14. The ABI Code contains recommendations regarding the procedures that insurers can use to assess claims, for example. B taking into account the clarity and conciseness of questions relating to the participation or other participation of an intermediary and the possibility for the client to verify their answers. These procedures are tailored to products for which disclosure (usually for health reasons) plays a more important role in the individual risk assessment of a premium or right. Requiring the same level of investigative detail in the event of confidentiality or mis presentation for other general insurance rights would result in disproportionate costs, resulting in higher premiums for customers. As the commissions have found, each insurer uses different factors to determine the risk it is willing to take, and while some factors can lead to a similar result for multiple insurers, there are many specialty insurers that can calculate that risk differently. In practice, therefore, it makes more sense to entrust each insurer with the responsibility of demonstrating how it would have acted differently if the relevant information had been disclosed or correctly presented. 1. The UK insurance sector is the third largest in the world and the largest in Europe.
It is a significant part of the UK economy, managing investments equivalent to 26% of all UK net assets and controlling £10.4 billion in government taxes. With more than 290,000 employees in the UK, the insurance sector is also one of the country`s leading exporters, with 28% of its net premium income overseas. Lord Eatwell expressed concern about insurers` use of « catch all » or « memory test » questions. Indeed, the ABI`s guide on the confidentiality of rights for long-term insurance products recommends that there be very little importance to these issues. The insurance industry already has well-developed practices in the field of consumer insurance and a good understanding of the questions to be asked to gather the necessary information. Finally, the changes at the heart of the law are necessary because it is usually the insurer who is best placed to know what information is essential. In addition, under the Consumer Insurance Act, it could be argued that a collection issue penalizes the insurer, as it may not be able to rely on the answers given. This is due to the fact that in the event of misrepresentation in order to gain access to the remedies referred to in Annex 1, the insurer should demonstrate how the information (false or missing) provided by the consumer `incited` him to take the risk. It would be difficult to determine where all the questions were asked. 8. The main objective of the bill is to clarify to insurers and policyholders their respective rights and obligations.
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