Proposal to transfer CGU insurance licence
October 28, 2016
On 8 November 2012 a regulation under the Insurance Contracts Act 1984 was introduced requiring Insurers to provide a Key Facts Sheet for home building and home content insurance contracts effective 9 November 2014. CGU, with other insurers and the Insurance Council of Australia, is seeking clarification of the need for Key Facts Sheets for some policies (for example farm, strata and landlord insurance) and an extension for full compliance until 31 December 2014.
Our Authorised Representatives are required to pass on the Key Facts Sheets for policies underwritten by CGU and so any extension granted will apply equally to our Authorised Representatives as well.
The regulation states an insurer is not required to provide a consumer with a Key Facts Sheet for a contract if the consumer requests information or enters into a contract through an insurance broker (unless the broker is acting for CGU under a binder agreement). Therefore brokers are not required to send KFS.
We are working to ensure that relevant Key Facts Sheets will be available on the AR portal and CGU website shortly. Brokers will be able to obtain copies of our KFS from our website if they wish to forward them to customers.
We will let you know when they become available, along with any further update information.
This regulation is very specific and details the content, font style, font size and colour so KFS must not be altered or photocopied/printed in black and white.
If you have any questions in the interim, please contact Tony O’Kearney.