What are New legal disclosure requirements for customers taking out life insurance?
'The legal duty to take reasonable care not to make a misrepresentation'
The old duty of disclosure for consumer insurance was replaced in October 2021 with a similar but more insurance company-focused,with a Duty to take reasonable care not to make a misrepresentation to an insurer, under Section 20B of the Insurance Contracts Act
This means customers entering into a consumer insurance contract will have a duty ‘to take reasonable care not to make a misrepresentation when completing their applications and answering any additional question asked of an Insurance Company prior to the issuing of the insurance policy.
This same legal duty continues to exist only until the insurance contract is formally issued (and the policy is in force).
Wording that will be used for Duty to take reasonable care updates
To meet this duty, each person whose life is to be insured must also take reasonable care not to make such a misrepresentation.
A misrepresentation is a false answer, an answer that is only partially true, or an answer which does not fairly reflect the truth.
This duty also applies when extending or making changes to existing insurance, and reinstating insurance.
If you do not meet your duty
Not meeting your legal duty can have serious impacts on your insurance. Your cover could be avoided (treated as if it never existed), or its terms may be changed. This may also result in a claim being declined or a benefit being reduced.
Unusualrisks.com.au provides support to those people who insurance companies leave behind. We believe in giving every person the power to use life insurance products to protect & provide for their loved ones, their businesses and their legacy — free from barriers of stigma and discrimination.
We know that, as an LGBTQIA+ person (or someone who goes without labels entirely), you have specific financial advice, life insurance and privacy needs.
We're committed to serving the LGBTQIA+ community and its Allies. For us, it's about #AdviceEquality.
Make us part of your story so should the unexpected happen to you or whoever is family to you, you'll have a backup plan in place to help you financially recover and life can still get better for somebody you love.
Working online & serving Australia Wide from George St Sydney, NSW, Australia. [ Gadigal Land ] & [ Darug Country ]
Get Advice-on-Demand via email | phone | video | face to face
Everyone is Welcome Here! #AdviceEquality
The advisor to Unusual Risks Insured: Drew Browne is an Authorised Representative and Sapience Corporation Pty Ltd. ABN 29 086 679 718 is a Corporate Authorised Representative of an Australian Financial Services Licensee AFSL Shartru Wealth Management Pty Ltd #422409 ABN 46 158 536 871. Any information provided is General Advice Only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstance. Unusual Risks is a Trauma Informed Organisation (TIO) and affirms the Darlington Statement on Intersex Human Rights Australia.
Unusual Risks Insured acknowledges the Traditional Custodians of Country throughout Australia and their continuing connection to land, waters and community. We pay our respect to them and their cultures, and Elders, past, present and future.
Sorry, this website uses features that your browser doesn’t support. Upgrade to a newer version of Firefox, Chrome, Safari, or Edge and you’ll be all set.