Non-disclosure rules and the law of agency must be reformed as part of a wider review of insurance contract law to make the advice process fairer for intermediaries and consumers, says the Chartered Insurance Institute (CII).
In its submission to the English and Scottish Law Commission’s scoping paper on insurance contract law - which seeks opinions on a review of long-term and general insurance contracts - the CII says it is a priority for non-disclosure issues to be considered because the current law can leave consumers at a disadvantage. The scoping paper was published in January to tackle a legal framework which is considered "outdated and unduly harsh to policyholders". In particular, the paper suggests some insurers could reject claims on the basis of non-disclosure in situations where the non-disclosu...
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