59ACancellation of contracts of life insurance

#### 59A Cancellation of contracts of life insurance (1) An insurer under a contract of life insurance (the first contract) may cancel the contract if the insured has made a fraudulent claim: (a) under the first contract; or (b) under another contract of insurance with the insurer that provides insurance cover during any part of the period during which the first contract provides insurance cover. (2) If an insurer has cancelled a contract of life insurance under subsection (1) because of a fraudulent claim by the insured under that contract, then, in any proceedings in relation to the claim, the court may, if it would be harsh and unfair not to do so: (a) disregard the cancellation of the contract; and (b) order the insurer to pay, in relation to the claim, such amount (if any) as the court considers just and equitable in the circumstances; and (c) order the insurer to reinstate the contract. (3) If an insurer has cancelled a contract of life insurance (the cancelled contract) under subsection (1) because of a fraudulent claim by the insured under another contract of insurance with the insurer, then, in any proceedings in relation to the claim, the court may, if it would be harsh and unfair not to do so: (a) order the insurer to pay, in relation to the claim, such amount (if any) as the court considers just and equitable in the circumstances; and (b) order the insurer to reinstate the cancelled contract. (4) If an insurer has cancelled a contract of life insurance under subsection (1), then, in any proceedings in relation to the cancellation, the court may, if it would be harsh and unfair not to do so, order the insurer to reinstate the contract. This subsection does not limit, and is not limited by, subsection (2) or (3). (5) In exercising the power conferred by subsection (2), (3) or (4), the court: (a) must have regard to the need to deter fraudulent conduct in relation to insurance; and (b) may also have regard to any other relevant matter.