Rejection of debtor’s proposal for insurance
147 Rejection of debtor’s proposal for insurance
If a credit provider proposes to finance the amount payable by the debtor under or in connection with a credit‑related insurance contract and the proposal for insurance is rejected by an insurer, the insurer must inform the debtor and the credit provider of its rejection.
Unless the insurance is to be arranged with another insurer, the credit provider must ensure that any amount paid by the debtor is refunded or credited in full.
Criminal penalty: 100 penalty units.
Subsection (2) is an offence of strict liability.
For strict liability, see section 6.1 of the Criminal Code.
The credit provider may, in turn, recover the amount paid to the debtor from the insurer, if an amount has been paid to the insurer by the debtor under or in connection with the proposed insurance contract.
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