mortgage protection insuraance

burnanator

I took out some mortgage protection insurance when I bought my house in 2010 to cover me in case I lost my job. I was a bit worried at the time because the company was not on great footing. Time passed and my job was more secure.

During this time I was made director of the company for a period of about 8 months. this was mostly to sign a lot of documents as the company was moving offices and such. I felt uncomfortable with the responsibility and liability of being a director and resigned.

About 6 months after that I again felt that the business was doing poorly and wanted to make sure I was protected. I noticed on my policy that it said that it was non renewing and that it would cancel after a year unless I renewed it. I later found out that it had in fact renewed and I still had the policy (the money was coming out of my wifes account). I called to confirm and went over my new salary and my job was essentially the same (however I was a director inbetween- I didnt mention this as i thought it wasnt really relevant).

I was made redundant a few months ago and am collecting the insurance. I just got phone call from my insurer asking me a bunch of questions- one of which was 'were you ever a director of this company?'.

I replied 'no' but this is publicly available information so if they really wanted to know they can just look it up (they may already know).

So- do I need to be concerned about losing this policy?

InsideInsurance

burnanator wrote: »

I just got phone call from my insurer asking me a bunch of questions- one of which was 'were you ever a director of this company?'.

I replied 'no' but this is publicly available information so if they really wanted to know they can just look it up (they may already know).

So- do I need to be concerned about losing this policy?

Were you a true director, as in listed with company house, or simply had a job title with the word director in it?

Did you read your policy wording to see if there are any special clauses around if you are a company director?

Obv now you have two potential problems, one is if there is special clauses over you being a director then you'll have triggered them by being one. Secondly you've now lied to your insurers thus potentially invalidating your insurance even if there are limited special clauses for directors

dunstonh

I was made redundant a few months ago and am collecting the insurance. I just got phone call from my insurer asking me a bunch of questions- one of which was 'were you ever a director of this company?'.

Share owning directors tend to have potential clauses on some plans. It is possible actual directors (registered at companies house) have issues with a small number of plans. However, director is a term that is often misused. Some companies use it when it actually technically correct. So, are you a registered director at companies house and are you a share owning director?

burnanator

never shares, just registered at companies house.

burnanator

I see one point of my policy states:
'We will consider you to be employed if you are in paid work . . . as a director not covered by the definition of a self employed person) who is salaried and employed on a permanent basis and has no control over his/her own contract of employment'
Surely this means that it doesnt matter?

Now I am worried that I lied on the phone. Should I call them to clarify? Or wait until they come to me - and claim i misunderstood the question?

InsideInsurance

burnanator wrote: »

and claim i misunderstood the question?

How are you going to manage that?