scholarly journals The Insured's Non-Disclosure In The Formation Of Insurance Contracts: A Comparative Perspective

2001 ◽  
Vol 50 (3) ◽  
pp. 577-612 ◽  
Author(s):  
Anthony A. Tarr ◽  
Julie-Anne Tarr
Keyword(s):  
Transaction Costs ◽  
Insurance Contract ◽  
Accurate Information ◽  
Caveat Emptor ◽  
Insurance Law ◽  
Asymmetry Of Information ◽  
Critical Information ◽  
Insurance Contracts ◽  
Inadequate Information ◽  
Practical Reality

The requirements that an insured disclose all facts material to a transaction as well as not misrepresent material facts in the formation of an insurance contract are universal requirements of insurance law.1 The nature and extent of these obligations varies from one jurisdiction to the next but the fundamental justification for the duty to provide accurate information rests upon the perceived asymmetry of information as between insurer and insured as to the risk to be transferred.2 Disclosure in the insurance context is distinct from the general approach in commercial contracts, and in others between persons dealing at arm's length. Historically, the requirement to affirmatively volunteer information in relation to insurance transactions reflects, first, the potentially mortal impact inadequate information poses to the insurance industry's vitality, and second, the practical reality that certain critical information may be peculiarly within the insured's knowledge and difficult to elicit. The departure from caveat emptor and the allocation of the risk and consequences of non-disclosure to the party best placed to provide information pertinent to the transaction is seen as necessary to minimise transaction costs in such dealings.3

27. Insurance

2017 ◽  
Author(s):  
MA Clarke ◽  
RJA Hooley ◽  
RJC Munday ◽  
LS Sealy ◽  
AM Tettenborn ◽  
...  
Keyword(s):  
Insurance Contract ◽  
Marine Insurance ◽  
Insurance Claims ◽  
Insurance Law ◽  
Insurable Interest ◽  
Insurance Contracts

This chapter deals with insurance and the principles of insurance law. Contracts of insurance may be subdivided into two categories: indemnity insurance and contingency insurance. Under a contract of insurance, the event insured against is interpreted to be uncertain, either in the sense that it may or may not occur, or that the time of the occurrence is uncertain. This chapter first explains how insurance works, with a particular focus on insurable interest, the statutes that govern insurance contracts, and the power of the Financial Conduct Authority to authorise persons wishing to conduct business as insurers. It then considers how an insurance contract is formed and goes on to describe the content and interpretation of the contract. It also discusses the liability and rights of the insurer before concluding with an analysis of marine insurance and insurance claims.

scholarly journals Contemporary European Normative Tendencies Regarding the Essence and Typology of Insurance Contracts

2019 ◽  
Vol 40 (2) ◽  
pp. 131-148
Author(s):  
Mariusz Fras
Keyword(s):  
Public Law ◽  
Insurance Contract ◽  
Private Law ◽  
Legal Systems ◽  
Insurance Law ◽  
Insurance Supervision ◽  
Insurance Contracts ◽  
Definition Of

Abstract In the light of different approaches to the question of regulating economic insurance law in specific legal systems, formulation of a model definition of the insurance contract, although necessary for further investigations, is merely theoretical. Specific lawmakers approach the question of specification of the content of the insurance contract at the statutory level with varying degree of consequence. Insurance relationships are a heterogeneous category, and attempts to develop uniform systematics with the use of comparative legal methods are still hindered by differences between individual legal systems. There is a lack of consistence between the distinctions adopted in private law systems and solutions characteristic of public law, which exert much influence on the market of insurance services as a part of insurance supervision.

PHILOSOPHICAL BATTLE AGAINST MORAL HAZARD: DO WE NEED LAW METHODOLOGY CHANGE FROM “ALL OR NOTHING PRINCIPLE” TO “PRINCIPLE OF PROPORTIONALITY”?

2021 ◽  
Vol 3 (3) ◽  
pp. 124-138
Author(s):  
Olavi-Jüri Luik ◽  
Mats Volberg
Keyword(s):  
Moral Hazard ◽  
Insurance Contract ◽  
Comparative Approach ◽  
Insurance Law ◽  
Insurance Contracts ◽  
The People ◽  
Principle Of Proportionality ◽  
The Baltic ◽  
European Insurance ◽  
Legal Methodology

Introduction: this article looks into the central problem in insurance law, where the principle of “all or nothing” applied by insurance providers and legislators to moral hazard (if the risks of people are covered with insurance contracts then the people often change their risk behavior to involve higher risks by presuming that the concluded insurance contract always covers the loss incurred) is being replaced by the principle of proportionality in the modern insurance law of Western countries. Purpose: to identify significant methodological changes in determining the scope of performance of an insurance provider’s obligation caused by the application of the principle of proportionality. Methods: the authors use the approach of the Baltic Sea States (e.g. Estonia, Lithuania, Russia and Finland) and PEICL (Principles of European Insurance Contract Law1) in a comparative approach, analyzing the respective paradigmatic methodological shift (which currently among the named countries is directly reflected only in the Finnish Insurance Contract Act2) in the context of practical philosophy. Results: the paper demonstrates the necessity to change the paradigmatic legal methodology, according to which the principle of “all or nothing” would be replaced by the principle of proportionality.

