Q&As

View Insurance & Reinsurance by content type:

Practice notes

Precedents

Q&As

News

Latest Insurance & Reinsurance News

FCA test case—documentation for policyholders

The following Commercial news provides comprehensive and up to date legal information on FCA test case—documentation for policyholders

Court sanctions scheme for transfer of insurance business (Re Legal and General Assurance Society)

The following Banking & Finance news provides comprehensive and up to date legal information on Court sanctions scheme for transfer of insurance business (Re Legal and General Assurance Society)

FCA business interruption test case—quantum considerations

The following Financial Services news provides comprehensive and up to date legal information on FCA business interruption test case—quantum considerations

Supreme Court gives landmark judgment in coronavirus (COVID-19) business interruption test case (Financial Conduct Authority v Arch Insurance)

The following Commercial news provides comprehensive and up to date legal information on Supreme Court gives landmark judgment in coronavirus (COVID-19) business interruption test case (Financial Conduct Authority v Arch Insurance)

Featured Insurance & Reinsurance content

Double insurance and contribution

Overlapping insurance policesThere are various reasons why an insured may end up with overlapping insurance cover, whether deliberately or...

Insurance conduct regulation—COBS and ICOBS

The Financial Conduct Authority Handbook (FCA Handbook) includes sourcebooks to regulate the conduct of business by a regulated firm relevant to...

PRA Rulebook—introduction for the insurance and reinsurance sector

On 29 August 2015, the Prudential Regulation Authority (PRA) published the PRA Rulebook (Rulebook). The transition from the Handbook to the Rulebook...

What is a contract of insurance?

This Practice Note covers the legal framework and regulatory guidance to be considered in determining whether an arrangement constitutes a contract of...

Practice notes

Forms of reinsurance and terminology

The parties to a reinsurance contract and reinsurance terminologyThe principal parties to any reinsurance contract are the reinsurer, who assumes the...

9th Nov

Practice notes

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...

9th Nov

Practice notes

Sanctions clauses and the effect of sanctions on insurance policies

The Practice Note entitled EU/UK financial and trade sanctions for insurers outlines the sanctions applicable to insurers, the nature of those...

Produced in partnership with Daniel Martin of HFW 12th Jan

Practice notes

What is fundamental dishonesty?

This Practice Note considers fundamental dishonesty both in the context of section 57 of the Criminal Justice and Courts Act 2015 (CJCA 2015) and the...

9th Nov

Practice notes

Claim for subrogation—a restitutionary remedy

What is subrogation?Subrogation is an equitable mechanism aimed at preventing unjust enrichment by permitting one party to ‘step into the shoes’ of...

9th Nov

Practice notes

Decennial insurance

Decennial insurance is insurance that is taken out by contractors to cover costs associated with the potential collapse of a building after completion...

Produced in partnership with David Savage of Charles Russell Speechlys LLP 12th Jan

Practice notes

Insurance—non-vitiation (non-invalidation) clauses

Vitiation of an insurance policyAn insurance policy may be vitiated (or invalidated) if the insured:•misrepresents or fails to disclose any material...

9th Nov

In-house

Practice notes

General principles of insurance contract law

What is insurance law?Insurance law can be split into three parts:•insurance contract law which governs the contractual relationship between insureds...

9th Nov

In-house

Practice notes

Motor insurance

Brexit: The UK's departure from the EU on exit day, ie 31 January 2020, has implications for practitioners considering road traffic accidents. For...

9th Nov

Practice notes

Financial Conduct Authority—Principles for Businesses (PRIN)

This Practice Note explains the Principles for Businesses (PRIN) set down by the Financial Conduct Authority (FCA). The Principles form part of the...

9th Nov

Practice notes

Limitation—professional negligence claims

This Practice Note looks at the limitation period for professional negligence (prof neg) claims and explains how to determine the date of accrual in...

9th Nov

Practice notes

Insurance—duty of disclosure

Duty of 'fair presentation'Under the Insurance Act 2015, s 3 (IA 2015), the insured has a duty to make a 'fair presentation' of the risk to the...

