Page 78 - MEDICAL AND HEALTH INSURANCE

MEDICAL AND HEALTH INSURANCE

These are a few examples duty of disclosure for proposer:

 Before insurance contract is entered into or varied, insurance company may

request a proposer to answer any specific questions that are relevant to the
decision of the insurer whether to accept the risk or not and the rates and

terms to be applied.

 It is the duty of the proposer to take reasonable care not to make a

misrepresentation to the licensed insurer when answering any questions under

subparagraph (1).
 Before insurance contract is renewed, insurance company may either:

(a) Request a proposer to answer one or more specific questions.

(b) Give the proposer a copy of any matter previously disclosed by the proposer
in relation to the contract and request the proposer to confirm or amend

any change to that matter,

(c) It is the duty of the proposer to take reasonable care not to make a

misrepresentation to the insurance company when answering any,

(d) Insurance company shall, before insurance contract is entered into, varied
or renewed, clearly inform the proposers in writing of the proposer's pre-

contractual duty of disclosure under this paragraph, and that this duty of

disclosure shall continue until the time the contract is entered into, varied
or renewed.

(e) Others.

If further medical evidence is required for an insurance application, the applicant

would have to furnish it at his own expense.

After the assessment of risk is done, the underwriter would make underwriting

decisions regarding the application for insurance, which could be one of the

following:

 Accepted as preferred basis
 accepted as standard basis

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