even if the meaning of the word provided by the prescribed contract (or by a notice or other document or information given by the insurer in relation to the prescribed contract) is different from the meaning set out in subsection ( 1) , see subsection 37B(3) of the Act.
(2) For the purposes of entering into a contract that provides insurance cover (whether or not the cover is limited or restricted in any way) in respect of loss caused to a business, if an insurer proposes to:
(a) use the word " flood " in the contract; and
(b) give the word a meaning other than the meaning set out in subsection ( 1);
the insurer must take reasonable steps to ensure that the contract is not a prescribed contract in respect of loss caused to a business that would, at that time, be a small business.
Note 1 : The insurer is likely to rely on information provided by the insured to assess whether the business is a small business. The provision of false or misleading information is a serious matter.
Note 2: For the meaning of small business , see section 35.
(3) Subsection ( 2) does not apply to:
(a) the making of an agreement to renew, extend or vary the contract; or
(b) the reinstatement of any previous contract of insurance.
Note: See subsection 11(9) of the Act.