9th Nov

Practice notes

Fraud, exaggeration and LVIs in personal injury claims

DefinitionsFraudDefined in Derry v Peek as where it is shown that:'a false representation has been made (1) knowingly, or (2) without belief in its...

Produced in partnership with Andrew Wilson 12th Jan

Practice notes

Warranty and Indemnity (W&I) insurance in private M&A transactions—guide to the key documents

With the significant rise in the use of Warranty and Indemnity (W&I) insurance in private M&A transactions, lawyers are increasingly involved in the...

Produced in partnership with Adrian Furlonge of Hemsley Wynne Furlonge LLP 12th Jan

Practice notes

Overview of the EU legal system

Brexit: This Practice Note contains guidance on subjects impacted by the UK’s withdrawal from the EU. As of 31 January 2020 (exit day), the UK is no...

Produced in partnership with Laura Bolado 12th Jan

Brexit

Practice notes

Insurance and reinsurance arbitration—an introduction

Arbitrations arising from insurance and reinsurance disputes share many common features with other types of commercial arbitration. This Practice Note...

Produced in partnership with Ralph Morley of 7KBW 12th Jan

Most recent Q&As content

Q&As

The freeholder of a block of flats is in default of its obligation to insure the building under the terms of the flat leases. One of the tenants proposes to take enforcement action. How can the tenant of a single flat ensure that the building (and consequently the tenant’s flat) is protected in the meantime?

In a lease of a flat the landlord generally covenants to insure the whole building of which the flat forms part and recovers the cost of such...

22nd Jan

Q&As

H took out a life assurance policy in 1966 with himself as the life assured and his wife W as the sole beneficiary. The policy is expressed to be subject to section 11 of the Married Women’s Property Act 1882. W has predeceased H, who is still alive. Can the trustees of the policy surrender it during H’s lifetime and pay its proceeds to H’s children?

This Q&A assumes that:•the policy endorsement refers to section 11 of the Married Women’s Property Act 1882•the endorsement was in favour of the...

22nd Jan

Q&As

What is the interaction between the Third Parties (Rights Against Insurers) Act (both 1930 and 2010) and vicarious liability? Can vicarious liability claims succeed against insurers directly? What are the Claimant’s options where the Defendant is insolvent, impecunious or otherwise unavailable but insurance exists? Lastly, does vicarious liability supersede policy exceptions in order to compensate Claimants?

The Third Parties (Rights Against Insurers) Act 2010 (TP(RAI)A 2010) has, with effect from 1 August 2016, succeeded the Third Parties (Rights Against...

Produced in partnership with Andrew Wilson 8th Jan

Q&As

If a company is 'merely' in liquidation (ie a CVL) would this: (i) mean we can still issue against the insured under the Third Parties (Right Against Insurers) Act 1930 (prior to it being dissolved), obtain judgement and then go against the insurer, (ii) prevent the company being dissolved until the judgment has been received so we can go against the insurer to recover the money?

We have limited this Q&A to cover litigation against a company in Creditors' voluntary liquidation (CVL).Where a company is in CVL there is no...

Produced in partnership with Carly Schiff of Boyes Turner 8th Jan

Q&As

When can a motor insurer obtain a declaration under section 152 of the Road Traffic Act 1988?

Section 151 of the Road Traffic Act 1988 (RTA 1988) provides that a motor insurer is bound to meet a judgment in respect of a relevant liability...

Produced in partnership with Andrew Wilson 8th Jan

Q&As

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...

Produced in partnership with Julia Dias QC of 7KBW 8th Jan

Q&As

What are the rules for service of the claim form and particulars of claim when the MIB are second defendant (as the first defendant is the uninsured driver) ie what is the time scale for service?

The Motor Insurers’ Bureau (MIB) Uninsured Agreement 2015 applies to accidents which occurred on or after 1 August 2015 (see: Uninsured drivers' MIB...

Produced in partnership with David Green of 12 King's Bench Walk 8th Jan

Q&As

In the event of a no-deal Brexit, will claimants still have a direct right of action against motor insurers?

This question relates to the European Communities (Rights Against Insurers) Regulations 2002 (EC(RAI) Regs 2002), SI 2002/3061 legislation introduced...

