Rod and Mike bought a clothing shop, as joint tenants. When they applied for insurance cover, Rod did not reveal that he was an undischarged bankrupt. Mike, who completed the proposal form, did not know about Rod's bankruptcy. Both Rod and Mike had previously taken out contracts of insurance separately and Rod had declared his bankruptcy in those proposal forms. After they obtained insurance coverage, the shop was severely damaged by fire which had stared in the fuse box because of a wiring fault. There was no evidence that the business was in financial difficulty, but the insurer has refused to pay the claim because Mike had answered "No" to the following question:

Is there any additional information or detail of which you are aware, and which may assist the company to assess the nature of the risks better?