ABSTRACT
The following year, the British Insurance Law Association submitted a report to the English Law Commission in which it recommended reform of various aspects of insurance contract law, including warranties. Freedom of contract has been at the heart of the development of contemporary contract law. The common law tolerance of post-contractual increases of risk is normally modified by express provisions such as warranties. Concerning the return of premium once a warranty is breached, the Law Commissions have made a final attempt in their quest to bring this area of law closer to general contract law. Taking into account the growing significance of the social function of consumer insurance, one could sympathise with the stand taken by the Law Commissions on the matter. The Law Commissions are proposing to bring business insurance in line with consumer insurance with the object of enhancing transparency.
