Active And Passive Duty Of Disclosure Of Material Facts In Insurance Business
The question here is what method is used to acquire the material information. Two different approaches are used in this respect. The first - an “active” duty of disclosure, and the second approach is characterized as a “passive” duty of disclosure. The former argues that the duty to assess what information is material for the insurer rests with the person effecting the insurance. On the other hand, a passive duty of disclosure implies that the insurer will have to define what information is material through a questionnaire. A passive duty of disclosure implies that information not asked for is not material.
The common law systems seem mainly to apply an active duty of disclosure, but elements of a passive duty of disclosure is found in some countries in the form of proposals.
Active Duty Of Disclosure Of Material Facts In Insurance Business
Passive Duty Of Disclosure Of Material Facts In Insurance Business
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The common law systems seem mainly to apply an active duty of disclosure, but elements of a passive duty of disclosure is found in some countries in the form of proposals.
Insurance Law And Practice - ICSI
Active And Passive Duty Of Disclosure Of Material Facts In Insurance Business
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