Ch 5 Good Faith And Disclosure

Question 1

What sort of product is insurance? Tangible or Intangible?

Answer 1

Intangible

Question 2

What duty do consumers have under the Consumer Insurance Disclosure & Representations Act 2012

Answer 2

Duty to take reasonable care not to make a misrepresentation

Question 3

What did the Insurance Act 2015 introduce?

Answer 3

Duty to make fair presentation of a risk for a non-consumer contract replacing utmost good faith

Question 4

Who does the duty of good faith apply too?

Answer 4

Both insured and insurer

Question 5

What is the duty of disclosure?

Answer 5

In all insurance negotiations there is a duty to disclose material circumstances, particularly at the proposal stage.

Question 6

When is the duty of disclosure revived?

Answer 6

At each renewal date unless it is a continuing one.
If there is an alteration to the policy

Question 7

Who does the Consumer Insurance Disclosure & Representations Act 2012 apply to?

Answer 7

Consumers and not to business or commercial customers

Question 8

What defines a consumer under the act?

Answer 8

Someone who takes out insurance wholly or mainly for purpose unrelated to the individuals trades business or profession

Question 9

Who does the Insurance act 2015 apply to

Answer 9

Non-consumer i.e. commercial customers

Question 10

CIDRA

Answer 10

Consumer Insurance (Disclosure and Representation ) Act 2012

Question 11

Good faith meaning

Answer 11

Means that disclosure must be made in a reasonably clear and accessible manner and material representation of fact, expectation or belief must be substantially correct

Question 12

At common law,once the policy Is in force the duty of disclosure would be

Answer 12

Revived at each renewal date

Question 13

What is material circumstance?

Answer 13

Every circumstance is a material which would influence the judgement of a prudent insurer in fixing the premium or determining whether he will take d risk

Question 14

Under CIDRA, who’s a consumer

Answer 14

A consumer is someone who takes out insurance ‘ wholly or mainly for purpose unrelated to the individual trade business or profession

Question 15

Who sets out a statutory code clarifying the law of agency relationship , provisions for group schemes and the insurance taken out on the life of another

Answer 15

CiDRA ( Consumer Insurane ( Disclosure and Representation ) Act 2012

Question 16

On the renewal of a policy , who’s duty of disclosure is revived for general insurance I.e (non life ) policies

Answer 16

Insured

Question 17

New rehabilitation period

Answer 17

Is the period of sentence plus the buffer period which applies from the end of the sentence

Question 18

What Is always to be taken as showing lack of reasonably care

Answer 18

A dishonest misrepresentation

Question 19

Qualifying misrepresentation

Answer 19

Is deliberate or reckless or careless

Question 20

A qualifying mispresentation is …..if not deliberate or reckless

Answer 20

Careless

Question 21

What is qualifying breach

Answer 21

A breach that triggers a remedy is called a qualifying breach

Question 22

Which act provides a warranty must be exactly complied with whether material to the risk or not

Answer 22

Marine insurance Act 1906

Question 23

Under compulsory insurances , which acts prohibits the insurer from avoiding liability on the grounds of certain breaches of good faith

Answer 23

The Road Traffic Act 1988

Question 24

A life insurance policyholder has suffered 2 strokes but has not informed the insurer of her changes of health..this is because

Answer 24

The duty of disclosure ends at inception of the policy