insurance act 2012

Question 1

what does it do

Answer 1

insurer will need to ask specific questions to obatian relevant inof when you buy insurance.
it will give you protection if you unknowingly give inocrrect or incomplete info.
to deny a claim you need to have carelessly or deliberalty lied or misrep your circumstances
removes the duty on Consumers to disclose any facts that a prudent Insurer would consider
material, and replaces this with a duty on Consumers to take “reasonable care” not to make a
misrepresentation.

Question 2

what policies will the act apply to

Answer 2

to act will apply to insurance policies taken out for personal use
- home, car, pet, travel

Question 3

will there be much change

Answer 3

insurers have chnaged their standards gradually over the past 30 years so this will more set an industry wide standard

Question 4

on what grounds can isnurer still decline a claim on the grounds of non-disclosure

Answer 4

• still be able to deny a claim if it is found that a consurmer, dleiberatly, recklessly or carelessly give incoreect or incomplete info when answering questions about their circumstances.

Question 5

how will the insurance affect renewals

Answer 5

The Act will also apply to insurance renewals after 6th April. You will have a duty to check
your renewal notice and notify your insurer if the information held about your circumstances
has changed or is incorrect. Some renewal notices often ask customers to check that
specific important information is correct.