This month, Minister of Commerce and Consumer Affairs Kris Faafoi released the terms of reference for a review of New Zealand insurance contract law.
The review will assess issues relating to insurance contract law; develop recommendations on legislative changes needed; and modernise and consolidate insurance contract law into one Act.
The review will examine a range of issues with insurance contract law, including those relating to:
· Disclosure obligations for policyholders
· Technical issues that have been identified by the Law Commission and insurance industry
· Gaps in New Zealand’s regulation of insurers’ conduct
· The scope of terms defined to be not “unfair contract terms” under the Fair Trading Act 1986
· Consumers’ ability to find and compare prices and policies
The Ministry for Business, Innovation and Employment will develop and release an issues paper for public consultation in mid-2018. This will provide an opportunity for comment on the above issues.
Fee Langstone will be following the review process closely. Clients can get in touch with us to learn more about the potential impacts of the review and the changes in legislation that may follow.