Under the duty of disclosure, what must a proposer disclose about an insurance policy?

The proposer is required to disclose material facts upon which the risk is to be assessed. Material facts are those pieces of information that could influence an insurer's decision-making process regarding the acceptance of a risk or the terms offered for an insurance policy.

In the context of insurance, these facts are crucial because they can directly impact the insurer's understanding of the risk profile associated with the applicant. For instance, if a proposer fails to disclose a material fact, such as a previous claim history or existing medical conditions, the insurer might offer rates that are inadequate or could even deny a claim later on due to the perceived misrepresentation.

The other choices differ in their nature and relevance to the duty of disclosure. For instance, while facts of law might affect the overall legal standing of the agreement (making them significant), they are not classified as material facts pertaining to the risk assessment process. Financial details concerning a proposer’s ability to pay the premium are important for determining affordability but do not typically fall within the purview of risk assessment. Finally, personal requirements related to the suitability of a policy are relevant from a consumer perspective; however, they do not directly affect the underwriting process used by insurers to assess the risk involved in providing coverage.