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(1)This section applies to a contract of insurance referred to in section 13(1)(a); and in this section—
“A” and “the Cs” have the same meaning as in section 13,
“consumer C” means an individual who is one of the Cs, where the cover provided by the contract for that individual would have been a consumer insurance contract if entered into by that person rather than by A, and
“non-consumer C” means any of the Cs who is not a consumer C.
(2)A term of the contract of insurance, or any other contract, which puts a consumer C in a worse position as respects any matter dealt with in section 13 than that individual would be in by virtue of that section is to that extent of no effect.
(3)A term of the contract of insurance, or any other contract, which puts a non-consumer C in a worse position as respects any matter dealt with in section 13 than that person would be in by virtue of that section is to that extent of no effect, unless the requirements of section 17 have been met in relation to the term.
(4)Section 17 applies in relation to such a term as it applies to a term mentioned in section 16(2), with references to the insured being read as references to A rather than the non-consumer C.
(5)In this section references to a contract include a variation.
(6)This section does not apply in relation to a contract for the settlement of a claim arising under a contract of insurance to which this section applies.
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