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Consumer (Disclosure and Representations) Act

Important Notice: The Consumer (Disclosure and Representations) Act 2012

If you are an H W Wood Ltd Consumer Policyholder, this will have a direct impact on your future disclosure obligations.  The Act – due to be implemented as early as March 2013 – is designed to change the burden of information disclosure on the part of a Consumer Policyholder, which is defined as:
 
1. an individual who enters into the contract wholly or mainly for purposes unrelated to the individual’s trade, business or profession, and
2. a person who carries on the business of insurance and who becomes a party to the contract by way of that business (whether or not in accordance with permission for the purposes of the Financial Services and Markets Act 2000)
 
Historically, when making an application to purchase insurance cover, a Consumer Policyholder has been required to 'offer / volunteer' any and all information & material facts which a 'prudent insurer' would deem necessary for it to evaluate the risk, assess appropriate terms & conditions, and quote an appropriate price.
 
The Act - once implemented - changes the obligation that you 'offer / volunteer' information to one of 'the insurer must ask for the information it wishes to have'.
 
What does this mean for you if you are a Consumer Policyholder?  In brief, provided you answer any 'questions asked by an insurer' honestly and accurately, and supply any 'information requested by an insurer' without misrepresentation, you are less likely to be faced with non-payment of a claim and / or avoidance of your insurance contract by your insurer.
 
Please note that these are only brief highlights of the main element of the Act, and do not represent the full scope of the Acts provisions.  If you would like further details about the Act, the full scope of its provisions, or have any questions about the above, please contact your usual H W Wood Ltd contact.