The FOS has recently introduced two new forms to be used in connection with complaints about non-disclosure. One form is a fact sheet for consumers explaining what non-disclosure is and the other is a template letter to companies asking for information. A brief outline of each form is given below. An example of each form can be found on the helpful information section of the HCF website.
FOS consumer fact sheet on medical non-disclosure in insurance
This fact sheet explains the concept of non-disclosure. It sets out what insurance companies are entitled to know and reiterates that proposers should answer clear questions from the insurer to the best of their knowledge and belief. It outlines the role of the sales agent and makes a distinction between those agents acting for the insurer and those acting for the proposer and what that status can mean in terms of non-disclosure cases. The fact sheet goes onto explain the FOS approach to non-disclosure and the range of decisions that it can make in these cases.
Template letter to firms
This letter will be sent by the FOS to firms when it receives a complaint about non-disclosure. The FOS asks the firm to answer ten questions in essence asking the firm to set out its case against the claimant. Questions deal with underwriting process, the role and status of the intermediary, how you have reached the conclusion you have regarding the classification of non-disclosure and what action was taken when the non-disclosure was first uncovered by the firm. These are all issues you should previously have dealt with in your FOS submission, however, this new requirement will ensure the FOS gets all the information it needs to consider the case. You need to make sure you give detailed replies to each question to best put forward your companies position
Peter Barrett
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