Insurance Void Misrep

A consumer must take reasonable care not to make a misrepresentation when renewing an insurance policy, and an insurer may void the policy if the consumer fails to provide a reasonable estimate of the sum insured.

A reasonable consumer would not understand that taking a car to Spain for personal use at a property constitutes 'exporting' the vehicle under CIDRA, particularly where the declaration provides no definition or explanation of the term.

Under CIDRA, an insurer who establishes a careless qualifying misrepresentation must void the policy and refund premiums, not cancel it and decline the claim.

Under CIDRA, an insurer cannot void a policy for careless misrepresentation where they would have offered insurance on different terms; the appropriate remedy is to offer the policy on corrected terms rather than avoidance.

A joint insurance policy involving both consumer and non-consumer parties may constitute two separate contracts, each subject to different disclosure regimes (CIDRA for consumers, Insurance Act 2015 for non-consumers).

Under CIDRA, an insurer may cancel a policy back to inception if a consumer made a qualifying misrepresentation about material facts, provided the insurer acted fairly based on information available at the time of the decision.

Under the Consumer Insurance (Disclosure and Representations) Act 2012, a consumer must take reasonable care not to make a misrepresentation when providing information for insurance purposes.

A consumer has a responsibility under CIDRA to take reasonable care not to make misrepresations, and an insurer may cancel a policy and apply a fraud marker if false information is provided on their behalf.