QLD Income protection show cause letter

[Stiks]

Some quick background info: My wife injured her back at work and ended up needing major back surgery. She went onto her super provided income protection. The super company has been painful to deal with, to put it mildly (telling her they've spoken with her manager and HR to organise a return to work 2 weeks post-surgery when she couldn't even walk properly. Surprise they hadn't and this was a blatant lie.)
She's been off work for about 18 months now and has now resigned from her previous job and expected that this would end the insurance payouts. That doesn't seem to the case, although they haven't answered that question when she asked.
While recovering she studied for a new profession and set herself up as a freelancer. She has had a few projects so far and has made a few thousand dollars all up between March and August this year.
She has received a show-cause letter (via e-mail) asking her to provide details including her BAS's, tax assessments, how many hours she works, and how much she has made. She has 14 days to respond, although the date on the pdf letter is from 14 days ago and the email was received a day ago.

My questions are:

Does she legally have to respond?
Are they allowed to ask for those tax documents?
If she doesn't respond would there be legal consequences?

Thanks in advance

 

[Ligshi]

Usually under the insurance contract there is a section where it deals with what's known as a "partial disability" claim. This means that if your wife was working for gain in any way, the insurer will need to consider that income and calculate what she would be entitled to.

Most life insurers use the following formula to determine this payment. This formula takes into account your wife's pre claim earnings and determines the proportion of loss.

If you don't respond to the show cause letter and provide the information, there is no way they can consider the claim moving forward as your wife is working, albeit in a different role.

 

[Philip Green]

well, according to my knowledge, there is different time periods of installment for returning the cashback, with term and conditions.