§ Mr. Marlow
asked the Secretary of State for Trade what are the problems inherent in the adoption of the draft EEC directive on insurance contract law.
§ Mr. Eyre
The main problems raised by the draft directive are likely to be the definition of the policyholder's duty of disclosure; the consequences of breaking that duty; the implications of the directive for our system of warranties; and the proper level of statutory protection which member States should be able to give policyholders. Present practice differs widely on these matters in the Community and agreement on the draft directive may therefore take some time.