Question

When completing a life insurance application, if you unintentionally leave out information about plastic surgery to your face five years earlier, then die a couple of years later from an auto accident, the insurance company: must pay, because once an application has been accepted, an insurer may not use a misrepresentation on the application to avoid liability. must pay, because the misrepresentation was not material and did not increase the company's risk in insuring your life. does not have to pay, because your application contained a material misrepresentation of fact. does not have to pay, because an insurer can always use any misrepresentation, even innocent, on an application to avoid paying.

Answer 1

As per the principle of insurance of utmost good faith, the insured is liable to disclose all material & relevant details that pertains to his health. this includes giving the entire health history, whether of past or present irrespective of the time it occured. If insured fails to do so , then the insurer is not liable to make good the loss. in the above case, it is a matter od non disclosure or material misrepresentation so the insurance company is not liable to pay for the damage occured.