The following Insurance & Reinsurance practice note produced in partnership with James Beeton of 12 King's Bench Walk and Cressida Mawdesley-Thomas of 12 King's Bench Walk provides comprehensive and up to date legal information covering:
Unlike conventional perils such as fire or flood, an outbreak of a virus cannot so easily be located at a particular place and time. The 2020 coronavirus (COVID-19) outbreak and consequent government action therefore presented insurers with a novel loss scenario, in relation to which the factual complexities arising were compounded by a lack of clear judicial authority on some of the key issues that the scenario posed in the context of business interruption claims, including:
the proper construction of composite insured perils in non-damage business interruption polices (ie, the so-called ‘disease’, ‘prevention of access’ and ‘hybrid’ clauses)
the correct approach to causation in the context of so-called ‘wide-area’ perils, which are apt to result in damage not only to the insured property but also to the surrounding area
identification of the proximate cause of a loss where there is a multitude of competing causes, some of which are insured and some of which are not
the proper construction and practical application of ‘trends’ clauses in the context of a wide-area peril
In light of the urgent need to indemnify policyholders with valid claims and the need to protect the reputation of the insurance industry, the Financial Conduct Authority (FCA), in consultation with policyholders and insurers, commenced a test case under the Financial markets test case scheme. The
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IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant
Common financial covenantsThis Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing ratio•leverage ratio (or debt to equity ratio)•current ratio (or acid test ratio)•cashflow ratio•interest cover ratio, and•loan
Amending the articles of associationThis Practice Note summarises the procedure to amend or change a company’s articles of association in accordance with the Companies Act 2006 (CA 2006).Why amend the articles?There are many different reasons why a company may want, or be required, to amend its
Contractual damages—non-pecuniary lossesThis Practice Note considers the different categories of contractual damages that may be available for non-financial loss (non-pecuniary loss), ie punitive damages, damages for loss of enjoyment and loss of amenity, restitutionary damages and negotiating
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