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Insurance and the law
| Last updated: 18.06.04 |
An insurance company is not legally obliged to insure anyone, and an insurance company does not have to give reasons for refusing insurance.
Whenever you apply for any form of insurance (an application is called a `proposal'), the insurance company will want you to answer some questions. If the insurance company then issues you with a policy, but later finds out that you have answered any question untruthfully, they can treat the policy as void, i.e. refuse to pay up for any claims, and can sometimes also keep any premiums you have paid.
As a general rule, you must also tell an insurance company – even if they do not ask specifically – about anything which might affect their decision whether or not to insure you, or on what terms. But what information you need to volunteer in any particular situation can be difficult to decide. It is best to seek professional advice if you are unsure about how to answer questions from an insurance company (see below).