GLOSSARY
Insurance definition
What does Insurance mean?
Financial compensation for a claim for damages resulting from an event or loss that is unforeseeable, that results in an outcome that is adverse to the insured, in return for a premium.
Commercial
Insurance is a form of contract whereby a sum of money is promised to be paid by the insurer to the insured on the happening of a specified event.
Although there is no statutory definition of insurance, there is a statutory definition of 'contract of insurance' in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544, art 3(3). Insurance is governed by the general law of contract, the law merchant and the common law. The essential elements of insurance are that: (1) the insurer will pay a sum of money on the happening of a specified event to the insured; (2) there must be uncertainty as to the happening of the event, either as to whether it will happen or not, or, if it is bound to happen, as to the time at which it will happen; and (3) there must be an insurable interest in the insured, which is normally that the event is one which is prima facie adverse to his interest. To constitute an insurable interest the same general conditions must be fulfilled in all classes of insurance. Halsbury's Laws of England, 60 (5th), 2.
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Insurance clauses in public sector contracts
Using boilerplate provisions in public sector contractsThis Practice Note looks at insurance clauses in public sector contracts. For more information on what contracting authorities (and other interested parties) need to know when using boilerplate provisions in public sector agreements, see Practice Note: Boilerplate provisions in public sector agreements: general considerations.Brexit impact—public procurement and public sector contractsThe legal regime governing the procurement of public contracts in the UK derives from EU laws, and is therefore impacted by the UK’s withdrawal from the EU. Brexit also has wider implications for the drafting, negotiation and enforcement of contracts governed by English law.Public procurement11 pm (GMT) on 31 December 2020 marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU (IP completion day). On 24 December 2020, the UK government and the European Commission announced a deal in principle on the legal terms of the future UK-EU relationship which includes provision for public procurement. The Trade and Cooperation Agreement (TCA) and associated agreements were signed and approved by the UK Parliament on 30 December 2020. For more information on the implications for public procurement, see Practice Notes: What does IP completion day mean for public law?—Public procurement and Brexit—the implications for public procurement.Public sector contractsThe government model contracts are reviewed
Marine insurance—general principles
This Practice Note describes the main principles of marine insurance as governed by the Marine Insurance Act 1906. It looks at the principles of indemnity under marine insurance, the concept of a marine adventure, mixed land and sea risks and maritime perils. The Note also examines insurable interests, the principal risks insured, marine insurance policies, marine insurance brokers and rights of subrogation under a marine insurance policy.What is marine insurance?Marine insurance is defined in the Marine Insurance Act 1906 (MIA 1906) as a contract ‘whereby the insurer undertakes to indemnify the assured, in manner and to the extent thereby agreed, against marine losses, that is to say, the losses incident to marine adventure’.The objective of the MIA 1906 was to codify the then state of the common law in relation to marine insurance. Many provisions of the MIA 1906 remain in force today though it has been amended by the Insurance Act 2015 and the Consumer Insurance (Disclosure and Representations) Act 2012.This definition contains two important concepts, that of:•indemnification, and•marine adventureIndemnificationThe essential purpose of marine insurance, as with all other insurance, is to indemnify the insured against the loss he has incurred from an insured risk. This is the general rule; there may be particular and
Equity derivatives—France—Q&A guide
Equity derivatives—France—Q&A guide This Practice Note contains a jurisdiction-specific Q&A guide to equity derivatives in France published as part of the Lexology Getting the Deal Through series by Law Business Research (published: March 2020). Authors: Latham & Watkins LLP—Thomas Vogel; Suzana Sava-Montanari 1. Other than transactions between dealers, what are the most typical types of over-the-counter (OTC) equity derivatives transactions and what are the common uses of these transactions? The market for OTC derivatives transactions in France is well established and equity derivative products are routinely used in the implementation of stake-building transactions, equity price risk hedging strategies and share repurchase schemes. Typical equity derivatives products used by issuers on the French market include (but are not limited to): • call options, put options and total return swaps to hedge equity price risks on a bespoke basis; • funded collar in the context of the leveraged acquisition of a stake in a publicly listed company involving an embedded hedge to the market price of the equity purchase (often on a tranched basis); • unfunded collar in the context of the disposal of a stake in a publicly listed company involving an embedded hedge to the market price of the equity disposal (often on a tranched basis); • prepaid equity forward in the context of share buy-backs involving a forward transaction that is settled on the basis of the discounted volume-weighted average price of
