What is the test for a change material to the risk?
British Columbia, Canada
The following excerpt is from Schellenberg v Wawanesa Mutual Insurance Company, 2019 BCSC 196 (CanLII):
The Schellenbergs do not dispute the elements of the test or the meaning of a change material to the risk: a change to the risk that if disclosed would have caused a reasonable insurer to decline the risk or stipulate a higher premium: Henwood v. Prudential, 1967 CanLII 17 (SCC), [1967] S.C.R. 720 at 726-727. They take the position, however, the test should be interpreted to include a requirement that they knew the change in risk was material.
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