8BDefinition of pool insurance contract

8B Definition of pool insurance contract

(1) A contract of insurance is a pool insurance contract to the extent (but only to the extent) that: (a) it provides insurance cover that is of a kind referred to in subsection (2) and also of a kind referred to in subsection (3), whether or not the cover is limited or restricted in any way, and whether or not the contract also provides any other insurance cover; or (b) it is prescribed by the regulations for the purposes of this paragraph.

Note: Subsections (5) to (8) contain exclusions.

Type of risk covered (2) The kinds of insurance cover referred to in this subsection are the following: (a) insurance cover for loss of, or damage to, eligible property that is owned by the insured; (b) insurance cover for business interruption and consequential loss arising from: (i) loss of, or damage to; or (ii) inability to use all or part of; eligible property that is owned or occupied by the insured.

Note: An example of insurance cover referred to in paragraph (b) is a contract of insurance that is entered into by the owner of leased premises and insures against loss of rental income if the premises are damaged.

Type of cover (3) The kinds of insurance cover referred to in this subsection are the following: (a) insurance cover in respect of a home building; (b) insurance cover in respect of contents of a home building; (c) if: (i) the insured is the body corporate for a strata or community title development; and (ii) at least 50% of the total floor space of the units in the development is used wholly or mainly for residential purposes; insurance cover in respect of either or both of: (iii) a building located on land that is included in the development; and (iv) contents of such a building; (d) insurance cover (other than insurance cover of a kind referred to in paragraph (a), (b) or (c)): (i) that is in respect of a building, contents of a building, or both; and (ii) for which the total of the sums insured does not exceed the amount prescribed by the regulations for the purposes of this paragraph. Terms used in subsection (3) that are defined by the regulations (4) For the purposes of a paragraph of subsection (3):

building means a building as defined by the regulations for the purposes of that paragraph.

contents means contents as defined by the regulations for the purposes of that paragraph.

home building means a home building as defined by the regulations for the purposes of that paragraph.

Exclusion from subsection (3) of buildings owned and managed by government entities (5) Paragraph (3)(a) or (d) does not apply if: (a) the insured is a government entity as defined by the regulations for the purposes of this subsection; and (b) the home building or building, as the case may be, is managed by such a government entity (whether or not the same as the one referred to in paragraph (a) of this subsection). Other exclusions (6) A contract is not a pool insurance contract to the extent that it provides cover of a kind referred to in paragraph (3)(a) or (b) if the contract also provides cover that would be of a kind referred to in paragraph (3)(d) but for the fact that the last‑mentioned cover does not satisfy subparagraph (3)(d)(ii). (7) A contract is not a pool insurance contract to the extent that: (a) it is a contract of reinsurance; or (b) it provides insurance cover (other than insurance cover of a kind referred to in paragraph (3)(a) or (b)) to a farm business, including: (i) producing crops or livestock, or produce derived from the crops or livestock; and (ii) secondary processing of, or manufacturing goods from, the crops, livestock or produce, at the place where the crops or livestock are produced; and (iii) the interests of the insured in property used in doing something covered by subparagraph (i) or (ii) of this paragraph; or (c) it is prescribed by the regulations for the purposes of this subsection. (8) A contract of insurance is not a pool insurance contract if it is made in the course of State insurance not extending beyond the limits of the State concerned. (9) Subsections (6) to (8) have effect despite subsection (1).