Tier 1 (Investor): investment requirements for pre-6 November 2014 Rules applicants at indefinite leave to remain
Tier 1 (Investor): investment requirements for pre-6 November 2014 Rules applicants at indefinite leave to remain This Practice Note looks at the eligibility requirements in relation to money and investments that will be relevant for a Tier 1 (Investor) migrant applying for indefinite leave to remain, where their last leave was granted under the pre-6 November 2014 Immigration Rules covering the category and they are applying before 6 April 2022. This includes what investments will qualify (including relevant restrictions), how the qualifying investments should be maintained, and the evidence needed to show that the qualifying investments and, if relevant, any balancing funds have been maintained over the relevant specified continuous period. It should be read in conjunction with Practice Note: Tier 1 (Investor): applying for indefinite leave to remain. The same requirements will apply where an applicant in this situation misses the 6 April 2022 deadline. As this route was closed to any further initial applications on 17 February 2022, through Statement of Changes in Immigration Rules CP 632, in part due to the concerns the route facilitated the transfer of illicitly obtained wealth, extension and settlement applications may face increasingly high levels of scrutiny. For further information, see: LNB News 17/02/2022 76. Investment within three months of the specified date If a person wishes to rely upon the date of first entry after being granted entry clearance,
Brussels I (recast)—requirements for an effective choice of court agreement (art 25)
Brussels I (recast)—requirements for an effective choice of court agreement (art 25) This Practice Note considers Article 25 of Regulation (EU) 1215/2012, Brussels I (recast) and the requirements that need to be met to show the court there is an effective choice of court agreement between the parties. It provides background information as to the position already adopted by the European Court on such agreements and what changes have been brought into place under Regulation (EU) 1215/2012, Brussels I (recast) and what that might mean in practice. Equivalent wording to Article 25 of Regulation (EU) 1215/2012, Brussels I (recast) was found in its predecessors being Article 17 of the Brussels Convention and Article 23 of Regulation (EC) 44/2001, Brussels I. Cases referenced in this Practice Note include those decided under the convention and regulation as they are relevant to understanding the key principles under Article 25. For general information in relation to choice of court agreements, see Practice Note: Brussels I (recast)—choice of court agreements (art 25). For guidance on the various other jurisdictional regimes that contain provisions regarding jurisdiction agreements, see Practice Notes: • Jurisdiction agreements—introduction • Hague Convention on Choice of Court Agreements—scope • Hague Convention on Choice of Court Agreements—jurisdiction • Jurisdiction agreements—approach of the courts of England and Wales Impact of UK’s departure from the EU Following exit day (ie 31 January 2020), the UK became a third state in
FCA consultation paper tracker—2017
FCA consultation paper tracker—2017 This tracker sets out the consultation papers published by Financial Conduct Authority (FCA) in 2017, along with the publication of any subsequent rules and guidance. For details of FCA consultation papers from other years, see: FCA consultation paper tracker. For details of Prudential Regulation Authority (PRA) and Financial Services Authority (FSA) consultation papers, see: • PRA consultation paper tracker • FSA consultation paper tracker Topic area Consultation Paper Description Publication date End of consultation period Policy Statement/ Handbook Notice Authorisation, approval and supervisionFees and leviesPayment systems and services CP17/44: PSR regulatory fees The Payment Systems Regulator (PSR) and the FCA published a consultation and decision paper setting out its policy decision on the way it will collect its regulatory fees in 2018/19 and in subsequent years, and consulting further on its proposed fees allocation method. 15 December 2017 26 January 2018 PS expected Summer 2018Handbook Notice 53 (23 March 2018)CP18/8: PSR regulatory fees (23 March 2018) Consumer credit, mortgage and home financeFCA conduct requirements CP17/43: Credit card market study: Persistent debt and earlier intervention remedies—feedback on CP17/10 and further consultation The consultation derives from the FCA findings in its July 2016 credit card market study, in which the FCA set out significant concerns about the scale, extent and nature of problem credit card debt and firms’ limited incentives to reduce this. The
FCA consultation paper tracker—2019
FCA consultation paper tracker—2019 This tracker sets out the consultation papers published by Financial Conduct Authority (FCA) in 2019, along with the publication of any subsequent rules and guidance. For details of FCA consultation papers from other years, see: FCA consultation paper tracker. For details of Prudential Regulation Authority (PRA) and Financial Services Authority (FSA) consultation papers, see: • PRA consultation paper tracker • FSA consultation paper tracker Topic area Consultation Paper Description Publication date End of consultation period Policy Statement/Handbook Notice Conduct requirementsBrexitAuthorisation, approval and supervisionEnforcement and redresss CP19/33: Quarterly Consultation No 26 The Financial Conduct Authority (FCA) has published Quarterly Consultation Paper No 26 (CP19/23), in which it consults on proposed miscellaneous amendments to the FCA Handbook. 6 December 2019 6 January 2020 for chapters 3, 7 and 86 February 2020 for chapters 2, 4, 5 and 6 Handbook Notice 73 (31 January 2020)Handbook Notice 75 (27 March 2020)Handbook Notice 76 (1 May 2020) Risk management and controls CP19/32: Building operational resilience: impact tolerances for important business services The Bank of England (BoE), the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have published a shared policy summary and co-ordinated consultation papers (CPs) on new requirements to strengthen operational resilience in the financial services sector. The PRA has also published a related CP on outsourcing and third-party risk management. The CPs (FCA’s CP, PRA’s CP
