Commonwealth Numbered Regulations Commonwealth Numbered RegulationsThe amendments of this instrument made by Schedule 1 to the Financial Sector Reform (Hayne Royal Commission Response) (2021 Measures No. 1) Regulations 2021 have the same application as the amendments of the Act made by Part 2 of Schedule 2 to the Financial Sector Reform (Hayne Royal Commission Response) Act 2020 .
16 Part 1 of Schedule 1 (heading)
Omit " , other than eligible contracts of insurance ", substitute " (other than consumer insurance contracts) ".
17 Part 2 of Schedule 1 (at the end of the heading)
Add " (other than consumer insurance contracts) ".
18 Parts 3 and 4 of Schedule 1
Repeal the Parts.
19 Schedule 2 (at the end of the heading)
Add " (other than under a consumer insurance contract) ".
20 Part 1 of Schedule 3 (heading)
Omit " , other than eligible contracts of insurance ", substitute " (other than consumer insurance contracts) ".
21 Part 2 of Schedule 3 (at the end of the heading)
Add " (other than consumer insurance contracts) ".
22 Part 3 of Schedule 3
Repeal the Part.
23 Schedule 4
Repeal the Schedule.
Schedule 2 -- Claims handling and settling services
Corporations Regulations 200 1
1 After regulation 7.1.04CA
Insert:
7.1.04CB When providing certain claims handing and settling services is not the primary part of a business
For the purposes of paragraph 761DA(2)(b) of the Act, circumstances in which a person's provision of claims handling and settling services on behalf of one or more insurers is taken not to be the primary part of a business carried on by the person are when those services are:
(a) investigating the validity of claims under insurance products, or providing assistance in relation to such investigations; or
(b) assessing the extent of insurers' liabilities to other persons under insurance products under which claims are made, or providing assistance in relation to such assessments.
2 At the end of subregulation 7.1.04F(2)
Add:
; (g) the provision of a claims handling and settling service in relation to a general insurance product;
(h) the provision of a claims handling and settling service in relation to an investment life insurance product;
(i) the provision of a claims handling and settling service in relation to a life risk insurance product.
3 Before regulation 7.1.08
Insert:
7.1.08AA Meaning of financial product advice --advice that is not regarded as a necessary part of providing claims handling and settling services
Advice about how to structure or use insurance claim payouts
(1) For the purposes of paragraph 766B(7B)(b) of the Act, giving a recommendation or statement of opinion, or a report of either of those things, cannot reasonably be regarded as a necessary part of providing a claims handling and settling service if the recommendation, statement or report relates to:
(a) how an amount to be paid to a person in settlement of a claim under an insurance product should be structured; or
(b) the management or use of an amount paid, or to be paid, to a person in settlement of a claim under an insurance product.
Advice about other insurance products or financial products
(2) For the purposes of paragraph 766B(7B)(b) of the Act, giving a recommendation or statement of opinion, or a report of either of those things, cannot reasonably be regarded as a necessary part of providing a claims handling and settling service if the recommendation, statement or report:
(a) is given in response to a claim, or potential claim, made under an insurance product; and
(b) relates to other insurance products not held by the person making the claim or financial products.
4 Regulation 7.1.33
Repeal the regulation.
5 After regulation 7.6.01
Insert:
7.6.01AAAA Need for Australian financial services licence: prescribed insurance products in relation to claimant intermediaries
For the purposes of subparagraph 911A(2)(ek)(vi) of the Act, general insurance products are prescribed.
7.6.01AAAB Need for Australian financial services licence: issuers of insurance products
For the purposes of subparagraph 911A(2)(el)(ii) of the Act, the following issuers of insurance products are prescribed:
(a) Lloyd's underwriters (within the meaning of the Insurance Act 1973 );
(b) unauthorised foreign insurers (within the meaning of the Insurance Regulations 2002 ).
6 Paragraph 7.9.62(4)(f)
Repeal the paragraph.
7 In the appropriate position in Chapter 10
Insert:
10.42.01 Application of claims handling and settling services reforms
The amendments made by Schedule 2 to the Financial Sector Reform (Hayne Royal Commission Response) (2021 Measures No. 1) Regulations 2021 apply in relation to claims or potential claims in relation to an insurance product made on or after the day on which that Schedule commences.