12DQProhibition on selling add‑on insurance products before end of add‑on insurance deferral period etc.

#### 12DQ Prohibition on selling add‑on insurance products before end of add‑on insurance deferral period etc. Contraventions by provider of principal product or service (1) A person (the first person) contravenes this subsection if: (a) another person (the customer) acquires, or enters into a commitment to acquire, a product or service (the principal product or service) from the first person; and (b) the first person also sells a financial product to the customer; and (c) the financial product is an add‑on insurance product in relation to the principal product or service. > Note: Failure to comply with this subsection is an offence (see section 12GB). (2) A person (the first person) contravenes this subsection if: (a) another person (the customer) acquires, or enters into a commitment to acquire, a product or service (the principal product or service) from the first person; and (b) a third person sells the customer a financial product that is an add‑on insurance product in relation to the principal product or service. > Note: Failure to comply with this subsection is an offence (see section 12GB). Exception for sale after add‑on insurance deferral period (3) Subsections (1) and (2) do not apply if: (a) there is an add‑on insurance deferral period in relation to the customer acquiring, or entering into a commitment to acquire, the principal product or service; and (b) the add‑on insurance product is sold to the customer after the end of the add‑on insurance deferral period. > Note: A defendant bears an evidential burden in relation to the matter in subsection (3): see subsection 13.3(3) of the Criminal Code. Contravention by third party provider (4) A person (the third party provider) contravenes this subsection if: (a) the third party provider sells a financial product to a consumer (the customer); and (b) the financial product is an add‑on insurance product in relation to a product or service (the principal product or service) offered or provided by another person; and (c) either: (i) there is no add‑on insurance deferral period in relation to the customer acquiring, or entering into a commitment to acquire, the principal product or service; or (ii) there is such an add‑on insurance deferral period, and the third party provider sells the add‑on insurance product to the customer before the end of the period. > Note: Failure to comply with this subsection is an offence (see section 12GB). Timing of sale (5) For the purposes of this section, an add‑on insurance product is taken to be sold to a customer no later than the first time at which no further action from the customer is required for the sale to occur (even if the sale does not occur until a later time).