A recent case provides some excellent insights into how a Court
regards some replacement advice practices.
The case,
Commonwealth Financial Planning Ltd v Couper [2013] NSWCA
444, was an appeal by Commonwealth Financial Planning Ltd
seeking a retrial of an earlier case brought against it. It was
decided in the New South Wales Court of Appeal.
Noel Stevens made a claim against CFP after being diagnosed with
pancreatic cancer and having a claim under his life and trauma
policy denied by CommInsure. The denial of the claim was on the
basis that Mr Stevens had not disclosed various things in his
application – including the amount that he drank. Section
29(3) of the Insurance Contracts Act 1984 allows an
insurer to avoid a policy for non-fraudulent non-disclosure for up
to three years after it is entered into if the insurer can show it
would not have entered into the contract had the disclosures been
made. Mr Stevens had changed from a Westpac policy on advice