Payment Accounts Directive—timeline
The Payment Accounts Directive (Directive 2014/92/EU) (PAD) is intended to enhance transparency and comparability for consumers in respect of payment accounts. In particular, the PAD: • makes it easier for consumers to compare fees charged by banks and other service providers across the EU • facilitates consumer switching of payment accounts, and • entitles all EU consumers to open a payment account that enables them to perform essential functions such as receiving their salary and paying bills The PAD has its origins in the European Commission's consultation on retail bank accounts, opened in March 2012, which assessed the need for action in the areas of transparency and comparability of fees, account switching and access to basic payment accounts. This followed a retail banking sector inquiry in 2007 which had identified these factors as obstacles to consumer choice and mobility. Member States' subsequent attempts to tackle the problems at a national level had led to a lack of uniformity across the EU to the detriment of the single market. The consultation suggested some consumer appetite for legislation at the EU-level while the industry generally was less persuaded of the need for new EU legislation. The PAD, which clearly targets the problems identified in the consultation, was published in the Official Journal of the EU on 28 August 2014, and entered into force on 17 September 2014. Member
Real estate—United Kingdom - England & Wales—Q&A guide
Real estate—United Kingdom - England & Wales—Q&A guide This Practice Note contains a jurisdiction-specific Q&A guide to real estate in United Kingdom - England & Wales published as part of the Lexology Getting the Deal Through series by Law Business Research (published: January 2022). Authors: Fried Frank Harris Shriver & Jacobson LLP—Patrick Williams; Jons F. Lehmann; Devina Rana 1. How would you explain your jurisdiction’s legal system to an investor? England and Wales have a common law legal system. Investing in England and Wales is highly favoured given its system of compulsory land registration and just legal system. The laws governing real estate are predominantly statute based, and these are constantly developed through case law. International law is relevant to a limited extent (eg, matters concerning merger control are dealt with by international treaties that the United Kingdom is a part of). It is unclear how Brexit will impact this. In England and Wales, land contracts need to be in writing, to incorporate all relevant terms of sale, and to be signed by both seller and buyer. Oral contracts for the sale of land are usually unenforceable. Contracts for land are 'exchanged', with the legal transfer of ownership taking place on completion of either a deed of transfer or grant of a lease. 2. Does your jurisdiction have a system for registration or recording of ownership, leasehold and security interests in real
Class actions—Israel—Q&A guide [Archived]
Class actions—Israel—Q&A guide [Archived] ARCHIVED: This Practice Note has been archived and is not maintained. This Practice Note contains a jurisdiction-specific Q&A guide to class actions in Israel published as part of the Lexology Getting the Deal Through series by Law Business Research (published: September 2020). Authors: Erdinast, Ben Nathan, Toledano & Co—Hadas Bekel; Naama Ehrlich; Ran Sprinzak; Tomer Weissman 1. Outline the organisation of your court system as it relates to collective or representative actions (class actions). In which courts may class actions be brought? Class action claims and motions to certify a personal claim as a class action are brought before the regular civil courts (apart from certain exceptions, such as claims based on labour laws or related to securities or filed against public authorities). The jurisdiction of the court is determined according to the general rules of subject-matter and territorial jurisdiction. In class actions seeking monetary compensation, jurisdiction is acquired according to the total amount claimed on behalf of all class members (article 5(B) of the Class Actions Law 2006 (the CA Law)). The lower legal instance in Israel, the magistrates court, acquires jurisdiction when the amount claimed is less than 2.5 million Israeli shekels. When the amount claimed is above 2.5 million Israeli shekels, jurisdiction is acquired by the district courts (articles 51(A)(2) and 40(1) of the Courts Law (Consolidated Text) 1984). A class action or
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Warranty limitations—pro-seller—share purchase agreement
