A parent company and its subsidiary are two separate entities which mean that they act independent of each other. In our scenario, the subsidiary companies specialize in different areas of work. It is in that light that a subsidiary company may carry out its functions independently including the duty of protecting its own productive assets if it deems this fruitful. Thus the subsidiary company may purchase insurance under its own name and manage its own contract.
Insurable Interest Law
If however the parent company wants to insure the assets of the subsidiary, the parent company must be able to present Insurable Interest (together with other factors beyond the scope of this report) to the insurer, that is, an insurance contract requires the presence of Insurable Interest. When an insurance contract is taken out, insurers tend to put little emphasis on the existence of Insurable interest in order to get customers on board. However, in many cases, the insurer has repudiated claims when it is discovered that the asset that was insured does not belong to the insured (which is very likely to be unfurled in the investigation when a loss occurs) claiming the absence of Insurable Interest.
Insurable Interest concept was adopted from the English Insurance Laws and it is for this reason that the English Insurance Laws are in agreement with South African ones. The term ‘Insurable Interest’, refers to the insured’s interest or concern in the non-occurrence of the event insured against. This confers that the policy holder is expected to derive some gain from the continued existence of the item being insured and will suffer financial loss if this item is destroyed or lost. For an illustration, one derives benefit from insuring their personal...
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...n the entity that owned the vessel. When the matter was taken to the courts, the court held that the presence or absence of an insurable interest was not the only requirement, though it was a relevant to determine whether the contract was a wager or not. It was established that the contract was not a wager. The issue of Insurable interest was tackled by reference to the case of Littlejohn. While the court considered that the insured's temporary right of use of the "Buccaneer" was, by itself, insufficient to maintain insurance cover measured with reference to the replacement value of the vessel, however Lorcom held 100% of the shares in the firm that owned the vessel and as a major shareholder, he held interest in the company's assets, therefore this gave him insurable interest. The Insurance Company, Zurich was ordered to pay R2.85million in addition to Interest.
First, when a creditor (ICE) extends credit to a debtor (Top Quality) and takes a security interest in some property of the debtor, Top Qualities inventory in this case, it is called a secured transaction. The inventory is then considered collateral for the financing that ICE provided for Top Quality, which was made clear in the financing statement that ICE filed. Any secured transactions where personal property is used as collateral is governed by Article 9 of the Uniform Commercial Code. The UCC was revised in 2001 to better adhere to modern times, and since this case took place from 2007 to 2009, we will be applying the revised edition. There are many sections of Article 9 that should be considered when examining this case. First, the filing of a financing statement, form UCC-1 in Article 9, should be confirmed as filed with the appropriate state office. Once this has been done, confirming the attachment of Top Quality’s inventory to ICE, we can then look to confirm that the initial sale to Chrisman was paid in full to Top Quality, which it was. If this were not the case, ICE would be entitled to the remaining sale proceeds. Now we move on to the requirements of a buyer in the ordinary course of business, per Article 9 of the UCC. According the textbook, “A buyer in the ordinary course of business who purchases goods from a merchant takes the goods free of any perfected or unperfected security interest in the merchant’s inventory, even if the buyer knows of the existence of the security interest” (Cheeseman). The textbook then continues to explain that this rule is necessary because buyers would be reluctant to purchase goods if the merchant creditors could recover the goods if the merchant defaulted on the loans owed to secured creditors. These statements come from the Revised Article 9, section 320(a). This is based on the idea that the buyer purchases in good faith, meaning that they are
Liability – The general partners are all responsible for the debts and obligations of the business, but the limited partners are only liable up to their invested amount.
During the purchase Green Tree Financial Corp mandate to buy Vendor's Single Interest insurance. It also mandated any legal situation under case law or statutory law, has to be resolved by binding arbitrator. Randolph sued Green Tree Financial Corp didn’t disclose hidden fess in terms of the finance charge the Vendor's Single Interest insurance will charge.
Additionally, registration papers were not to be released until Herring paid in full. These provisions gave the Bowmans the ability to recover the horse in case of default on the payments. Thus providing a security interest for the seller until there was no risk of loss. Even though Herring was not in full possession of the horse, the provisions established that Herring owned the horse.
There are three types of life insurance that most insurance companies offer, which are, universal, whole, and term. Universal life insurance is a permanent policy consisting of two parts, which are term insurance and an investment/cash value feature-which is interest bearing. The premiums for the plan allow the policyholder to pay a minimum rate when necessary or to pay the maximum and provide funds to the cash value of the policy. The more that’s paid into it, the bigger the investment/return. With the cash value of the plan, fees are deducted for the costs of the plan and the policyholder receives payment from the interest of the remaining balance. Universal offers clients a definite minimum interest rate on the cash value. Some insurance companies offer a tiered interest rate that pays policyholders a fixed percentage up to a certain amount, then a higher interest rate on balances above that threshold.
liability for issuer losses assessed by the Associations.” The Court justifies the decision the decision based on the explicit exclusionary limitations combined with specific references to penalties. It was
Issue: 1) Is the defendant liable for restraining the plaintiff from leaving the yacht against her will 2) when the defendant refused the plaintiff the only possible means of reaching the shore 3) even though the defendant did not employ physical
According to the facts in this case, Walkovszky was hit by a cab four years ago in New York and the cab was negligently operated by defendant Marches. The defendant Carlton, who is being sued, owned and ran the cab company in which he set up ten corporations, including Seon. Each of the corporations had two cabs registered in its name. The minimum automobile liability insurance required by the law was $10,000. According to the opinion of the court the plaintiff asserted that he is also ?entitled to hold their stock holder personally liable for damages, because multiple corporate structures constitutes an unlawful attempt to defraud the general member of the public.?
