The Insurance Act 2015

Question 1

When did the Insurance Act 2015 come into effect?

Answer 1

• Given royal assent on 12th Feb 2015
• Came into effect 12th Aug 2016

Question 2

What is the Insurance Act 2015?

Answer 2

One of fair presentation by the insured.

Question 3

Fair presentation of the risk is one defined as (2);

Answer 3

1. Disclosure in a manner which would be reasonably clear & accessible to a prudent insurer.
2. Every material rep as to a matter of fact is substantially correct & every material rep is made in good faith

Question 4

The disclosure under this act required is as follows (2);

Answer 4

1. Disclosure of every material fact the insured knows or ought to know
2. Failing that disclosure which gives the insurer sufficient info to put a prudent insurer on notice that it needs to make further enquiries for the purposes of revealing those material risks.

Question 5

Insured does not need to disclose a circumstance if (5);

Answer 5

1. It diminishes the risk
2. The insurer knows it
3. The insurer ought to know it
4. The insurer is presumed to know it
5. It is something to which the insurer waives info.

Question 6

Contracting out of the act;

Answer 6

1. Possible for insurer to contract out but only where the insurer satisfies section 17 of 2015 Act.
2. Requirements oblige the insurer to bring the disadvantage of contracting out term to attention of insured in clear & unambiguous manner.

Question 7

Effects of termination under 2.12(2) of act?

Answer 7

1. No liability for Insurer to pay for any relevant event after fraudulent act
2. Don’t need to return premiums
3. Insurer not entitled to recover costs from Insured such as investigation costs & discovery of fraud