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Cancer tests may lead to dual-pricing

Critical-illness policyholders will have to choose whether to pay higher premiums or have less coverage if the ABI implements the results of a consultation exercise. A Government screening policy for prostate cancer means more cases are expected to be caught, resulting in increased claims.

The ABI asked members if they wanted policy wording to be rewritten to allow them to offer two premiums, one including cover for prostate cancer and one excluding it. Members, the OFT and the Prostate Cancer Charity overwhelmingly favour the change. It will only apply to new policyholders.

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