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LLR: Insurance & Reinsurance RSS feed

ODYSSEY RE (LONDON) LTD ANOR v OIC RUN-OFF LTD (FORMERLY ORION INSURANCE CO PLC)

Reinsurance (run-off) - Agreement between pool members as to run-off of outstanding liabilities - Whether agreement intended to be legally binding - Trial in 1989 - Agreement held not binding - Later trial in 1997 - Agreement held binding - Whether director of party guilty of perjury - Whether 1989 judgment should be set aside - Whether perjury of non-party justified setting judgment aside - Whether director’s knowledge imputed to his company.

[2001] Lloyd's Rep IR 1

EQUITABLE LIFE ASSURANCE SOCIETY v HYMAN

Insurance (life) - With-profits policies - Decision of directors of Society to declare differential bonuses depending upon whether policyholders had opted to take benefits at guaranteed annual rates or current rates - Object of directors to equalise benefits - Whether permitted by policies - Whether term to be implied into Society’s articles - Whether directors had acted for improper purpose.

[2001] Lloyd's Rep IR 99

CO-OPERATIVE RETAIL SERVICES LTD v TAYLOR YOUNG PARTNERSHIP LTD AND ORS

Insurance (construction) - Subrogation - Policy covering interests of employer, head contractor and sub-contractors - Premises damaged by fire - Claim by employer against architect and engineers - Whether architect and engineers could seek contribution from head contractor and sub-contractor under Civil Liability (Contribution) Act 1978, section 1(1) - Whether policy prevented claim against head contractor and sub-contractor - Whether contractual arrangements prevented claim by employer against head contractor and sub-contractor - Civil Liability (Contribution) Act 1978, section 1(3) - Whether contributory negligence of co-assured affected subrogation claim - Law Reform (Contributory Negligence) Act 1945.

[2001] Lloyd's Rep IR 122

GROUPAMA NAVIGATION ET TRANSPORTS AND ORS v CATATUMBO CA SEGUROS

Reinsurance - Marine cover on Venezuelan risk including classification warranty - Warranty broken - Insurers arguably liable under Venezuelan law - Facultative reinsurance on terms “as original” - Reinsurance governed by English law - Whether reinsurers bound by liability of insurers under Venezuelan law.

[2001] Lloyd's Rep IR 141

BAKER AND ORS v IAN McCALL INTERNATIONAL LTD

Insurance (buildings) - Underwriters settling with insured in California - Brokers settling with insured in California under good faith settlement approved by court - Whether underwriters estopped from bringing proceedings in England against brokers for damages for deceit and contribution - Cause of action estoppel - Issue estoppel - Principle in Henderson v Henderson.

[2001] Lloyd's Rep IR 149

BARCLAYS PLC AND ANOR v VILLERS EQUITAS LTD VILLERS v EQUITAS LTD LOVELLS

Insurance (liability) - Settlement Agreement - Insurers agreeing to pay assured’s costs - Solicitors’ costs paid by assured - Application by insurers to have solicitors’ costs determined - Civil Procedure Rules 1998, Part 8 - Solicitors Act 1974, sections 70 and 71 - Whether court had jurisdiction to determine solicitors’ costs - Whether discretion should be exercised in insurers’ favour.

[2001] Lloyd's Rep IR 162

MANN AND ORS v LEXINGTON INSURANCE CO

Reinsurance - Retrocession - Meaning of “one occurrence” - Whether aggregating provision - Whether losses occurring at different locations and at different times could be “one occurrence”.

[2001] Lloyd's Rep IR 179

HIH CASUALTY AND GENERAL INSURANCE LTD AND ORS v CHASE MANHATTAN BANK HEATH NORTH AMERICA AND SPECIAL RISKS LTD HEATH INSURANCE BROKING LTD

Insurance (time variable contingency) - Insurance securing repayment of financing for production of films - Facultative policies (contracts of insurance) and Line Slip facility (contract for insurance) - Allegations of fraud and recklessness by brokers placing contracts of insurance and for insurance - Whether insurers having right to avoid contracts - Whether assured liable in damages to insurers for misrepresentation of brokers - Effect of Truth of Statements Clause - Whether brokers liable in damages to insurers for breach of duty of utmost good faith - Whether brokers owed duty of care to insurers.

