Queensland Consolidated Acts Queensland Consolidated Acts(1) When the authority accepts the appropriate insurance premium in respect of residential construction work, the authority must issue a certificate of insurance in respect of the residential construction work.
(2) A policy of insurance comes into force in the terms stated in the board's policies for the purpose--
(a) if a consumer enters into a contract for the performance of residential construction work, and--
(i) the contract bears the licence number of a licensed contractor and, under the licensed contractor's licence, the licensed contractor may enter into contracts with consumers to carry out residential construction work covered by the statutory insurance scheme; or
(ii) the contract is with a licensed contractor and, under the licensed contractor's licence, the licensed contractor may enter into contracts with consumers to carry out residential construction work covered by the statutory insurance scheme; or
(iii) the contract is with a person fraudulently claiming to hold a licence under which the person may enter into contracts with consumers to carry out residential construction work covered by the statutory insurance scheme; or
(b) if the work is speculative residential construction work carried out by a licensed contractor and, under the contractor's licence the contractor may carry out residential construction work covered by the statutory insurance scheme.
(3) Subsection (2) applies whether or not an insurance premium has been paid or a certificate of insurance has been issued.
(4) The certificate of insurance given to a consumer need not state the terms of the policy of insurance, but a copy of the policy must be given to the consumer when the certificate of insurance is given to the consumer and the certificate of insurance must include a clear reference to the policy.
(5) To remove doubt, it is declared that a policy of insurance under this section has effect according to its terms and a consumer can not avoid the consequences of a breach of a provision of the policy of insurance only because the policy of insurance forms part of a statutory insurance scheme.