Notice · Insurance Law
Notice requiring a liability insurer to state whether it admits the policy applies and will conduct the defence (section 41(2))
A notice from an insured under s 41(2) of the Insurance Contracts Act 1984 (Cth) requiring a liability insurer to say in writing whether it admits the policy applies to a claim and whether it will conduct the negotiations and proceedings.
- Kind
- Notice. A formal notice to serve or publish.
- Where it applies
- Australia
- AI use
- Yellow AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at
- 18 October 2026
- Status
- Maintained. Checked on 18 October 2026 against the 2 authorities it cites, for Australia.
- Version
- 1
- Source
- Written for this library
When to use it
Use when a claim has been made under a liability policy, the insurer has not confirmed indemnity, and the insured needs to settle, make an admission or run its defence without waiting indefinitely for the insurer's position.
How AI may be used
AI may complete the notice from the claim file and draft the chronology of the insurer's responses; the lawyer decides when to give it, what time is reasonable and what the insured will do next.
AI may
- Extract the policy details, the claim details and every communication with the insurer into a chronology
- Complete the notice fields from the verified chronology
- Diarise the response date and follow-ups
AI must not
- Must not advise the insured to settle, admit liability or make a payment
- Must not state what period is a "reasonable time" for the insurer to respond
- Must not characterise the insurer's conduct as a breach of its duty of utmost good faith without the lawyer's decision
The lawyer checks
- A claim has been made under the policy and the policy requires the insurer's consent to settlements or admissions
- The time given for the insurer's answer is reasonable in the circumstances, for example given hearing or settlement dates
- If the insurer does not answer in time, the insured understands what s 41(3) does and does not protect before acting
- The notice is given in writing to the insurer at the address the policy requires
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
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- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
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All precedents for Insurance Law · Tasks and AI use in this area