Section 45

Section 45 of the Insurance Act, 1938 allows an insurer to call a life policy into question on grounds of fraud, or of a misstatement or suppression of a material fact, within three years. The three years run from the later of the policy’s issuance, the commencement of risk, revival, or a rider being added.

After three years, a policy cannot be questioned on those grounds. This is the strongest practical argument for answering every question accurately the first time.

Related terms

• Material non-disclosure Failing to reveal something that would have affected the insurer's decision.
• Claim repudiation An insurer's refusal to pay a claim, with reasons given.
• Utmost good faith The duty on both sides to disclose everything material, honestly.

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