[2001] Lloyd's Rep IR 191

MANIFEST SHIPPING CO LTD v UNI-POLARIS SHIPPING CO LTD AND ORS THE STAR SEA [2001] UKHL/1

Insurance (marine) - Fire in vessel’s engine room - Vessel becoming constructive total loss - Insured under time policy - Seaworthiness - Whether vessel sent to sea in unseaworthy state with privity of the assured - Marine Insurance Act 1906, section 39(5) - Claim made by assured - Whether duty of utmost good faith attaching to claim - Relationship between utmost good faith and fraudulent claim - Marine Insurance Act 1906, section 17.

[2001] Lloyd's Rep IR 247

DODSON v PETER H DODSON INSURANCE SERVICES (A FIRM)

Insurance (motor) - Policy covering use of insured vehicle and the driving of any other vehicle with the owner’s permission - Insured selling car - Whether policy lapsing automatically on sale - Whether policy covered insured despite sale of car - Effect of maintenance clause - Effect of replacement and additional vehicles clause.

[2001] Lloyd's Rep IR 278

GAN INSURANCE CO LTD v TAI PING INSURANCE CO LTD

Reinsurance - Erection all risks policy - Misrepresentation - Whether reinsured made representation as to existence of fire protection systems and as to designer of the systems - Whether statement material and induced reinsurers to enter contract - Whether reinsurers ought to have known that buildings in course of erection would have only temporary protection systems - Marine Insurance Act 1906, section 18(2)(d) - Claims co-operation clause - Whether condition precedent to reinsurers’ liability - Whether reinsurers entitled to withhold consent from reinsured’s settlements.

[2001] Lloyd's Rep IR 291

McBLAIN v DOLAN CHURCHILL INSURANCE CO LTD

Insurance (Motor) - Insurers purporting to avoid driver’s policy - Whether insurers liable to driver’s victim despite avoidance - Whether due notice of action against driver given to insurers - Waiver - Road Traffic Act 1988, sections 151 and 152.

[2001] Lloyd's Rep IR 309

BOVIS CONSTRUCTION LTD AND ANOR v COMMERCIAL UNION ASSURANCE CO PLC

Insurance (contractors all risks, liability) - Works insured by manager of works under two policies - One insurer providing full indemnity to assured - Whether assured entitled to make claim against other insurers - Subrogation - Whether paying insurers or assured entitled to claim contribution from other insurers - Civil Liability (Contribution) Act 1978 - Scope of policy.

[2001] Lloyd's Rep IR 321

JAN DE NUL (UK) LTD v NV ROYALE BELGE

Insurance (liability) - Dredging works in Southampton water - Contractors causing silting of moorings, jetties and fishing grounds and obstruction of waterways - Whether contractors liable to occupiers and users - Basis of liability in negligence, private nuisance and public nuisance - Co-insurance between employers and contractors - Assignment of benefits from employers to contractors - Whether policy covered losses - Effect of exclusions for serious fault, non-consequential immaterial damage and non-accidental pollution.

[2001] Lloyd's Rep IR 327

MABEY AND JOHNSON LTD v ECCLESIASTICAL INSURANCE OFFICE PLC AND ORS

Insurance (professional indemnity) - Policy providing cover for each and every claim - No provision in policy restricting insurers’ cover to one claim for all losses arising from one event (“series clause”) - Whether express agreement for series clause - Whether series clause to be implied by way of necessity or market practice.

[2001] Lloyd's Rep IR 369

MARTINI INVESTMENTS LTD v McGINN

Insurance (householders) - Proximate cause - Policy insuring against explosion - Volcano erupting on Montserrat - Tephra including ash deposited on property - Property suffering deposit and corrosion damage - Whether “explosion” - Whether explosion proximate cause of loss - Interest.

