Friends Prov in bold critical illness move

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Friends Provident has taken what it calls a "small step" towards rebuilding consumer confidence in critical illness after announcing it will pay a proportion of a claim even if non-disclosure has been identified.

The life and pensions firm says as long as the non-disclosure is not related to the cause of the claim and the insurer would not have turned down the application at the start, it will make an offer based on a proportion of the total claim. Friends Provident, which says the move is a market first, also reveals its 2006 critical illness claims records, pointing out it paid 483 critical illness claims totalling just under £28m last year. The move also follows concerns emerging from the Protection Review Conference, held in London yesterday, that non-disclosure remains the “most important i...

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