Legal Form

Question 1

Explain the concept of “Legal Form” in terms of insurance contracts.

Answer 1

The law requires a contract to be in a particular form and this will always involve some type of written documentation.

Made for greater certainty but also may warn people against entering into a contract too lightly.

Question 2

What does English Law state in the concept of “Legal Form”?

Answer 2

There is no general requirement for an insurance contract to be recorded in written documentation.

Insurance cover may be given orally and, though a written policy is eventually issued in almost every case, a claim may well happen before the policy is prepared.

Question 3

What is stated under the Marine Insurance Act 1906 (section 22)?

Answer 3

Only a marine insurance contract must be in writing.

Question 4

What is stated under the Road Transport Act 1987 (section 91) (paragraph 4)?

Answer 4

A policy shall be of no effect unless and until a certificate of insurance is issued in the prescribed form and delivered to the policyholder.

Question 5

What is stated under the Financial Service Act 2013 (Schedule 8 (2)) in terms of Life Insurance?

Answer 5

It provides for “objection to life policy” by the insured within 15 days after the delivery of the life policy.

The insured is entitled to cancel the policy by returning it within the “cooling-off” period and a full refund of the period must be allowed.