The corporate regulator has found advertising for two CommInsure life insurance policies contained “deceptive statements”.
The regulator’s review examined advertising material for Simple Life Insurance (sold directly to consumers) and Total Care Plan (sold through advisers) released “from mid-2013 to March 2016”.
In a statement, ASIC said, “Misleading and deceptive statements are likely to have been made on some of CommInsure's websites about the extent to which customers would be entitled to cover for trauma if they suffered a heart attack.”
Subsequently, the insurance company will contribute $300,000 towards the Financial Rights Legal Centre, which the statement said “will be used for the Insurance Law Service”, a consumer insurance advice service for vulnerable and disadvantaged consumers.
CommInsure will also commission an external firm to conduct a compliance review of its advertising sign-off processes, ASIC said.
“The review will look at whether CommInsure's processes and procedures ensure compliance with the ASIC Act, and make recommendations to improve compliance if required,” the regulator said.