Risk Regulatory Update
/HCF in civil proceedings with ASIC
The Australian Securities and Investments Commission (ASIC) has commenced civil proceedings in the Federal Court against HCF Life Insurance Company alleging their policies contain unfair contract terms and could mislead consumers. The products in question are in the Recover range.
ASIC alleges the ‘pre-existing condition’ term in the contracts is unfair, as it appears to say that the insurer can deny coverage if a customer did not disclose a pre-existing condition before entering the contract and a medical practitioner decides that symptoms of the condition existed before the customer entered the contract, even if the diagnosis had not yet been made. Insurers are prevented from this action by law.
AMP Group companies to pay $24 million for charging dead clients fees
Four companies that were or are part of the AMP Group have been found by the Federal Court to have breached the law after they were charging life insurance premiums and advice fees from the superannuation accounts of over 2,000 deceased customers. The companies had been advised that the person had died. The court has ordered the companies to pay $24 million.
The companies are:
AMP Life Limited (now Resolution Life Group)
AMP Financial Planning Proprietary Limited
AMP Superannuation Limited
NM Superannuation Proprietary Limited
