Legal & General, the UK’s leading critical illness cover insurer has clarified its position on payment of critical illness claims where there has been non-disclosure.
Legal & General’s approach:
Pay a proportion of a claim where there has been inadvertent non-disclosure (whether related or unrelated to the condition claimed for), if the undisclosed information would have resulted in higher premiums.
Pay the claim in full where there has been inadvertent non-disclosure, if the undisclosed information would have led to an exclusion not related to the claim condition.
In 2006 Legal & General paid 83.3% of critical illness claims (over £92 million). Of the declined claims, 12.2% were for non-disclosure, compared to 14.3% for the previous year.