For the contrary the loading change (fee to cover the incurred administrative expenses) can be expensive. Also, the insurance sometime fails to meet demand providing limited protection, this insurance shortage can lead to ineffective insurance regulations. As well as, for consumer with minimum loss experience, their premium will be high, because their probability of loss is high.
Lisa’s insurance broker did not make sure she had the proper coverage to reduce her liability if something were to happen to the art gallery. Lisa’s insurance broker, Homer, broke his fiduciary duty to Lisa by not ensuring she had the proper coverage she needed; given that Lisa was responsible for the safekeeping of the artwork that was on consignment. Homer should have taken into consideration that nearly all her inventory, which was on consignment, would not be insured if a fire occurred. Nonetheless, Homer reassured Lisa that she was “well covered” with her policy when she should have had a policy where she would be covered for losses to artwork on consignment as well as fires that didn’t originate on her building
Margalit v Standard Bank of South Africa LTD and Another , (2) SA 466 ((SCA) 2013).
“Part super-hero. Part fortune-teller. Part trusted advisor (“Be an Actuary.”).” An actuary is all this, they are crucial apart of the world of business. Actuaries work in both the public and private sectors of business. They are manly in the administrative part of the work place. They are in every large corporation and in even some of the smaller companies. Actuaries are most often in insurance companies and large corporations; though they are even in so financial planning businesses (“Be an Actuary.”). They are also the people that run financial calculations for both individuals and businesses (Hezzelwood). With being such an important part of business actuarial science is a very good field to go into. Forbes has ranked actuarial science as the best job in 2013 (Smith). Actuarial science is constantly ranked one of the top jobs to have in America (“Be an Actuary.”). There are many things that factor into making actuarial science the best job in America.
[7] Cavendish Lawcards Series (2002) Company Law (3rd edn), p.15 [8] [1976] 3 All ER 462, CA. [9] Griffin, S. (1996) Company Law Fundamental Principles (2nd edn), p.19 [10] [1990] Ch 433. [11] Lecture notes [12] Lecture notes [13] [1939] 4 All ER 116.
According to Corporation Act 2001 s124(1), it illustrates that ‘’A company has the legal capacity and powers of an individual both in and outside the jurisdiction” . As it were, company as a legal individual must be freely with all its capital contribution shall embrace liability for its legal actions and obligations of the company’s shareholders is limited to its investment to the company. This ‘separate legal entity’ principle was established in the case of Salomon v Salomon & Co Ltd [1987] as company was held to have conducted the business as a legal person and separate from its members. It demonstrated that the debt of company is belonged to the company but not to the shareholders. Shareholders have only right to participate in managing but not in sharing the company property. Besides ,the Macaura v Northern Assurance Co Ltd [1925] demonstrates that the distinction between the shareholders and company assets. It means that even Mr Macaura owned almost all the shares in the company, he had no insurable interest in the company’s asset. The other recent case is the Lee v Lee’s Air Farming Ltd [1961] which illustrates that the distinct legal entities between employee ad director allows Mr.Lee function in dual capacities. It resulted that the corporation can contract with the controlling member of the corporation.
All that we need is in our every day life is dependent upon interest and supply. The nation is dependent upon the impacts of both request and supply. At whatever point interest is influenced it prompt deficiency of different needs that are popular and at whatever point supply is influenced it prompts lack of supply in the nation's economy. In addition the things we require in our every day life is likewise influenced on both request and supply. Interest prompts the aggregate amount on merchandise or administrations that are required to purchase different wares and supply is the amount of products and administrations business will make accessible to make benefits. Subsequently in our every day life everything is dependent upon the interest and supply from a little merchandise to a huge partnerships. Besides the organization's imparts or bonds are additionally dependent upon the impact off interest and supply. Bring down the interest will be the easier cost of products and administrations and the other way around. Also higher the supply will prompt high cost of products and administrations. Interest brings down supply in a basic case cost of every single product will be influenced by interest and supply. At whatever point the interest transform it will prompt change in the taste of the client and will prompt change in the taste of style for clients, likewise prompt change in cost of related products i.e merchandise are not related with one another in this manner they are of distinctive taste of inclination is diverse. Change popular will prompt change in number of purchasers of economy on the grounds that when interest changes or surpasses it prompts expand in number of thing and at whatever point interest brings it leads down to bu...