Insert the following definitions as new definitions into clause 1 of Precedent: Share purchase agreement—pro-buyer—corporate seller—conditional—long form: 1 Definitions and interpretation Claim means a claim by the Buyer for any breach of the provisions of this Agreement (including a claim for breach of the Warranties); Data Room means the data room relating to the [Company OR Group] comprising all contracts, agreements, licences, documents and other information made available to the Buyer and its advisers, as listed in the Data Room index attached to the Disclosure Letter; The ScheduleLimitations on the Warranties Replace Schedule 5 of Precedent: Share purchase agreement—pro-buyer—corporate seller—conditional—long form with the following schedule: 1 General 1.1 The following provisions of this Schedule [5 OR [insert schedule number for limitations on the warranties schedule]] shall, subject to their terms, limit the liability of the Seller in relation to a Claim[ and, where specifically provided, a Tax Covenant Claim] except where such Claim[ or Tax Covenant Claim] arises as a result of fraud on the part of the Seller. 1.2 The Seller shall not be liable for any Claim unless written particulars of it
Loss payable clause: for hull and machinery insurance in shipping finance
It is noted that, by an assignment in writing collateral to a first preferred mortgage dated [insert date] (the Mortgage) [Name of Owner] of [Address of Owner] (the Owner), owner of the vessel '[Name of Vessel]' (the Vessel), assigned absolutely to [Name of Mortgagee] acting through its branch at [Address of Mortgagee] (the Mortgagee), the benefit of this policy of insurance and all benefits of this policy, including all claims of any nature (including return of premiums) hereunder. Claims payable under this policy in respect of a total or constructive total or an arranged or agreed or compr
Asbestos indemnity for when seller is in breach
Produced in partnership with DLA Piper UK LLP
1 The Vendor shall indemnify and keep indemnified the Purchaser against any and all Asbestos Liabilities. Asbestos Liabilities means: (a) all costs, losses and expenses (including professional and consultancy fees) incurred by the Purchaser in relation to undertaking or procuring the undertaking of an asbestos management survey at each of
Letter to Department of Works and Pensions enclosing enquiries from petitioner’s solicitor as to respondent’s whereabouts (pre-DDSA 2020)
Letter to Department of Works and Pensions enclosing enquiries from petitioner’s solicitor as to respondent’s whereabouts (pre-DDSA 2020) [insert address of DWP office] Dear [insert organisation name] [insert other party’s full name, date of birth and National Insurance number] Last known address: [insert last known address] We act for [insert other party’s full name], the [wife OR
EMI share option scheme rules
EMI share option scheme rules Rules of the [insert name of company granting EMI options] enterprise management incentives Scheme 1 Definitions and interpretation 1.1 Definitions In this Scheme, except where the context otherwise requires, the words and expressions set out below will bear the following meanings, namely: Acquiring Company • has the meaning ascribed to it in paragraph 39 of Schedule 5; Agreement • means the agreement entered into by an Eligible Employee, the Company and, where different, the person which grants an Option, in such form as the Directors will from time to time determine; Closed Period • means a period when the Directors are prohibited from dealing in shares under the Market Abuse Regulation (Retained Regulation (EU) 596/2014) or any other regulation, act, guidance or code on transactions in securities which applies to the Company, including any share dealing code of the Company; Committed Time • has the meaning given in paragraph 26 of Schedule 5; Company • [name of company granting options] (Company No [insert registered number]); Control • has the meaning ascribed to it in Schedule 5 and derivative terms shall be construed accordingly; Date of Grant • in respect of the Option, means the date on which the Agreement is entered into by all the relevant parties; Directors • means the board of directors of the Company from time to time or a duly authorised committee of such directors; Disqualifying Event • means the first to occur of an
Notice of exercise of option
Notice of exercise of option The Company Secretary [insert date of letter] [insert name of company who granted the option] (Company) [[insert address of company that granted the option]] Form of notice of exercise From: [insert name of option holder] 1 Exercise of the Option I refer to the option granted to me on [insert date on which the share option was originally granted] over [insert class and nominal value of shares under option] shares in the Company (Shares) [under the terms of the [insert name of plan under which option was granted] (Plan) OR by a deed entered into by the Company on that date (Deed)] (Option), and hereby give notice that I am exercising the Option in respect of [insert number of shares being exercised] Shares at the exercise price of £[insert exercise price per share as in the original grant documentation] per Share (Exercise price) and request the allotment or transfer to me of those Shares in accordance with the terms of the [Plan OR Deed OR and the Memorandum and Articles of Association of the Company. I request that you place my name on the register of members in respect of those Shares and I hereby confirm that the above exercise is subject to the remainder of this Notice. [I enclose the share option agreement OR Deed OR share option
EMI options—FAQs for employees
