We recommend clarifying existing cover directly in the application form, and it should always be a part of a financial questionnaire.

The following questions should be asked:

• Does the applicant have existing insurance cover?
• With which insurance company?
• For which product, sum, duration, insurable interest?
• Is the cover still in force or has it lapsed or expired?
• Will the cover remain in force or will it be cancelled?

If a cover is intended to be cancelled and this is relevant for the financial assessment, it has to be made clear in the policy wording that the decision is subject to the cancellation. Otherwise the applicant might be over-insured. It is recommendable to  obtain a cancellation confirmation.

The same questions asked for existing cover should also be asked for concurrent cover. Additionally, it is very important to clarify if all concurrent covers are intended to come into force or if the applicant has only applied for comparison purposes and will only pick one offer.