27. Insurance

2020 ◽  
pp. 997-1010
Author(s):  
D Fox ◽  
RJC Munday ◽  
B Soyer ◽  
AM Tettenborn ◽  
PG Turner
Keyword(s):  
Insurance Contract ◽  
Marine Insurance ◽  
Insurance Claims ◽  
Insurance Law ◽  
Insurable Interest ◽  
Insurance Contracts

This chapter deals with the principles of insurance law. First, the chapter explains how insurance works, with a particular focus on insurable interest, the statutes that govern insurance contracts, and the power of the Financial Conduct Authority to authorise persons wishing to conduct business as insurers. The chapter then considers how an insurance contract is formed and goes on to describe the content and interpretation of the contract. It also discusses the liability and rights of the insurer before concluding with an analysis of marine insurance and insurance claims.

scholarly journals The European Context of the Group Insurance Contract

2020 ◽  
pp. 179-231
Author(s):  
Mariusz Fras
Keyword(s):  
Comparative Law ◽  
Insurance Contract ◽  
Insurance Law ◽  
European Context ◽  
Insurance Contracts ◽  
Legal Relationship ◽  
Separate Branch ◽  
Legal Nature ◽  
Group Insurance ◽  
And Performance

The entirety of norms on the relations connected with conclusion and performance of insurance contracts make up economic insurance law. Because of its objective homogeneity, it is generally treated as a separate branch of law. From the dogmatic perspective, its permanent element are group insurance contracts. However, the results of a comparative law research allow to draw the conclusion that in a substantial numberof legal systems the term “group insurance” is not to be found in normative acts. In the literature, multiple attempts were made to expound the legal nature of the group insurance contract. Still, there is no consensus as to the nature of the legal relationship arising from conclusion of a group insurance contract. The article concerns the proposal of normative regulation of group insurance contract.

scholarly journals Basis of Contract Clause in the UK and the Necessity for Reforming Insurance Law in Iran

2017 ◽  
Vol 10 (2) ◽  
pp. 156
Author(s):  
Abdolazim Khorooshi ◽  
Habibollah Rahimi ◽  
Abbas Ghasemi Hamed ◽  
Jalil Maleki
Keyword(s):  
Common Law ◽  
Insurance Contract ◽  
Insurance Law ◽  
Insurance Contracts ◽  
The Uk

In insurance, terms and conditions by insurers at the end of proposal forms or insurance contracts will be included in print that the insured has confirmed the authenticity of answer to questions and provided information, and agrees that the statements are "basis of contract". If an inaccuracy of those announcements proves later, insurer regardless of the importance of statements in acceptance of the risk or determination of the premium can disclaim based on this clause himself and avoid the contract. The basis of condition clause is emerged from common law and also used in insurance law of Iran. This condition in that system after decades that has been criticized faced with notable changes. In this article, the issue, nature and consequences of the basis of contract clause is studied, not to use such expressions and conditions in proposal forms but insurance contract is suggested since it leads to injustice against the insured.

Cláusulas de franquicia o deducible en seguros de responsabilidad civil en el Derecho español: Naturaleza y efectos respecto de terceros perjudicados

2018 ◽  
pp. 101
Author(s):  
Rafael Lara González
Keyword(s):  
Civil Liability ◽  
Third Parties ◽  
Insurance Contract ◽  
Third Party ◽  
Liability Insurance ◽  
Legal Doctrine ◽  
Insurance Contracts ◽  
Spanish Law ◽  
Palabras Clave ◽  
Legal Nature

ResumenPese a su ubicuidad en la práctica contractual, las cláusulas de franquicia han recibido tratamiento incidental en la doctrina. La discusión sobre ellas se ha enfocado en los contratos de seguros de responsabilidad civil, y en la interpretación del artículo 76 de la Ley española de Contrato de Seguro. En este contexto se ha tratado de establecer si el asegurador puede o no oponer la cláusula de franquicia al tercero perjudicado. El presente trabajo analiza la cláusula de franquicia en la obligación principal del asegurador, su naturaleza jurídica, y examina su relación con los terceros perjudicados. La consideración principal a este respecto estará en si nos encontramos ante un seguro obligatorio o ante un seguro voluntario de responsabilidad civil. Palabras clave: Contrato de seguro; Cláusula de franquicia; Terceroperjudicado; Responsabilidad civil.AbstractDespite their ubiquity in contractual praxis, deductible clauses have received only incidental treatment in legal doctrine. Discussion on them has focused on civil liability insurance contracts, and the interpretation of article 76 of the Spanish Law of Insurance Contracts. In this context it has been attempted to establish whether the insurer can invoke the clause to oppose the injured third party's claim. This article examines the deductible clause included in the insurer's main obligation, its legal nature, and its relation to injured third parties. The main consideration in this regard will be whether the insurance contract is of a mandatory or voluntary nature.Keywords: Insurance contract; Deductible clause; Injured third party; Civil liability.

