Sam decided to buy a motorcycle from Big Bikes, a dealership in Neutral Bay, NSW. He paid for a comprehensive insurance policy while in the dealership, insuring the motorcycle for $20,000, as he was worried it might be stolen. While answering the insurance questions from the finance & insurance staff member, he was asked about his driving history.

Although Sam had his licence cancelled for six months [four years ago] and has had 11 traffic tickets in the past five years, Sam believed these were not related to theft and that's all he wanted the insurance for anyway, so his answers to the insurance questions were limited; he claimed to have had just a couple of minor tickets, and no licence cancellations.

A few weeks later thieves broke into Sam's garage and stole the motorcycle. As part of the claims process, his insurance company asked for a printout of his driving history from the RMS [RTA] and discovered Sam's driving history. They refused to pay for his stolen motorcycle.

Required: Discuss Sam's situation, in relation to insurance law.