What happens to the duty of disclosure when a life insurance policyholder's health changes?

The duty of disclosure in the context of life insurance states that the policyholder must provide accurate and complete information regarding their health and other relevant factors at the time of applying for the policy. This duty typically exists at the inception of the policy and is crucial for the insurer to assess the risk associated with providing coverage.

In the case of a life insurance policyholder's health changing after the policy has begun, while it is essential for the insurer to be made aware of material changes, the original duty of disclosure specifically pertains to the time of application and the establishment of the contract. Once the policy is in force, any new health information does not retroactively affect the disclosure duty at the point of policy issuance, as long as it was disclosed accurately at that time.

Moreover, this duty does not continue indefinitely or apply to the ongoing health changes unless specified under terms involving renewals or additional coverage options. Therefore, the assertion that the duty of disclosure ends at the inception of the policy aligns accurately with the principles governing life insurance contracts.