Consumers will no longer have to volunteer information material to the insurer’s decision if the FCA’s plans get the go-ahead.
Instead of having to volunteer information consumers will have a duty to take reasonable care not to make a misrepresentation during pre-contractual negotiations.
If the consumer fails to take reasonable care, the FCA stated an insurer would be entitled to a remedy against the consumer, such as cancelling their policy and not paying any claims, or only paying a proportion of a claim.
The deadline for comments on the FCA’s plans is 6 August.
http://www.fca.org.uk/your-fca/documents/consultation-papers/cp13-3-quarterly-consultation-no1
