C1 Flashcards
What year was the Marine Act?
1906
How does the Marine Act 1906 define a material circumstance?
“A circumstance or representation is material if it would influence the judgement of a prudent insurer”
What Act addressed the imbalance of the Marine Act?
The Consumer Insurance (disclosure and representations) Act 2012
What does the Consumer Insurance Disclosure and Representations Act 2012 say the info must be ?
Full & Accurate
What does the Consumer Insurance Disclosure and Representations Act 2012 say the insured has a duty to do?
A duty to not make a misrepresentation
What act encourages the insured to not be reliant on the insurer questions?
The Insurance Act 2015
What does the Insurance Act 2015 believe the insured has a duty to do?
make a fair presentation of the risk
Under the Insurance Act 2015, what must the insured disclose?
every material circumstance even if not specifically asked
How long does the duty of fair presentation last?
It exists pre cover, at inception, mid term, at renewal and during claims.
What does the FCA’s New Consumer Duty address?
addresses behaviour that causes customers harm and applies to all regulated firms
What is the difference between a Peril and a Hazard?
A peril gives rise to a loss and a hazard influences it’s operation (increases it)
For a contract to be legally binding, what 3 things needs to occur?
An offer, acceptance and consideration
What is the difference between non-disclosure and misrepresentations?
Not disclosing something means failing to tell the insurer whereas a misrepresentation is when a statement is false.
What is Utmost Good Faith?
It is a principle of honesty relating to contracts. It involves both the insured and the insurer having to disclose all things material before and during the contract
