CommInsure will pay $300,000 to a consumer advice service and have its advertising sign-off process independently reviewed after an Australian Securities and Investments Commission (ASIC) investigation.

ASIC found misleading and deceptive statements about trauma cover entitlements after heart attacks were likely made on some CommInsure web pages.

The statements could have caused policyholders to believe they would generally be entitled to a lump sum payment, when only cases that met defined medical criteria were covered.

CommInsure will commission an external review of its advertising processes and report to ASIC by June 30. The cash penalty will go to the Financial Rights Legal Centre.

ASIC examined advertising from mid-2013 to March 2016 that covered the Total Care Plan, sold through financial advisers, and Simple Life Insurance, marketed direct to consumers.

CommInsure updated the definition of heart attack in its trauma life insurance products in March 2016 and is reassessing past claims under the new criteria back to October 2012.

By late last month the insurer had paid additional benefits for 32 claims totalling about $4 million.