[2001] Lloyd's Rep IR 374

McNALLY v RG MANUFACTURING LTD

Insurance (employers’ liability) - Employee injured at work - Dispute as to whether accident occurred and as to whether injuries were serious - Whether evidence secretly obtained by inquiry agent admissible - Whether employee suffered injury - Whether employers liable in negligence - Whether breach of Manual Handling Operation Regulations 1992, reg 4.

[2001] Lloyd's Rep IR 379

CHARLTON v FISHER AND ANOR

Insurance (motor) - Injuries caused by deliberate act of insured but with no intention to injure - Whether injuries caused by “accident” within meaning of policy - Whether insurance required to extend to injuries deliberately caused - Road Traffic Act 1988, sections 143, 145, 148 and 151 - Public policy - Whether insured prevented from recovering indemnity on public policy grounds where there had been a deliberate collision - Whether public policy precluded direct action against insurers by victim - Third Parties (Rights against Insurers) Act 1930.

[2001] Lloyd's Rep IR 387

HAYWARD v NORWICH UNION INSURANCE LTD

Insurance (motor) - Car stolen from service station - Keys in ignition but car fitted with immobiliser - Motor policy covering theft but excluding loss whilst ignition keys left in or on car - Insured under duty to take reasonable steps to safeguard car - Whether there had been “theft” - Whether keys had been “left” in car - Whether insured had taken reasonable steps to safeguard against loss - Whether insurers owe duty of care to seek to recover stolen property.

[2001] Lloyd's Rep IR 410

JOHN WYETH & BROTHERS LTD v CIGNA INSURANCE COMPANY OF EUROPE SA/NV AND ORS

Insurance (product liability) - Liability for defence costs in respect of unsuccessful claims - Primary layer and excess layer - Whether excess layer insurers liable where primary layer insurers exercised buy-out clause - Whether assured in breach of maintenance clause in excess policy when buy-out clause exercised by primary layer insurer - Apportionment of costs between insurers - Whether product liability cover excluded by efficacy clause in excess policy.

[2001] Lloyd's Rep IR 420

RAIFFEISEN ZENTRALBANK OSTERREICH AG v FIVE STAR GENERAL TRADING LLC AND ORS

Insurance (marine) - Assignment - Policy governed by English law - French insurers - Whether assignment required to comply with English law or French law - Rome Convention 1980, Art 12 - Requirements for assignment under English law - Marine Insurance Act 1906, section 50(2) - Law of Property Act 1925, section 136.

[2001] Lloyd's Rep IR 460

GROUP JOSI REINSURANCE CO SA v UNIVERSAL GENERAL INSURANCE CO (Case C-412/98)

Reinsurance - Brussels Convention 1968 - Reinsurer domiciled outside Contracting States - Whether action by reinsurer within Brussels Convention - Whether reinsurance “a matter relating to insurance” within special jurisdiction rules for insurance - Brussels Convention 1968, Arts 2, 7 and 8.

[2001] Lloyd's Rep IR 483

WHITE v WHITE AND ANOR

Insurance (motor) - Uninsured driver - Motor Insurers’ Bureau - Uninsured Drivers Agreement 1988 - Exception for passenger who “knew or ought to have known” that driver was uninsured - Test of knowledge.

[2001] Lloyd's Rep IR 493

ACE INSURANCE SA-NV (FORMERLY CIGNA INSURANCE CO OF EUROPE SA-NV) v ZURICH INSURANCE CO AND ANOR

Reinsurance - Conflict of laws - Action for negative declaratory relief by reinsurers - Service of Suit clause nominating Texas courts - Proceedings commenced in Texas by reinsured - Significance of Service of Suit clause - Law applicable to reinsurance agreement - Whether English court empowered to stay proceedings where seised of action under Lugano Convention 1968.

[2001] Lloyd's Rep IR 504

EXCESS INSURANCE CO LTD AND ORS v ALLENDALE MUTUAL INSURANCE COMPANY

Reinsurance - Conflict of laws - US Service of Suit clause - Forum non conveniens - Whether English court should assert jurisdiction where US Service of Suit clause existed - Whether commencement of English action amounted to breach of Service of Suit clause.

