AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION ACT 2001 - SECT 12DO Meaning of add - on insurance product

AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION ACT 2001 - SECT 12DO

  (1)   An add - on insurance product , in relation to another product or service (the principal product or service ), is a financial product that:

  (a)   is offered or sold to a consumer (the customer ) in connection with the customer acquiring, or entering into a commitment to acquire, the principal product or service; and

  (b)   is offered or sold by:

  (i)   the provider of the principal product or service; or

  (ii)   another person, in accordance with an arrangement to which the provider of the principal product or service is a party; and

  (c)   manages financial risk (within the meaning of section   12BAA) relating to the principal product or service; and

  (d)   either:

  (i)   is a contract of insurance; or

  (ii)   provides for the customer to benefit from a contract of insurance to which the provider of the financial product is a party.

  (2)   For the purposes of subsection   (1), contract of insurance includes:

  (a)   a contract that would ordinarily be regarded as a contract of insurance even if some of its provisions are not by way of insurance; and

  (b)   a contract that includes provisions of insurance in so far as those provisions are concerned, even if the contract would not ordinarily be regarded as a contract of insurance.

  (3)   The regulations may provide that a customer is, for the purposes of this Subdivision, taken to have entered into a commitment to acquire a product or service of a specified class at a time specified in the regulations.