PART 2The duty of fair presentation
7Supplementary
1
A fair presentation need not be contained in only one document or oral presentation.
2
The term “circumstance” includes any communication made to, or information received by, the insured.
3
A circumstance or representation is material if it would influence the judgement of a prudent insurer in determining whether to take the risk and, if so, on what terms.
4
Examples of things which may be material circumstances are—
a
special or unusual facts relating to the risk,
b
any particular concerns which led the insured to seek insurance cover for the risk,
c
anything which those concerned with the class of insurance and field of activity in question would generally understand as being something that should be dealt with in a fair presentation of risks of the type in question.
5
A material representation is substantially correct if a prudent insurer would not consider the difference between what is represented and what is actually correct to be material.
6
A representation may be withdrawn or corrected before the contract of insurance is entered into.