1. INTRODUCTION
The Insurance law provides business to get protection or cover against various kinds of risks (including risk of loss from fire, negligence, crime & risk of death of essential people working in the business) & spreads the risk of loss as well. Moreover, the insurance law consists of insurance policy which is a contract where one party (which is the insurer) agrees in return for a considered price to cover the other party (which is the insured) for loss from a specified event. In short, it is a contract whereby, for specified consideration, where one party undertakes to compensate the other for a loss relating to a particular subject as a result of the occurrence of designated hazards. (Paul Latimer, Australian Business Law, 33rd Edition)
DUTY OF DISCLOSURE UNDER THE COMMON LAW
In duty of disclosure under the common law, the insured party is under a duty of utmost good faith to disclose all the provided material facts but not to make any material misstatements at the pre-contractual stage of an agreement, which is before the establishment of a policy. However, any kind of breach to that duty would give the insurer the right to void the policy at the claim stage. Furthermore, the insured is under a further & continuing duty of utmost good faith to disclose material facts & information and avoid making material misrepresentations as long as the policy is valid. On the other hand, the insurer is equally bonded under both the pre-contractual & continuing duty of utmost good faith to disclose or not to misrepresent material facts to the insured. (Wei Song, The extent of the insured’s duty of disclosure, 2012, P.g. 14)
In common law the materiality test is known as the Prudent Insurer Test, which is referred to a fact is ...
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...es it would not have entered into the contract of insurance (as opposed to having to establish it would not have entered into a contract of insurance on any terms).
• At any point of time the insured sum can be altered (unless the contract has a surrender value or provides a death benefit – in which case it can only do so within three years).
• Moreover if the insurer chooses not to avoid policy or alter insured sum, it can affect the contract in such a way as to place the insurer in the position it would have been in if the non-disclosure or misrepresentation had not occurred.
However the above apply only if:
- Amendments can be done if the mentioned variations are consistent with what other reasonable and related insurers would have done in similar situation.
- Also this will not be applied to a contract which provides death benefits or has a surrender value.
Can Morbid continue to account for the preneed funeral contracts as deposits, and recognize income in the year service is provided?
This decision was used as a precedent for other cases involving real estate law, specifically the Caveat Emptor law. The Caveat Emptor previously only covered physical complications with a property, but this case made it clear that any condition or stigma that diminished the value of a property could be used as grounds to terminate a contract if the buyer is not informed
Nonetheless, some professionals have acted negligently towards customers in the past. A special case that caused the Negligence law to develop was Jones v Kaney. This case caused immunity to be removed from expert witnesses across the United Kingdom. Expert witness is anyone “with knowledge of or experience in a particular field or discipline beyond that to be expected of a layman” according to (Pamplin and White, 2008); this includes computer professionals. Before looking into the Jones v Kaney case, it is worth reflecting at how expert witnesses were treated previously.
Contract law imposes obligations on Brain Fraber which should make the good and right financial decision making of his clients by not breach of the laws and regulations. In the case, Brain Fraber should give the right decision making of financial plan due to the financial services laws. Allows for the enforcement of recognised rights and duties Administrative laws has the right to make decision making for parties after breaching the regulation of the laws. In the case, Macquaries Insurance had shut up shop and return back to Financial Services Licence.
Given that it lies within the domain of equity, the case law indicates a great flexibility in its application, both in the substantive requirements of proof demanded by the courts and in the manner in which the courts will satisfy the equity. It is the first of these aspects of the doctrine that I will examine in this essay. I will look at the shift in the evidentiary requirements and what a representation (or an assurance of rights), a reliance (a change of position on the basis of that assurance) and a detriment (or unconscionable disadvantage) - the three pre-requisites for a successful claim - have come to mean with regard to case law and in particular the judgement of Judge Robert Walker in the Court of Appeal in Gillett v. Holt[1], in which the plaintiff had been given repeated assurances over many decades that he would inherit the defendant's estate, and remained in service to him at least p... ... middle of paper ... ... operty, 16th Ed, Butterworths K. Gray & S.F Gray - Land Law, 2nd Ed, Butterworths Professor Cedric D Bell - Land: The Law of Real Property, 3rd Ed, Old
In our given scenario we are asked to discuss legal principles influencing the likelihood of any successful action against Steve in the grounds of negligence. Steve’s negligent driving caused a series of events that caused losses to the other people presented in the scenario and they take actions against Steve in the grounds of negligence. At first we must understand what negligence is. The tort of negligence provides the potenti...
The basic concept of insurance is the transfer of risk from one entity to another through certain conditions. Health insurance is no different, only the entities mentioned are consumer or the patient and the insurance company. In the health insurance concept, a premium is paid by the individual to the company for a year and the insurance company has to pay for the cost of healthcare for that individual. Hence the risk for the consumer is transferred to the insurance company.
Based on the information provided, our firm suggests the following actions for Mr. Campbell’s case. If Mr. Campbell were to accept Allied Insurances counteroffer at $400,000.00 no further action would be necessary, however if Mr. Campbell rejects the counteroffer, the decision would have to be settled in court by a jury. If John were to make a counteroffer of $600,000.00, it would be advantageous of Allied Insurance to accept this counteroffer.
To illustrate, an insured bought a 20-year term policy at the age of 30 and now he is age 50, the term policy comes to the end because it is only a temporary insurance. The insured then can consider to purchase another life insurance policy however the premium will vary and might become higher based on the new rates. In other words, when a term life policy expires, an insured’s life protection is no longer covered. The insured has no choice but to let the policy to expire or opt for another life insurance policy depending on his age and health condition. In short, if the insured does not die within a specified period, there are no proceeds
S.6(3) states that as against a person dealing otherwise than as consumer liability for breach of the obligations arising from ss.13, 14 or 15 of the Sale of Goods Act 1979 can be excluded or restricted by reference to a contract term, but only in so far as the term satisfies the requirement of reasonableness.
The Act allows negligence as the sole ground unlike common law which required the claimant to establish ‘fraud’ even if negligence existed. It is believed that the ‘d...
As a way of protecting the insured against extreme out-of-pocket costs, some policies include an out-of-pock...
"1- The name of the insured, or of some person who effects the insurance on his
That is, the policy holder can only receive payment up
According to Investopedia, an online business dictionary, life insurance is, “A protection against the loss of income that would result if the insured passed away. The named beneficiary receives the processed and is thereby safeguarded from the financial impact of the death of the insured.” In other words, the goal of life insurance is to provide financial security for one’s family after one death. There are two categories life insurance policies fall under – temporary or permanent. Temporary policies provide coverage for a specified term while permanent policies are aimed to increase capital for the owner’s entire life.