Law Commissions´ Proposals For Reform - Intermediaries And Pre-Contract Information

The English and Scottish Law Commissions published their third Issues Paper on 21 March 2007. It focuses on the position where a mistake or fraud by an insurance intermediary leads to non-disclosure/misrepresentation of information to an insurer. The proposals are to be read in conjunction with the preceding Issues Papers which looked at reform of the law in respect of non-disclosure/misrepresentation and warranties generally.

The Commissions have identified three main issues. Firstly, if at the pre-contract stage the intermediary non-discloses/misrepresents material information received from an applicant, what should the consequence be and who should be held to account? Secondly, if the intermediary enters incorrect information on a proposal form that is then signed by an applicant, should the intermediary continue to be treated as the agent of the applicant and the applicant be bound by its signature? Thirdly, section 19 of the Marine Insurance Act 1906