Acts Flashcards
EU Gender Directive
Transposed into UK law by the Equality Act 2010 (Amendment) Regulations 2012
Insurers cannot use gender as a factor in pricing or benefits
Companies Act 1985
Most proprietary insurance companies are registered under the Act
Council Regulation on the Statute for a European Company
Harmonised some company law, allowing for legal cross-border mergers and international transfers of operational centres to replace subsidiary branches - enables an SE to integrate regulation at the level of the parent company
Legislative Reform (Lloyd’s) Order 2008
Amended a number of provisions of the Lloyd’s Act 1982 principally by removing the restriction that only a Lloyd’s broker can place business at Lloyd’s, also removed the ‘divestment rule’ which meant that broking and underwriting activities must be completely separate
Unfair Terms in Consumer Contracts Regulations 1999
Insurers should set out in the policy wording costs related to cancellations of policies and fees charged
Deregulation Act 2015
Where a policy is cancelled mid-term the policyholder is no longer required to return the certificate of motor insurance or make a statutory declaration or any statement acknowledging the policy has ceased to have effect (and not doing so ceases to be an offence)
Marine Insurance Act 1906
A codifying act (bringing together and updating all previous legislation on the subject) - it stated that any marine insurance contract was void in the absence of insurable interest at the time of any loss
Marine Insurance (Gambling Policies) Act 1909
Made it a criminal offence to effect a marine policy where either there is no insurable interest, or where there is no reasonable expectation of such an interest
Life Assurance Act 1774
Made it illegal to effect life insurance policies on another person’s life (by a disinterested party) simply as a form of wager, and specified that the name of the person effecting the policy had to be shown and they may only recover the value of their interest
Gaming Act 1845
Extended the requirement for insurable interest beyond life insurance contract - made all contracts of gambling or wagering (i.e. a general insurance contract without insurable interest) null and void
Insurable Interest Bill (drafted in 2016)
Would reform insurable interest in the UK by separating it into 2 categories (does not apply to marine insurance):
- Life-related insurance: void unless, when entering into a contract, the proposer has an insurable interest in the individual who is the subject-matter of the insurance
- Insurance other than life related: void unless, when entering into the contract, the proposer has:
1. An insurable interest in the subject matter of the
contract; and/or
2. An reasonable prospect of acquiring such an interest
during the term of the contract
Settled Land Act 1925 and Repair of Benefice Buildings Measure Act 1972
Examples of statutes which impose a particular duty on or grant some benefit to certain groups of people, thus creating or modifying insurable interest
Carriage of Goods by Sea Act 1971, Hotel Proprietors’ Act 1956, Carriers Act 1830 and Trustee Act 1925
Statutes which restrict liability and therefore restrict insurable interest
Consumer Insurance (Disclosure and Representations) Act 2012 (CIDRA)
Replaced the duty on consumers to disclose material facts with a duty to take reasonable care not to make a misrepresentation, by answering insurers’ questions full and accurately - applies to CONSUMERS
Also prevents insurers from including terms in contracts which put the insured in a worse position in respect of pre-contract disclosure and representation than the legislation will permit, e.g. banning of ‘basis of contract clauses’ which warrant the truth of statements and make them the basis of contracts
Sets out proportionate remedies insurers can use if the misrepresentation is deemed as ‘qualifying’
Insurance Act 2015
Introduced the concept of a duty upon the insured to make a fair presentation of a risk to the insurer (extends the legislation set out in CIDRA) - applies to COMMERCIAL CONTRACTS
No longer allows for the absolute remedy of avoidance in the case of a breach, instead an insurer’s liability will be suspended from the time of the breach
Amended the Third Parties (Rights Against Insurers) Act 2010 by rectifying the failure to include certain insolvency circumstances
Road Traffic Act 1988
Prohibits the insurer from avoiding liability on the grounds of certain breaches of utmost good faith; once they have met all claims for personal injury and property damage, they have a right of recovery against the insured.
Stipulates that it is illegal to cause or permit the use of a vehicle on a public road unless an insurance policy is in force, covering third-party property damage and third-party bodily injury or death
Enterprise Act 2016
Gives policyholders a legal right to claim damages in the event of a late payment; insurers must now pay any sums due to their insured within a ‘reasonable time’ which depends on factors such as size and complexity of claim. Claims against (re)insurers will be time-barred unless they are made no later than one year from the date on which the insurer has paid all the sums due in respect of the claim. Insurers can contract out of this provision in a non-consumer policy but not in a consumer policy
Riot Compensation Act 2016
Insurers may have rights of recovery against the police for riot damage, but only have 42 days from the date of the riot to do so.
Employers’ Liability (Compulsory Insurance) Act 1969
Made it compulsory for employers in Great Britain to effect employers’ liability insurance - insures them against their liability to pay compensation to employees who sustain bodily injury or disease, arising out of and in the course of their employment. The minimum required limit of indemnity is £5m but most insurers provide £10m as standard.
