What duty does a proposer for personal accident insurance have in consumer insurance law?

In consumer insurance law, a proposer for personal accident insurance is required to take reasonable care not to make a misrepresentation. This duty emphasizes that when individuals apply for insurance, they must provide accurate and truthful information regarding their circumstances and history that may affect the insurer’s assessment of risk.

The principle of utmost good faith, or "uberrima fides," underpins this requirement, which mandates that the proposer discloses all relevant facts that an insurer may need to know to make an informed decision on whether to accept the risk and at what premium. Failing to take reasonable care in this regard can lead to significant consequences, such as the insurer being entitled to void the policy if a misrepresentation is found.

While ensuring that all claims are valid, notifying the insurer of any changes, and maintaining continuous coverage are important aspects of the insurance contract, they occur after the initial proposal phase and do not directly address the proposer's duty at the time of application. Therefore, the responsibility to take reasonable care not to misrepresent information is the correct choice, as it is a fundamental requirement during the proposal process in obtaining personal accident insurance.