Chapter 5 - Insurance contract formation and insurable interest

Question 1

Does timing affect if insured owed money back

Answer 1

If contract never started - yes all of it

If ended premeturely - not at all

Question 2

‘Consensus ad idem’

Answer 2

Agreement between different people or groups about the exact meaning of a contract that is necessary before the contract is considered to be legally acceptable

Question 3

Cancellation by the insurer

Answer 3

Allowed - has to be a notice period and a pro rata premium

Question 4

Cancelltion by the insured

Answer 4

Do have the right to do so, however there may be less than full pro rata premium

Question 5

Does marine insurance have to be in writing

Answer 5

Yes

Question 6

A key element of insurable interest is that in relation to the subject matter of the insurance, the policyholder must have

Answer 6

o a current interest
o a financial interest
o a legal interest

Question 7

An insurer has issued marketing material and a quotation to Laura for insurance. She decides to take out the insurance and sends a completed proposal to her insurance broker. The insurer then writes to confirm cover is in force. When has an offer been made?

Answer 7

With the completion of the proposal form by Laura

Question 8

When there is no insurable interest, an insurance contract

Answer 8

Is void but the insurer would refund any premiums paid