Fair Presentation of Risk

Presentation of Risk, Non-Disclosure and Misrepresentation

Alan specialises in matters associated with Presentation of Risk, Non-Disclosure and Misrepresentation. Alan has been retained by both insurers and assureds in over 40 cases involving allegations of Non-Disclosure and Misrepresentation. Alan draws on his knowledge and experience as an insurance practitioner to assist parties in a litigation and offer his guidance as to whether a particular circumstance is material or not.

The standard test is whether a prudent hypothetical underwriter would consider a particular circumstance to be material or not and had full and proper disclosure been made, how would a prudent underwriter respond to the risk. Would, for example, a prudent underwriter have refused to offer terms? If that is the case, an underwriter will be in a position to avoid the policy.

On the other hand, would a prudent underwriter have accepted to underwrite the risk but on different terms, such as a higher deductible or subject to a higher premium?

Another factor that should be taken into account in the light of changes in custom and practice in the industry following the passing of the Insurance Act 2015 is whether information provided by an assured during the policy placement process, have put an underwriter on notice to make additional enquiries.

If an underwriter was so put on notice, then he cannot sit back and do nothing. The underwriter must make additional enquiries and satisfy himself as to the true circumstances underlying the risk. This may involve raising additional questions with an assured.