scholarly journals The IFRS 17 contractual service margin: a life insurance perspective

2021 ◽  
Vol 26 ◽  
Author(s):  
W. Yousuf ◽  
J. Stansfield ◽  
K. Malde ◽  
N. Mirin ◽  
R. Walton ◽  
...  
Keyword(s):  
Life Insurance ◽  
Market Value ◽  
Financial Statements ◽  
Insurance Contract ◽  
Accounting Standard ◽  
Insurance Contracts ◽  
Ifrs 4 ◽  
Insurance Perspective ◽  
To Come

Abstract IFRS 17 Insurance Contracts is a new accounting standard currently expected to come into force on 1 January 2023. It supersedes IFRS 4 Insurance Contracts. IFRS 17 establishes key principles that entities must apply in all aspects of the accounting of insurance contracts. In doing so, the Standard aims to increase the usefulness, comparability, transparency and quality of financial statements. A fundamental concept introduced by IFRS 17 is the contractual service margin (CSM). This represents the unearned profit that an entity expects to earn as it provides services. However, as a principles-based standard, IFRS 17 results in entities having to apply significant judgement when determining the inputs, assumptions and techniques it uses to determine the CSM at each reporting period. In general, the Standard resolves broad categories of mismatches which arise under IFRS 4. Notable examples include mismatches between assets recorded at current market value and liabilities calculated using fixed discount rates as well as inconsistencies in the timing of profit recognition over the duration of an insurance contract. However, there are requirements of IFRS 17 that may create economic or accounting mismatches of its own. For example, new mismatches could arise between the measurement of underlying contracts and the corresponding reinsurance held. Additionally, mismatches can still arise between the measurement of liabilities and the assets that support the liabilities. This paper explores the technical, operational and commercial issues that arise across these and other areas focusing on the CSM. As a standard that is still very much in its infancy, and for which wider consensus on topics is yet to be achieved, this paper aims to provide readers with a deeper understanding of the issues and opportunities that accompany it.

FUNDAMENTAL PRINCIPLES OF MARINE INSURANCE

ANCIENT LAND ◽  
2021 ◽  
Vol 04 (02) ◽  
pp. 46-48
Author(s):  
Tahmina Shahin Alizada ◽  
Keyword(s):  
Key Words ◽  
Insurance Industry ◽  
Good Faith ◽  
Insurance Contract ◽  
Basic Knowledge ◽  
Marine Insurance ◽  
Insurance Law ◽  
Legal Principles ◽  
Insurable Interest ◽  
Utmost Good Faith

The article describes the fundamental principles of marine insurance. It mainly examines the principle of "utmost good faith" which is the cornerstone of insurance law. The main aim of an article is to help the reader to gain basic knowledge and understanding of the legal principles of marine insurance. The fundamental principles governing marine insurance are very helpful in the assessment of loss and the claim in the maritime insurance industry. As in all contracts of insurance on the property, also marine insurance contract is based on the fundamental principles. Key words: marine insurance, Marine Insurance Act 1906, principles of marine insurance, utmost good faith, insurable interest

OSIGURANjE ŽIVOTA U KORIST TREĆIH LICA

2021 ◽  
pp. 535-551
Author(s):  
Zoran Miladinović ◽  
Keyword(s):  
Life Insurance ◽  
Legal Status ◽  
Insurance Contract ◽  
Third Party ◽  
Insurance Companies ◽  
Insurance Law ◽  
Legal Provisions ◽  
Insured Person ◽  
Insured Event

Insurance of life in favor of third parties is more important than the insurance of life in case of death. Moreover, in some rights this type of insurance can be contracted only in the event of the death of the insured person. There are no such restrictions in our insurance law, which means that the same can be agreed in case the isured person reaches a certain age. With this type of insurance, the insured event can be realized on the person of the insurance policyholders or on some other person. The insured person can therefore be the insurance contractor himself and it can also be another person. Considering that in this type of insurance, upon the occurrence of the insured event, the payment of the insured amount is always made to a certain third party beneficiary and that the insurance contract mentions several persons with different legal status, the insurance contract must clearly define the issues such as clear determination of the beneficiary insurance, what happens if the insurance beneficiary dies before the insured person, or the contractor assures, whether it is necessary for the insurance beneficiary to give his consent to be paid compensation, whether and until when the insurance policyholder can revoke the benefit he has contracted for a third party-beneficiary of the insured, etc. All these issues are mainly regulated by legal provisions, but of particular importance are General Conditions of life insurance of life insurance companies, as the above issues are clearly defined on the basis of experiences that have proven to be open in practice.

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