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22 MISREPRESENTATION

Law of Insurance Contracts

Chapter 22 MISREPRESENTATION 1 22-1 INTRODUCTION A contract is voidable by a party to that contract, if induced to make the contract by misrepresentation; that party may also have the remedy of damages. In this respect insurance law is governed by the general law of contract. 2 It is customary to separate discussion of misrepresentation and non-disclosure and this custom is observed in this book, except as regards remedies. 3 However, it should be remembered that the line between misrepresentation and non-disclosure cannot be clearly drawn; that some rules of law operate in both contexts; and that by the use of basis clauses 4 insurers have sought to remove questions of misstatement in the proposal from the legal area of misrepresentation (and non-disclosure) altogether to that of warranty: above, 20-2B2 .

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