Chapter 5 IF1

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What sort of product is insurance? Tangible or Intangible?
Intangible
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What duty do consumers have under the Consumer Insurance Disclosure & Representations Act 2012
Duty to take reasonable care not to make a misrepresentation
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What did the Insurance Act 2015 introduce?
Duty to make fair presentation of a risk for a non-consumer contract replacing utmost good faith
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Who does the duty of good faith apply too?
Both insured and insurer
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What must the insurer disclose as an act of good faith?
Only taking on risks which the insurer is registered to accept, Ensuring statements are true and not misleading, Entitlement to discounts etc.
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What is the duty of disclosure?
In all insurance negotiations there is a duty to disclose material circumstances, particularly at the proposal stage.
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When is the duty of disclosure revived?
At each renewal date unless it is a continuing one, If there is an alteration to the policy
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Who does the Consumer Insurance Disclosure & Representations Act 2012 apply to?
Consumers not commercial customers
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What defines a consumer under the act?
Someone who takes out insurance wholly unrelated to the individuals trade.
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Who does the Insurance act 2015 apply to?
Non-consumer i.e. commercial customers
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What must the insured disclose under the insurance act?
Material circumstances the insured knows or ought to know, Disclosure in a manner which could be reasonably clear and accessible to insurers, Facts substantially correct, representations of belief made in good faith
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Who does the onus shift to under the insurance act?
It has shifted from the insured to the insurer, which is assumed to know information that would be expected of it
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What is a measure of the insured's knowledge if they are an individual?
What is known to them as an individual, What individuals responsible for insurance know
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What is a measure of the insurers' knowledge?
If the employee or agent of the insurer knows it and ought to have passed it on, The relevant information is held by the insurer and is readily available. Common knowledge, What insurer of that class of insurance reasonably expected to know
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What was outlawed in the Insurance act 2015?
The basis of contract clauses
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What do you have to do to contract out under the Insurance Act 2015?
Take sufficient steps to draw the disadvantageous term to the insured's attention, Clear and unambiguous
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What policies have a duty of disclosure start at renewal?
General (non-life) policies
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What are the duty of disclosure rules in regards to life and pension policies?
The duty of disclosure ceases once the policy is in force, even if a material fact were to change it does not need to be declared.
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What policies generally have a continuing requirement of duty of disclosure?
Commercial property, Motor insurances, Public liability insurances.
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What is utmost good faith
A positive duty to disclose, accurately and fully, all facts material to the risk being proposed, whether requested or not.
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What is Estoppel
The legal term used for a bar or impediment that precludes a person from asserting a fact or a right
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Give examples of facts that do not need to be disclosed
Of law, of public knowledge, that lessen the risk, where the insurer has waived its right to the information, a survey should have revealed, the insured doesn't know, outside the scope of specific questions, covered by policy terms, spent convictions
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What are the possible consequences of non-disclosure
The insurer may avoid the contract entirely, ab initio, If fraudulent, the insurer may keep the premium and sue for damages
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Give the definition of material facts taken from the Marine Insurance Act 1906
Every circumstance is material which would influence the judgement of a prudent insurer in fixing the premium or determining whether he will take the risk
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What are Excepted or Excluded perils
Those named in the policy as specifically not covered
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What are Uninsured or unnamed perils
Those perils not mentioned at all in the policy
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What are Insured perils
Those named in the policy as covered
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Other cards in this set

Card 2

Front

What duty do consumers have under the Consumer Insurance Disclosure & Representations Act 2012

Back

Duty to take reasonable care not to make a misrepresentation

Card 3

Front

What did the Insurance Act 2015 introduce?

Back

Preview of the front of card 3

Card 4

Front

Who does the duty of good faith apply too?

Back

Preview of the front of card 4

Card 5

Front

What must the insurer disclose as an act of good faith?

Back

Preview of the front of card 5
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