Which statement is true about the duty of disclosure under common law?

The correct understanding relates to the nature of the duty of disclosure under common law, particularly regarding the timelines of when this duty is applicable. Option A accurately reflects that during the period between the inception of the insurance contract and the renewal negotiations, there is generally no requirement for the insured to disclose information unless it directly affects the policy cover. This means that once the policy is in place, unless new and material circumstances arise that would influence the insurer's decision regarding the coverage, the insured does not have an obligation to continue disclosing information.

In essence, the obligation to disclose information is focused on the period leading up to the inception of the insurance cover and during the renewal phase, where new material facts must be communicated to the insurer. This understanding helps to define the boundaries and expectations of disclosure obligations, particularly how they are applied in practice surrounding policy negotiation periods.

The other options do not align with this principle of disclosure. For example, there is no ongoing duty throughout the policy period, as noted in option B. Similarly, option C inaccurately suggests that there is no requirement for material declarative action after inception when renewal negotiations happen, which does not reflect the common law requirement. Option D misstates that the duty does not revive at renewal, as