Chapter 7 Key Points Flashcards
statutory rules
the consumer rights act 2015 imposes requirements for fairness and the use of intelligible language
common law rules
relating to the words ordinary meaning, technical or legal meaning, context, the contra proferenterm rule in cases of ambiguity
what is a warranty
a promise made by the insured relating to facts or to something they agree to do, or not to do
why are continuing warranties applied
to ensure that some aspect of good housekeeping or good management is observed
how can warranties arise
expressly
when clearly stated in the policy
implied as well as being express (only marine)
what mitigated some of the harsh consequences caused by a breach of an insurance warranty
the insurance act 2015
what does the insurance act 2015 do when there is a breach of warranty
suspends the cover during the the time that the insured breached the warranty
enables remedying the breach of a warranty
what happens if a condition precedent to the contract is breached
if it is precedent to the validity of the policy and is never fulfilled, the contract never comes into existence
what does the distinction between a joint and composite insurance depend on
the interests of the insured persons
what is a joint policy
‘indivisible’, so that a breach by one insured may cause the whole policy to fail
what is a composite policy
a breach or default by one insured may invalidate their own cover without affecting the right of other insured persons to claim
how can a composite policy be viewed
as a bundle of separate contracts between the insurers and the various insured persons but contained in a single policy
