Reference no: EM133370453

In December 2002 Mrs Kim applied for life assurance cover of £100,000 and for £35,000 critical illness cover. Two years later she was diagnosed with breast cancer. The firm refused to meet her claim. It said this was because she had not disclosed that for most of the early 1990s she had been suffering from, and received treatment for, back pain following childbirth. It considered the fact that she had not revealed this information to be reckless non-disclosure. Mrs Kim told the firm that she had not thought she needed to disclose this information. She had thought the question on the firm's application form referred only to illnesses that had resulted in her taking time off work during the previous five years. It was more than five years since she had suffered from the back pain and she had never needed to take time off work because of it. In response, the firm pointed out that it had asked whether she had "ever suffered" from "back or spinal trouble". Mrs Kim said she did not believe that back pain due to childbirth was "back or spinal trouble". Unable to reach agreement with the firm, Mrs Kim came to you for advice.

1. Was the firm justified to refuse to meet her claim? Apply a relevant principle to support your arguments.

2. Do you think there was any connection between Mrs Kim's breast cancer and the exclusion clause? Give reasons for your answer.