EMI options—FAQs for employees What is the [insert name of EMI scheme]? [insert name of company establishing EMI scheme] (the Company) has established the [insert name of EMI scheme] scheme (EMI Scheme). Pursuant to the EMI Scheme, the Company can grant enterprise management incentives (EMI) qualifying share options and also unapproved share options. Unless otherwise stated in this paper, you have been granted EMI qualifying share options. These FAQs outline the key provisions of the EMI Scheme and explain some of the tax benefits. The full details of the EMI Scheme are set out in the option grant documentation. If there is any contradiction or discrepancy between the EMI Scheme rules and/or option agreement and these FAQs, the plan rules take priority. What are EMI options? The EMI Scheme pursuant to which your option has been granted is a highly flexible and tax-efficient scheme designed specifically for small/medium-sized businesses and it is subject to specific legislation. You have been selected to participate in the EMI Scheme and have been granted an option to buy the set number of shares (as specified under your option agreement) for a fixed price. Your option is designed (but not guaranteed) to qualify as an EMI option, which can offer you significant tax advantages in relation to any gains realised when you exercise the option and sell the resultant shares (see tax treatment below). How
Covering letter to unapproved option holders for options granted pursuant to unapproved share option rules and agreement
Covering letter to unapproved option holders for options granted pursuant to unapproved share option rules and agreement [insert date of letter] [insert name of employee] [insert address of employee] Dear [insert name of employee] [insert name of Company] (Company) Option to be granted under the [insert name of unapproved share option scheme] (Scheme) I am delighted to notify you that the directors of the Company have approved the grant of an option to you under the Scheme (Option). I enclose a copy of the rules of the Scheme and the option agreement, which needs to be executed by you and the Company in order for the grant of the Option to take effect. Summary of the Option’s terms The Option will entitle you to purchase [insert maximum number and type of shares which can be exercised pursuant to the option agreement] shares in the Company at a price of [insert exercise price of shares] per share [if, broadly, there is an ‘Exit’ event of the Company (which is broadly a takeover of the
Enterprise management incentives (EMI) qualification questionnaire
Enterprise management incentives (EMI) qualification questionnaire Enterprise management incentives suitability questionnaire in respect of [insert name of company] (the Company) The Company Purpose of granting the options Question Response 1 It is a requirement that the EMI options are granted for commercial reasons in order to recruit or retain an employee in a company, and not as part of a scheme or arrangement the main purpose (or one of the main purposes) of which is the avoidance of tax.Please confirm that whether this is the case. See drafting note The Company’s independence Question Response 2 Is the Company a 51% subsidiary of another company (ie does another company hold more than 50% of the ordinary share capital of the Company)? See drafting note Question Response 3 Is the Company in any way under the control of another company or another company and person(s) ‘connected’ with that other company (ie does another company, or another company and persons connected with that other company, have the power to ensure that the Company’s affairs are conducted in accordance with its wishes)?‘Connected’ for these purposes has a wide meaning and encompasses interests held by a spouse, relative, settled trust etc.Please provide details on the Company’s current shareholders and any expected future changes in its shareholding. See drafting note
Systems integration agreement—pro-supplier
Systems integration agreement—pro-supplier This AgrEement is made on [date] Parties 1 [insert name of supplier], a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert address] (Supplier); and 2 [insert name of customer], a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at [insert address] (Customer) (each of the Supplier and the Customer being a party and together the Supplier and the Customer are the parties). Background (A) The Customer wishes to procure software, [hardware], software configuration and development services, installation services and other related services. (B) The Customer has agreed to procure the Services from the Supplier and the Supplier has agreed to provide the Services to the Customer on the terms and conditions of this Agreement. The parties agree as follows: 1 Definitions and Interpretation 1.1 In this Agreement the following terms have the following meanings: Acceptance • means that: (a) the Customer confirms in writing that the Software has passed or is deemed to have passed the relevant Software Acceptance Tests; and/or (b) the Supplier confirms in writing that the Supplied Hardware has passed or is deemed to have passed the relevant Hardware Acceptance Tests, as the context so requires, and Accept shall be construed accordingly; Acceptance Criteria • means the criteria to be satisfied to demonstrate that: (a) the Software Acceptance Tests have been successfully completed as determined pursuant to
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A is resident in the UK and was injured by a foreign registered driver and lorry (Poland) on a road in the UK. The foreign insurer (UK representatives) have accepted primary liability. Limitation is coming up and I need to issue the claim form only as we are not yet ready to serve. I have written to the UK representatives explaining that we intend on commencing court proceedings directly against their insurer principal pursuant to the European Communities (Rights against Insurers) Regulations 2002, SI 2002/3061. I have also asked them to confirm the full name and address details of the insurance company and driver. Can I serve on the representatives if they are nominated?
