ASIC Corporations (Cash Settlement Fact Sheet) Instrument 2022/59

ASIC Corporations (Cash Settlement Fact Sheet) Instrument 2022/59

made under paragraph 951B(1)(a)  of the Corporations Act 2001.

Compilation No. 1 

Compilation date: 22/11/2024

Includes amendments up to: F2024L01468

About this compilation

This compilation

This is a compilation of the ASIC Corporations (Cash Settlement Fact Sheet) Instrument 2022/59  that shows the text of the law as amended and in force on 22/11/2024 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1 - Preliminary…………………………………………………………………..4

1 Name of legislative instrument

3 Authority

4 Definitions

Part 2—Exemption

5 Timing for giving a Cash Settlement Fact Sheet—immediate need

Part 3—Repeal

6 Repeal

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Part 1—Preliminary

1 Name of legislative instrument

This is the ASIC Corporations (Cash Settlement Fact Sheet) Instrument 2022/59.

3 Authority

This instrument is made under 951B(1)(a) of the Corporations Act 2001.

4 Definitions

In this instrument:

Act means Corporations Act 2001.

providing entity has the same meaning as in section 948B of the Act

Part 2—Exemption

5 Timing for giving a Cash Settlement Fact Sheet—immediate need

(1) A providing entity does not have to comply with subsection 948C(1) of the Act to the extent it requires the providing entity to give a Cash Settlement Fact Sheet at the time specified in section 948D of the Act.

(2) The exemption in subsection (1) applies in relation to an offer (cash settlement offer) made by the providing entity to a client to settle all or part of a claim under a general insurance product using a cash payment where all of the following apply:

(a) the client has expressly instructed the providing entity that the client is in immediate need of a cash payment because of the insurable event the subject of the claim

(b) the cash settlement offer has been made verbally (verbal cash settlement offer) to the client no later than 42 days after the insurable event the subject of the claim;

(c) the total of the following does not exceed $5,000:

(i)  the amount of the cash settlement offer;

(ii) the amount of any other cash settlement offers made to the client by the providing entity in relation to the insurable event in accordance with paragraphs (a) and (b) that either:

1.  have been accepted; or
2.  remain capable of being accepted.

Conditions

(3) The providing entity must:

(a) verbally give the client the information and statements specified in subsection 948F(1) at the time the verbal cash settlement offer is made; and

(b) take all reasonable steps to give the client a Cash Settlement Fact Sheet within:

(i) 48 hours of the verbal cash settlement offer being made if the Cash Settlement Fact Sheet is given electronically; or

(ii) 5 business days of the verbal cash settlement offer being made if the client has notified the providing entity they cannot or do not want to be given the Cash Settlement Fact Sheet electronically; and

(c) take all reasonable steps to make the cash payment within 2 days of the client accepting the verbal cash settlement offer; and

(d) provide the client with the right to have the accepted cash settlement offer reversed (right of reversal) on terms that include the following:

(i) the client may exercise the right of reversal up to 12 months after the date the cash payment was made;

(ii)  no interest or fees on the amount of the cash payment are payable by the client.

Note:  Paragraph (d) does not limit any rights of review available to the client in relation to the insurance product.

Part 3—Repeal

6 Repeal

This instrument is repealed at the start of 1 April 2030.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history