A person who took out life assurance died within months of the policy coming into force and, on investigation, it emerged that he had had a serious alcohol addiction for which he had received treatment over a 10-year period.

The company had not been made aware of this. Questions on the application form for the policy concerning alcohol and cigarette consumption had been left unanswered.

It told the Ombudsman that it was its practice to assume a consumption of zero in cases where the questions had been left unanswered.

She decided that this was imprudent underwriting and that a proportion of the sum assured be paid in full and final settlement of the dispute.

The company has since changed its policy.