They said this… · Insurance

“One incorrect answer means we can cancel the policy and refuse every claim.”

Generally incorrect

Consumer insurance law distinguishes reasonable mistakes from deliberate or reckless misrepresentations, and the insurer’s remedy must usually be proportionate to what it would have done with the correct information.

Not sure which right applies? Check your situation →

Why this answer

What actually matters

  • Ask for the exact question and answer relied on.
  • Request the underwriting evidence showing what the insurer would have done.
  • The consumer’s care and state of mind matter.
  • Avoidance, amended terms and reduced payment are different remedies.

Important nuance

When the statement may have a point

  • Fraudulent claims engage separate rules.
  • A deliberate or reckless misrepresentation can justify a much stronger remedy.

What you could say

Keep the response tied to the actual rule.

Evidence

What to have beside you

  • Policy schedule, wording and pre-contract questions
  • Claim form, chronology and supporting evidence
  • Expert reports, valuations, photographs and repair estimates
  • Insurer or broker final response

If they still refuse

Move the dispute forward.

  1. Ask the firm to identify the precise policy term, evidence and regulatory basis for its position.
  2. Challenge the reasoning and calculation separately where both coverage and amount are disputed.
  3. Escalate an eligible unresolved complaint to the Financial Ombudsman Service within the applicable time limit.

Read the full rules

Go deeper before escalating.

Primary guideRead the detailed ConsumerWise guidance.InsuranceRead the full guide.Rejected insurance claimsRead the full guide.Insurance complaints and FOSRead the full guide.

Official sources

Check the rules behind this statement.

Insurance: Conduct of Business sourcebookFinancial Conduct Authority · checked 19 Sep 2026Consumer Insurance (Disclosure and Representations) Act 2012legislation.gov.uk · checked 19 Sep 2026