Topic: Insurance

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Duty of disclosure: is the refusal to renew residential policy material to a commercial policy?

Higherdelta Ltd was the owner of commercial properties including a restaurant in Scotland. Its company secretary, director and shareholder was also the owner of a portfolio of residential properties. The non-disclosure of prior events relating to the personal portfolio was held not to be relevant to underwriting the business policy. The restaurant was added to … Continue reading

UK chief executive fined £1.15 million over trust funds

The UK Financial Conduct Authority has fined One Call Insurance Services Ltd and its chief executive £1.15 million for failing to protect its clients’ money and to hold it in trust instead of using it to cover its own financial needs. The insurer allegedly ‘inadvertently’ used funds from its clients’ money account to finance its own … Continue reading

Insurance Act assented by State President

On 18 January 2018, the Insurance Act was published in the Government Gazette after it had been assented to by the State President. It is known as the Insurance Act 2017. The Insurance Act, which was tabled in the National Assembly in January 2016 and completed its journey through the parliamentary process in December 2017, … Continue reading

What happened to policy data administration services?

A previous draft of the Short-term Insurance Regulations included policy data administrative services (PDAS) as a service attracting remuneration of 2% of premium. This was left out of the final regulations. According to the National Treasury Key Issues document ‘It has been decided, at this stage, to maintain the status quo by not classifying PDAS … Continue reading

Amended long-term insurance regulations

The amendments to the Long-term Insurance Regulations gazetted on 15 December 2017 became effective on 1 January 2018 with some later effective dates below. The corresponding amendments to section 49 of the Long-term Insurance Act 1998 (LTIA) also take effect on 1 January 2018. The changes to the Long-term Insurance Act Regulations include changes to the remuneration and practices … Continue reading

Amended short-term insurance regulations

The amendments to the Short-term Insurance Regulations gazetted on 15 December 2017 became effective on 1 January 2018 with some later effective dates below. Corresponding amendments required to the Short-term Insurance Act 1998 (STIA) also take effect on 1 January 2018. The majority of the changes to the Short-term Insurance Act Regulations relate to the circumstances in which … Continue reading

UK Automated and Electric Vehicles Bill

The UK has published the Automated and Electric Vehicles Bill. If an accident is caused by an automated vehicle when driving itself whilst insured at the time it causes anyone to suffer damages, then the insurer is liable for that damage caused to anyone. If the vehicle is not insured the owner of the vehicle … Continue reading

IAIS calls for simple insurance products

It has been reported (Law360) that the International Association of Insurance Supervisors has urged governments to make sure that insurers selling basic cover to the world’s poorest communities keep their products simple to prevent misselling and to avoid excessive costs. According to the IAIS ‘inclusive insurance products and their distribution need to be easily understood … Continue reading

Insurance industry ‘excited’ about InsurTech

Most insurance companies acknowledge that major change is coming and the insurance world is excited about the changes that InsurTech may bring. Recently we have seen reports in the media that local insurance companies are spending significant amounts of money in partnering with various InsurTech companies in an effort to embrace the changes. InsurTech is effectively … Continue reading

Rising tide for directors

State capture, growing public discontent fuelled by social media at the activities of private companies and the need for ethical business practices all present significant implications for directors and for insurers who provide directors and officers liability insurance. Increased scrutiny by regulators and industry watchdogs into the affairs of companies and the conduct of their … Continue reading

Policy requirement to comply with statutory or regulatory standards requires reasonable care not absolute compliance

An Australian court has interpreted the obligation in a business liability policy to ‘comply with legislation and Australian Standards’ coupled with a general condition requiring the insured to ‘take reasonable care to avoid causing harm’ as requiring reasonableness and not absolute compliance. Not every minor breach of regulations can be regarded as an infringement of … Continue reading

Sitting is not an ‘accident’ (US)

In a curious case the Michigan US Appeals Court found that merely sitting for a long period of time which allegedly led to a truck driver dying of a pulmonary embolism while sitting in the cab of his truck at a truck stop was not bodily injury caused by an occupational accident. Medical evidence said … Continue reading

Two year insurance time-bar upheld (US)

A Delaware court upheld a two year time-bar in relation to a property damage insurance claim arising from Superstorm Sandy because the action was instituted more than two years after the 2012 event and after coverage was denied by the insurer in 2013. The limitations clause provided that ‘no suit, action or proceeding for the … Continue reading

Aggregation of claims for related transactions

Where a policy aggregated claims for ‘similar acts or omissions in a series of related matters or transactions’ the enquiry was whether there was a real connection between the transactions in which they occurred. The use of the word ‘related’ implies there must be some interconnection between the matters or transactions so that they in … Continue reading

Insurance exclusion for ‘that particular part’ on which ‘performing operations’ (US)

The insured subcontracted a builder to build 53 prefabricated modular units for its residential blindness rehabilitation facility. The insurer denied an indemnity for water damage under a partly completed roof saying that the applicable exclusion barred coverage for ‘that particular part’ of property on which the policyholder or its subcontractors ‘are performing operations’. The units … Continue reading

Appeal Court confirms insurer liable to indemnify insured for failure to assess the risk of a schizophrenic prison inmate (Australia)

The New South Wales Court of Appeal upheld the decision of a lower court, holding an insurer liable to indemnify its insured, a prison detention centre for failing to assess the risk of a chronic schizophrenic prison inmate. The inmate threw himself from a building and suffered serious brain and other physical injuries. The issue … Continue reading
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