---
title: "Decide which pre-contractual duty applies to the insurance contract"
url: "https://ailawframework.com/practice/insurance-law/decide-which-pre-contractual-duty-applies-to-the-insurance-contract"
type: "task"
site: "AI Law Framework"
id: "A22-MA20261022-1"
practice_area: "Insurance Law"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Decide which pre-contractual duty applies to the insurance contract

> From the policy schedule, the proposal and any notice the insurer gave, extract the insured, the class of cover, whether the insurance is described as personal, domestic or household, whether the contract is new…

Canonical page: https://ailawframework.com/practice/insurance-law/decide-which-pre-contractual-duty-applies-to-the-insurance-contract  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Insurance Law](https://ailawframework.com/practice/insurance-law.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the policy schedule, the proposal and any notice the insurer gave, extract the insured, the class of cover, whether the insurance is described as personal, domestic or household, whether the contract is new business, and whether there is a written notice stating that the contract is a consumer insurance contract. Do not decide which duty applies. |
| What the lawyer must review | The lawyer decides which duty applies and confirms it on the current compilation. Section 11AB makes a contract a consumer insurance contract if the insurance is obtained wholly or predominantly for the personal, domestic or household purposes of the insured, or if it is new business and the insurer gave a written notice stating that it is a consumer insurance contract. If it is alleged in a proceeding that the contract is a consumer insurance contract, it is presumed to be one unless the contrary is established. Section 20A says that Division applies to consumer insurance contracts and to proposed contracts that would be consumer insurance contracts. Section 20B is the duty to take reasonable care not to make a misrepresentation, judged with regard to all the relevant circumstances, including the matters in section 20B(3) and (4). A failure to answer, or an obviously incomplete or irrelevant answer, is not by itself a misrepresentation. Section 21 is a separate duty of disclosure of matters the insured knows, or a reasonable person could be expected to know, are relevant to the insurer's decision. The lawyer does not treat section 20A as switching off section 21 unless the current compilation says so. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

Trace relied-on content to independent sources and check for relevant material the output has missed.

- What the AI does: From the policy schedule, the proposal and any notice the insurer gave, extract the insured, the class of cover, whether the insurance is described as personal, domestic or household, whether the contract is new business, and whether there is a written notice stating that the contract is a consumer insurance contract. Do not decide which duty applies.
- What the lawyer does: The lawyer decides which duty applies and confirms it on the current compilation. Section 11AB makes a contract a consumer insurance contract if the insurance is obtained wholly or predominantly for the personal, domestic or household purposes of the insured, or if it is new business and the insurer gave a written notice stating that it is a consumer insurance contract. If it is alleged in a proceeding that the contract is a consumer insurance contract, it is presumed to be one unless the contrary is established. Section 20A says that Division applies to consumer insurance contracts and to proposed contracts that would be consumer insurance contracts. Section 20B is the duty to take reasonable care not to make a misrepresentation, judged with regard to all the relevant circumstances, including the matters in section 20B(3) and (4). A failure to answer, or an obviously incomplete or irrelevant answer, is not by itself a misrepresentation. Section 21 is a separate duty of disclosure of matters the insured knows, or a reasonable person could be expected to know, are relevant to the insurer's decision. The lawyer does not treat section 20A as switching off section 21 unless the current compilation says so.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Read section 11AB(1) and (2) against the schedule and any written notice. Do not classify from the product name alone.
2. If a proceeding alleges the contract is a consumer insurance contract, start from the section 11AB(3) presumption and record what would displace it.
3. Open the current compilation before saying that section 21 does not apply. Section 20A says its Division applies to consumer insurance contracts. It does not, in the text opened, say that section 21 is repealed for those contracts.
4. On a section 20B question, record the questions the insurer asked and how the importance of answering them was explained. Those are section 20B(3) matters.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [Insurance Contracts Act 1984 (Cth) section 11AB](https://classic.austlii.edu.au/au/legis/cth/consol_act/ica1984220/s11ab.html) (checked 2026-10-22)
- [Insurance Contracts Act 1984 (Cth) section 20A](https://classic.austlii.edu.au/au/legis/cth/consol_act/ica1984220/s20a.html) (checked 2026-10-22)
- [Insurance Contracts Act 1984 (Cth) section 20B](https://classic.austlii.edu.au/au/legis/cth/consol_act/ica1984220/s20b.html) (checked 2026-10-22)
- [Insurance Contracts Act 1984 (Cth) section 21](https://classic.austlii.edu.au/au/legis/cth/consol_act/ica1984220/s21.html) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/insurance-law/decide-which-pre-contractual-duty-applies-to-the-insurance-contract/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*