{"id":"F2022L00124","name":"ASIC Corporations (Cash Settlement Fact Sheet) Instrument 2022/59","slug":"asic-corporations-cash-settlement-fact-sheet-instrument-2022-59","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":102272,"registerId":"commonwealth-F2022L00124-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Cash Settlement Fact Sheet) Instrument 2022/59","content":"![Commonwealth Coat of Arms and ASIC logo](image.001.png)\n\nASIC Corporations (Cash Settlement Fact Sheet) Instrument 2022/59\n\nmade under paragraph 951B(1)(a) of the Corporations Act 2001.\n\nCompilation No. 1\n\nCompilation date: 22/11/2024\n\nIncludes amendments up to: F2024L01468\n\nAbout this compilation\n\nThis compilation\n\nThis 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).\n\nThe notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.\n\nUncommenced amendments\n\nThe 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.\n\nApplication, saving and transitional provisions for provisions and amendments\n\nIf 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.\n\nModifications\n\nIf 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see the Register for the compiled law.\n\nSelf‑repealing provisions\n\nIf a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.\n\nContents\n\nPart 1 - Preliminary…………………………………………………………………..4\n\n[1 Name of legislative instrument](#_Toc183700170)\n\n[3 Authority](#_Toc183700171)\n\n[4 Definitions](#_Toc183700172)\n\n[Part 2—Exemption](#_Toc183700173)\n\n[5 Timing for giving a Cash Settlement Fact Sheet—immediate need](#_Toc183700174)\n\n[Part 3—Repeal](#_Toc183700175)\n\n[6 Repeal](#_Toc183700176)\n\n[Endnotes](#_Toc183700177)\n\n[Endnote 1—About the endnotes](#_Toc183700178)\n\n[Endnote 2—Abbreviation key](#_Toc183700179)\n\n[Endnote 3—Legislation history](#_Toc183700180)\n\n[Endnote 4—Amendment history](#_Toc183700181)\n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Cash Settlement Fact Sheet) Instrument 2022/59.\n\n3 Authority\n\nThis instrument is made under 951B(1)(a) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means Corporations Act 2001.\n\nproviding entity has the same meaning as in section 948B of the Act\n\nPart 2—Exemption\n\n5 Timing for giving a Cash Settlement Fact Sheet—immediate need\n\n(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.\n\n(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:\n\n(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\n\n(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;\n\n(c) the total of the following does not exceed $5,000:\n\n(i) the amount of the cash settlement offer;\n\n(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:\n\n1.  have been accepted; or\n2.  remain capable of being accepted.\n\nConditions\n\n(3) The providing entity must:\n\n(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\n\n(b) take all reasonable steps to give the client a Cash Settlement Fact Sheet within:\n\n    (i) 48 hours of the verbal cash settlement offer being made if the Cash Settlement Fact Sheet is given electronically; or\n    (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\n    (c) take all reasonable steps to make the cash payment within 2 days of the client accepting the verbal cash settlement offer; and\n    (d) provide the client with the right to have the accepted cash settlement offer reversed (right of reversal) on terms that include the following:\n    (i) the client may exercise the right of reversal up to 12 months after the date the cash payment was made;\n    (ii) no interest or fees on the amount of the cash payment are payable by the client.\n    Note: Paragraph (d) does not limit any rights of review available to the client in relation to the insurance product.\n\nPart 3—Repeal\n\n6 Repeal\n\nThis instrument is repealed at the start of 1 April 2030.\n\nEndnotes\n\nEndnote 1—About the endnotes\n\n> Note: The endnotes provide information about this compilation and the compiled law.\n\n> Note: The following endnotes are included in every compilation:\n\n> Note: Endnote 1—About the endnotes\n\n> Note: Endnote 2—Abbreviation key\n\n> Note: Endnote 3—Legislation history\n\n> Note: Endnote 4—Amendment history\n\n> Note: Abbreviation key—Endnote 2\n\n> Note: The abbreviation key sets out abbreviations that may be used in the endnotes.\n\n> Note: Legislation history and amendment history—Endnotes 3 and 4\n\n> Note: Amending laws are annotated in the legislation history and amendment history.\n\n> Note: 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.\n\n> Note: 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.\n\n> Note: Misdescribed amendments\n\n> Note: 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.\n\n> Note: 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.\n\nEndnote 2—Abbreviation key\n\n| ad = added or inserted                         | orig = original                     |\n| ---------------------------------------------- | ----------------------------------- |\n| am = amended                                   | par = paragraph(s)/subparagraph(s)  |\n| amdt = amendment                               | /sub‑subparagraph(s)                |\n| c = clause(s)                                  | pres = present                      |\n| C[x] = Compilation No. x                       | prev = previous                     |\n| Ch = Chapter(s)                                | (prev…) = previously                |\n| def = definition(s)                            | Pt = Part(s)                        |\n| Dict = Dictionary                              | r = regulation(s)/rule(s)           |\n| disallowed = disallowed by Parliament          | reloc = relocated                   |\n| Div = Division(s)                              | renum = renumbered                  |\n| exp = expires/expired or ceases/ceased to have | rep = repealed                      |\n| Effect                                         | rs = repealed and substituted       |\n| F = Federal Register of Legislation            | s = section(s)/subsection(s)        |\n| gaz = gazette                                  | Sch = Schedule(s)                   |\n| LA = Legislation Act 2003                      | Sdiv = Subdivision(s)               |\n| LIA = Legislative Instruments Act 2003         | SLI = Select Legislative Instrument |\n| (md not incorp) = misdescribed amendment       | SR = Statutory Rules                |\n| cannot be given effect                         | Sub‑Ch = Sub‑Chapter(s)             |\n| mod = modified/modification                    | SubPt = Subpart(s)                  |\n| No. = Number(s)                                | underlining = whole or part not     |\n| o = order(s)                                   | commenced or to be commenced        |\n| Ord = Ordinance                                |                                     |\n\nEndnote 3—Legislation history\n\n| Name                                                              | Registration                 | Commencement | Application, saving and transitional provisions |\n| ----------------------------------------------------------------- | ---------------------------- | ------------ | ----------------------------------------------- |\n| ASIC Corporations (Cash Settlement Fact Sheet) Instrument 2022/59 | 08/02/2022 (see F2022L00124) | 09/02/2022   |                                                 |\n| ASIC Corporations (Amendment) 2024/883                            | 21/11/2024 (see F2024L01468) | 22/11/2024   |                                                 |\n\nEndnote 4—Amendment history\n\n| Provision affected | How affected |\n| ------------------ | ------------ |\n| s 2                | rep LA s 48D |\n| s 5(2)(b)          | am 2022/59   |\n| s 6                | am 2022/59   |","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The compiled instrument has been amended (see ASIC Corporations (Amendment) 2024/883 registered 21/11/2024; listed in Endnotes 3–4). Amendments affect s 5(2)(b) and the repeal provision (s 6), indicating the instrument’s applicable timing/conditions and expiry have been modified since original enactment. Users should treat the current compilation as the operative scope and review the amendment history for precise changes."},"complexity_factors":["Cross-references to multiple Corporations Act provisions create dependency on external definitions and obligations (authority: s 3; references to ss 948B, 948C, 948D, 948F are operative in s 5).","Composite eligibility test for the exemption requires three concurrent conditions: express client instruction of immediate need, verbal offer within 42 days, and aggregate offer amount ≤ $5,000 (s 5(2)).","Mixed timing obligations: immediate verbal disclosure of prescribed information (s 5(3)(a)); short electronic/non-electronic windows to supply the fact sheet (s 5(3)(b)(i)-(ii)); payment within 2 days of acceptance (s 5(3)(c)).","’Reasonable steps’ standard imposes a fact-sensitive compliance burden and potential evidentiary risk for providing entities (s 5(3)(b) and (c)).","Consumer-protection reversal right lasts up to 12 months and forbids interest or fees on returned amounts, creating ongoing liability exposure (s 5(3)(d)(i)-(ii)).","Defined-term reliance: the instrument depends on the statutory meaning of providing entity (s 4) and other Act terms, so interpretation requires consulting the Act.","Sunset/expiry planning: instrument is repealed 1 April 2030, which affects long-term compliance planning (s 6).","Amendment history indicates recent changes to specific paragraphs, which can alter operational scope and requires checking compilation notes (Endnote 3–4)."],"plain_english_summary":"This instrument allows a ’providing entity’ (eg, an insurer or claims handler) to delay giving the full written Cash Settlement Fact Sheet when a client expressly needs an immediate cash payment: a verbal offer made within 42 days and totalling no more than $5,000 qualifies. The rule replaces the immediate written requirement with mandatory verbal disclosure, short deadlines to deliver the fact sheet (48 hours electronic; 5 business days otherwise), fast payment on acceptance, and a 12‑month, no‑interest reversal right."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument maintains its original narrow purpose as a targeted, temporary exemption for urgent cash settlements. The 2024 amendment (F2024L01468) appears to be a minor technical update (amending sections 5(2)(b) and 6) rather than an expansion of scope. The instrument remains focused on the specific scenario of immediate need cash settlements under $5,000 and retains its automatic repeal date of 1 April 2030."},"complexity_factors":["Very short instrument (only 6 operative sections)","Minimal defined terms (only 2: 'Act' and 'providing entity')","Single, clearly delineated exemption with straightforward conditions","No nested cross-references beyond basic Corporations Act citations","Simple temporal and monetary thresholds (42 days, $5,000, 48 hours/5 days, 12 months)","Clear, linear structure: preliminary → exemption → repeal"],"plain_english_summary":"This temporary exemption lets insurers make verbal urgent cash offers of up to $5,000 (within 42 days of the event) to policyholders who explicitly need immediate funds, skipping the pre-offer written fact sheet.\n\nSafeguards require key information be given verbally, the fact sheet sent soon after, payment within 2 days, and a 12‑month fee‑free right of reversal. Expires 1 April 2030."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-cash-settlement-fact-sheet-instrument-2022-59","history":"/api/acts/asic-corporations-cash-settlement-fact-sheet-instrument-2022-59/history","analysis":"/api/acts/asic-corporations-cash-settlement-fact-sheet-instrument-2022-59/analysis","conflicts":"/api/acts/asic-corporations-cash-settlement-fact-sheet-instrument-2022-59/conflicts","importantCases":"/api/acts/asic-corporations-cash-settlement-fact-sheet-instrument-2022-59/important-cases","documents":"/api/acts/asic-corporations-cash-settlement-fact-sheet-instrument-2022-59/documents"}}