CommInsure has acknowledged ASIC’s concerns foreshadowed in ASIC’s media release issued in March 2017 regarding a small number of CommInsure’s advertising materials.
The advertisements, which were primarily produced for financial advisers, were published between mid-2013 and March 2016 for its life insurance policies.
In March 2016, CommInsure updated its Heart Attack definition back to May 2014 and made further changes by backdating that definition to October 2012 in March this year.
As a result, CommInsure has paid 32 customers around $4 million after reviews of claims against the updated definitions.
Throughout the same period CommInsure paid approximately $4.4 billion in life and income protection payments to around 86,000 customers.
CommInsure will commission a compliance review of its advertising sign-off processes and procedures.
CommInsure will also donate $300,000 to the Insurance Law Service as a Community Benefit Payment.