Section 21: Disclosure by agent effecting insurance.

Subject to the provisions of section 20 of this Act, (which refers to circumstances not requiring to be disclosed by an assured), where an insurance is effected for the assured by an agent, the agent shall disclose to the insurer-(a) every material circumstance which is known to the agent, who shall be deemed to know every circumstance which, in the ordinary course of business, ought to be known by or to have been communicated to the agent; and
(b) every material circumstance which the assured is bound to disclose unless it comes to the knowledge of the assured too late to communicate it to the agent.