Newspaper article Coffs Coast Advocate (Coffs Harbour, Australia)

Insurance and Disclosure Traps

Newspaper article Coffs Coast Advocate (Coffs Harbour, Australia)

Insurance and Disclosure Traps

Article excerpt

MANNY WOOD

HYPOTHETICAL

WHEN Robert was 35 years of age, he took out a life insurance policy.

He had been receiving treatment for high blood pressure for approximately two years and although it was possible that Robert did mention it to the insurance agent, there is no record of this in the proposal application filled out by Robert.

Unfortunately, Robert dies from a heart attack at 55 years of age and his wife Sally, as executor of his estate makes a claim on the insurance policy for the deceased estate.

Prior to the insurance company considering the claim further, they require authority to contact Robert's doctor.

When they receive the information, the insurer ascertains that Robert was receiving treatment for high blood pressure prior to the policy being taken out.

The insurance company refuses to pay out the policy on the basis that there was a material non-disclosure of Robert's high blood pressure treatment at the time he took out the policy. …

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