Produced in partnership with Andrew Wilson 8th Jan

Brexit

Q&As

Brexit—what are the passporting and equivalence implications for the UK insurance sector?

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the...

Produced in partnership with Clare Swirski, corporate insurance partner and Amera Dooley, PSL of Clifford Chance 8th Jan

Brexit

Q&As

What is decennial insurance?

Decennial insurance is insurance that can be taken out by those responsible for the design and construction of buildings to cover the costs associated...

Produced in partnership with Charles Russell Speechlys 8th Jan

Q&As

In an employer’s liability case, the defendant’s insurers stated that during an investigation after the claimant’s death, the insurer discovered that the defendant had provided non-disclosure and misrepresented material facts and therefore the insurers avoided the insurance policy for the time of the accident and the previous year. The defendant’s company is in voluntary liquidation. Is it possible for the insurers to get out of paying the claim in this way?

It is possible for an insurer to avoid an insurance policy on the basis of non-disclosure and/or misrepresentation of material facts (see, by way of...

Produced in partnership with Katherine Illsley of 4 King’s Bench Walk 8th Jan

Q&As

What is accident and sickness insurance?

Accident and sickness insurance provides cover to individuals for unforeseen accidents, resulting in injury or damage, and sickness.Types of insurance...

Produced in partnership with Hannah Laithwaite of Lamb Chambers 8th Jan

Q&As

Does the Insurance Distribution Directive apply to insurance intermediaries distributing only general insurance products (ie no insurance-based investment products)? What is the process for conflicts of interest for insurance intermediaries distributing only general insurance products (ie no insurance-based investment products)? What is the process for conflicts of interest for insurance intermediaries distributing insurance-based investment products?

Insurance Intermediaries: conflicts of interest and the Insurance Distribution Directive (IDD)This Q&A addresses how insurance intermediaries should...

Produced in partnership with Julia Dias QC of 7KBW 8th Jan

Q&As

The PRA Rulebook used to have rules on prudential risk management and associated systems and controls for insurers in SYSC 14. What is prudential risk and what did the rules cover?

This Q&A examines the rules and guidance in chapter 14 of the Senior Management Arrangements, Systems and Controls sourcebook (SYSC 14) for the...

4th Jan

Q&As

Prior to the implementation of Solvency II, where could I find the PRA's credit and market risk requirements that applied to insurers?

Prior to the implementation of Solvency II, the Prudential Regulation Authority's (PRA) rules and guidance were contained in:•PRA SYSC 14 (Risk...

4th Jan

Q&As

The Insurance Distribution Directive (IDD) introduces CPD requirements (Art 10) for Insurance Distribution. Where an insurance undertaking uses a third party intermediary to distribute the products, would the CPD requirements apply to both entities?

The Insurance Distribution Directive (IDD), Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance...

26th Dec

Q&As

I have heard of many insurers selecting alternative European destinations for their headquarters such as Luxembourg, Brussels, Dublin and others. With the exit of the UK just 18 months away, what should UK insurance companies be doing now to ensure they can continue to trade throughout Europe if they haven’t already triggered their contingency plans? What are the options? What risks do they run if they do not act now? Can companies ‘wait and see’?

Unfortunately there is no clear answer to this question.It is the intention of the UK government that their current negotiations with the EU...

26th Dec

Brexit

Q&As

Does Insurance Distribution Directive (IDD) apply to reinsurance undertakings? Does IDD apply to captive reinsurance?

What does Insurance Distribution Directive apply to?Article 1(2) of the Insurance Distribution Directive (IDD) states that the IDD applies to any...

26th Dec

Q&As

What are the implications of the Insurance Distribution Directive on insurance companies?

This Q&A assumes that ‘insurance company’ means an ‘insurer’ as defined by the Financial Conduct Authority (FCA) in their glossary (FCA Handbook)...

26th Dec

Q&As

What is a new product and what classes as a significant change to an existing product in relation to the new Insurance Distribution Directive?

Article 25(1) of the Insurance Distribution Directive (Directive (EU) 2016/97) (IDD) requires insurance undertakings, as well as intermediaries which...

24th Dec