Another law review proposes more changes for insurance advisers

A review of insurance contract law is under way and an options paper has been released.

The Ministry of Business, Innovation and Employment said it had noticed a problem with non-disclosure in the insurance sector. It was a significant source of complaints and dissatisfaction from clients who discovered their policies would not pay out as expected.

“At the moment, individuals must tell insurers everything that could affect their decision to offer insurance or how much they charge in premiums,” said Commerce and Consumer Affairs Minister Kris Faafoi.

“The review has found that people often do not understand the kind of information that must be disclosed and that the consequences for not disclosing the information can be very harsh.