Commonwealth Consolidated Acts

INSURANCE CONTRACTS ACT 1984 - SECT 39

                   Where a provision included in an instalment contract of general insurance has the effect of limiting the liability of the insurer by reference to non-payment of an instalment of the premium, the insurer may not refuse to pay a claim, in whole or in part, by reason only of the operation of that provision unless:

                     (a)  at least one instalment of the premium has remained unpaid for a period of at least 14 days; and

                     (b)  before the contract was entered into, the insurer clearly informed the insured, in writing, of the effect of the provision.