An insurer's purported avoidance of a policy for non-disclosure, where the non-disclosure is not pleaded as fraudulent under s 28(2) of the Insurance Contracts Act 1984 (Cth), does not justify summary judgment against a claimant under s 601AG of the Corporations Act 2001 (Cth). An unaccepted wrongful repudiation does not terminate the insurance contract or displace coverage. The insured's silence in response to the insurer's correspondence does not, without more, establish an admission of the insurer's entitlement to avoid the policy, particularly where the evidence is consistent with a rational decision not to respond.
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