1 00:00:00,000 --> 00:00:02,440 Speaker 1: We've got to change in the law around insurance. This 2 00:00:02,520 --> 00:00:05,040 Speaker 1: is the Contracts of Insurance bill that's past. It means 3 00:00:05,080 --> 00:00:07,280 Speaker 1: that we as customers will only need to take quote 4 00:00:07,520 --> 00:00:11,719 Speaker 1: reasonable steps to not misrepresent risk. Insurance will be required 5 00:00:11,760 --> 00:00:15,000 Speaker 1: to ask more questions. Minter Ellison Rudd Watt's partner Andrew 6 00:00:15,040 --> 00:00:16,799 Speaker 1: Horns with us on this. Andrew, good morning to you. 7 00:00:17,520 --> 00:00:18,320 Speaker 2: Oh, good morning, Mike. 8 00:00:18,440 --> 00:00:20,360 Speaker 1: What's reasonable steps and who decides? 9 00:00:22,400 --> 00:00:28,479 Speaker 2: Good question? Excuse me? Reasonable steps is really going to 10 00:00:28,480 --> 00:00:30,960 Speaker 2: depend on the facts of each case, and there can 11 00:00:31,000 --> 00:00:33,600 Speaker 2: be a bit of uncertainty coming in here, whereas the 12 00:00:33,600 --> 00:00:37,400 Speaker 2: old law was quite certain relatively because the test was 13 00:00:37,400 --> 00:00:41,239 Speaker 2: whether whether or not a reasonable insurer would have expected 14 00:00:41,240 --> 00:00:43,400 Speaker 2: the information provided to have been material. 15 00:00:43,640 --> 00:00:45,760 Speaker 1: And so this is this only it comes up when 16 00:00:45,800 --> 00:00:48,440 Speaker 1: it's in dispute and you have to take it somewhere 17 00:00:48,479 --> 00:00:49,360 Speaker 1: and argue your case. 18 00:00:49,440 --> 00:00:52,559 Speaker 2: Yeah, yeah, that's right. But then you only really need 19 00:00:52,600 --> 00:00:54,880 Speaker 2: the law to come in and provide you with an 20 00:00:54,920 --> 00:00:56,040 Speaker 2: answer when you're in dispute. 21 00:00:56,200 --> 00:00:59,520 Speaker 1: Okay, So does this then mean when I go for insurance, 22 00:00:59,560 --> 00:01:01,480 Speaker 1: I'm going to be asked eight hundred and fifty seven 23 00:01:01,520 --> 00:01:03,720 Speaker 1: thousand questions now, so they cover themselves off. 24 00:01:04,560 --> 00:01:06,760 Speaker 2: You are going to be asked more questions. And the 25 00:01:06,800 --> 00:01:10,120 Speaker 2: reason for that is that under the current bore, if 26 00:01:10,120 --> 00:01:12,160 Speaker 2: you take out a policy of insurance, you have to 27 00:01:12,200 --> 00:01:15,000 Speaker 2: tell the insurer everything a reasonable insurer would think was 28 00:01:15,000 --> 00:01:17,160 Speaker 2: relevant to the risk. And how are you going to 29 00:01:17,200 --> 00:01:19,640 Speaker 2: know what a reasonable insurer thinks was relevant to the risk? 30 00:01:20,040 --> 00:01:22,280 Speaker 2: So the changes that now all you need to do 31 00:01:22,600 --> 00:01:25,840 Speaker 2: is not give misceeding answers. But what that means is 32 00:01:25,840 --> 00:01:28,760 Speaker 2: that the insurer has to ask you questions about everything 33 00:01:28,760 --> 00:01:29,640 Speaker 2: they want to know about. 34 00:01:29,760 --> 00:01:33,800 Speaker 1: Right, so thirty seven Smith Street, the fact it's on 35 00:01:33,800 --> 00:01:35,600 Speaker 1: the edge of the cliff? Do I put that forward 36 00:01:35,680 --> 00:01:37,360 Speaker 1: or do they go, oh, I see, mister Hosking, it's 37 00:01:37,360 --> 00:01:38,200 Speaker 1: on the edge of a cliff. 38 00:01:39,120 --> 00:01:41,880 Speaker 2: Well, right now you need to say to them, it's 39 00:01:41,880 --> 00:01:44,080 Speaker 2: on the edge of a cliff. Under the new rules, 40 00:01:44,280 --> 00:01:46,920 Speaker 2: they will have to ask you questions like is there 41 00:01:46,959 --> 00:01:50,680 Speaker 2: anything about the geography of your house that we ought 42 00:01:50,680 --> 00:01:52,520 Speaker 2: to know about or that might increase the risk, or 43 00:01:52,560 --> 00:01:56,360 Speaker 2: more specifically, what is the topography around your house? They'll 44 00:01:56,400 --> 00:01:58,200 Speaker 2: try to find easier ways to do that and make 45 00:01:58,240 --> 00:01:59,280 Speaker 2: it clearer. But that's the. 46 00:01:59,320 --> 00:02:01,360 Speaker 1: Change about the once in one hundred year, once in 47 00:02:01,400 --> 00:02:03,680 Speaker 1: a thousand year argument. But mister Hoskin, you live by 48 00:02:03,720 --> 00:02:05,840 Speaker 1: the beach and the tide came through your lounge, and 49 00:02:05,880 --> 00:02:07,440 Speaker 1: I go, well, it's never happened before. That must be 50 00:02:07,480 --> 00:02:09,160 Speaker 1: a once in a thousand year event, And as it 51 00:02:09,200 --> 00:02:09,960 Speaker 1: turns out, it was. 52 00:02:11,040 --> 00:02:13,160 Speaker 2: Yeah, you don't need to predict the future. You just 53 00:02:13,280 --> 00:02:16,840 Speaker 2: need to tell them about the circumstances you've got. So 54 00:02:18,080 --> 00:02:20,160 Speaker 2: and the thing is you just are going to need 55 00:02:20,200 --> 00:02:22,240 Speaker 2: to look at the questions that they ask you and 56 00:02:22,280 --> 00:02:23,600 Speaker 2: answer those questions fairly. 57 00:02:23,919 --> 00:02:25,320 Speaker 1: Is this good stuff generally? 58 00:02:26,440 --> 00:02:29,440 Speaker 2: Yeah, it's really good for consumers because it means that 59 00:02:29,520 --> 00:02:32,040 Speaker 2: consumers don't have to put themselves in the space of 60 00:02:32,040 --> 00:02:34,560 Speaker 2: an insurer and try to work out what an insurer 61 00:02:34,560 --> 00:02:37,079 Speaker 2: would think is important, which is what they have to do. Now. 62 00:02:37,160 --> 00:02:39,359 Speaker 1: Good stuff, Andrew, appreciate your time verty much. Andrew Horne, 63 00:02:39,360 --> 00:02:43,040 Speaker 1: who's minter Ellison Rudd Watt's partner. So hopefully that clears 64 00:02:43,040 --> 00:02:43,480 Speaker 1: things up. 65 00:02:43,880 --> 00:02:46,800 Speaker 2: For more from the Mic Asking Breakfast, listen live to 66 00:02:46,919 --> 00:02:47,440 Speaker 2: news talks. 67 00:02:47,480 --> 00:02:50,680 Speaker 1: It'd be from six am weekdays, or follow the podcast 68 00:02:50,720 --> 00:02:51,520 Speaker 1: on iHeartRadio.