Section 1 - Property Loss And Overview Flashcards
What is the purpose of property insurance cover?
Is to protect the interest of persons or entities that have an insurable interest in the subject matter those persons need not be named on the contract yet may still have an interest in the property
The dictionary defines property as what?
That which one owns the position all positions of a particular owner can also be described as something real and tangible.
List some examples of property in the context of property insurance.
Buildings and the contents. Jewellery and personal effects. Stock. Plant and equipment. Tools. Fixtures and fittings. Money. Goods in transit.
A person suffering the loss of or damage to property could be deprived of it what?
Use and or enjoyment of at its existence. Consequently that person has suffered an economic loss sometimes referred to as a financial or pecuniary loss.
Claims are triggered by the occurrence of?
Policy defined events.
List four policy defined events.
Fire. Water. Burglary. Accidental damage.
Subject to conditions and exclusions attached to the policy.
Is it essential to any claim that the claimant has an insurable interest in the lost or damage property?
Yes
And common-law insurable interest was defined by what case?
Lucina V Crawford.
When is there an insurable interest?
When a person or an entity will benefit from the continuance and sound this of the item and be deprived of its loss or damage.
What sections of the insurance law reform act 1985 New Zealand apply to insurable interest?
Section 6 in section 7.
What is section 6 of the insurance law reform act?
Section 6-need for insurable interest in a life policy abolished.
Provide an example of section 6 for the insurance law reform act in relation to insurable interest.
A typical example is where I wife takes out a life policy on her husband, or where I company takes out a policy on a key employee.
What is section 7 of the insurance law reform act?
Section 7-need for insurable interest restricted.
Provide an example of section 7 of the insurance law reform act in relation to insurable interest.
A typical transaction for the purchase of goods with the ownership of the goods does not pass until the invoice has been paid. The receiver may insure the goods already delivered into the position, even though ownership has not actually passed.
What is section 13 of the insurance law reform act?
Purchaser of land entitled to benefits of insurance between dates of sale and possession.