What's meant by "cover do so"?
Utmost good faith is a very important principle. The people who decide what premium is fair for a particular cover do so on the basis of written statements made in a proposal form.
cover - the risks covered by the insurance policy - an insurance policy will give the insured person "overage" or "cover" for certain risks eg fire
do so - refers back to the verb decide - instead of repeating the verb, the verb to do is substituted
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You have to read it this way: The people who decide {what premium is fair for a particular cover} do so on the basis ...
"Do so" refers to "decide": They decide on the basis ...
November 25, 2015
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