Part C – Delivering on Our Promises
16. Advertising and information about our Insurance Premium Funding Products
16.1 We will ensure that our advertising and promotional material for our Insurance Premium Funding Products is clear and not misleading or deceptive, or likely to mislead or deceive, and is consistent with ASIC Regulatory Guide 234: Advertising and financial products and services (including credit): Good practice guidance as amended from time to time.
16.2 The information we provide about our Insurance Premium Funding Products will:
a. be clear, concise and accurate;
b. be written in plain language; and
c. use applicable standard terms where appropriate, as defined in the Glossary section of this Code.
16.3 We will answer any questions you have about the features of our Insurance Premium Funding Products and how they work.
17. Terms and conditions for our Insurance Premium Funding Products
17.1 If you are proposing to obtain a contract for an Insurance Premium Funding Product with us, we will give you:
a. our terms and conditions;
b. a statement of our fees and charges; and
c. information pertaining to proposed remuneration to be paid to an Intermediary.
We will do this before a contract for an Insurance Premium Funding Product is made with us. This information may be provided in one or more separate documents.
17.2 The Insurance Premium Funding Product contract documentation will:
a. be clear, concise and accurate;
b. be in plain language;
c. be distinct from our marketing material;
d. be drafted to be compliant with all applicable laws and regulations (including those related to unfair contract terms); and
e. set out whether the customer can make an Early Repayment and the terms of that Early Repayment.
17.3 Nothing in clause 17.2 limits our right to determine the pricing of our Insurance Premium Funding Products on a commercial basis.
17.4 We will make sure any fees and charges payable to us as a result of the Insurance Premium Funding Product (such as Late Payment Fees or direct debit Dishonour Fees) are reasonable having regard to our costs.
18. Review of fees and charges
18.1 We will regularly review the effectiveness of our disclosure of our fees and charges to you.
19. When we lend to you
19.1 When we lend to you, we:
a. expect you to provide honest and accurate information to us when applying for an Insurance Premium Funding Product or when applying to renew an existing Insurance Premium Funding Product;
b. will use a risk assessment process to assess whether the Insurance Premium Funding Product is suitable for your circumstances and meets your needs; and
c. will periodically review this risk assessment process and associated criteria for our Insurance Premium Funding Product.
20. Remuneration arrangements
20.1 We will offer only clear and transparent remuneration arrangements to our Representatives, Intermediaries or Intermediary Group (Broker Group) and/or Authorised Representative Network, and other third parties involved in the referral, marketing or distribution of our Insurance Premium Funding Product to you.
20.2 Where we pay Intermediary Remuneration in connection with an Insurance Premium Funding Product, before (or, if this is not practicable, at the time) you enter into the Insurance Premium Funding Product contract, we will:
a. clearly tell you:
- the nature and type(s) of Intermediary Remuneration or other benefits that we are aware the Intermediary or Intermediary Group (Broker Group) and/or Authorised Representative Network is to receive in respect of, or that is attributable to, the service provided in relation to the Insurance Premium Funding Product that a reasonable person in the circumstances would consider could influence them in the provision of the service;
- when and how it is payable by us to them (e.g. if it is payable before or after acquiring the Insurance Premium Funding Product);
- such other information as required by law; and
b. answer any questions you have about the above.
20.3 Pursuant to clause 20.2, we will only pay:
a. a Commission to an Intermediary, and no other fees; or
b. a Service Fee to an Intermediary Group (Broker Group) and/or Authorised Representative Network, or licensee, except for where the licensee is an Intermediary.
20.4 We may pay an Intermediary Group (Broker Group) and/or Authorised Representative Network, or licensee a Commission instead of a Service Fee in limited circumstances, such as payment may be in addition to a Service Fee where there is a clear distinction in roles, or where additional services and value are provided, or where both the services of an Intermediary and/or an Intermediary Group (Broker Group) and/or Authorised Representative Network are offered.
20.5 Where we have entered into a Multi-year Agreement, it is expected these agreements contain termination clauses with a 60-day written notice period for termination by either party, unless the agreement requires a different notice period.
20.6 We will not pay any remuneration or benefit to an Intermediary and/or Intermediary Group (Broker Group) and/or Authorised Representative Network and/or Representative to the extent prohibited by law.
20.7 We will adhere to the transitional arrangements set out in Part D with regards to only offering Intermediary Remuneration that is upfront and transparent. We will use best endeavours to cease all Conflicted Remuneration and amend any Insurance Premium Funding Product contract or other documentation to ensure consistent use of payments terminology ahead of the transitional arrangements, where possible.
