Topic: Financial Advice

When completing his health insurance application, Brian failed to disclose that he had back and shoulder injuries, and he had monthly visits to a chiropractor. After having an insurance claim declined for non-disclosure, Brian complained his adviser hadn’t told him about the need for disclosure. Is the adviser liable for Brian’s lost insurance cover?

Jane needed a loan to build a boarding house on her property. Jane used a financial adviser to help her find finance. When the loan needed rolling over Jane incurred further fees, both from the lender and the adviser. Jane was not happy with the level of the fees and said the adviser had not made her aware of all the extra fees that would apply. Was the adviser required to refund some of the fees to Jane?

Christine asked an insurance adviser to place cover to protect her family in the event she got sick. When Christine’s subsequent sickness was not covered by insurance, Christine complained to FSCL.

Sanjay wanted lower cost insurance and asked his insurance adviser to get quotes from other insurers. Sanjay’s insurance adviser provided the quotes and Sanjay chose a new insurer. Sanjay completed the application forms and the new insurer approved cover. Shortly after moving insurer, Sanjay made a claim. After reviewing Sanjay’s medical records, the new insurer cancelled Sanjay’s policy for non-disclosure of pre-existing medical conditions. Sanjay was upset that his adviser had not fully advised him about go the new policies and his duty of disclosure. Was the insurance adviser at fault?

Eva and Andre change insurers upon the advice of their insurance adviser, but discover they have less cover than they used to, because Andre did not disclose his heart condition. Can FSCL help resolve a complaint about the risk of financial loss in the future?

Walter used an insurance adviser to obtain insurance. Upon claiming for income protection insurance after a head knock at a game of indoor cricket, Walter finds out his claim is declined because he had made material mistakes in not disclosing past medical issues such as depression and drug and alcohol use.

Daniel wanted to reduce his insurance premiums. Daniel’s adviser found a new policy that would provide similar benefits at a lower premium. 60 days into his new policy, Daniel was diagnosed with cardiomyopathy. Daniel’s claim under his new trauma policy was declined because it occurred within a 90 day stand down period in his policy. Daniel felt his adviser should have ensured that he had trauma cover before cancelling his old policy. Would Daniel’s claim ever be paid?

Brendan made a claim under his health insurance policy believing he would receive $50,000 after a conversation with his insurance adviser. Brendan only received $12,500 for his claim. Is the insurance adviser liable to pay the difference?

An authorised financial adviser (AFA) advises his clients to invest in real property and refers them to a building company. The building company experiences severe difficulties and is placed into liquidation causing the clients loss. We investigated whether the AFA was responsible in any way for those losses.

Terence tried to arrange finance to save his factory. Terence signed a loan agreement but decided not to draw down the funds as it would not be enough to pay off the mortgage debt over the factory. Later, when selling the factory, Terence found that the lender he was to draw down the loan from had registered a caveat against the property to secure payment of lender and broker fees. Terence had to pay $44,000 to get the caveat removed. Can Terence’s lender and broker charge fees for a loan that was arranged but never drawn down?