ABI considers reform of disclosure process

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The Association of British Insurers in consulting life office officials over the handling of medical disclosure requirements after the Financial Ombudsman Service ruled in favour of a customer who failed to tell insurers about treatment for a lump.

A recent decision by the FOS found in favour of a complainant who had bought a critical illness policy but failed to tell the insurer about consultations they were having after the discovery of a lump, and subsequently found the insurer would not pay out. Such a move from the FOS has forced insurers to look again at the questions asked of consumers when purchasing protection products, who is best placed to answer those questions about a person’s health and under what conditions the question was asked. As a result, the ABI is consulting the life sector on potential reforms for the hand...

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