When a bank insists that a borrower should insure the mortgaged property with an insurance company in which the bank has a substantial interest:

Question

Quizplus · Accepted Answer

This scenario is an example of 'third line forcing', which occurs when a business conditions the supply of goods or services on the condition that the purchaser buys goods or services from a third party. In this case, the bank is insisting that the borrower must insure the mortgaged property with a specific insurance company, thereby engaging in 'third line forcing' in breach of section 47(6) of the Competition and Consumer Act 2010 (Cth).

When a Bank Insists That a Borrower Should Insure the Mortgaged