---
title: "Coverage advice memorandum (insuring clause, exclusions, conditions, non-disclosure and section 54)"
url: "https://ailawframework.com/precedents/insurance-law/coverage-advice-memo"
type: "precedent"
site: "AI Law Framework"
id: "a22-coverage-advice-memo"
area_id: "A22"
kind: "memo"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# Coverage advice memorandum (insuring clause, exclusions, conditions, non-disclosure and section 54)

> An original structure for a coverage advice under Australian law: the question, short answer, facts and policy terms, then a step-by-step analysis of cover, exclusions, conditions and notification, disclosure and…

Canonical page: https://ailawframework.com/precedents/insurance-law/coverage-advice-memo  
Law stated as at: 2026-10-17

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

An original structure for a coverage advice under Australian law: the question, short answer, facts and policy terms, then a step-by-step analysis of cover, exclusions, conditions and notification, disclosure and misrepresentation, section 54, good faith, quantum and next steps.

## Key facts

- Kind: Memo. An internal or advice memo.
- Practice area: [Insurance Law](https://ailawframework.com/precedents/insurance-law.md)
- Jurisdictions: Australia, United Kingdom (England and Wales), New Zealand
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 6 authorities it cites, for Australia, United Kingdom (England and Wales) and New Zealand.

## When to use it

Use when advising an insured, insurer or broker whether a policy responds to a loss or claim. Suitable for general insurance including liability, property, professional indemnity and D&O. For life insurance, adjust the disclosure and remedies analysis. Not for statutory schemes such as workers compensation or CTP.

## How AI may be used

AI may map the notified facts to the policy clauses and build the coverage table with clause references and open questions, but the coverage opinion, the section 54 analysis and any advice on disclosure remedies are professional judgments for the lawyer.

**AI may:**

- Extract insuring clauses, definitions, exclusions, conditions, limits and excesses into a table
- Map each notified fact to the clauses it may engage, with document references
- List information gaps and questions for the insured or insurer
- Build a notification chronology for claims-made policies

**AI must not:**

- Must not state a conclusion on cover or on the effect of section 54
- Must not rely on a policy wording version that has not been confirmed as the one in force
- Must not cite authorities that a lawyer has not read

**The lawyer checks:**

- The policy wording, schedule and endorsements in force at the relevant date are confirmed
- Each step of the analysis is supported by the facts and the clause
- Statutory overlays (sections 54, 13, 14, 28 and 40) are correctly applied
- Assumptions and information gaps are stated, and the advice is limited accordingly

## Authorities

- [Insurance Contracts Act 1984 (Cth) ss 13, 14, 20B, 21, 28, 37, 40, 54, 57](https://www.legislation.gov.au/C2004A02944/latest/text)
- [Maxwell v Highway Hauliers Pty Ltd 2014 HCA 33](https://www.hcourt.gov.au/cases-and-judgments/judgments/judgments-1998-current/maxwell-v-highway-hauliers-pty-ltd)
- [FAI General Insurance Co Ltd v Australian Hospital Care Pty Ltd 2001 HCA 38](https://www.hcourt.gov.au/cases-and-judgments/judgments/judgments-1998-current/fai-general-insurance-company-limited-v-australian-hospital-care-pty-ltd)
- [Insurance Act 2015 (UK) Pt 2](https://www.legislation.gov.uk/ukpga/2015/4/part/2)
- [Consumer Insurance (Disclosure and Representations) Act 2012 (UK)](https://www.legislation.gov.uk/ukpga/2012/6/contents)
- [Contracts of Insurance Act 2024 (NZ)](https://www.legislation.govt.nz/act/public/2024/46/en/latest/)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/insurance-law/coverage-advice-memo and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

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