Insurance Flashcards
1
Q
Scottish Amicable v NAC
A
- contract, insurer takes consideration of payment of estimated equivalent
- make up loss to assured
2
Q
The Medical Defence Union Limited
A
- contract, 3 present elements:
- x entitled if y event occurs
- y event must involve uncertainty
- x must have insurable interest in subject-matter of contract (right to benefit must be certain)
3
Q
Department of Trade and Industry v St Christopher’s..
A
- “benefit”
- sum of money or equivalent service
- measurable in financial terms
4
Q
Digital Satellite Warranty Cover Ltd
A
- DWSC argued contracts were not regulated insurance contracts
- Held: they could be, therefore in breach of FSMA 2000
- selling warranty contracts for repair/replacement without authorisation
5
Q
Griffiths v Fleming
A
- assumption that insured has insurable interest in own life
6
Q
Wight v Brown
A
- assumption of insurable interest in life of spouse/civil partner
7
Q
Feasey v Sun Life Assurance
A
- insurable interest discovered from circumstances - no one definition
- subject of insurance ascertained by terms of policy
- insurable interest when contract entered and at time of loss (indemnity)
8
Q
Dalby
A
- insurable interest when contract entered but need not exist at time of loss
- policy valid at creation, still valid at death even when cancelled
9
Q
Macaura v Northern Assurance Co Ltd
A
- M, shareholder and unsecured creditor of company
- insurance policy for timber in own name
- no insurable interest
- creditor nor shareholder has insurable interest in assets of company
10
Q
*Cowan v Jeffrey Associates
A
- C shareholder and company director
- company owned heritable property
- C had no insurable interest in property at time loss occured
- insurable interest must exist at time of loss
(conclusion of missives is minimum requirement of II)
11
Q
Mitchell v Scottish Eagle Insurance Co.
A
- partnership - only II in partnership itself
- no individual interest of joint partners
12
Q
Fehilly
A
- ballroom lease
- tenant insurable interest only in relation to repair as subject in the condition in which lease provided
- did not cover full reinstatement of destroyed property
13
Q
Chapman v Pole
A
- insured can only recover real and actual value of goods
14
Q
Leppard v Excess Insurance Co Ltd
A
- indemnity > insured placed in same financial position as before loss
- recoverable only to market value as agreed when insurance
- claimed rebuilding = 8k, awarded and upheld 3k
- anything more than 3k would amount to profit
15
Q
Sprung v Royal Insurance
A
- insurers wrongfully declined pay out, later did
- claim from insured for compensation denied
- interest on late sums was sufficient compensation
16
Q
Strachan
A
- Scots law allow damage claim for compensation
- payment classified as obligation to pay damages for breach of contract
17
Q
Castellian v Preston
A
- insurers subrogated - could recover money from indemnity in relation to newly sold house fire
- purpose of subrogation is ensure policyholder is indemnified not not over indemnified
18
Q
Caledonia North Sea Limited v London Bridge Engineering Ltd
A
- insurance company subrogated - rights of insured
- insurer must raise action in name of insured
19
Q
Lord Napier & Ettrick v Hunter
A
- subrogation from “top down”
- insurers entitled to remedy of funds recieved by insured from 3rd party
- if loss greater than sum insured, won’t get full amount
20
Q
Simpson & Co. v Thomas Burrall
A
- insurer entitled to realise assets of wreckage if paid a total loss
21
Q
JJ Llyod Instruments “Miss Jay Jay”
A
- policy covered perils of sea, not design fault
- not determined by dominant cause of ship loss
- design not positively excluded in policy
- insurers liable.
22
Q
“Popi M”
A
- onus on insured to prove caused loss was included as insured peril
- insurers do not have to prove contrary
23
Q
Wayne Tank v Pump co Ltd
A
- positive exclusion of cause of fire in policy meant insurers not liable
- insurance policy covered course of business in premises other than own
24
Q
Pan Atlantic v Pine Top Industries Co.
A
- “influence judgment”
- fact would have had effect on prudent insurer’s mind
- only entitles insurer to avoid policy if actually induced making of contract
25
Economids v Commercial Union Assurances Co.
- sole obligation of insured was representation of expectation of belief
- provided that belief honest, insurers could not avoid
26
Southern Rock Insurance Co Ltd v Hafeez
- online forms - what has been asked of consumer
- Held: no way of knowing what online questions were asked
- consequently - were any deliberate/reckless?
- insurers claim of misrepresentation failed: must prove exact information captured
27
Versloot Dredging BV
- court held insured could not use claim due to using fradulent devices (alarm untruth)
- on appeal, disproportionately harsh to deprive claim
- cannot make loss in order to make claim/exaggerate extent of claim
28
"The Good Luck"
- insurers failed to give notice of ceasing insurance of ships to bank
- insurers had breached contractual obligations by failing to notify bank
29
"The Star Sea"
- no duty to disclose during course of policy of developments increasing risk
- policy may have term requiring disclosure to be made
30
*Hussain v Brown
- burglar alarm
- question of alarm posed in present tense and answered in affirmative
- did not constitute continuing warranty
- fact that alarm was off did not render contract voidable
31
*Ansari v New India Assurance Ltd
- "premises protected by sprinkler system?"
- answered in affirmative
- Held: continuing warranty as system integral to building and intended to function automatically
- insurer refused to pay - system was turned off
32
McPhee v Royal Insurance
- insured completed proposal form based on measurements from previous owner
Held: material misstatement
- insured must give answers with reasonable basis for knowledge/belief - not reckless
33
Bereseford v Royal Insurance Company Ltd
- 2 issues to be determined:
1) contract interpreted using normal principles of interpretation
2) could contract be enforced in court of law?
- suicide - 1 year had elapsed - insurers bound to meet claim
- Held: not given effect to for public policy reasons
34
Dhak
- alcoholic died due to choking in sleep
- life assurance covered 'accidents'
- not accidental, insurers not liable to pay
35
Connelly
- PTSD during course of employment (fire service)
- policy - 'accidental bodily damage'
- PTSD was deemed accidental, distressing circumstances of work were sufficiently unexpected
36
Stockton v Mason
- broker implied authority to enter temporary insurance on behalf of insurers
- temp. interim insurance contract entered, insurers liable to indemnify
