The current law is more than 100 years old and was designed for ship owners insuring large vessels rather than today's consumer insurance market.
Under that statute, insurers can refuse to pay out if a policyholder failed to disclose any relevant information, even if the consumer answered all questions that were asked honestly and reasonably. The report includes draft legislation to replace the current law and clarify a raft of existing rules and guidance employed by insurers, the Financial Services Authority and the Financial Ombudsman Service.
The report concludes our project: Consumer Insurance Law: Pre-contract Disclosure and Misrepresentation
A joint report with the Scottish Law Commission
Reference number: LC319/SLC219
