Insurance

Question 1

Financial Ombudsman service

Answer 1

Free service with awards up to 100K

Question 2

Clark v In Focus asset management

Answer 2

You can’t accept the ombudsman and raise any further proceedings

Question 3

Harsh v Pearl Life

Answer 3

Makes the insurance policy null and void and illegal if there is no insurable interest at the time of inception

Question 4

Cowan v Jeffrey Associates

Answer 4

You cannot unsure something over an asset that you do not own. Director and shareholder planning on buying premises from a company however they took out insurance interest before the purchase! The premise was destroyed however they had no insurance because they did not own the premises yet

Question 5

Wainright v Bland

Answer 5

The assured has interest in his own life

Question 6

Griffith v Fleming

Answer 6

You have insurable interest in the life of your spouse or civil partner

Question 7

Garage v Pearl Life insurance

Answer 7

Adult child tried to insure his mothers life as she cooked and kept the house for him- held there was a lack of insurable interest here - no legal obligation for her to keep the house for him

Question 8

Halford v Kymer

Answer 8

No general right for parents and children to insure each other’s lives- father tried to insure sons life- the payment was refused because of lack of II

Question 9

Dalby v India & London life assurance

Answer 9

An II in the life of another need only exist at the time when the policy was taken out

Question 10

Godsall v Bolerdo

Answer 10

The debtor and creditor- creditor has interest in life of debtor to the extent that he is owed

Question 11

Macaura v Northern Assurance Co

Answer 11

Insured timber in own name, owned by company who he was a share holder of- fire damage- couldn’t claim- held: insurers not liable as timber did not belong to M and thus no II

Question 12

Fehilly v GA

Answer 12

II of a tenner of a property is limited to the remaining value of the lease

Question 13

Taylor v Allon

Answer 13

Temporary cover
At the time of renewal, T was contracted by the insurer asking if he still wanted the insurance policy in place- 14 day grace period- he was arrested for driving without insurance on the 15th day- his grace periods only appliednif he had renewed with the same insurer which he did not

Question 14

Re Coleman Despositries

Answer 14

Standard terms need to be clearly incorporated- here the insurer tried to rely on a standard term regarding immediate notification of a potential claim, but that had not been incorporated

Question 15

Sunfire Office v Hart

Answer 15

Duration/ renewal of policy
Sugarcane plantation and insurance policy for incut cane if there was a loghtning strike- 2 fires within 2 months and after paying out for those 2 the insurance company cancelled- the 3rd fire happened and it was held the insurance company had legitimately cancelled - premiums were paid back

Question 16

General Accident Assurance v Chandermill Jain

Answer 16

Indian case where there was property insurance for a risk of flooding near river- insurance company supposedly had inside information on this and cancelled the policy- however this was legitimate- general risk must not have yet occurred and the insurerer must return premiums pro rota

Question 17

Tesco v Underwriting v Auchuche

Answer 17

Case given in authority for proposition that insurer can avoid a policy when insured recklessly/deliberately fails to disclose a motoring conviction when making an application for insurance
If reckless or deliberate can keep premiums

Question 18

Careless misrepresentation

Answer 18

The insurance company can reject the claim but keep the premiums

Question 19

Unipac Ltd v Aegon Insurance Co UK

Answer 19

Two incorrect answers about length of time in business and sole occupancy at premises prevented payout after a fire

Question 20

Provincial insurance Co v Morgan

Answer 20

Lorry of coal merchant insured under a motor policy
Basis of contract clause related that the vehicle was to be used for coal and coal only - on the day of the loss the lorry was also carrying wood
Insurers didn’t have to pay out
Law reformed aftervthis

Question 21

Cox v Orion Insurance Co

Answer 21

If breached, a condition precedent to the insurers liability may function to prevent any claim:the liability to pay never arises

Question 22

Friends Provident Life and Pensions v Sirius

Answer 22

A breach of mere ‘condition’ in insurance law usually only allows the insurer to claim damages for any loss the breach causes it to suffer - c of a strict on this point: no general right to repudiate for a breach of mere condition

Question 23

Patrick v Royal London Mutual Insurance Society

Answer 23

If the loss was deliberately caused by a person other than the insured then the loss is usually claimable

Question 24

Safi v Prudential Assurance Co

Answer 24

Policy terms may require the insured to exercise ‘reasonable care’ - theft- plaintiffs goods stolen from the car - was the plaintiff regarded to have taken all reasonable steps to safeguard property

Question 25

Investors compensation scheme v West Bromwich building society

Answer 25

Construction of contract terms
Discover the meaning that the document would convey to the reasonable person with the background knowledge reasonably available to the contracting parties at the time of the contract

Question 26

Thomas v Equity Fire Insurance Co

Answer 26

Give words their ordinary meaning

Fire policy exempted liability if petrol started or kept in building insured

Question 27

Leo Rapp Ltd v McClure

Answer 27

Quantity of metal insured against theft while in warehouse was not covered when the lorry was parked inside a locked compound that lacked a roof

Question 28

WH Smith v Clinton

Answer 28

Insured published defamation and got sued- the insurance company would not cover him because he brought it on himself

Question 29

Geismar v Sun Alliance

Answer 29

Stole jewellery

Question 30

Hayward v Norwich Union

Answer 30

Motor insurance exempt from liability if vehicle left unattended

Victim of robbery left keys in the car - couldn’t claim insurance

Question 31

Farnoli v GA bonus

Answer 31

Allowed rejection of fraudulent claim and termination of policy from the date of fraud