Duty of Disclosure
Your duty of disclosure
Before you enter into or become insured under a life insurance contract, you have a duty to tell us anything that you know, or could reasonably be expected to know, may affect our decision to insure you and on what terms.
You have this duty until the insurer agrees to insure you.
You have the same duty before you extend, vary or reinstate your cover.
You do not need to tell us anything that:
- reduces the risk we insure you for; or
- is common knowledge; or
- the insurer knows or should know; or
- we waive your duty to tell us about.
If you do not tell us something
In exercising the following rights, the insurer may consider whether different types of cover can constitute separate contracts of life insurance. If they do, the insurer may apply the following rights separately to each type of cover.
If you do not tell us a matter you are required to, and the insurer would not have insured you on the same terms if you had told us, the insurer may avoid your cover within 3 years of issuing it.
If the insurer chooses not to avoid your cover, they may, at any time, reduce the amount you have been insured for. This would be worked out using a formula that takes into account the premium that would have been payable if you had told us everything you should have. However, for death cover, the insurer may only exercise this right within 3 years of issuing the cover.
If the insurer choose not to avoid your cover or reduce the amount you have been insured for, we may, at any time vary your cover in a way that places us in the same position we would have been in if you had told us everything you should have. However, this right does not apply for death cover.
If your failure to tell us is fraudulent, we may refuse to pay a claim and treat your cover as if it never existed.