Queensland Consolidated Acts

QUEENSLAND BUILDING AND CONSTRUCTION COMMISSION ACT 1991 - SECT 69

69 Cancellation of cover and return of premium

(1) Cover under the statutory insurance scheme for residential construction work, for which a licensed contractor paid the insurance premium on behalf of a consumer, may be cancelled by the contractor if—

(a) the contractor asks the commission in writing to cancel the cover; and

(b) the contract for the work has ended; and

(c) a deposit under the contract for the work has been refunded, less any amounts that may be lawfully deducted from the deposit; and

(d) the work covered has not started; and

(e) not more than 1 year has elapsed from the day the contract for the work was entered into.

(2) Cover under the statutory insurance scheme, including optional additional cover, for speculative residential construction work for which a licensed contractor paid the insurance premium on behalf of a consumer, may be cancelled by the contractor if—

(a) the contractor asks the commission in writing to cancel the cover; and

(b) development approval has not been granted for the work, or has been rescinded; and

(c) the work covered has not started; and

(d) not more than 1 year has elapsed from the day the premium was paid.

(3) Cover under the statutory insurance scheme for residential construction work, for which a construction manager paid the insurance premium on behalf of a principal, may be cancelled by the construction manager if—

(a) the construction manager asks the commission in writing to cancel the cover; and

(b) the relevant construction management contract and all the construction management trade contracts for the work have ended; and

(c) deposits paid under the relevant construction management contract and all the construction management trade contracts have been refunded, less any amounts that may be lawfully deducted from the deposits; and

(d) the work covered has not started; and

(e) not more than 1 year has elapsed from the day the construction management contract for the work was entered into.

(4) Optional additional cover obtained by a consumer may be cancelled by the consumer if—

(a) the consumer asks the commission in writing to cancel the cover; and

(b) the contract between the consumer and a licensed contractor relevant to the cover (the
"relevant contract" ) has ended; and

(c) a deposit under the relevant contract has been refunded, less any amounts that may be lawfully deducted from the deposit; and

(d) the work covered has not started; and

(e) not more than 1 year has elapsed from the day the relevant contract was entered into between the consumer and the licensed contractor.

(5) On cancellation of cover under this section, the commission must refund the insurance premium paid for the cover to—

(a) if the cover was cancelled under subsection (1) , (2) or (3) —the licensed contractor or construction manager, or a person nominated in writing by the contractor or manager; or

(b) if the cover was cancelled under subsection (4) —the consumer.

(6) A fee, prescribed by regulation, may be deducted from any refund made under this section.