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49 Cards in this Set
- Front
- Back
Scottish Amicable Heritable Securities Association (Ltd) v Northern Assurance
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Defines insurance:‘a contract which the insurer undertakes in consideration of the payment of an estimated equivalent beforehand, to make up to the assured any loss he may sustain by the occurrence of an uncertain contingency’- Distinguishing insurance contract from cautionary obligation - Insurance contracts are DIRECT and not ACCESSORY obligations.
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Dept of Trade and Industry v St Christopher Motorists Association Ltd
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- UNCERTAINTY determined at time contract is concluded.- Held to be insurance, even though payment was in a form other than money
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Medical Defence Union Ltd v Dept of Trade
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Clarified this approach - Insurance was a contract for ‘the payment of money or money’s worth’- Following this approach, ‘BREAKDOWN’ COVER = form of insurance
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GJ Bells Principles of the Law of Scotland
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- There shall be a subject in which the insured has an interest; a premium give or engaged for; and a risk run
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s412 FSMA 2000
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Contingent Liability - financial Sector
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s335 Gambling Act 2005
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Contingent Liability -simple bets
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s143 Road Traffic Act 1988
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Compulsory insurance for vehicles to be insured in respect of death or bodily injury caused to any person or damage to property caused by the use of the vehicle on a road in GB
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s1(1) Employers’ Liability (Compulsory Insurance) Act 1969
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Employers requires to insure against the risk of bodily injury or disease sustained by employers in the course of their employment
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Marine Insurance Act 1906
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codified the law relating to marine insurance.- Tendency on part of courts to extent the general principles of marine insurance to other types of insurance.
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UCTA 1977
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Insurance contracts do NOT fall within scope of this Act
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Unfair Terms in Consumer Contract Regulations
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Insurance contracts CAN fall within definition of a consumer contract under the regulations.Many main items of insurance contracts are removed fro scope of Regulations BUT subsidiary terms (ie requirement of notice of loss or co-operation in the claims) may fall within the scope
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Life Assurance Act 1774
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provides insurable interest as a statutory requirementNo insurable interest = VOID contractIt is illegal to hold such a policy and you CANNOT enforce insurer to pay you.
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Dalby v India and London Life Assurance Co
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- You need your insurable interest ONLY at time you take out the policy/ conclusion of the contract, and not at time of death
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Griffiths v Fleming
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- A person has UNLIMITED insurable interest in his own life
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Turnbull & Co v Scottish Prov Institution
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Financial interest cana rise from a contractual relationship, e.g. agency, partnership and employment.Assured is limited to the financial interest
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Scottish Widows Fund v Buist
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Focuses on transfer of rights - contract sustained even when assigned to anotherBUT although rights had been assigned, there was NO personal interest in evidence at the time the contract was made:To have personal interest you must have: natural affection; financial loss and express statutory provision
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Arif v Excess Insurance Group Ltd
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General principle of insurable interest applies equally to heritable property.HEld that 1 partner in a hotel business could NOT claim under a fire policy in which eh was named insured because hotel was partnership property and policy made nor reference to insured acting other than as principle
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Fehilly v General accident Fire
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Scope of insurable interest in non-marine indemnity. Tenant did not have an insurable interest in full value of building as lease did not require tenant t repair fire damage. - Tenant could only recover market value of the lease.
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Bank of Scotland v Guardian Royal Exchange plc
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- A heritable creditor has an insurable interest in property which is separate from that of owner
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Feasey v Sun Life
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Court of Appeal examined insurable interest in detail and said that the subject matter is defined by th contract. It is not necessarily the poperty involved BUT the EVENT that is insured against.They Produced a ‘catalogue of insurable interests’:Subject matter - defined as item of property and the insurance is to recover the value. There must be a legal (property/contractual), or an equitable interest in the property.Life insurance with pecuniary interest in the life of a person (i.e. employers & employees)Subject matter appears to be a particular item of property but where ‘properly construed the policy extends beyond that item and embraces such insurable interest as the insured has’Extended eeven further - ‘not even strictly pecuniary interest’ (i) own life/natural affection (ii) Valuable benefit (iii) “Pervasive interest”
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Wilson v Jones
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Example of (3) above- Insurance claim was sought and court held that on the terms of the policy, his interest was in the property being pivotal ot the success of his company - this was sufficient interest in insuring against the damage to that property
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'Moonacre'
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Relates to (4)(ii) Valuable benefitRelationship of constant use & control was sufficient interest, despite not owning property.
