Pre contractual information duty lists Chapter 6

Question 1

Factors which will be taken into account to determine whether a consumer has taken reasonable care not to make a misrepresentation under the Consumer Insurance (Disclosure and Representations) Act 2012

Answer 1

1. the type of consumer insurance contract in question, and its target market;
2. any relevant explanatory material which is publicity produced or authorised by the insurer;
3. how clear and how specific the insurer’s questions were;
4. in the case of a failure to respond to the insurer’s questions regarding the renewal or variation of a consumer insurance contract, how clearly the insurer communicated the importance of answering those questions
5. whether or not an agent was acting for the consumer.

Question 2

Three ways intermediary will be deemed agent of insurer under Consumer Insurance (Disclosure and Representations) Act 2012

Answer 2

1. is the appointed representative of the insurer;
2. collects information from the consumer with express authority from the insurer to do so; or
3. has authority to bind the insurer to cover and does so.

Question 3

Nine protected characteristics under Equality Act 2010

Answer 3

1. age;
2. disability;
3. gender reassignment;
4. marriage and civil partnership;
5. pregnancy and maternity;
6. race;
7. religion or belief;
8. sex; and
9. sexual orientation.

Question 4

Five questions underwriters ask to determine moral hazard

Answer 4

1. Identity of insured
2. Criminal acts
3. Previous claims
4. Any other adverse insurance history eg declinatures
5. Details of other policies in force

Question 5

8 items that do not require disclosure

Answer 5

1. Matters of law
2. Factors which lessen the risk
3. Facts known by insurers
4. Facts which insurers ought to know
5. Information that is waived by insurers
6. Facts that are outside the scope of the specific questions
7. Facts which an inspection of the risk should have revealed
8. Facts which the proposer does not know

Question 6

Three remedies of insurers in the event of careless misrepresentation under CIDRA and Insurance Act

Answer 6

1. Void the contract if can prove would not have written
2. Amend terms if would have applied different terms
3. Proportion down claim if would have charged higher premium