ABSTRACT

Insurance law is a complex and fast-moving area of law, making it difficult for the law student to grasp. This is the first book to bring together a wide range of insurance materials with an introductory text to each chapter. This second edition has been completely updated and includes recent House of Lords and other significant judgments, as well as supervisory changes by means of legislation and codes of conduct. Each chapter starts with a stand-alone text, which provides the student with a clear explanation of the topic under consideration and is then followed by illustrative materials. Whilst the book concentrates on the general principles of insurance law, it inevitably draws on examples (cases and legislation) taken from the main branches of motor, property, marine and liability insurance. Throughout the book there is an emphasis on law reform by means of comparison with other jurisdictions. The book is designed for students studying insurance law at undergraduate level. It would also be suitable for students studying for the Chartered Insurance Institute examinations.

chapter 1|54 pages

A GENERAL INTRODUCTION

This chapter is something of a mixed bag of disparate subjects, important nonetheless, for setting the scene for what will follow in later chapters. Reference is made in this chapter to the historical foundations of insurance law; a definition of insurance is formulated and some of the statutory

chapter 2|66 pages

INSURABLE INTEREST

Insurance is intended to provide the insured with an indemnity against loss although life assurance does not fit easily with the description. The insurance moneys should not provide a profit for the insured (see Chapter 9). If an insured was allowed to insure in situations where he stood to make a profit

chapter |50 pages

MAKING AND BREAKING THE INSURANCE CONTRACT

All of the normal rules relating to the formation of a valid contract apply equally to an insurance contract: offer, acceptance, consideration and an intention to form legal relations. However, there are several ‘special’ topics

chapter |158 pages

MISREPRESENTATION AND NON-DISCLOSURE

Misrepresentation and non-disclosure are topics which loom large in any discussion on insurance contract law. While misrepresentation is covered in any course on general contract law, non-disclosure is very much special to insurance law. Both topics pose major danger areas for the proposer when

chapter |50 pages

WARRANTIES AND CONDITIONS

In general contract law, terms of the contract have traditionally been divided into conditions and warranties. Breach of a condition is regarded as a major fault and breach of a warranty is regarded as a minor fault. The resulting effect is that breach of condition permitted the innocent party to rescind the

chapter |122 pages

INSURANCE INTERMEDIARIES

CLASSIFICATION AND SUPERVISION OF INSURANCE INTERMEDIARIES Since the 1970s there has been considerable confusion, not to say chaos, with regard to the classification of those who are involved in the advising on, selling of and servicing of insurance. A common sense division would have

chapter |78 pages

CONSTRUCTION OF THE POLICY

chapter |62 pages

CLAIMS

A loss has occurred. What steps must now be taken by the insured in order to make a claim on the policy and if he is successful in making the claim how is the value of the loss assessed? A number of distinct topics are dealt with in this chapter: causation, claims procedures, fraud and quantum.

chapter |66 pages

SUBROGATION AND CONTRIBUTION

It is convenient to discuss the topics of subrogation and contribution in the same chapter. They are often interrelated, but it must be stressed that their functions in insurance law are different. The equitable doctrine of subrogation is a ‘doctrine adopted solely for the purpose of preventing the insured from recovering more than a full indemnity

chapter |34 pages

THIRD PARTIES (RIGHTS AGAINST INSURERS) ACT 1930

This short chapter is concerned with the application of the Third Parties (Rights Against Insurers) Act 1930, alterations to which are now the subject of a Law Commission Report in 2001 (Law Com No 272; Scot Law Com No 184).

chapter |64 pages

THE FINANCIAL OMBUDSMAN SERVICE: THE INSURANCE OMBUDSMAN

When a policyholder’s initial claim for compensation is rejected by his insurer, he is understandably aggrieved. The next decision will be whether or not to continue his claim with outside help. Until recently, the only viable option