Incorrect Test Answers Flashcards
What is the marine insurance act 1906 an example of?
A codifying act: when all existing statute and case law on a particular topic (marine insurance) is reduced to a single code
The MIA consolidated previous legislation on marine insurance together with legal principles from around 2000 decided cases into one act
When may an insurance contract be illegal and void
When it lacks the insurable interest required by statute (e.g. life assurance act 1774)
When the purpose of the contract is illegal or against public policy (e.g. insuring against health and safety fines)
When the insured property may be used illegally
When there is a close connection between loss and crime
On what basis is an insurer bound if their agent grants a policy but they have no real authority to do so
Apparent Authority
Under English Law an element of statutory control over the wording of consumer insurance policies is imposed by what act?
Consumer Insurance (Disclosure and Representations) Act 2012
What does Section 151 of the RTA Act 1988 allow for?
This allows victims to make a direct claim against the insurers of the negligent driver even though they are not a party on the original contract. This breaks the standard privity of contract rules
The right to make a claim arises when the victim has obtained a judgement against the negligent driver or when the driver has failed to satisfy the judgement within 7 days
If a claim is disputed and causation is an issue what approach will the court take when looking to identify proximate cause?
It will rely on the common understanding of causation by a normal person
What type of insurance cannot have its annual limit of liability exhausted by a series of partial losses
Motor third party bodily injury cover
What can a 17 year old in full time education legally do?
Be fully responsible for their criminal actions
Be a beneficiary of a trust
(16+ year olds can get a will only if they are in the armed forces)
In contract law how may you accept an offer
By implied conduct
By matching exactly the terms of the offer
Cannot be accepted by taking no action in most cases
Which material circumstances do not need to be disclosed in an insurance proposal?
Factors that lessen the risk
Details about trade
Information that should’ve been discovered by a survey
Common law rules for the interpretation of insurance policies include
Application of a technical or legal meaning
Contra proferentum rule
Mischief and golden rule are for interpretation of statutes in court cases etc
What legal remedies are available to an insured who has suffered a loss as a result if an insurers unreasonably late payment of a claim
Contractual damages
Interest in any sums due under the policy