20.8 We will use best endeavours to require that our Representatives, Authorised Representative Network, Intermediaries and/or Intermediary Group (Broker Group) comply with relevant industry codes, particularly those aspects that relate to the management of conflicts of interest and the disclosure of remuneration or other benefits that the Intermediary and/or Representative is to receive in distributing the Insurance Premium Funding Product to you.
21. Timely, clear and effective communication
21.1 We are committed to clear and effective communication with our customers. We will write our communications in plain language, avoiding legal and technical jargon as far as possible.
21.2 On the first page of the agreement for the Insurance Premium Funding Product contract or the quote you accept, or on the digital screen we use to sell our product to you, we will clearly set out some key features of the proposed Insurance Premium Funding Product, including:
a. the Term of the Insurance Premium Funding Product contract;
b. the Loan Amount;
c. the Total Cost of Credit, comprising the total of the Interest Expense, Application Fee, Intermediary Remuneration and any Other Fees;
d. the Total Repayment Amount, comprising the total of the Loan Amount and the Total Cost of Credit;
e. the Annual Percentage Rate (APR);
f. the Average Monthly Repayment;
g. any other information we think may assist you (including a Total Interest Percentage);
h. details of security taken in consideration for the Insurance Premium Funding Product (if any); and
i. the steps that we could take if you default on a payment to us.
22. Explanation of the annual percentage rate
22.1 We will provide you with information about the Annual Percentage Rate (APR) to accompany the disclosures in clause 21.2. This disclosure will be:
The APR is the rate that is used to calculate the cost of the loan taking account of the reducing balance of the Loan Amount, expressed as an annual rate. For the purposes of calculating the APR, the cost of the loan is exclusive of fees.
The APR is indicative and assumes the loan starts on the inception date of the insurance policy(ies) being funded. The Total Repayment Amount (including Application Fee) will not exceed the sum shown even though the APR will differ if the date of acceptance of the offer is later than the inception date of the insurance policy.
The APR is not a term of the offer and is provided to allow a simple comparison of insurance premium funding products.
23. Notifying changes to your Insurance Premium Funding Product
23.1 Subject to clause 23.2, or unless a longer period is required by law, we will give you at least thirty (30) days' prior notice before we change your Insurance Premium Funding Product. However, any agreed changes can commence from the time the change is agreed with you, or from a later agreed time.
23.2 We may give you a shorter notice period, or no notice, if:
a. any default is unable to be remedied
b. it is reasonable for us to do so to manage a material and immediate risk relating to the nature of the relevant default, your particular circumstances, or the value of the security, or
c. we have already given you a period to remedy the default, and you have not remedied that default.
23.3 Any commitment we may make to notify you by electronic methods is subject to you keeping us informed of, as applicable, your current electronic contact information.
24. Electronic communications
24.1 When the law allows us to do so, we may communicate with you electronically rather than in paper form.
24.2 We may do this:
a. by sending the information using a form of electronic communication; or
b. where it is reasonable for us to do so, by notifying you that we have made the information available electronically (for example, on a website) and how you may retrieve the information.
24.3 You must notify us of any change to your electronic contact information.
25. Copies of documents, statements and other information
25.1 We will, at your request, give you a copy of:
a. the Insurance Premium Funding Product contract (including the terms and conditions, and the standard fees);
b. a statement of your outstanding balance; and
c. any notice we previously gave to you which is relevant to us exercising our rights.
25.2 We will do this within ten (10) Business Days of your request.
25.3 If, for some reason, we are unable to provide a document within these timeframes, we will advise you of this, together with the expected timeframe for providing the document.
25.4 Documents may be provided in electronic form, including in the form of a computer-generated record, or in any other form as mutually agreed.
26. Information privacy and security
26.1 We will comply with the Privacy Act 1988 (Cth), including the Australian Privacy Principles and the Privacy (Credit Reporting) Code 2014 (as in force, and as amended from time to time), including with respect to credit reporting and the collection, storage, use and disclosure of your personal information.
26.2 We will treat your personal information with respect and in accordance with our Privacy Policy.
26.3 We will not use or disclose that information to any other organisation unless:
a. you have consented to us using and disclosing your personal information
b. we think it is reasonably necessary for enforcement related activities carried out by or on behalf of an enforcement body or we are required to by law
c. we are otherwise not restricted from doing so under applicable laws.
26.4 We will take reasonable steps to protect your personal information from misuse or loss, and from unauthorised access, modification or disclosure. We will regularly review the security and reliability of our services.
