Qualifying misrepresentations
I15Qualifying misrepresentations: classification and presumptions
1
For the purposes of this Act, a qualifying misrepresentation (see section 4(2)) is either—
a
deliberate or reckless, or
b
careless.
2
A qualifying misrepresentation is deliberate or reckless if the consumer—
a
knew that it was untrue or misleading, or did not care whether or not it was untrue or misleading, and
b
knew that the matter to which the misrepresentation related was relevant to the insurer, or did not care whether or not it was relevant to the insurer.
3
A qualifying misrepresentation is careless if it is not deliberate or reckless.
4
It is for the insurer to show that a qualifying misrepresentation was deliberate or reckless.
5
But it is to be presumed, unless the contrary is shown—
a
that the consumer had the knowledge of a reasonable consumer, and
b
that the consumer knew that a matter about which the insurer asked a clear and specific question was relevant to the insurer.