Consumer Insurance (Disclosure and Representations) Act 2012

Careless misrepresentations—treatment of contract for the future

9 (1) This paragraph—

(a) applies if the qualifying misrepresentation was careless, but

(b) does not relate to any outstanding claim.

(2) Paragraphs 5 and 6 (as read with paragraph 4) apply as they apply where a claim has been made.

(3) Paragraph 7 (as read with paragraph 4) applies in relation to a claim yet to be made as it applies in relation to a claim which has been made.

(4) If by virtue of sub-paragraph (2) or (3), the insurer would have either (or both) of the rights conferred by paragraph 6 or 7, the insurer may—

(a) give notice to that effect to the consumer, or

(b) terminate the contract by giving reasonable notice to the consumer.

(5) But the insurer may not terminate a contract under sub-paragraph (4)(b) if it is wholly or mainly one of life insurance.

(6) If the insurer gives notice to the consumer under sub-paragraph (4)(a), the consumer may terminate the contract by giving reasonable notice to the insurer.

(7) If either party terminates the contract under this paragraph, the insurer must refund any premiums paid for the terminated cover in respect of the balance of the contract term.

(8) Termination of the contract under this paragraph does not affect the treatment of any claim arising under the contract in the period before termination.

(9) Nothing in this paragraph affects any contractual right to terminate the contract.