Provider trying to alter Life Insurance contract after health issue

The_Maestro

Hi, I will try to keep this brief.

I applied for Life insurance (diminishing policy based on mortgage) for myself and my wife in April 2015 and we were both accepted on standard terms. The application form was answered honestly - I would say faultlessly or even over honestly. In June I decided to apply with the same company for Income and Lifestyle protection insurance. This involved more stringent checks. A GP report was sent to them in July and I had a blood test in November 2015. After the blood test they decided to decline my application for Income and Lifestyle Protection Insurance due to slighty elevated Liver Enzymes. I view this as fair enough. However they also reviewed the standard life insurance policy which was agreed months earlier in April that year and wanted me to agree to double the premiums or they would cancel it. Is this lawful?

They are saying that on the original Life Insurance application form there was a question 'Have you ever been advised to reduce or stop drinking alcohol for medical or health reasons' which they believe I should have answered 'yes'. I answered 'No' and have informed them that to answer that question any other way would be a lie, and I will no lie. They have later admitted that their decision about altering the terms of my Life Assurance contract agreed in April is nothing to do with how I answered that question on the original application form and entirely related to the blood test in November 2015.

starrystarry

It sounds like there was something in the GP report that indicated you had been advised to reduce your alcohol consumption prior to April 2015. They should be able to tell you exactly what was in the report. If they won't, your GP should have a copy for you to view. If any of the info in the report was incorrect, your GP will need to write to the insurer to correct it.

ACG

You need to get them to commit to an answer in writing as to why they want to alter the premiums.

If it is for a blood test, they do not have a leg to stand on. If it is because of something in your report which was there prior to April (or potentially immediately after...ie you knew you had an illness but put a policy in place and then went and got it looked at) then it comes down to the report and the underwriters.

Ultimately if you can not agree on the outcome then you can complain and follow it up with a complaint to the Financial Ombudsman.

dunstonh

They are saying that on the original Life Insurance application form there was a question 'Have you ever been advised to reduce or stop drinking alcohol for medical or health reasons' which they believe I should have answered 'yes'. I answered 'No' and have informed them that to answer that question any other way would be a lie, and I will no lie. They have later admitted that their decision about altering the terms of my Life Assurance contract agreed in April is nothing to do with how I answered that question on the original application form and entirely related to the blood test in November 2015.

Something in the way the GP responded is likely the cause of this.

The insurer cannot use things that happen after the application to change the premium unless it is related to things that happened before the application.

It could be a misreading by an underwriter or a GP that perhaps mentioned a casual off the cuff remark many years ago but recorded it on your file. The key is to knowing what thing is causing it. In my experience I have seen both things occur a number of times.

You have the right to request a copy of what the GP supplied the insurer.

Quentin

The_Maestro wrote: »

They are saying that on the original Life Insurance application form there was a question 'Have you ever been advised to reduce or stop drinking alcohol for medical or health reasons' which they believe I should have answered 'yes'. I answered 'No' and have informed them that to answer that question any other way would be a lie, and I will no lie. They have later admitted that their decision about altering the terms of my Life Assurance contract agreed in April is nothing to do with how I answered that question on the original application form and entirely related to the blood test in November 2015.

As they have already admitted to lying to you, I would go straight into a complaint about this. (Assuming everything else in your OP is correct and your drinking has never been discussed as a health risk by your doctor(s)


They have agreed they lied to you, and that this has all come about due to the results of the blood test taken more than 6 months on from the supposed original "lie" they wrongly accused you of!