3.2 Principles of Insurance Law: Warranties and Conditions Flashcards Preview

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Flashcards in 3.2 Principles of Insurance Law: Warranties and Conditions Deck (86)
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1

Under what part of IA can you contract out

16/17

2

What happens if one insurer pays more than his share, and others were also liable

He can get contribution from other insurers (80(2))

3

What happens if 2 CoIs have an escape clause

They cancel each other out

4

W as to facts are created through what 2 mechanisms in a CoI (including 1 allowed prior to IA)

Basis of C or CP

5

What case covers the 'recover down' principle for subrogated recovery in the case of underinsurance

Lord Napier v RF Kershaw

6

What are 'bare conditions' in CoI

Govern mechanics of CoI

7

Who can insured recover from, generally speaking, in the case of double insurance

Either insurer

8

What case showed automatic discharge of liability for BoW under MIA, but payment Os of insured continue

The Good Luck case

9

Could insured remedy the BoW to revive the contract under MIA

No - 34(2) MIA

10

What happens if there are 2+ dominant causes of loss and only one = insured peril

Must be of equal weight, but then covered

11

What is insurer likely to do if insured prejudices their rights

Refuse to pay claim and/or bring counterclaim for damages

12

What part of what Act stated that W need not be material, but did need to be exactly complied with (pre-IA)

33(3) MIA

13

What were the 3 tests in HIH Casualty

Go to root of the risk, describe or material to the risk, or damages unsatisfactory

14

Instead of automatic discharge of CoI for BoW, what happens under IA

Suspension of insurer's Os until remedied (10)

15

What happens if there are 2+ dominant causes of loss and one is excluded?

Policy will not respond

16

What meaning are words given first

Ordinary, then technical, then see case law

17

What parts of what statutes abolished basis of C clauses

9 IA + 6 CI(DR)A

18

When might a 3rd party be worth pursuing in a surrogated claim

If insured

19

What is 'average'

Insufficient insurance to cover entire cost of property - working out for what proportion insured if their own insurer

20

Three ways to create warranties

Expressly, impliedly and through basis of C clause

21

At CL, what must insurer do before can step into insured's shoes and pursue 3rd

Pay insured in full

22

Why is it important that, if insured is suing 3rd, they also include insurers' losses

Only a single cause of action can lead to a single claim for damages - cannot have multiple CoAs for single claim

23

What can insurer do if BoW (e.g. for goodwill)

Waive - equitable estoppel

24

The Good Luck case ratio

Insurer automatically discharged from liability for BoW under MIA, but payment Os of insured continue

25

3 cases when a subrogated claim cannot be brought

Insured has already brought claim, insured cannot bring claim, or other party is the insured/also insured by/benefits from the policy

26

HIH Casualty did what

Set down 3 tests for if W = W

27

What is contribution

More than one insurer covers same insured for same risk - each insurer contributes rateably to loss in proportion to risk

28

Three kinds of warranties

Continuing, as to facts, or of opinion

29

Breach of condition (that isn't CP) = what

Damages

30

What is the effect of 11 IA applying to CPs

Breach of CP relating to particular loss unrelated to loss covered cannot be relied on to avoid paying claim