What is Insurance Proposal Form

PROPOSAL FORM

A proposal form is the first document from the insurer to any person proposing to buy an insurance cover. It requires the person (now called the proposer) to complete the form by answering the question therein.

The form contains prepared questionnaires on the subject matter of insurance which the proposer or his agent must answer by disclosing all material facts about the insurance sought. He is expected to disclose all facts whether or not such questions were asked on the proposal form.

This is important because the information contained in the proposal form will be use3d by the insurer to decide whether to accept or reject the proposal and or if accepted, the amount of premium to be paid. As a result of this any non-disclosure of material fact will give the insurer the right to avoid the contract.