Consumer Insurance (Disclosure and Representations) Act 2012

Main definitions

— s. 1 — Main definitions In this Act— “consumer insurance contract” means a contract of insurance between— an individual who enters into the contract wholly…

Disclosure and representations before contract or variation

(1) This section makes provision about disclosure and representations by a consumer to an insurer before a consumer insurance contract is entered into or…

Reasonable care

(1) Whether or not a consumer has taken reasonable care not to make a misrepresentation is to be determined in the light of all the relevant circumstances. (2)…

Qualifying misrepresentations: definition and remedies

(1) An insurer has a remedy against a consumer for a misrepresentation made by the consumer before a consumer insurance contract was entered into or varied…

Qualifying misrepresentations: classification and presumptions

(1) For the purposes of this Act, a qualifying misrepresentation (see section 4(2)) is either— (a) deliberate or reckless, or (b) careless. (2) A qualifying…

Warranties and representations

(1) This section applies to representations made by a consumer— (a) in connection with a proposed consumer insurance contract, or (b) in connection with a…

Group insurance

(1) This section applies where— (a) a contract of insurance is entered into by a person (“A”) in order to provide cover for another person (“C”), or is varied…

Insurance on life of another

(1) This section applies in relation to a consumer insurance contract for life insurance on the life of an individual (“L”) who is not a party to the contract…

Agents

Schedule 2 applies for determining, for the purposes of this Act only, whether an agent through whom a consumer insurance contract is effected is the agent of…

Contracting out

(1) A term of a consumer insurance contract, or of any other contract, which would put the consumer in a worse position as respects the matters mentioned in…

Consequential provision

(1) … (2) … (3) In section 152 of the Road Traffic Act 1988 (exceptions to duty of insurers to satisfy judgment against persons insured against third-party…

Short title, commencement, application and extent

(1) This Act may be cited as the Consumer Insurance (Disclosure and Representations) Act 2012. (2) Section 1 and this section come into force on the day on…

Sch. 1 para. 1

This Part of this Schedule applies in relation to qualifying misrepresentations made in connection with consumer insurance contracts (for variations to them…

Sch. 1 para. 2

If a qualifying misrepresentation was deliberate or reckless, the insurer— (a) may avoid the contract and refuse all claims, and (b) need not return any of the…

Sch. 1 para. 3

If the qualifying misrepresentation was careless, paragraphs 4 to 8 apply in relation to any claim.

Sch. 1 para. 4

The insurer's remedies are based on what it would have done if the consumer had complied with the duty set out in section 2(2), and paragraphs 5 to 8 are to be…

Sch. 1 para. 5

If the insurer would not have entered into the consumer insurance contract on any terms, the insurer may avoid the contract and refuse all claims, but must…

Sch. 1 para. 6

If the insurer would have entered into the consumer insurance contract, but on different terms (excluding terms relating to the premium), the contract is to be…

Sch. 1 para. 7

In addition, if the insurer would have entered into the consumer insurance contract (whether the terms relating to matters other than the premium would have…

Sch. 1 para. 8

“Reduce proportionately” means that the insurer need pay on the claim only X% of what it would otherwise have been under an obligation to pay under the terms…

Sch. 1 para. 9

(1) This paragraph— (a) applies if the qualifying misrepresentation was careless, but (b) does not relate to any outstanding claim. (2) Paragraphs 5 and 6 (as…

Sch. 1 para. 10

This Part of this Schedule applies in relation to qualifying misrepresentations made in connection with variations to consumer insurance contracts.

Sch. 1 para. 11

If the subject-matter of a variation can reasonably be treated separately from the subject-matter of the rest of the contract, Part 1 of this Schedule applies…

Sch. 1 para. 12

Otherwise, Part 1 applies (with any necessary modifications) as if the qualifying misrepresentation had been made in relation to the whole contract (for this…

Sch. 1 para. 13

Part 1 is to be read subject to the following modifications in relation to cover provided for C under a group insurance contract as mentioned in section 7 (and…

Sch. 1 para. 14

References to the consumer insurance contract (however described) are to that part of the contract which provides for cover for C.

Sch. 1 para. 15

References to claims and premiums are to claims and premiums in relation to that cover.

Sch. 1 para. 16

The reference to the consumer is to be read— (a) in paragraph 2(b), as a reference to whoever paid the premiums, or the part of them that related to the cover…

Sch. 1 para. 17

Section 84 of the Marine Insurance Act 1906 (return of premium for failure of consideration) is to be read subject to the provisions of this Schedule in…

Sch. 2 para. 1

This Schedule sets out rules for determining, for the purposes of this Act only, whether an agent through whom a consumer insurance contract is effected is…

Sch. 2 para. 2

The agent is to be taken as the insurer's agent in each of the following cases— (a) when the agent does something in the agent's capacity as the appointed…

Sch. 2 para. 3

(1) In any other case, it is to be presumed that the agent is acting as the consumer's agent unless, in the light of all the relevant circumstances, it appears…

Sch. 2 para. 4

(1) If it appears to the Treasury that the list of factors in sub-paragraph (3) or (4) of paragraph 3 has become outdated, the Treasury may by order made by…