Are Successful Denials for Unreported Material Changes in Risk a Thing of the Past?
Maybe So, According to Some Recent Case Law, Unless Insurers/Brokers Radically Change Their Practices

A presentation to the Canadian Insurance Claims Managers Association (CICMA),
Vancouver, BC

Statutory Condition 4 has long been a feature of property insurance in BC and elsewhere. As a result of recent changes to the Insurance Act in BC, an insured’s failure to provide prompt notice of material changes in risk may now result in liability insurance being voided as well.

Some recent decisions appear to have narrowed the ability of underwriters to void coverage if an insured fails to report changes material to the risk which occur during the policy period. This case law places a new emphasis on the obligation of insurers (and consequently their brokers) to ensure the concept of material change in risk is fully and properly explained to insureds upon inception of coverage and its renewal. Failure to do so might result in coverage under the policy for circumstances beyond underwriters’ anticipation.

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(PDF Format, 12 pgs)