The FMA claims ANZ made false and misleading claims.
The authority said the bank issued duplicate policies to some customers which provided no additional benefits and failed to cancel policies for ineligible customers, while continuing to charge them.
It said the bank contravened the Financial Markets Conduct Act and it is seeking penalties and costs against the bank.
ANZ first notified the regulator about both issues in June 2019, but the FMA said the bank had first identified the problems in 2017 and 2018.
