Chapter 6 - pre contractual information duty

Question 1

Matters which need to be disclosed

Answer 1

• Physical hazards

- Moral hazards

Question 2

Matters which do not need to be disclosed

Answer 2

• Matters of law
• Factors which lesson the risk
• Facts known by the insurers
• Facts which the insurers ought to know
• Information that is waived by the insurers
• Facts which are outside the scope of specific questions
• Facts which an inspection of the risk shoud have revealed
• Facts which the proposer ‘ought’ to know
• Convitionw which are spent

Question 3

Is pre contractual duty the same for compulsory insurance against normal insurance

Answer 3

Yes

Question 4

In non consumer (business) insurance, a breach of duty of fair presentation of the risk may take the form of

Answer 4

• Misrepresentation, what may be innocent or fraudulent

- Non disclosure, which may be innocent or fraudulent

Question 5

During the period of insurance of a commercial policy, the policyholder acquires a subsidiary company for which cover is required under the policy. What specific legal duty of disclosure, applies, if any, in respect of this additional risk at the date of acquisition?

Answer 5

The duty to make a fair representation of the additional risk.

Question 6

An insured owes a positive duty to the insurer to disclose facts when applying for insurance. This is because

Answer 6

the insurer often has to rely solely on the information provided by the insured

Question 7

Jenny has applied for a contents insurance policy which includes some specified items of high value. Richard, her husband, is joint owner of the property and has an unspent previous criminal conviction for car theft which Jenny deliberately did not disclose. If this came to light, the insurer is most likely to:

Answer 7

regard this as fraudulent misrepresentation as Jenny had failed to disclose a moral hazard that she was aware of.