Non-disclosure deadline needs further clarity

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IFAs and providers are calling for further clarification on whether proposals to introduce a ‘non-contestability' period into life insurance policies would apply to deliberate non-disclosures.

The Law Commission has suggested insurers should only be allowed to turn down a claim on the grounds of non-fraudulent non-disclosure if they prove the non-disclosure within three years of the policy being taken out. Nick Kirwan, protection market director at Scottish Widows, says the proposal could help restore consumer confidence, particularly in the critical illness (CI) market, but concerns have been raised about how ‘non-fraudulent’ will be defined and measured. Andy Milburn, IFA market manager at Royal Liver, states: “There are two types of non-disclosure – deliberate and non-del...

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