"RSA provider" has the same meaning as in the Retirement Savings Accounts Act 1997 .

Repeal the subsection, substitute:

(3)

This section extends to the provision of insurance cover in respect of:

(a)

a person who is seeking to become a member of a superannuation or retirement scheme; or

(b)

a person who is a holder, or is applying to become a holder, of an RSA.

Insert:

This Division extends to the case where there was a failure to comply with the duty of disclosure, or a misrepresentation was made, to the insurer in relation to a holder, or a person applying to become a holder, of an RSA as though:

(a)

the insurance cover provided in relation to that RSA in respect of that person were provided by a contract between the insurer as insurer and the RSA provider as the insured; and

(b)

that contract has been entered into at the time when the holder became the holder, or the person applying to become the holder, became the holder.

Insert:

(1)

Where a person who is not a party to a contract of life insurance entered into in connection with an RSA, where the owner of the policy is an RSA provider, is specified or referred to in the contract, whether by name or otherwise, as a person to whom the insurance cover provided by the contract extends, that person has a right to recover a benefit from the insurer in accordance with the contract notwithstanding that he or she is not a party to the contract.

(2)

Subject to the contract, a person who has such a right:

(a)

has, in relation to his or her claim, the same obligations to the insurer as he or she would have if he or she were the insured; and

(b)

may discharge the insured's obligations in relation to the payment of a benefit.

(3)

The insurer has the same defences to an action under this section as he or she would have in an action by the insured.

After "superannuation contract", insert ", or an RSA,".