When can an insurer not claim non-disclosure if the proposer answered specific questions but omitted related facts?

The correctness of the answer stems from the fundamental principle of insurance underwriting and the obligations imposed on both the insurer and the proposer. When an insurer's questions are specific and clearly defined, the proposer is expected to provide complete and accurate information relevant to those questions. If a proposer has answered these specific questions but still failed to disclose related facts that are not explicitly sought by the insurer, then a claim of non-disclosure may not be valid. This is because the insurer cannot expect the proposer to volunteer information that was not specifically requested.

If the insurer has made it clear what information is being sought through precise questions, it would not be reasonable for the insurer to claim non-disclosure based on information that wasn’t directly solicited. This principle reinforces the idea that the responsibility lies with an insurer to formulate questions adequately to gather the necessary information for risk assessment.

In contrast, situations involving the issuance of a cover note or payment of a premium do not inherently affect the obligations regarding disclosure of information. Similarly, delays in requesting additional information may mitigate some responsibilities but do not directly impact the validity of the claim unless it relates specifically to the clarity of the original questions asked. Thus, the essence of the correct answer is rooted in the insurer's precise inquiry, making it crucial