Consumer Insurance Act 2012

Subdecks (1)

Cards (5)

  • consumer insurance act (1)
    consumer-> individual who proposes to, or who does, enter into a consumer insurance contract
    insurance contract -> wholly or mainly for the purposes unrelated to the individuals trade, business or profession
    consumers duty -> has a duty to take reasonable care not to make a misrepresentation -> failure to reply to an insurers request to confirm or amend info previously given can be a misrepresentation
  • consumer insurance act (2) - reasonable care
    -> whether or not consumer has taken reasonable care will be determined in light of all relevant circumstances
    • type of consumer contract in question
    • relevant explanatory material produced or authorised by the insurer
    • whether questions asked were clear & specific
    • whether insurer communicated importance of answering such questions
    -> standard of care is that of a reasonable consumer -> consumer considered to have knowledge of a reasonable consumer & to know a matter the insurer asks clear & specific questions about = relevant to insurer
  • gain remedies if can show: (1)
    • deliberate or reckless -> can treat contract as if it never existed // refuse all claims // refuse any premiums paid unless unfair to consumer
    • deemed to be deliberate or reckless -> if consumer knew or did not care whether it was true or misleading // AND knew or did not care the matter the misrepresentation was of relevance to the insurer
  • gain remedies if can show: (2)
    • consumer made a careless misrepresentation that is one they genuinely believed to be true, but didn't take sufficient care to check the facts -> insurer would not have entered contract = refuse all claims and return premiums
    -> insurer would've entered contract on different terms and these are implied into the contract
    -> insurer would have entered into the contract but charged a higher premium // reduced proportionately the amount paid on a claim