In which instance will an insurer typically not pursue a claim of non-disclosure?

An insurer typically will not pursue a claim of non-disclosure if the insurer was already aware of the undisclosed information. This situation is significant because the principle of non-disclosure requires that the insured must inform the insurer about all material facts that could influence the underwriting decision. If the insurer is already cognizant of the information that has not been disclosed, they cannot claim that they were misled, as they had the opportunity to consider the impact of that information on the risk assessment.

In scenarios where an insurer had knowledge of the relevant facts beforehand, pursuing a claim of non-disclosure could be seen as unnecessary, as their decision-making process regarding the insurance contract already took into account the information in question. Therefore, the insurer's awareness provides a clear reason for not pursuing a non-disclosure claim.

In contrast, factors such as the relevance of the missing information, intent behind a potential non-disclosure, or whether the information was available at the time of the proposal do not negate the insurer's responsibility to act on what they know. Such aspects may influence how a claim is evaluated but do not provide the same definitive grounds for foregoing a non-disclosure claim.