If an insured claims to be unaware that a fact was material the test is: Could a reasonable person in the same circumstances be expected to know that the fact was material? (s21(1)(b)). If the answer is yesthe insured has failed the duty of disclosure, as Macaura v Northern Insurance Co (1925) AC, says that position has been revised by the Act which provides that a agreement of general insurance will not be considered as void just because the insured required an insurable interest in the subject matter at the time of making the contract. It is sufficient that the insured suffered an economic or pecuniary loss as a result of damage to or destruction of the subject matter of the existing insurance contract. (s16 and s17 of the Act). Similarly, s18 of the Act provides that a life insurance contract is not void solely because the insured did not have an interest at the time the contract was made. Beneficiaries have never been required to have an insurable interest when a payout is due under a policy.