3 Legal principles

Question 1

Insurable Interest

Answer 1

Must be present for insurance to be valid

Question 2

Offer and Acceptance + consideration

Answer 2

must be present for valid contract

Question 3

CIDRA2012 requires

Answer 3

reasonable care to answer questions fully and accurately

Question 4

Remedies for reasonable mispresentation?

Answer 4

None, insurer must pay claim

Question 5

Remedies for careless misrepresentation

Answer 5

Proportional

Question 6

Remedies for deliberate or reckless misrepresentations

Answer 6

Insurer can avoid contract and refuse all claims

Question 7

Insurance Act 2015 requires

Answer 7

duty of fair presentation

Question 8

Remedies are available for breach of fair presentation if…

Answer 8

a) would not have entered contract or b) would have offered different terms.

Question 9

Remedies are available if there is a….

Answer 9

qualifying breach

Question 10

Qualifying breach is either…

Answer 10

reckless of deliberate

Question 11

Remedies for deliberate and reckless breach

Answer 11

Avoid contract (never existed) and keep premium

Question 12

Breach of warranties

Answer 12

Cover suspended until breach resolved

Question 13

Fraudulent claims

Answer 13

Insurance Act

Question 14

Enterprise Act 2015 allows damages for

Answer 14

late payment

Question 15

IA2015 abolished contract termination based on

Answer 15

good faith (marine Act)

Question 16

Avoiding contract based on breach of good faith is only possible if….

Answer 16

commercial and mispresentation was reckless / deliberate

Question 17

If insured thinks there has been a breach, then the policyholder is notified of

Answer 17

reservation of rights

Question 18

Case law waiver, Kosmar Villa v Trustees

Answer 18

Insurers allowed period of time to investigate. Do not affirm policy during this time (renewal or contract amendment)

Question 19

Proximate cause - famous case law

Answer 19

Leyland Shipping v Norwich Union Fire

Question 20

Warranties take three forms

Answer 20

Past
Present
Continuing

Question 21

Condition precedent

Answer 21

Compliance to conditions is required. Serious!

Question 22

Case law condition: Eagle Star

Answer 22

Any breach of condition precedent meant no payment

Question 23

Case Law: Aspen

Answer 23

Wording meant condition precedent

Question 24

Idependent peril

Answer 24

Damage was caused by single peril alone

Question 25

Interdependant perils

Answer 25

Only a combination of perils led to loss

Question 26

Case Law Perils: Wayne Tank

Answer 26

If combination of excluded and insured perils, there is no cover.

Question 27

Case Law Perils: JJ Lloyd

Answer 27

Weather insured + Defective yacht design uninsured so insurer liable.

Question 28

Case Law Perils: Tektrol

Answer 28

Loss of source code was deliberate so claim not covered.

Question 29

Case Law exclusions: Bankers Insurance

Answer 29

Jet ski was a waterborne craft - claim not covered.

Question 30

Case Law exclusions: Blackburn Rovers

Answer 30

Footballer injury resulted from degenerative condition that was excluded. Claim not covered.

Question 31

Case Law exclusions: C A Blackwell

Answer 31

Rain damage to construction site. Claim allowed as loss was fortuitous