The Law Commission is proposing insurers should only receive a remedy for non-disclosure where the non-disclosure is ‘material' and the consumer acted fraudulently.
Its latest issues paper is calling for the introduction of a single set of rules on consumer’s rights and obligations in insurance contracts and follows reports dating back to 1957, which criticised insurance contract law as outdated and unduly harsh to policyholders. Although consumers can refer disputes to the Financial Ombudsman Service (Fos), the Law Commission believes this should not be regarded as a substitute for law reform and it argues the present position has created a confusing patchwork of codes and rules. The paper focuses on non-disclosure rules which currently require co...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes