Insurnace

Question 1

Types of insurance

Answer 1

1st party

I insure my life/property for my OWN BENEFIT against loss I bear

3rd party

I insure my life/property for ANOTHER’S BENEFIT against losses they would bear eg if I were held liable for injuring them

Question 2

Indemnity

Non-indemnity

Answer 2

Insurance for risk that specified liability MAY ARISE

Insurance against events that WILL ARISE
eg life insurance

Question 3

Prudential insurance co
V
Inland revenue commissioners

Answer 3

Closes to def of insurance

Consideration must passed from insured to insurer

Insured must secure benefit, usually payment of sum of money

Upon happening of some event (must be adverse)

Which involves element of uncertainty as to

• whether event will occur
• time it will happen

Question 4

Financial ombudsman service

Answer 4

Free service deals with consumer complaints allowing awards up to 100k

Question 5

Clark
V
In focus asset management and tax solutions

Answer 5

Common law principle of res judicta (court already adjudiacted) applied in FMSA 2009 in circumstances where cause of action in both proceedings is the same

Can’t accept omb. Then raise another action to try claim more

Barred from further proceedings

Question 6

Conduct of insurance business

Answer 6

Regulated by

Insurance conduct of business sourcebook (ICOBS)

FSMA 2000 makes non compliance with ruled by authorised person that then causes loss to private person actionable as a breach of statutory duty

Question 7

Insurance interest

Answer 7

Insured person must have insurance interest under contract if want to be a legally enforceable claim

Without

Void illegal and unenforceable

Question 8

Harse
V
Pearl life assurance co

Answer 8

Makes policy NULL, VOID and ILLEGAL if no insurance interest at the time of inception

Question 9

Cowan
V
Jeffrey associates

Answer 9

Cannot insure something you do not own as have no II

Director and shareholder planning on buying premises from company. Took out IP before purchase. Premise destroyed.

Held: policy void as did not have II when he took out policy, still owned by company. Didn’t own when damage occurred

Company had II but he did not

Question 10

Wainwright v Bland

Griffith v Fleming

Answer 10

Assured has II in one life

You have II in life of spouse/CP

Question 11

Halford
V
Kymer

Answer 11

No general right for parents and children to insure each other’s lives

Father had insured life of son. Payment refused on ground of lack of II

II must be PECUNIARY IN NATURE.

Mere love and affection will not suffice

Question 12

Dalby
V
India and London Life assurance co

Answer 12

An II in life of another need only exists at time when policy taken out

Question 13

Macaura
V
Northern assurance co

Answer 13

Without an ownership infested in property, may not have II

Insured tumble in own name but was owned by company which he was sole shareholder of. Fire damage, couldn’t claim

Held: no II as timbre did not belong to him, SLP and thus no II. No ownership, no interest.

Question 14

G.A. Insurance
V
Cronk

Answer 14

If you take out standard policy from insurer you deal on and are deemed to agree with standard terms of policy

Question 15

Sickness and accident assurance
Association ltd
V
General accident assurance

Answer 15

Where insured expressly provides that cover does not commence until payment of first premium, then commencement of cover is conditional upon this happening

Question 16

Cover notes

Answer 16

Temporary cover

Nah receive from agent of insurer when you make your proposal

It is an insurance police even if for limited duration

Cover notes may be oral

Question 17

Re Coleman’s depositories ltd

Answer 17

Standard terms must be CLEARLY INCORPORATED

Insurer tried to rely on standard terms regarding immediate notification of potential claim but had not been clearly incorporated so deemed ineffective

Question 18

Sun fire office
V
Hart

Answer 18

Cancellation by insurer

Policy may require notice or may allow immediate cancellation

Multiple fires at sugar cane plantation. I paid out then cancelled after. Another fire occurred but cancellation valid. Did not have to pay out

Question 19

General accident assurance
V
Chandermull Jain

Answer 19

Cancellation by insurer

Risk must not yet have occurred and insurance must return premiums pro rata

I found out about flood risks in region and cancelled policy

Valid as risk had not yet occurred

Question 20

Contract may be voidable by insurer if insured

Answer 20

Makes qualifying misrep (consumer insurance)

Or

Fails to comply with duty of fair presentation (all non consumer)

Question 21

S10(2)

Insurance Act

Answer 21

Insurer has no liability under a contract of insurance in respect if any loss occurring or attributable to something happening AFTER warranty in contract has been breached but before breach remedies

Question 22

CIDRA 2012

Consumer under duty to

Answer 22

Take REASONABLE CARE not to make misrep. to insurer

Question 23

Tesco underwriting
V
Achunche

Answer 23

Authority for point that insurer can avoid a policy when insured recklessly/deliberately fails to a material fact

Amounting to a qualifying misrepresentation

Question 24

Qualifying misrepresentation

S4(2)

Answer 24

Qualifying MR

If insurer would not have

Entered at all; or

Would have entered of different terms

Question 25

Remedies for where QM is deliberate or reckless

Shedule 1 CIDRA

Answer 25

Insured can

• avoid contract
• refuse claims
• keep premiums

Unless deemed unfair

Question 26

Remedies where QM was careless

Shedule 1 CIDRA

Consumers

Answer 26

If QM induced insurer to enter contract

• avoid, reject and return premiums

If DID NOT induce;

but would of been on different terms - held to be on those terms

Would have had higher premiums, cover will be reduced pro rata premium actually paid

Question 27

S10

Breach of warranty

Insurance act 2015

Answer 27

No longer automatically results in discharge of insurers liability under contract

Breach suspends liability for duration of breach but remedy of breach before any losses restores liability

Question 28

Hayward
V
Norwich union insurance

Answer 28

Construction of contract terms

Motor insurer exempt from liability if vehicle left ‘unattended’

victim of robbery left keys inside when told to get out

No insurance cover

Question 29

WH Smith
V
Clinton

Answer 29

Cannot claim for loss deliberately caused or will so cause

Insured against consequences of libel which may appear in journal

Knowingly published libel, had to pay damages
Sought to recover insurance

Held: indemnity unenforceable

Question 30

Geismar
V
Sun alliance

Answer 30

May not aim for own illegal or delictual acts

Smuggled jewels case. Claim for theft of jewels from home, hadn’t declared when brought into country

Couldn’t claim, against PP to profit from deliberate breach of law