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Consumer Insurance (Disclosure and Representations) Act 2012

Consolidated Text As Enacted Cited authorities 8 Cited in Amendments 13 Related
Vincent
JurisdictionUK Non-devolved
Citation2012 c. 6
  • In this Act—
    • (1) This section makes provision about disclosure and representations by a consumer to an insurer before a consumer insurance contract is entered into or varied.(2) It is the duty of the consumer to take reasonable care not to make a misrepresentation to the insurer.(3) A failure by the consumer to comply with the insurer's request to confirm or amend particulars previously given is capable of being a misrepresentation for the purposes of this Act (whether or not it could be apart from this subsection) .(4) The duty set out in subsection (2) replaces any duty relating to disclosure or representations by a consumer to an insurer which existed in the same circumstances before this Act applied.(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(1) Whether or not a consumer has taken reasonable care not to make a misrepresentation is to be determined in the light of all the relevant circumstances.the type of consumer insurance contract in question, and its target market,any relevant explanatory material or publicity produced or authorised by the insurer,how clear, and how specific, the insurer's questions were,in the case of a failure to respond to the insurer's questions in connection with the renewal or variation of a consumer insurance contract, how clearly the insurer communicated the importance of answering those questions (or the possible consequences of failing to do so) ,whether or not an agent was acting for the consumer.(3) The standard of care required is that of a reasonable consumer: but this is subject to subsections (4) and (5) .(4) If the insurer was, or ought to have been, aware of any particular characteristics or circumstances of the actual consumer, those are to be taken into account.(5) A misrepresentation made dishonestly is always to be taken as showing lack of reasonable care.the consumer made the misrepresentation in breach of the duty set out in section 2(2) , andthe insurer shows that without the misrepresentation, that insurer would not have entered into the contract (or agreed to the variation) at all, or would have done so only on different terms.(2) A misrepresentation for which the insurer has a remedy against the consumer is referred to in this Act as a “qualifying misrepresentation”.(3) The only such remedies available are set out in Schedule 1.deliberate or reckless, orcareless.knew that it was untrue or misleading, or did not care whether or not it was untrue or misleading, andknew 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.that the consumer had the knowledge of a reasonable consumer, andthat the consumer knew that a matter about which the insurer asked a clear and specific question was relevant to the insurer.in connection with a proposed consumer insurance contract, orin connection with a proposed variation to a consumer insurance contract.(2) Such a representation is not capable of being converted into a warranty by means of any provision of the consumer insurance contract (or of the terms of the variation) , or of any other contract (and whether by declaring the representation to form the basis of the contract or otherwise) .a contract of insurance is entered into by a person (“A”) in order to provide cover for another person (“C”) , or is varied or extended so as to do so,C is not a party to the contract,so far as the cover for C is concerned, the contract would have been a consumer insurance contract if entered into by C rather than by A, andC provided information directly or indirectly to the insurer before the contract was entered into, or before it was varied or extended to provide cover for C.sections 2 and 3 apply in relation to disclosure and representations by C to the insurer as if C were proposing to enter into a consumer insurance contract for the relevant cover with the insurer, andsubject to subsections (3) to (5) and the modifications in relation to the insurer's remedies set out in Part 3 of Schedule 1, the remainder of this Act applies in relation to the cover for C as if C had entered into a consumer insurance contract for that cover with the insurer.(3) Section 4(1) (b) applies as if it read as follows—
    • (b) the insurer shows that without the misrepresentation, that insurer would not have agreed to provide cover for C at all, or would have done so only on different terms.
    the insurer shows that without the misrepresentation, that insurer would not have agreed to provide cover for C at all, or would have done so only on different terms.(4) If there is more than one C, a

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