12DOMeaning of add‑on insurance product

12DO Meaning of add‑on insurance product

(1) An add‑on insurance product, in relation to another product or service (the principal product or service), is a financial product that: (a) is offered or sold to a consumer (the customer) in connection with the customer acquiring, or entering into a commitment to acquire, the principal product or service; and (b) is offered or sold by: (i) the provider of the principal product or service; or (ii) another person, in accordance with an arrangement to which the provider of the principal product or service is a party; and (c) manages financial risk (within the meaning of section 12BAA) relating to the principal product or service; and (d) either: (i) is a contract of insurance; or (ii) provides for the customer to benefit from a contract of insurance to which the provider of the financial product is a party. (2) For the purposes of subsection (1), contract of insurance includes: (a) a contract that would ordinarily be regarded as a contract of insurance even if some of its provisions are not by way of insurance; and (b) a contract that includes provisions of insurance in so far as those provisions are concerned, even if the contract would not ordinarily be regarded as a contract of insurance. (3) The regulations may provide that a customer is, for the purposes of this Subdivision, taken to have entered into a commitment to acquire a product or service of a specified class at a time specified in the regulations.