[TYPE THE COMPANY NAME]
LML4805 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2026 - DUE
April 2026
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
LML4805 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2026 - DUE April
2026
LML4805 Assignment 2 (COMPLETE ANSWERS) Semester 1 2026 - DUE April
2026; 100% TRUSTED Complete, trusted solutions and explanations
Question 1 Velly applies for insurance on his own life. He is unaware of the
fact that he is suffering from a terminal disease. Consequently, he does not
disclose this fact to the insurer. Also, on the proposal form for insurance, the
insurer does not ask him any questions about his health. Would the insurer
be able to avoid liability for a claim on the contract if it appears, after Velly’s
death, that the insured had been suffering from such a disease at the time
when he applied for the insurance cover, and that the disease was the cause
of his death.
Answer
The issue is whether the insurer can avoid liability on the basis of non-disclosure by Velly
when he himself was unaware of his terminal illness and was not asked about his health.
1. Duty of Disclosure in Insurance Law
In South African insurance law, an insured has a duty to disclose material facts to the insurer
before the contract is concluded. This duty is governed by the principle of good faith
(uberrimae fidei).
A material fact is one that would influence the decision of a reasonable insurer in:
Accepting the risk, or
Determining the terms and premiums.
2. Test for Non-Disclosure
The modern legal position (as developed in case law such as Mutual and Federal Insurance Co
Ltd v Oudtshoorn Municipality) is that:
LML4805 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2026 - DUE
April 2026
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, Exam (elaborations)
LML4805 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2026 - DUE April
2026
LML4805 Assignment 2 (COMPLETE ANSWERS) Semester 1 2026 - DUE April
2026; 100% TRUSTED Complete, trusted solutions and explanations
Question 1 Velly applies for insurance on his own life. He is unaware of the
fact that he is suffering from a terminal disease. Consequently, he does not
disclose this fact to the insurer. Also, on the proposal form for insurance, the
insurer does not ask him any questions about his health. Would the insurer
be able to avoid liability for a claim on the contract if it appears, after Velly’s
death, that the insured had been suffering from such a disease at the time
when he applied for the insurance cover, and that the disease was the cause
of his death.
Answer
The issue is whether the insurer can avoid liability on the basis of non-disclosure by Velly
when he himself was unaware of his terminal illness and was not asked about his health.
1. Duty of Disclosure in Insurance Law
In South African insurance law, an insured has a duty to disclose material facts to the insurer
before the contract is concluded. This duty is governed by the principle of good faith
(uberrimae fidei).
A material fact is one that would influence the decision of a reasonable insurer in:
Accepting the risk, or
Determining the terms and premiums.
2. Test for Non-Disclosure
The modern legal position (as developed in case law such as Mutual and Federal Insurance Co
Ltd v Oudtshoorn Municipality) is that:
