Do life policy terms bind Assurance company?

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    Do life policy terms bind Assurance company?

    I sought a quote for a life policy and on initial application was quoted £80pcm.
    After completing a full application this was increased to £280pcm because I declared that I had been taking flying lessons, which is classified as a dangerous activity.
    As I had not taken any lessons for about 9 months I wrote to the insurance company clarifying that I had not flown for at least 9 months and that I had no immediate plans for any more flying lessons.

    There was no response until I received revised policy documents showing the premium reduced to £85pcm. The policy document I received clearly states under "Information about person covered" that I am "currently, or intend to, take part in a hazardous activity" which it identifies as "Private Pilot's Licence". Under "further details" it states "currently training for pilots licence".

    On the "Life Cover Schedule" it states that there are "No additional exclusions".

    A year has now passed and I am thinking of planning some lessons. The policy states "Please read information about the person covered. If... there have been any changes to your pursuits since your cover started please phone us straight away". My pursuit is already clearly declared on the policy document.

    On the face of the policy documentation I am covered for flying lessons. Are the terms as set out in the documentation binding on the insurance company?
    Assume I know nothing.

    #2
    Yes, but- as you previously said that "[you] had not flown for at least 9 months and that [you] had no immediate plans for any more flying lessons"- you need to undo the effect of that. Write again to the Insurer and explain.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      Is it that simple?

      The bank with which I have my mortgage has a registered interest on the policy. In the event of my death it would almost certainly be the bank claiming on the policy. The only information available to the bank is what is on the schedule which was produced by the insurer AFTER I had informed them that I was not currently flying at the time of taking out the policy (I did not exclude it for good). Either it is an error on the part of the insurance company, or they have taken the view that the frequency of my flying is low enough that it is not a concern (I suspect the former but it could also be the latter since they made no premium uplift for my scuba diving because of the infrequency). Either way, the bank (or another claimant) is presumably entitled to rely on the information set out by the insurance company on the policy documents?
      Assume I know nothing.

      Comment

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