A is resident in the UK and was injured by a foreign registered driver and lorry (Poland) on a road in the UK. The foreign insurer (UK representatives) have accepted primary liability. Limitation is coming up and I need to issue the claim form only as we are not yet ready to serve. I have written to the UK representatives explaining that we intend on commencing court proceedings directly against their insurer principal pursuant to the European Communities (Rights against Insurers) Regulations 2002, SI 2002/3061. I have also asked them to confirm the full name and address details of the insurance company and driver. Can I serve on the representatives if they are nominated? Where a person has been injured in a road traffic accident which occurred in the UK but was caused by the driver of a foreign registered vehicle normally based in another participating country, the claim will be handled under the Green Card scheme either by the British insurer acting as correspondent or, if there is no nominated correspondent, by the Motor Insurers' Bureau (MIB). We refer you to Practice Note: Road accidents in the UK caused by foreign drivers—the Green Card system which sets out the legal framework and the procedure by which such a claim is made. That Practice Note states: Special case of foreign registered lorries In
Can an insurer refuse to provide internal correspondence and case notes relating to an insurance claim where a subject access request (SAR) is made under the UK GDPR for such information?
Can an insurer refuse to provide internal correspondence and case notes relating to an insurance claim where a subject access request (SAR) is made under the UK GDPR for such information? This Q&A assumes that the organisation that has received the SAR is a ‘controller’ of the relevant data. For an introduction to the United Kingdom General Data Protection Regulation, Retained Regulation (EU) 2016/679 (UK GDPR) regime, including key data protection terms and concepts, such as ‘personal data’, 'processing', 'data subject' and ‘controller’, see: Data protection toolkit. As further explained in Practice Notes: The UK GDPR and DPA 2018 for insurers and Data subject rights—access, Article 15 of the UK GDPR gives individuals a right to obtain confirmation from a data controller as to whether or not personal data concerning them is being processed, and where it is, access to the personal data and certain further information. A request for such information is commonly known as a ‘subject access request’ (or a 'SAR' or 'DSAR'). In order to assist you with your research into points raised in your question, we refer you generally to Practice Note: Data subject rights—access, which outlines among other things: • the scope of the right of data subjects to have access to their personal data • an overview of key compliance requirements, including among other things the need to confirm that the requestor is:
Where an individual is bound by court order to make provision in their Will for an ex-spouse, but only if the life insurance policy is insufficient, how should this be dealt with in the Will—by a discretionary power or conditional gift?
Where an individual is bound by court order to make provision in their Will for an ex-spouse, but only if the life insurance policy is insufficient, how should this be dealt with in the Will—by a discretionary power or conditional gift? Divorce and Wills—general The question highlights the interaction between marriage, divorce and Wills, which can be summarised as follows: • subject to certain exceptions, ‘a will shall be revoked by the testator’s marriage’ (section 18 of the Wills Act 1837 (WA 1837)) • a separation, even if for many years, has no effect on a Will • the Will is not revoked on divorce, namely the grant of a decree absolute. The Will itself remains valid. However, it takes effect as if any appointment of the former spouse as executor/trustee in the Will were omitted. Further, any
Under section 2(1) of the draft Insurable Interest Bill, is there a need for a life insured at the outset of the Policy to be valid? Does section 2(5) allow for categories of lives being insured, even if there are not lives in these categories? Does section 2(5) apply to all life policies or group life policies?
Under section 2(1) of the draft Insurable Interest Bill, is there a need for a life insured at the outset of the Policy to be valid? Does section 2(5) allow for categories of lives being insured, even if there are not lives in these categories? Does section 2(5) apply to all life policies or group life policies? For the purposes of this Q&A, it has been assumed that the question is are referring to the Insurable Interest Bill dated June 2018. In conducting our research we have focussed on the Insurable Interest Bill dated June 2018. For this answer, we refer you to the following resources: • June 2018 Draft Insurable Interest Bill • June 2018 Accompanying notes to the draft Insurable Interest Bill Under section 2(1) of the draft Insurable Interest Bill, does there need to be a life insured at the outset of the Policy to be valid? Section 2(1) of the draft Insurable Interest Bill (the Bill) states: ‘A contract of life-related insurance is void unless at the time the insured enters into it the insured has an insurable interest for the purposes of the contract.’ The accompanying notes to the Bill states: ‘2.18 If the insured does not have an insurable interest at the relevant time, the clause provides that the contract will be void (but, in a change from the current law at least in England and Wales,
If administrators of a policyholder did not notify insurers of a claim against the policyholder within the 28-day time limit stated in the policy, can insurers reject cover?
If administrators of a policyholder did not notify insurers of a claim against the policyholder within the 28-day time limit stated in the policy, can insurers reject cover? It is assumed that the claim would otherwise trigger cover under the insurance policy and that it is a liability insurance policy. Under a liability insurance policy, a notification clause is framed as a condition precedent to indemnity under the policy, to allow insurers to investigate the claim at an early stage. In the absence of a clause allowing for extended reporting of claims notifications, an insurer can rely on a breach of a condition precedent to deny liability, regardless of whether insurers have suffered any prejudice. See Practice Note: Liability insurance—notification of claims and circumstances and defence of claims. It should be noted that the purpose of section 11 of the Insurance Act 2015 relates to terms that define the risk as a whole, and it is to prevent insurers
In instances where the Third Parties (Rights Against Insurers) Act 2010 (TP(RAI)A 2010) applies, in respect of a Part 8 claim form, does the insurer under TP(RAI)A 2010 take the place of and replace the now insolvent defendant?
