Australia Life Insurance Code of Practice (CALI Life Code) 2.3-2.5: Plain language, consumer-tested documents and inflation-linked increases with an opt-out

What does 2.3-2.5 require?

When introducing a new policy the insurer uses plain language in sales and policy material (medical or technical terms only where needed), consumer-tests the plain language information required for policy documentation and yearly statements, and gives clear information to support informed decisions, especially where the product is bought without an adviser. Where a benefit depends on earnings and rises each year with inflation, the increase is linked to an index that broadly tracks Australian wage or price inflation, and customers are told they can opt out. Group policies are excluded.