Chapter 6 Key Points Flashcards
What are insurance contracts based upon
utmost good faith
what replaces duty of disclosure in consumer insurance
duty to take reasonable care not to make a misrepresentation
what does the duty to make a fair presentation of the risk in non-consumer (business) insurance impose
a duty not to misrepresent any matter relating to the insurance
a duty to disclose all material facts relating to the contract
what is the test for material misrepresentation in insurance contracts modified from
the same concept in general contracts
how is a material fact in insurance defined
according to what a ‘prudent underwriter’ would deem material rather than a reasonable person
how can a non-consumer (business) seek remedy on the grounds of misrepresentation
as a matter of strict law, irrespective of whether the misrepresentation is fraudulent, negligent or completely innocent
when can an insurer seek remedy for a misrepresentation in consumer insurance
when it is deliberate, reckless or careless (i.e. negligent)
what does the 2012 Act do regarding misrepresentation in consumer insurance
excludes an innocent breach from its scope as it imposes the duty to take reasonable care not to misrepresent material facts
duty of disclosure in non-consumer (business) insurance
positive duty of disclosure going beyond a mere duty not to misrepresent what is in fact disclosed
what does the insurer have to prove in both consumer and business insurance before seeking remedy for breach of the pre-contractual information duties
inducement
what does the IA 2015 do
provides some guidance to determine materiality of a fact
material facts that should be disclosed in non-consumer insurance
facts relating to physical hazard and moral hazard
when do the pre-contractual information duties begin and end
begin at the commencement of negotiations and finish once the contract is concluded
when does a fresh duty arise
when the contract is renewed
what determined the remedy for breach of the duty to act in good faith
common law