In instances where the Third Parties (Rights Against Insurers) Act 2010 (TP(RAI)A 2010) applies, in respect of a Part 8 claim form, does the insurer under TP(RAI)A 2010 take the place of and replace the now insolvent defendant? When the Third Parties (Rights Against Insurers) Act 2010 applies, the rights of the insured (ie the ‘relevant person’) are automatically transferred to the third party upon the insolvency of the insured through a statutory transfer. It
Is a protective award, made by an employment tribunal following an employer's failure to carry out collective redundancy consultation, subject to tax?
Is a award'>protective award, made by an employment tribunal following an employer's failure to carry out collective redundancy consultation, subject to tax? Where, in the context of a collective redundancy exercise, an employer failed to comply with the requirements (under sections 188 and 188A of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992)) for statutory consultation, the employment tribunal may make a 'protective award' as a remedy for that failure. Such a protective award is treated as ‘arrears of pay’ for the purposes of Part XII of the Employment Rights Act 1996, with the result that an employee whose employer becomes insolvent can apply to the Secretary of State for it to be paid out of the National Insurance Fund. For further information, see our Practice Notes: • Protective awards • Redundancy—Insolvency and the state guarantee fund Any payment made on termination may be taxable in full, in part or, in limited circumstances, may be fully exempt. In order to determine the extent to which a payment is taxable, the first question to be answered is whether the payment made (or other benefit provided) on or in connection with termination of an employment is taxable as 'earnings' within section 62 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003). 'Earnings', for these purposes means: • any 'salary, wages or fee' • any 'gratuity or profit or incidental benefit
What are the implications for an insured who participates in clinical trials but fails to notify his insurers of any existing health conditions or potential changes to his health which he discovers as a result?
What are the implications for an insured who participates in clinical trials but fails to notify his insurers of any existing health conditions or potential changes to his health which he discovers as a result? The following questions potentially arise: • has there been an increase in risk which the insured is obliged to disclose during the currency of the policy? • must the information be disclosed at renewal? • does it attract the operation of an exclusion for pre-existing conditions? • has there been any non-disclosure or misrepresentation? The insured’s state of health may be relevant to a wide variety of insurance policies, including long-term policies (eg life assurance, income protection or critical illness) and short-term policies (eg private medical, accident, or travel insurance). Some policies may be fully underwritten at the outset by means of a detailed proposal form. Others may only require minimal disclosure at inception but exclude cover for pre-existing medical conditions and/or require notification of changes in the insured’s health. It is therefore difficult to articulate general rules which are universally applicable and the detailed terms of cover must be checked carefully in every case. Obligation to disclose during currency of policy In most long-term contracts, the policy is fully underwritten at the outset and the insurer has the opportunity to conduct a full investigation of the insured’s health for itself. In agreeing to provide cover, it assumes
When issuing a Part 20 claim do you need to give RTA notice to the potential Part 20 defendants (who are not currently existing parties)?
When issuing a Part 20 claim do you need to give RTA notice to the potential Part 20 defendants (who are not currently existing parties)? Section 152(1) of the Road Traffic Act 1988 (RTA 1988) states that: ‘(1) No sum is payable by an insurer under section 151 of this Act— (a) in respect of any judgment unless, before or within seven days after the commencement of the proceedings in which the judgment was given, the insurer had notice of the bringing of the proceedings, or (b) in respect of any judgment so long as execution on the judgment is stayed pending an appeal, or (c) in connection with any
Where the insurance for the opposing party’s vehicle is in the name of the employer and that employer has dissolved, can the European Communities (Rights against Insurers) Regulations 2002 be used to issue against the insurer instead? My concern is that the regulation states that the ‘insurer shall be directly liable to the entitled party to the extent that he is liable to the insured person’ but are the insurers liable to the ‘insured person’ when their insured is the employer?
