PART 2

The duty of fair presentation

The duty of fair presentation
3
1
Before a contract of insurance is entered into, the insured must make to the insurer a fair presentation of the risk.
2
The duty imposed by subsection (1) is referred to in this Act as “the duty of fair presentation”.
3
A fair presentation of the risk is one—
a
which makes the disclosure required by subsection (4),
b
which makes that disclosure in a manner which would be reasonably clear and accessible to a prudent insurer, and
c
in which every material representation as to a matter of fact is substantially correct, and every material representation as to a matter of expectation or belief is made in good faith.
4
The disclosure required is as follows, except as provided in subsection (5)—
a
disclosure of every material circumstance which the insured knows or ought to know, or
b
failing that, disclosure which gives the insurer sufficient information to put a prudent insurer on notice that it needs to make further enquiries for the purpose of revealing those material circumstances.
5
In the absence of enquiry, subsection (4) does not require the insured to disclose a circumstance if—
a
it diminishes the risk,
b
the insurer knows it,
c
the insurer ought to know it,
d
the insurer is presumed to know it, or
e
it is something as to which the insurer waives information.
6
Sections 4 to 6 make further provision about the knowledge of the insured and of the insurer, and section 7 contains supplementary provision.