Commonwealth Consolidated Regulations

CORPORATIONS REGULATIONS 2001 - REG 7.1.33

         (1)   For paragraph 766A (2) (b) of the Act, a circumstance in which a person is taken not to provide a financial service within the meaning of paragraph 766A (1) (a) of the Act is the giving of advice that consists only of a recommendation or statement of opinion provided in the course of, and as a necessary or incidental part of, either or both of:

                (a)    the handling of claims or potential claims in relation to an insurance product; and

               (b)    the settlement of claims or potential claims in relation to an insurance product.

         (2)   For paragraph 766A (2) (b) of the Act, a circumstance in which a person is taken not to provide a financial service within the meaning of paragraph 766A (1) (b) of the Act is a dealing in an insurance product that is a necessary or incidental part of either or both of:

                (a)    the handling of claims or potential claims in relation to that product; and

               (b)    the settlement of claims or potential claims in relation to that product.

Examples of services

1   Negotiations on settlement amounts.

2   Interpretation of relevant policy provisions.

3   Estimates of loss or damage.

4   Estimate of value or appropriate repair.

5   Recommendations on mitigation of loss.

6   Recommendations, in the course of handling a claim as described in subregulations (1) and (2), on increases in limits or different cover options to protect against the same loss in the future.

7   Claims strategy such as the making of claims under alternate policies.

         (3)   In this regulation:

"insurance product" includes a self-insurance arrangement through which a person manages financial risk.