Treasury has released add-on reform draft regulations for feedback after the Federal Government this month announced a number of insurance product classes that would not fall under the regime.

Parliament last year passed the deferred sales reform legislation, which from October 5 will generally prohibit the sale of add-on products for at least four days after a customer has entered into a commitment to acquire the main item or service.

The draft regulations released last week set out the classes where exemptions will apply for a five-year period, including compulsory third party cover, home and contents, landlord insurance and travel.

Add-on insurance bought by consumers in the course of carrying on a business are also exempt from the deferred sales model if the premium payable exceeds $40,000.

Feedback on the regulations is due by the end of next week. Details are available here.