Q: Why is the Insurance Proposal important? A: The Insurance Proposal is the basis of the contract. It contains important information about the risk insured including details of the named insured and interested parties. You are also declaring information about past insurance including claims and restating the requirements of the duty of disclosure. The Proposal is used by your Insurer to determine the acceptability of the risk and on what terms and conditions they will provide cover in the Policy. The Proposal must be accepted by your Insurer. Please return any Proposals promptly and be diligent and accurate when completing the questions asked.