V1591 – Insurance Companies (Legal Expenses Insurance) (Amendment) Bill 2020

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Poll: Should this Bill be passed into Law?
As many as are of the opinion, aye. (25)
51.02%
Of the Contrary, no. (16)
32.65%
Abstain. (8)
16.33%
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Andrew97
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B1591 – Insurance Companies (Legal Expenses Insurance) (Amendment) Bill 2020, TSR Liberal Democrats



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Insurance Companies (Legal Expenses Insurance) (Amendment) Bill 2020


An Act enhancing the freedom of insureds under legal expenses insurance policies to choose their own representation.

BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

1: Amendment to The Insurance Companies (Legal Expenses Insurance) Regulations 1990
To Regulation 6, The Insurance Companies (Legal Expenses Insurance) Regulations 1990, add:
"(1A) For the avoidance of doubt, 'inquiry or proceedings' extends to any contentious application before a court, tribunal, or other body capable of defining definitively the insured's rights under civil or criminal law, and extends to any mediation or settlement negotiation, whether formal or informal, prior to the issue of those proceedings, but after (where relevant) a cause of action or equivalent has arisen".

2: Extent, commencement and short title
(1) This Act extends to the United Kingdom.
(2) The provisions of this Act come into force immediately.
(3) This Act may be cited as the Insurance Companies Act 2020.

NotesWhen seeking to claim under a policy of Legal Expenses Insurance (LEI), most policies require that the insured utilise the insurer's selected firm of solicitors prior to legal proceedings needing to be issued (see 'The choice of solicitors' here for more). This means that insured persons often end up using a firm of solicitors they would rather not use to assist them with significant problems in their lives (which is likely to substantially limit the effectiveness of that firm's assistance), or the policies get rendered otiose. This is particularly significant since most people who hold LEI policies are unlikely to be familiar with their terms.

This Bill therefore seeks to amend UK law to reflect the reasoning for freedom of choice of solicitor reflected in Recital 16 of the EU's Solvency II Directive, and affirmed by the CJEU in the recent Belgian advocates case, and ensures that the UK courts' flawed approach of merely considering whether the insured's freedom of choice is 'rendered meaningless' (see Brown-Quinn v Equity Syndicate Management Ltd).

This is important to maintain fair competition among law firms, and to ensure that insured persons' reasonable expectations of their policies are met.

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Miss Maddie
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No poll Andrew97
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Theloniouss
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can I vote maybe?
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Andrew97
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(Original post by Miss Maddie)
No poll Andrew97
My internet was being slow and it hadn't been added. There now.
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Saracen's Fez
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(Original post by Theloniouss)
can I vote maybe?
You can vote (m)ay(b)e.
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Moonbow
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Aye! I see the poll made it out for the morning
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Saracen's Fez
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As the House may have guessed, this was written by TheDefiniteArticle. As he's not an MP I'll be relaying any comments or responses from him into here.
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ohdearstudying
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Nay
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Andrew97
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The following votes have been removed:

No: El Salvador(Not an MP) and Unown Uzer (Double vote in seat 12)
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Andrew97
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#10
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Order, Order!

The Ayes to the right: 25
The Noes to the left: 14
Abstains: 8

The Ayes have it, The Ayes have it. Unlock!
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