Recently I was confronted with a matter where a client failed to disclose information on her insurance application form, which led to a claim being repudiated.
Luckily, there are procedures to be followed in order to determine whether or not the repudiation is valid. The important aspect that needs to be considered in determining if the repudiation is valid, is whether or not the non-disclosure comes down to material information that was omitted.
On this point our case law has been settled that the insurance has the burden of proof to show that the non-disclosure was material of sort and the repudiation was valid. Even though you have remedies and appeal procedures to be followed, you would rather not want to be embroiled in a dispute which could have been avoided.
The rule of thumb when dealing with any insurance, is to fully disclose all the information that you have available, even if you may think that it is not relevant or not important at all. Therefore, rather take sufficient time to thoroughly complete the required forms ensuring that you do not face a situation where a claim is repudiated. In some instances you may even be assisted by your broker while completing the forms. If this is the situation keep in mind that it remains your responsibility to ensure that all the information is provided.
Should you have a claim that was repudiated, do not hesitate to contact me to assist with further representations.