38ETermination of insurance

#### 38E Termination of insurance (1) This section applies if: (a) the Commonwealth has undertaken insurance under section 38C in relation to a dwelling‑house that is wholly or partially owned by, or a right of residence in a retirement village that is a right held by, a person who is: (i) a member of the Defence Force or a former member of the Defence Force; or (ii) a member of a Peacekeeping Force or a former member of a Peacekeeping Force; and (b) the person dies. Notice that insurance will cease to have effect (2) If this section applies: (a) the insurance undertaken in relation to the dwelling‑house, or the right of residence in the retirement village, does not cease to have effect because of the death of the person; and (b) unless the insurance has already ceased to have effect for some other reason, the Secretary must give reasonable notice in writing to each person having an interest in the dwelling‑house, or the right of residence in the retirement village, that the insurance will cease to have effect on a day specified in the notice. Day insurance ceases to have effect (3) If the Secretary gives a notice under paragraph (2)(b), the insurance ceases to have effect on the day specified in the notice, unless it has already ceased to have effect. Exception (4) If this section applies and the person referred to in paragraph (1)(a) is survived by a widow or widower, the Secretary must not give a notice under paragraph (2)(b) in relation to the dwelling‑house or the right of residence in the retirement village. (5) Subsection (4) does not prevent the insurance ceasing to have effect for a reason other than the giving of a notice under paragraph (2)(b). Notice not a legislative instrument (6) A notice under paragraph (2)(b) is not a legislative instrument.