How will any changes to the threshold affect the contract limits offered by insurers?
There will be time for insurers to reflect any changes to the threshold in their insurance contract: • an increase in the threshold would be set by regulation and can only take effect three months before the start of a policy year. A decrease in the threshold would not take effect until at least three months after the regulations were registered on the federal Register of Legislative Instruments, would have an immediate effect. • a regulation to change the threshold will only apply to contracts entered into after the making of the regulation.
