Action after rejection of insurance proposal
132 Action after rejection of insurance proposal
Where—
under a regulated credit sale contract or a regulated loan contract an amount payable to an insurer is included in the amount financed under the contract; and
the insurer rejects the proposal to which the amount so payable to the insurer relates—
the insurer shall, forthwith after rejecting the proposal, notify the debtor in writing of the rejection.
Where—
under a regulated credit sale contract or a regulated loan contract an amount payable to an insurer is included in the amount financed under the contract;
the insurer rejects the proposal to which the amount so payable to the insurer relates; and
the amount so payable has not been paid to the insurer before or at the time the proposal is rejected—
the insurer shall, forthwith after rejecting the proposal, notify the debtor in writing that the amount has not been paid to the insurer.
Where—
under a regulated credit sale contract or a regulated loan contract an amount payable to an insurer is included in the amount financed under the contract;
the insurer rejects the proposal to which the amount so payable to the insurer relates; and
the amount so payable is paid to the insurer (whether before, at or after the time the proposal is rejected)—
the insurer shall, forthwith after rejecting the proposal or receiving the amount (whichever is the later), pay an amount equal to that amount to the debtor.
S. 132(4) amended by No. 68/2009 s. 97(Sch. item 38).
It is a defence to a prosecution for an offence under subsection (1) or (2) if the accused proves that, at the time the proposal was rejected, he did not know, and would not reasonably have been expected to know, that the amount payable to the insurer was included in the amount financed under the relevant contract.
- 20 penalty units.
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