Conditions of cover - Rule 6: The Member’s duty of disclosure

The Member shall prior to the conclusion of the contract of insurance make full disclosure to the Association of all circumstances which would be of relevance to the Association in deciding whether and on what conditions to accept the entry. Should the Member subsequently become aware of any such circumstances as are mentioned above, or of any change in such circumstances as previously disclosed, the Member must without undue delay inform the Association.

Where the Member at the conclusion of the contract of insurance has neglected its duty of disclosure and the Association would not have accepted the entry at the Estimated Total Call agreed if the Member had made such disclosure as it was the Member's duty to make, the Association is free from liability. Where the Association would have accepted the entry at the same Estimated Total Call but on other conditions, the Association shall only be liable to the extent that it is proved that any liability, loss, cost or expense would have been covered under those conditions the Association would have accepted.

Where the Member neglects its duty of disclosure subsequent to the conclusion of the contract of insurance and the Association would not have accepted the entry at the same Estimated Total Call had it known of the circumstances prior to the conclusion of the contract, the Association is free from liability. Where the Association would have accepted the entry at the same Estimated Total Call but on other conditions, the Association shall only be liable to the extent that it is proved that any liability, loss, cost or expense would have been covered under those conditions the Association would have accepted.