Health insurance is an essential tool for managing future medical risks, yet disputes often arise from incomplete or inaccurate health disclosures during the application process. Taiwan's Financial Supervisory Commission has reminded consumers to carefully assess their needs and financial capacity, understand policy terms such as definitions of illness, waiting periods, exclusions and benefit limits, and most importantly, answer all health-related questions truthfully.

According to the regulator, insurance contracts are based on the principle of utmost good faith. Applicants must honestly respond to written questions in the application form, including whether the insured has suffered from conditions such as hypertension or cancer within the past five years, or has received medical treatment or medication in the past two months. Failure to disclose material facts may allow insurers to rescind the contract under Article 64 of the Insurance Act within the statutory period.

Even if a policy has been in force for more than two years, insurers are not liable for pre-existing conditions that were not truthfully disclosed, pursuant to Article 127 of the Insurance Act.

Providing accurate information at the time of application is therefore essential to safeguard policyholder rights and prevent future claim disputes.