Chapter 7 Questions

Question 1

what is the ejusdem generis rule

Answer 1

provides that general words which follow specific words are taken as referring to things of the same kind as the specific words

Question 2

what is the contra proferentem rule

Answer 2

clause is construed against the party who proposed it (i.e. the drafter of the clause), so that the other party is given the benefit of the doubt

Question 3

how does the contra proferentem rule typically apply to a term in a consumer insurance contract

Answer 3

term will usually be construed against the insurer as they typically set the terms

Question 4

what is a continuing warranty in insurance

Answer 4

the insured promises that a state of affairs will continue to exist or they will continue to do something (e.g. good housekeeping or good management)

Question 5

how can a warranty be created

Answer 5

expressly or impliedly in marine insurance
express only in non-marine insurance

Question 6

what are collateral (or ‘mere’) conditions

Answer 6

not part of the main agreement to insure but are concerned only with a side issue such as the adjustment of premium
breach constitutes sufficient ground to terminate the contract and claim damages if it goes to the root of the contract

Question 7

What current UK legislation provides some statutory control over insurance policy wording?

Answer 7

The Consumer Rights Act 2015