Paul Jacobson

Insurance policy applications: don’t hold back

You may have noticed that when you apply for an insurance policy you are asked quite a few questions about your health, occupation, leisure activities and even your shoe size!  When you complete these forms it is important to be completely honest and not to answer in any misleading way.  It is equally important to disclose information which may be relevant to the insurance company even if you are not asked.  The reason for this is that a failure to disclose something which has a material impact on the assessment of your application and/or the premiums you will be paying can be grounds for the insurance company to repudiate your insurance policy when you need it most; at claim stage.

Discuss your application with your financial advisor but be sure to answer the questions honestly and complete the form correctly.  I was involved in a case a few years ago where the life assured’s broker didn’t think it relevant to mention his client’s diabetes in the application form and when the life assured filed a claim and my client, the insurance company, discovered the omission, my client repudiated on the basis that the omission was highly material and would most certainly have had an impact on whether the life assured would have been granted cover and the premium that would have been charged.  The fact that his advisor didn’t think it necessary to disclose the condition didn’t save him.  He lost an expensive law suit and his chances of benefitting from his insurance cover.

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Comments

  1. Ronelle avatar
    Ronelle

    i would like to know what case you referred to and if there are other cases on point. my opinion on this situation is that, due to the fact that the agent felt that the information is not applicable and that it should be entered on the proposal form, the insurance company should be liable due to its agents act.

    Reply
  2. Ronelle avatar
    Ronelle

    i would like to know what case you referred to and if there are other cases on point. my opinion on this situation is that, due to the fact that the agent felt that the information is not applicable and that it should be entered on the proposal form, the insurance company should be liable due to its agents act.

    Reply
  3. Ronelle avatar
    Ronelle

    i would like to know what case you referred to and if there are other cases on point. my opinion on this situation is that, due to the fact that the agent felt that the information is not applicable and that it should be entered on the proposal form, the insurance company should be liable due to its agents act.

    Reply
  4. Paul avatar
    Paul

    We looked at this issue a couple years ago and the answer really depended on who the broker was working for. If the broker was an independent agent then he/she would be regarded as the insured’s agent and the insured would be responsible for the broker’s conduct. If the broker was employed by the insurer then the insurer is probably on the hook.

    Reply
  5. Paul avatar
    Paul

    We looked at this issue a couple years ago and the answer really depended on who the broker was working for. If the broker was an independent agent then he/she would be regarded as the insured’s agent and the insured would be responsible for the broker’s conduct. If the broker was employed by the insurer then the insurer is probably on the hook.

    Reply
  6. Paul avatar
    Paul

    We looked at this issue a couple years ago and the answer really depended on who the broker was working for. If the broker was an independent agent then he/she would be regarded as the insured’s agent and the insured would be responsible for the broker’s conduct. If the broker was employed by the insurer then the insurer is probably on the hook.

    Reply
  7. Paul avatar
    Paul

    We looked at this issue a couple years ago and the answer really depended on who the broker was working for. If the broker was an independent agent then he/she would be regarded as the insured's agent and the insured would be responsible for the broker's conduct. If the broker was employed by the insurer then the insurer is probably on the hook.

    Reply
  8. DarcyKitchin avatar
    DarcyKitchin

    The truth is that people have addictions and that is not always a bad thing. Internet is surely not among the addictions someone should worry about. It's a great way to spend your time. The messy part about internet addiction has been created by parents upset that their kids spend way too much time playing games instead of learning or reading something useful. These days it's internet, 30 years ago it was football but I didn't hear about any football rehab

    Reply

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