What is retrospective risk?
Huh? I hear you say.
Let's take a situation similar to our AFA adviser that got hauled before FADC recently; the client had a back twinge, you talked about it, and it wasn't disclosed back in 2016 or 2017. Let's park the added evidence of a past policy schedule with the back excluded for the moment.
When you sit down and review that client, you will be achieving two things: Triggering any section 10 risks for any new business, and if you do not address the past non-disclosure you know about, you will be putting yourself in the exact same position as our AFA before the FADC.
That's effectively making yourself responsible for the past non-disclosure of the client, because you know about it if the policy does not respond, and the client complains.
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