Insurance Law

Insurance Law

1. Life Assurance

   • Need insurable interest when contract is signed (Dalby v India &London Life Assurance Co)
     • Need to prove a financial interest or contractual relationship

2. Indemnity Insurance

   • Need to have interest at the time of loss (Arif v Excess Insurance)

3. Duty of utmost good faith as there is a superior knowledge of the insured (Carter v Boehm)

4. Duty of DIsclosure

   • DON'T disclose
     • 1. Facts that diminish risk (The Dora)
       • 2. Facts insurer knows or is presumed to know already ( Cohen Sons v Standard Marine
         • 3, Not if information has been waived (Mann McNeal v General Marine)
   • DO DIsclose
     • 1. Claims history, previous refusals and unspent criminal convictions for whole duration of cover
       • In Life Assurance: judegemnt of reasonable insured and material is objective
       • In Indemnity - judgement of reasonable insurer ( Life Assurance of Scotland v Foster)

5. Warranties

   • "Warranties as to true facts" Continue through policy
     • if in doubt, contra preferentem (Kennedy v Smith & Answar)
   • Warranties on past/present facts" Not for furtuer
   • Clause basis for contract can be every answer is warranty eg Dawsons v Bonnin
     • Need to have basis for belief (Macphee v Royal Insurance)

6. Assignation

   • Rights can be assigned as long as no contrary provision
     • Indemnity - may not have insurable interest
       • Need intimation
         • Assignee gets no better right (Scottish Equitable Life v Buist)