Insurnace Flashcards
Types of insurance
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
Indemnity
Non-indemnity
Insurance for risk that specified liability MAY ARISE
Insurance against events that WILL ARISE
eg life insurance
Prudential insurance co
V
Inland revenue commissioners
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
Financial ombudsman service
Free service deals with consumer complaints allowing awards up to 100k
Clark
V
In focus asset management and tax solutions
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
Conduct of insurance business
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
Insurance interest
Insured person must have insurance interest under contract if want to be a legally enforceable claim
Without
Void illegal and unenforceable
Harse
V
Pearl life assurance co
Makes policy NULL, VOID and ILLEGAL if no insurance interest at the time of inception
Cowan
V
Jeffrey associates
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
Wainwright v Bland
Griffith v Fleming
Assured has II in one life
You have II in life of spouse/CP
Halford
V
Kymer
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
Dalby
V
India and London Life assurance co
An II in life of another need only exists at time when policy taken out
Macaura
V
Northern assurance co
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.
G.A. Insurance
V
Cronk
If you take out standard policy from insurer you deal on and are deemed to agree with standard terms of policy
Sickness and accident assurance
Association ltd
V
General accident assurance
Where insured expressly provides that cover does not commence until payment of first premium, then commencement of cover is conditional upon this happening
Cover notes
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
Re Coleman’s depositories ltd
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
Sun fire office
V
Hart
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
General accident assurance
V
Chandermull Jain
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
Contract may be voidable by insurer if insured
Makes qualifying misrep (consumer insurance)
Or
Fails to comply with duty of fair presentation (all non consumer)
S10(2)
Insurance Act
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
CIDRA 2012
Consumer under duty to
Take REASONABLE CARE not to make misrep. to insurer
Tesco underwriting
V
Achunche
Authority for point that insurer can avoid a policy when insured recklessly/deliberately fails to a material fact
Amounting to a qualifying misrepresentation
Qualifying misrepresentation
S4(2)
Qualifying MR
If insurer would not have
Entered at all; or
Would have entered of different terms
