Consumer Insurance (Disclosure and Representations) Bill 2011

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This Bill was introduced to redress the imbalance between the way in which insurance applications were assessed in law and the Treating Consumers Fairly (TCF) approach taken by the Insurance industry regulator, The Financial Services Authority (FSA) and the arbiter on disputed insurance claims decisions, The Financial Ombudsman Service (FOS). Currently provisions of British insurance law developed during the 18th and 19th centuries, and partly codified by The Marine Insurance Act 1906 determines how the prudent underwriter might act, a Consumer might have a claim denied if a Consumer neglected to supply "material" information to underwriters when applying for cover. The FOS may overturn that decision when applying the TFC approach. This Bill removes the consumer's duty to volunteer information to the insurer. Instead, consumers are required to answer insurers' questions honestly and to take reasonable care that their replies are accurate.