Binder Authority

Please note that in effecting this insurance, we are acting under an authority given to us by AIG to effect the insurance, and as such, we will be acting as an agent of the Insurer and not as your agent.  You will need to determine the appropriateness of this insurance to cover your needs.

Your Duty of Disclosure

Before you enter into an insurance contract which is not a consumer insurance contract, you have a duty under the Insurance Contracts Act 1984 to tell your insurer anything that you know, or could reasonably be expected to know, may affect the insurer’s decision to insure you and on what terms.

You have this duty until the insurer agrees to insure you.

You have the same duty before you renew, extend, vary or reinstate an insurance contract.

At renewal, the insurer may ask you to advise it of any changes to something you have previously disclosed, or may give you a copy of the information you previously disclosed and ask you to advise the insurer if there has been a change. If you do not tell the insurer about a change, you will be taken to have told the insurer there is no change. 

You do not need to tell the insurer anything that

• reduces the risk the insurer insures you for;
• is common knowledge; or
• the insurer knows or should know as an insurer; 
• the insurer waived your duty to tell it about

If you do not tell the insurer anything you are required to, the insurer may cancel your contract or reduce the amount it will pay you if you make a claim, or both.  

If your failure to tell the insurer is fraudulent, the insurer may refuse to pay a claim and treat the contract as if it never existed.

If you are in doubt about whether or not a particular matter should be disclosed, please contact your Gallagher broker. 

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