26.5 We will publish our Privacy Policy on our website.
27. If you are in financial difficulty
27.1 If we are advised by you, or a representative acting on your behalf, that you are experiencing difficulty in meeting your financial obligations to us, we will work with you in good faith and in accordance with our policies with a view to seeking to assist you to meet your ongoing financial obligations to us.
27.2 We may do this by negotiating a new and mutually acceptable repayment arrangement with you, having regard to your financial circumstances as a whole at the relevant time, as well as your obligations to us. We are not obliged, however, to do so.
27.3 Without limiting clause 27.1, we will have procedures in place to ensure we:
a. respond promptly to any request or application made to us (we may also initiate contact to discuss your financial situation)
b. genuinely consider your request or application in good faith, including by taking your financial situation into account.
27.4 As part of implementing clause 27.3(b) and when considering your application, we will delay any contractual rights and remedies that may be available to us.
27.5 We will tell you whether we will be able to provide you with any contract variation or other assistance in relation to your financial situation and the reasons for our decision within twenty-one (21) days of an application.
28. Prompt and fair resolution of complaints
28.1 In the event of a dispute, complaint or expression of dissatisfaction, you will have access to internal and external dispute resolution processes, including AFCA or any other scheme approved by an appropriate government body.
28.2 You may provide us with details of any complaint or expression of dissatisfaction against or concerning us in the manner provided for in our Insurance Premium Funding Product documentation.
28.3 We commit to responding to complaints or expression of dissatisfaction in a manner that is:
a. prompt and efficient
b. consistent with the law
c. fair to everyone involved.
28.4 We will only be able to deal effectively with your complaint or expression of dissatisfaction if you continue to communicate with us, and respond to our reasonable requests for information, while we are considering the complaint.
29. Our complaints handling process
Internal complaints handling
29.1 We will have an internal process for handling complaints from our customers in relation to the Insurance Premium Funding Products we provide. This process will cover all customer complaints or expressions of dissatisfaction, including those about breaches of this Code. We will appropriately engage with our Representatives and/or Intermediaries and/or Intermediary Group (Broker Group) and/or Authorised Representative Network where we are required to resolve a complaint and where it is relevant to do so.
29.2 We will provide information on our website regarding how we deal with complaints, including your right to take unresolved complaints to our external dispute resolution scheme.
29.3 Our complaint resolution procedures will comply with ASIC Regulatory Guide 271 - Internal dispute resolution, except where we promise to improve on those standards and requirements.
29.4 We will work to resolve all complaints as quickly as possible.
29.5 We will acknowledge all complaints within one (1) Business Day if received via electronic communication to an email or facsimile machine, or otherwise as soon as practicable and will send an initial response within ten (10) Business Days from the date of receipt of the complaint.
29.6 We will tell you the name and contact details of the person assigned to liaise with you about your complaint.
29.7 Your complaint will be handled by a person with appropriate authority, knowledge and experience. This will not be the person whose decision or conduct your complaint relates to.
29.8 We will make a decision about your complaint within thirty (30) calendar days. If we cannot make our decision within this timeframe then, before this deadline passes, we will tell you in writing:
a. the reasons for the delay;
b. your right to take your complaint to AFCA; and
c. AFCA’s contact details.
29.9 When we have completed our investigation of your complaint, we will provide you with a written response, which will include:
a. the outcome of our investigation;
b. your right to take your complaint to AFCA; and
c. AFCA’s contact details.
29.10 There may be some circumstances where (unless otherwise required to do so) we will not provide a written response to you because we have:
a. resolved the complaint to your satisfaction within five (5) Business Days, or
b. given you an appropriate explanation and / or apology and there are no further actions required to reasonably address your complaint.
29.11 We must give you the information that we relied on when making a decision about your complaint within ten (10) Business Days of you asking us for that information.
29.12 We will work with you (or your nominated representative if you have one) to resolve your complaint. In certain instances, we may only be able to resolve your complaint where you respond to our requests for information.
External complaints handling
29.13 Our external dispute resolution scheme (including AFCA or any other scheme approved by an appropriate government body) may not deal with your dispute unless you have attempted to resolve the problem with us first, and either:
a. we have made a formal proposal to resolve the complaint, and you have told us that the proposal is not acceptable to you, or;
b. at least thirty (30) Calendar days or the timeframe outlined by the external dispute resolution scheme has elapsed since you made your complaint.
29.14 Our external dispute resolution scheme, as applicable, may consider whether we have complied with the standards of this Code when seeking to resolve a matter before it.
