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L&G scraps duty to disclose rule on forms

Clients no longer have to not-ify Legal & General of any changes to their health or circumstances between the time they submit their protection application and when their policy starts.

Industry practice requires applicants to advise on changes to answers on their application form until their cover starts. L&G is the first insurer to abolish this requirement, known as “ongoing duty to disclose”, on its term insurance, whole of life, critical-illness and income protection plans.

Claims and underwriting director Russell Whitworth says people assume that the disclosure process ends and cover starts once they have submitted their application form.

He says: “A customer is not covered until their policy starts and this could be months after they have completed the form.

“We have taken the opportunity to bring our practice in line with the expectations of our customers and remove this ongoing responsibility to disclose information, which is often seen as a burden.”

Highclere Financial Services partner Alan Lakey says: “This is a really positive move and L&G will get far more kudos than anyone that follows. It is a feather in its cap.”

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