Chapter 8 Questions

Question 1

what degree of proof applies in the case of an insurance claim with regards to what caused the loss

Answer 1

proof ‘on the balance of probabilities’

Question 2

do insurance policies cover losses caused by negligence

Answer 2

generally yes, insurers will usually be liable unless the loss was caused deliberately or through reckless conduct

Question 3

what was the impact of the versloot dredging decision

Answer 3

made it harder for insurers to use the ‘fraudulent device’ defence, claim will no longer be automatically forfeited and insurer will need to show that the lie is relevant to the existence or amount of the insured’s entitlement

Question 4

If an insurer has rejected a claim on the basis of the ‘fraudulent device’ defence, this means that the insured

Answer 4

made fraudulent statements that increased the chances of the claim being paid out.

Question 5

What is the burden of proof that must be met for an insurance claim to be paid, and on whom does it fall

Answer 5

The insured has to prove the claim on the balance of probabilities.

Question 6

Under the Married Women’s Property Act 1882, who would be able to benefit under the life policy

Answer 6

The insured’s children