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Insurance Act 2015

Consolidated Text As Enacted Cited authorities 15 Cited in Amendments 21 Related
Vincent
JurisdictionUK Non-devolved
Citation2015 c. 4
Year2015
  • In this Act (apart from Part 6) —
    • “consumer insurance contract” has the same meaning as in the Consumer Insurance (Disclosure and Representations) Act 2012;
    • “non-consumer insurance contract” means a contract of insurance that is not a consumer insurance contract;
    • “insured” means the party to a contract of insurance who is the insured under the contract, or would be if the contract were entered into;
    • “insurer” means the party to a contract of insurance who is the insurer under the contract, or would be if the contract were entered into;
    • “the duty of fair presentation” means the duty imposed by section 3(1) .
    • (1) This Part applies to non-consumer insurance contracts only.references to the risk are to be read as references to changes in the risk relevant to the proposed variation, andreferences to the contract of insurance are to the variation.(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”.which makes the disclosure required by subsection (4) ,which makes that disclosure in a manner which would be reasonably clear and accessible to a prudent insurer, andin 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.disclosure of every material circumstance which the insured knows or ought to know, orfailing 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.it diminishes the risk,the insurer knows it,the insurer ought to know it,the insurer is presumed to know it, orit 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.(1) This section provides for what an insured knows or ought to know for the purposes of section 3(4) (a) .what is known to the individual, andwhat is known to one or more of the individuals who are responsible for the insured's insurance.part of the insured's senior management, orresponsible for the insured's insurance.the individual is, or is an employee of, the insured's agent; andthe information was acquired by the insured's agent (or by an employee of that agent) through a business relationship with a person who is not connected with the contract of insurance.the insured and any other persons for whom cover is provided by the contract, andif the contract re-insures risks covered by another contract, the persons who are (by virtue of this subsection) connected with that other contract.(6) Whether an individual or not, an insured ought to know what should reasonably have been revealed by a reasonable search of information available to the insured (whether the search is conducted by making enquiries or by any other means) .(7) In subsection (6) “information” includes information held within the insured's organisation or by any other person (such as the insured's agent or a person for whom cover is provided by the contract of insurance) .“employee”, in relation to the insured's agent, includes any individual working for the agent, whatever the capacity in which the individual acts,an individual is responsible for the insured's insurance if the individual participates on behalf of the insured in the process of procuring the insured's insurance (whether the individual does so as the insured's employee or agent, as an employee of the insured's agent or in any other capacity) , and“senior management” means those individuals who play significant roles in the making of decisions about how the insured's activities are to be managed or organised.(1) For the purposes of section 3(5) (b) , an insurer knows something only if it is known to one or more of the individuals who participate on behalf of the insurer in the decision whether to take the risk, and if so on what terms (whether the individual does so as the insurer's employee or agent, as an employee of the insurer's agent or in any other capacity) .an employee or agent of the insurer knows it, and ought reasonably to have passed on the relevant information to an individual mentioned in subsection (1) , orthe relevant information is held by the insurer and is readily available to an individual mentioned in subsection (1) .things which are common knowledge, andthings which an insurer offering

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