FORMALITIES AND REPUDIATION

FORMALITIES AND REPUDIATION

1. Formalities of an Insurance Contract

   • offer and acceptance. agree on standard terms of that policy
     • GA INSURANCE V CRONK
   • there may be a counter offer

2. STATUTORY DISCLOSURE REQUIREMENTS

   • relevant and clear info to be given in durable form in good time

3. CANCELLATION RIGHTS

   • info on cancellation: existence, duration, conditions, fees, consequences
   • must be in good time
   • ICOBS gives general insurance customer 14 days from date of conclusion/renewal to cancel. Notice effective on the day it's sent
     • Insurers must pay back premium within 30 days of notice

4. FORMALITIES

   • Marine policies must be in writing
     • No other legally required formality.

5. FORMALITIES AND CONTRACTS @ LLOYDS

   • Extensive requirements concerning life and motor insurance. You insure via a broker.
     • Contract concluded and underwriter bound s soon as the underwriter indicates he accepts risk

6. TEMPORARY COVER

   • Cover note is a contract albeit a temporary one. A cover note may be oral. Disclosure rules apply to cover notes also
   • What if temporary cover is for a period after the end of an existing policY? TAYLOR v ALLON

7. DURATION/RENEWAL OF THE POLICY

   • the duration of the insurance policy is determined by its contract terms, including the right of the insurer to cancel the policy
     • Cancellation by the insurer: policy may require notice or may allow immediate cancellation SUNFIRE OFFICE V HART
     • If there is a right to cancel, risk must not yet have occurred and insurer must return premium pro rata
   • Indemnity insurance: if insurer declines renewal before the insured suffers any loss, he will not be liable
     • For life insurance, the practice is different as a right to renew the policy is assumed if premiums are properly paid as the policy is assumed to be continued not replaced
   • ICOBS specifies good practice re renewal notification or intended termination. Most insurers allow some days of grace post expiry to allow renewal