29.15 AFCA can consider whether we have complied with this Code when seeking to resolve a matter. To lodge a complaint with AFCA, contact them on either 1800 931 678 or info@afca.org.au.
Code compliance committee
29.16 In addition to contacting us or AFCA, any person can make a complaint regarding us, and/or report an alleged breach of this Code by us to the CCC. The CCC is an independent committee that has been established to monitor our compliance with this Code (as outlined in the separate Terms of Reference for the CCC).
29.17 If you have a specific complaint about us, you should first talk to us, and then AFCA. The CCC will not consider your complaint if you are still trying to resolve it with us, or within AFCA.
29.18 The CCC is authorised to investigate any activities within its Terms of Reference and, in carrying out its administrative, compliance and investigative roles, is authorised to take such actions as are within its powers and to make recommendations to the AFIA Board, if appropriate, where further actions are required.
29.19 The CCC will have access to relevant records to carry out its task and will have the right to seek such additional information and explanations as (acting reasonably) it considers appropriate in the circumstance provided that a Code Compliant Member is not obliged to provide access to records if to do so would cause it to be in breach of existing obligations at law (including obligations of privacy and confidentiality).
29.20 We will co-operate and comply with all reasonable requests of the CCC in the performance of its monitoring and investigative functions.
29.21 The CCC can investigate any Alleged Breaches of this Code (as defined in the Terms of Reference for the CCC) at its discretion.
29.22 Where it is appropriate for it to do so, the CCC can make a range of recommendations to resolve a complaint. In some circumstances, the CCC is also able to impose sanctions upon us.
29.23 To lodge a complaint with the CCC, contact them at CCC-IPF@afia.asn.au. Further details about the powers of the CCC in the Insurance Premium Funding Code of Practice By-Laws and the Insurance Premium Funding Code of Practice Terms of Reference can be found here.
30. Trained and competent Representatives and Intermediaries
30.1 We will make sure that our Representatives are well trained so that they can competently do their work and understand this Code and how to comply with this Code.
30.2 We will regularly review the effectiveness of our training programs for our Representatives. This includes:
a. having policies and procedures for our Representatives that require them to conduct their services appropriately;
b. only allow our Representatives to provide services that match their expertise;
c. require our Representatives to hold any licence the law requires;
d. require our Representatives, when they are providing a service to you, to tell you the service we have authorised them to provide and that they are acting on our behalf;
e. require our Representatives to first get our approval before subcontracting any services they perform on our behalf;
f. require our Representatives to tell us about any complaint received by them or breach of this Code by them when acting on our behalf, as soon as reasonably practicable but no later than two (2) Business Days;
g. require our Representatives to provide reasonable cooperation and make available to the CCC any information relevant to their and our compliance with the Code;
h. ensure records of our Representatives’ training are kept for at least seven (7) years and make the records available for examination by the Code Compliance Committee on request
i. measure the effectiveness of our Representatives’ training by appropriately monitoring their performance;
j. require additional or remedial training to address any identified deficiencies or improvements required in our Representatives’ training and ongoing development; and
k. maintain and keep current a training and development plan for our Representatives that is appropriate for the services provided by them or to be provided by them in the future.
30.3 If we are aware that our Representative’s performance does not meet the relevant standards of this Code, or you raise any concerns with us about the conduct of our Representatives, then we will address this. For example, we may terminate our contract with them, commence disciplinary action or require they undergo further training.
30.4 In respect of any Intermediary, Intermediary Group (Broker Group) and/or Authorised Representative Network we use, we will also ensure that:
a. we provide them with up-to-date information in relation to our products, services, policies and procedures;
b. they are kept informed of our hardship policies and processes;
c. they are aware of the need to tell us if a customer is at risk of or experiencing financial difficulties; and
d. they are aware they are to tell us about any complaint received by them in connection with our Insurance Premium Funding Product or service as soon as reasonably practicable but no later than two (2) Business Days from the receipt of that complaint.
31. Revision and amendment of the Code
31.1 The Board may, after consultation with, and after seeking comments and suggestions from:
a. the members of the CCC at the time,
b. the Code Compliant Members at the time; and
c. such other organisations or people as it considers appropriate
review and amend this Code at any time it considers it appropriate to do so.
31.2 As part of complying with clause 31.1, this Code will be reviewed every two years from the commencement date of this Code to ensure that it continues to promote high industry standards of service for customers, reflects appropriate industry developments (notably, remuneration and disclosure practices), and continues to build on best practices across industry.