ABSTRACT
Donaldson J. found on the facts that no underwriter would have quoted for the risk unless protected by an FPA (Free of Particular Average) warranty.8 The assured cannot take advantage of Clauses 9 and 10 if he has not acted with the utmost good faith which gives rise to an obligation of disclosure and not to misrepresent any facts material to the additional risk. This aspect of the good faith duty is discussed further in relation to non-disclosure and misrepresentation.9 This section therefore considers the prompt notice requirement and the principle that there is no absolute right to cover unless cover could be obtained at a reasonable commercial market rate on reasonable market terms.
