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Federal Court rules insurance companies must behave decently. That’s a big deal – The Conversation AU
The Federal Court has all but made it illegal for insurance companies to dig for dirt and exploit the practice of retrospective underwriting.
It almost reads like a John Grisham novel.
Self-employed woman contracts cancer. Claims under her income-protection insurance policy. Insurer cancels the policy after investigation reveals omission of unrelated health condition (depression) on her original application. She is accused of acting in bad faith and threatened with having to repay the money (A$24,000) already received. Her story comes to national attention. A dramatic court battle ensues. Justice is finally served.
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