Where the insurance for the opposing party’s vehicle is in the name of the employer and that employer has dissolved, can the European Communities (Rights against Insurers) Regulations 2002 be used to issue against the insurer instead? My concern is that the regulation states that the ‘insurer shall be directly liable to the entitled party to the extent that he is liable to the insured person’ but are the insurers liable to the ‘insured person’ when their insured is the employer? For guidance on the liability of an ‘employer’ for a driver’s negligence, see Practice Note: Vicarious liability in road traffic accidents. For further guidance on when a claimant may not have a direct right of action against an insurer under the European Communities (Rights against Insurers) Regulations 2002, SI 2002/3061, see Practice Note: Indemnity in personal injury claims. For guidance on motor insurance, see Practice Note: Motor insurance. The Third Parties (Rights Against Insurers) Act 2010 (TP(RAI)A 2010) simplifies and modernises the procedure for third-party victims to seek compensation from an insurer where the insured has become insolvent or ceased to exist. TP(RAI)A 2010, s 1(3) provides that: ‘the third party may bring proceedings to enforce the rights against the insurer without having established the relevant person’s liability; but the third party may not enforce those rights without having established that
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Brexit highlights—1 July 2022
These Brexit highlights bring you a summary of the latest Brexit news and legislation updates from across a range of LexisNexis® practice areas.
What emerging superfunds mean for booming pension deals
Law360, London: The retirement industry this year is expecting the first UK companies to begin transferring their pension liabilities into a new type of investment fund, issuing a new challenge in the booming market for pensions deals so far dominated by insurance buy-in deals.
FTT—debt transfer notice can be issued to a former director of a managed service company (Gradidge v HMRC)
Tax analysis: In Gradidge, the First-tier Tax Tribunal (FTT) dismissed the appeal against a debt transfer notice (DTN) that had been issued to the taxpayer under section 688A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) to recover income tax and National Insurance contributions (NICs) that should have been deducted and paid to HMRC via PAYE by the managed service company (MSC) of which the taxpayer had been the sole director and shareholder.
Settlement agreement between employer and surety did not bind contractor (ML Hart Builders v Swiss Cottage)
Construction analysis: The Technology and Construction Court (TCC) found that a settlement agreement made between the employer under a construction contract and the surety under a bond provided by the contractor was not binding on the contractor, in relation to the value of the final account under the construction contract. Further, the contractor was entitled to refer the value of the final account to a second adjudicator, where a previous adjudicator had declined to carry out the valuation.
PI & Clinical Negligence weekly highlights—30 June 2022
This week’s edition of PI & Clinical Negligence weekly highlights includes a Supreme Court judgment in relation to a metal-on-metal total hip replacement and the Consumer Protection Act 1987. We also have an analysis of a case where a litigation friend was entitled to recover the ATE premium from the child’s damages. In addition, we have our usual round-up of other key cases and news and New Law Journal articles of interest.
Arbitration weekly highlights—30 June 2022
This week's edition of Arbitration weekly highlights includes: our coverage of a Court of Appeal's decision where the court upheld an anti-suit injunction preventing proceedings in Canada, and of a commercial court decision on appointment of arbitrators; coverage of arbitration-related decisions from courts in the EU, India, and the USA; and, new development on the modernisation negotiations of the Energy Charter Treaty (ECT) with an agreement in principle reached by contracting parties of the ECT. All this, and more, in our weekly highlights.
EU Competition law—daily round-up (30/06/2022)
A round-up of EU competition law developments, including (amongst other things): (1) the Commission accepting commitments from Insurance Ireland to ensure access to its data sharing platform; (2) the Court of Justice dismissing Fakro’s appeal regarding the Commission’s decision to reject its complaint that the conduct of a competitor amounted to an abuse of a dominant position; and (3) the Court of Justice ruling that Danske Slagtermestre’s State aid appeal must be reviewed by the General Court.
Restructuring & Insolvency weekly highlights—30 June 2022
This week's edition of Restructuring & Insolvency weekly highlights includes: the publication of a report highlighting the impact of CVAs on commercial landlords, a judgment on whether an administration had been properly extended (Re E Realisations 2020 Ltd), the first successful criminal prosecution of bounce back loan fraud, plus a round-up of other news and cases for restructuring and insolvency professionals.
Construction weekly highlights—30 June 2022
This week's edition of Construction weekly highlights includes a summary of the sections of the Building Safety Act 2022 which came into force as at 28 June 2022, an announcement by Department for Levelling Up, Housing and Communities (DLUHC) on new legal protection for qualifying leaseholders from extortionate building safety costs related to the Building Safety Act 2022, the issue of the Construction Products (Amendment) Regulations 2022, a case the in which the Technology and Construction Court (TCC) gave a warning to practitioners who seek to make inappropriate applications to strike out witness evidence prepared for a trial, pursuant to CPR PD 57AC, on the basis of non-compliance (Curtiss and others v Zurich Insurance Plc and another company), the launch of the Royal Institute of British Architects’ (RIBA) comprehensive review of Professional Risk and Professional Indemnity Insurance (PII) market conditions, reaction from the UK Green Building Council (UKGBC) to the Climate Change Committee’s 2022 progress report and a report from Build UK and Wedlake Bell aimed at helping manage rising inflationary pressures in the construction industry.
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