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Insurance Business | 22 Jan 2014, 08:41 AM Agree 0
A brothel and an insurer are locked in a legal battle after the insurer rejected its claim due its alleged connections to criminal motorcycle gangs.
  • Leigh-Anne Byrom | 22 Jan 2014, 10:23 AM Agree 0
    Insurer locked in legal battle after rejecting brothel’s claim... Interesting times...
  • Mr R | 22 Jan 2014, 12:02 PM Agree 0
    Time to see who wins the "Duty of Disclosure" battle ... I guess this is why the new DoD rules are coming into play so the insurers cannot ask the catch-all questions. This would have been an open-and-shut case if it was under the new rules.
  • Kellie Smith | 24 Jan 2014, 12:51 PM Agree 0
    The current legislation states that if the insurer has not followed up additional information required then it is deemed they have waived their rights to the info and accepted the risk. These issues are never black and white so it will be interesting to see the finer details emerge.
  • Atanassova | 25 Jan 2014, 04:34 PM Agree 0
    It is about the moral hazard involved. If the Insurers have known that in the first place they could have declined to underwrite the risk. Insurers have the right to reject the claim.
  • Scott | 03 Feb 2014, 09:24 AM Agree 0
    I am not without sympathy for Calliden on this one. This would certainly constitute non disclosure of as material fact in my opinion, the insurer, had they known, would be well within their rights to decline the risk
  • Mr D | 19 Aug 2014, 01:58 PM Agree 0
    any updates on this one?
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