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s17 Marine Insurance Act
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Insurance contract regarded as a contract of utmost good faith (uberrimae fidei)
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Life Association v Foster
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Stated the common law duty of good faith.Lord President Inglis - ‘but contract of insurance are in this, among other particulars, exceptional, in that they require on both sides ‘uberrima fides’.’
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Manifest Shipping Co Ltd v Uni-Polaris Insurance Co
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The obligation to act in good faith applies to the contract of insurance at all times: during negotiations, during the period of insurance and at the time of making the claim.Implications change at each stage though.
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Muirhead & Turnbull v Dickson
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Formation: Even if reality is that the insured is not familiar with the standard terms, an OBJECTIVE ANALYSIS of contract formation will result in there being consensus when insurer accepts the proposal.
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Roberts v Plaisted
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Agency and Insurance Contracts:- This case shows that a ‘Lloyds’ broker is always the agent of the insured. However, there is no simple rule for other types of broker
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s9 and Sch 2 Consumer Insurance (Disclosure and Representations) Act 2012
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Confirms status of agent in CONSUMER INSURANCE
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National Oilwell (UK) Ltd v Davy Offshore (UK) Ltd
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UNNAMED/UNDISCLOSED PRINCIPALSCourts tend to focus more on the INSURED RISK and to ask whether identity of insured matters for that purpose
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Carter v Boehm
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Essential elements for duty to disclose:> Superior knowledge of INSURED in relation to the risk> The RELIANCE of the underwriter on the info given by the insured.
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s18(1) 1906 Act
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Duty of disclosure requires the proposer to disclose every material circumstance which is known to him
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Joel v Law Union and Crown Insurance Co
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proposer cannot be expected to disclose information he does not know
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Highlands Insurance v Continental Insurance
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UNLESS it could be found out by reasonable inquiries - found that insurers should have taken more steps to find out fairly basic information
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Life Association v Foster
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Opinions held to the best of your knowledge and belief
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MacPhee v Royal Insurance Co Ltd
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There must, however, be a reasonable basis for the proposer’s knowledge and belief
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Consumer Insurance (Disclosure and Representations) Act 2012
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Separate folder
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Manifest Shipping Co Ltd v Uni-Polaris Insurance Co
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Duration of duty of disclosure - there is no ongoing duty - only persists until the contract is agreed between insurer and proposer (ie negotiation stage)
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Banque Keyser Ullmann SA v Skandia (UK) Insurance Co Ltd
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There is no obligation to disclose information during the period which the insurance is in force.
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Lambert v Co-Op Insurance Society
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If the contract is renewed, the duty of disclosure revives at each successive renewal since each renewal is treated like a new contract
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Hooper v Royal London General Insurance
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NON-LIFE INSURANCE MATERIALITY TEST- To be judged from perspective of prudent INSURER
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Pan Atlantic
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It need not be decisive
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Life Association v Foster
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LIFE INSURANCE MATERIALITY TEST- To be judged from perspective of reasonable INSURED
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Cuthbertson
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Reaffirmed Materiality test to be based on what the reasonable insured person would know/think to be material
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Pan Atlantic
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Causation - If dealing with NON-LIFE INSURANCE, the factor need not be decisive, but does need to make a difference to THIS specific insurer
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S33(1) 1906 Act
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Makes clear types of obligation which can be subject of a warranty:Promissory warranties Warranties relating to past/present facts
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Kennedy v Smith
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Abstinence from Alcohol was not worded clearly enough to be construed as a promissory warranty. Therefore, no breach.- Constructed with contra proferentem principle
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s33(3) 1906 Act
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Makes clear the consequences of breach of warranty. A breach will end the insurer’s obligations.
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Dawsons Ltd v Bonnin
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Illustrates the obligation of strict compliance with warranties.Also the fact that the breach need have nothing to do with the loss occurring
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Cuthbertson v Friends’ Provident Life Office
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Distinguishes Warranty from Misrepresentation/ Non-Disclosure:A breacgh of warranty = a breach of contractDuty of disclosure/not to misrepresent arises ex lege
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