The Law Commission's proposal to introduce a non-contestability period into protection policies will cause insurers to be more selective about which clients they put on their books, according to speakers at an RGA life insurance conference.
Jason Hurley, head of sales and marketing at RGA UK, believes 5% of the population are “liars” and the introduction of a non-contestability period, which would make insurers prove non-disclosure within three years of the policy being taken out in order to decline a claim, would cause insurers to be more “fussy” about who they give cover to. He suggests some insurers may design simplified application forms which only allow a select group of people to take out cover and, as a result, the industry may move towards preferred life policies. Hurley also suggests a non-contestability period co...
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