SCHEDULES
SCHEDULE 1Insurers' remedies for qualifying misrepresentations
Part 1Contracts
Careless misrepresentations—treatment of contract for the future
I19
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.