ABSTRACT
This chapter looks at some of the salient aspects of insurance contracts and the legal principles that underlie the formation of them. Insurance plays a significant role in the field of everyday commerce. Insurance business is a significant part of the commercial activity of the South Pacific region, as it is of commerce everywhere. Legislation in the region imposes requirements on persons or entities which can issue contracts of insurance. The legislation contains numerous other provisions in relation to the refusal and cancellation of registration, the manner in which insurance business is to be carried on and the conduct of insurance business by the likes of insurance brokers and agents. Most insurance contracts other than life and accident policies are contracts of indemnity. It is a requirement that the insured must exhibit some degree of insurable interest in the subject matter of the insurance. The principle of utmost good faith applies to insurance contracts.
