What is the key difference in the duty of disclosure between non-life policies and life policies?

The key difference in the duty of disclosure between non-life policies and life policies lies in the timing and nature of the obligations. In the case of life insurance policies, the duty of disclosure primarily applies at the inception of the policy. This means that the applicant must disclose all relevant information at the time of applying for the insurance, which may affect the underwriting decision.

Once the life policy is in force, the duty to disclose does not continue in the same way as it does for non-life policies. Non-life policies, on the other hand, have a continuous duty of disclosure, meaning that the insured must inform the insurer of any changes that may affect the risk throughout the term of the policy. This creates a dynamic obligation for non-life policies, while for life policies, the focus is predominantly on the initial application stage.

This distinction is crucial for understanding how the duty of disclosure functions in different types of insurance, as it aligns with the nature of the risk assessment and the period during which the insurer is exposed to potential claims.