What happens when there is a conflict between the insurance proposal and the insurance policy? Anyone who wants insurance coverage is required to fill in a proposal form. The insurance company then considers whether or not to accept the proposal and determines the premium payable. But what happens when there is a discrepancy between the proposal form and the policy document? In this case the Insurance company will have to pay the price for this confusion. Did you ever come across or heard about a situation, as explained above?
In the UK at least it is the policyholders responsibility to check the documents are correct when they receive them and there is a 14 day legal cancellation period from the date you receive the documents or 14 days after the policy starts (which ever is later) Having worked for an insurance company for too many years I have known it to happen many times. The majority of the time the policy details are adjusted and the additional premium charged but the usual admin fee for a mid term amendment is waived and assuming we are talking an increase in premium then the premium generally isnt back dated unless we are talking months rather than weeks.