For these questions, you will also need to also refer to the following legislation: Insurance Contracts Act 1984 (Cth) Life Insurance Act 1995 (Cth) Corporations Act 2011 (Cth).

Mary (age 40) had an income protection policy in force for two years. She became quite ill with COVID-19 and needed to take six months off work. Her policy has a 30-day waiting period with a benefit period to age 65.

As she has been off work for more than 30 days, she decided to lodge a claim for income protection with her insurer.

When assessing her claim, the insurer found that Mary had an operation due to melanoma, which was not disclosed. She answered No to the question Have you ever been diagnosed with cancer? The condition was not serious, which is why Mary forgot to disclose the information when applying for income protection insurance. The operation was a day procedure only. She did not intend to defraud the insurer.

Explain the impact this can have on her claim for income protection. In your answer, quote the relevant legislation. (5 marks)