Duty to take Reasonable Care 

When applying for insurance, there is a legal duty to take reasonable care not to make a misrepresentation to the insurer before when entering into, renewing, extending, or varying life insurance policies.

When a person applies for insurance or increases their cover they have a legal duty to take reasonable care not to make a misrepresentation to the insurer before a contract for insurance is entered into. A misrepresentation is a false answer, an answer that is only partially true, or an answer which does not fairly reflect the truth.

You are responsible for the information you provide. When answering questions, you should:

• Think carefully about each question before answering. If you are unsure of the meaning of any question, please ask before you respond.
• Answer truthfully, accurately, and completely. If you are unsure about whether you should include information, please include it.
• Review your application carefully. If someone else helped prepare your application, please check every answer (and, if necessary, make any corrections).

The remedy will depend on factors including whether the misrepresentation was fraudulent, when the policy commenced, and whether the insurer would have offered cover (and if so, on what terms) if the misrepresentation did not occur. Life insurers can only avoid a life insurance contract on the basis of non-fraudulent misrepresentation if the insurer would not have been prepared to enter into the contract on any terms. A misrepresentation may also be fraudulent if the person gave an answer knowing it to be false or not caring whether it was true or false.

Please do not cancel any existing policies if you have experienced any changes to your health, occupation, or pastimes that you have not disclosed to the insurer prior to the acceptance of the policy.

I have read and understand my duty to take reasonable care and agree to advise the insurer of any relevant information prior to the issue of insurance.

I fully indemnify the Financial Adviser and the licensee for any information that may be false or inaccurate contained in the insurance forms that I have signed. I agree that I am entirely responsible for the completeness and accuracy of this information, and I confirm that I have checked my application to be complete and correct to the best of my knowledge.