Chapter 7 - New Questions Flashcards
What is typically a breach by an insured in an insurance contract?
Failing to pay the premium
What does section 11 of IA 2015 state regarding remedies for breaches of insurance contract terms?
The labelling of a term as a “warranty” or “condition precedent” alone does not suffice for the insurer to seek a remedy
Under English law, how much statutory control is there over the wording of insurance policies?
Insurance policies have little statutory control, and the parties are mostly free to include any terms they wish
What does the Consumer Rights Act 2015 NOT cover in insurance contracts?
The overall fairness of the agreement or the narrowness of coverage
If a contradiction arises between a proposal and the final policy document, which one is likely to prevail?
The final policy document
If a loss occurs after a warranty breach is remedied, but the loss is attributable to something that happened during the breach, what is the insurer’s position under IA 2015?
The insurer is not liable for the loss.
How does the IA 2015 address the relationship between the breach of a warranty and the cause of the loss?
The insurer can deny liability even if the breach did not cause the loss.
Under the IA 2015, what does “attributable to” mean regarding losses after a warranty breach is remedied?
It indicates a looser link between what happened during the breach and the later loss.
Which of the following is true regarding the creation of express warranties?
Courts may interpret a term as a warranty even if the parties did not use the word “warranty.”
Implied warranties are:
Automatically included in marine insurance policies under the Marine Insurance Act 1906.
What is the key difference between conditions precedent to the contract and conditions precedent to liability?
Conditions precedent to the contract must be fulfilled for the policy to come into effect, while conditions precedent to liability must be fulfilled for the insurer to cover a specific claim.
What should be considered first when assessing whether section 11 of the Insurance Act 2015 applies to a warranty or condition?
Whether the term is a risk-defining or a risk-mitigating term.
If a policy states that parties are insured ‘for their respective rights and interests,’ what is the likely classification of the policy?
Composite policy
In the case of Suez Fortune Investments Ltd v. Talbot Underwriting Ltd (The Brillante Virtuoso) (2019), why was the co-assured bank not allowed to claim?
The loss was caused by wilful misconduct rather than an insured peril, disallowing the claim.
In what situation might a composite policy still be affected despite being designed to protect separate interests?
When wilful misconduct causes the loss, making the claim invalid.
