Legislation

Question 1

What is the definition of riot provided in the Public Order Act, 1986

Answer 1

The essential elements are identified in this definition from the Act. “Where there are 12 or more persons who are present together use or threaten unlawful violence for a common purpose and the conduct of them (taken together) is such as would cause a person of reasonable firmness present at the scene to fear for his personal safety, each of the persons using unlawful violence for the common purpose is guilty of riot.

Question 2

What are the key points from Consumer Insurance (Disclosure & Representations) Act 2012 relating to utmost good faith

Answer 2

• “Basis of contract” clauses abolished in consumer insurance contracts.
• The act removes duty on consumers to disclose any facts that a prudent underwriter would consider material, and replaces this with a duty to take reasonable care not to misrepresent.
• Insurers may still include specific warranties in consumer insurance contracts, but these must be “fair” under the Unfair Terms in Consumer Contracts Regulations 1999

Question 3

What are the key points from the Insurance Act 2015 relating to utmost good faith

Answer 3

• The Insured has to disclose all material facts or make a fair presentation, which will include putting a prudent insurer “on notice” that it needs to make further enquiries
• Knowledge of the insured: reasonable search for information
• Knowledge of the insurer: what it ought to reasonably know
• Basis of contract clauses prohibited
• All warranties are suspensive; rectification of a position will not affect any subsequent loss

Question 4

What are the key points from the Consumer Insurance Contracts Act 2019 relating to utmost good faith

Answer 4

• Duty in consumer contracts replaced with obligation on insurer to ask specific questions
• “Basis of contract clauses” or warranties replaced with “representation”
• Insurable interest not required at time of taking out contract, but required at time of loss
• Claim can only be declined for late notification when prejudice is demonstrated