[2001] Lloyd's Rep IR 524

GORHAM AND ORS v BRITISH TELECOMMUNICATIONS PLC AND ORS

Insurance (pension and life) - Deceased missold pension and life cover - Insurers correcting error and advising deceased to join occupational pension scheme - Deceased not appreciating that he was not a member of an occupational pension scheme - Whether insurers owed duty of care to dependants - Whether chain of causation broken by deceased’s failure to appreciate non-membership of occupational pension scheme - Whether damages could be reduced by reason of deceased’s contributory negligence.

[2001] Lloyd's Rep IR 531

LONDON BOROUGH OF REDBRIDGE v MUNICIPAL MUTUAL INSURANCE LTD

Insurance (liability) - Pensions Ombudsman finding assured guilty of maladministration - Liability policy excluding cover for loss caused directly or indirectly by criminal conduct - Whether criminal conduct a cause of the loss - Whether insurers entitled to go behind Pensions Ombudsman’s determinations and to identify criminal conduct not referred to by Ombudsman.

[2001] Lloyd's Rep IR 545

YOUELL AND ORS v KARA MARA SHIPPING CO LTD AND ORS

Insurance (marine) - Policies governed by English law and subject to exclusive jurisdiction of English Courts - Judgment against assureds in Louisiana in favour of third party - Direct claim by third party against liability insurers in Louisiana under Direct Action Statute - Whether anti-suit injunction should be granted to restrain third party claim under Direct Action Statute - Jurisdiction of English courts to grant anti-suit injunction against third party - RSC Order 11, rule 1(1)(d) - Whether English Courts should assert jurisdiction over insurers’ claim for declaration as to meaning of policies - Whether third party a proper party to those proceedings - RSC Order 11, rule 1(1)(c) - Whether procedural defects could be cured - CPR 1998, rule 3.10.

[2001] Lloyd's Rep IR 553

POOLE HARBOUR YACHT CLUB MARINA LTD v EXCESS INSURANCE CO LTD

Insurance (marine, liability) - Assured incurring liability to third party - Claim by assured for indemnity for third party’s costs and for assured’s own costs - Whether defence costs were covered only if third party claim fell within scope of policy - Whether policy exclusions applied to costs - Amount of interim payment.

[2001] Lloyd's Rep IR 580

CORK v RAWLINS

Insurance (life) - Sums under policies payable on death or on total or permanent disablement of assured - Assured becoming totally and permanently disabled - Assured becoming bankrupt - Whether sums vested in trustee in bankruptcy - Whether trustee held sums for bankrupt or for creditors -Insolvency Act 1986, sections 283, 306 and 436.

[2001] Lloyd's Rep IR 587

RE DRAKE INSURANCE PLC

Insurance (motor) - Scheme for transfer of policies of motor insurer in provisional liquidation - Premiums - Whether policyholder entitled to return of premium on cancellation of policy by insurer - Whether entitlement ran from date of surrender of certificate or date of termination of notice - Whether right to a return of premium on cancellation by insurer was vitiated by earlier claim by policyholder - Road Traffic Act 1988, sections 149, 151 and 152 - Unfair Terms in Consumer Contracts Regulations 1999.

[2001] Lloyd's Rep IR 643

NATIONAL BANK OF GREECE SA v OUTHWAITE SYNDICATE 317 AT LLOYD’S AND OTHERS

Insurance - Service of proceedings - Time for service - Claim Form issued against Lloyd’s underwriter specifying London address - Whether court could give permission for claim form to be served out of the jurisdiction - Whether Claim Form to be construed as referring to underwriter as representative of following market - Extension of time for service of Particulars of Claim - Considerations to be taken into account - CPR, rules 6.19, 6.20, 7.5, 7.6 and 19.6.

[2001] Lloyd's Rep IR 652

GAN INSURANCE COMPANY LTD v TAI PING INSURANCE COMPANY LTD (Nos 2 and 3)

Reinsurance - Erection all risks policy - Claims co-operation clause - Construction of clause - Whether reinsured required to seek reinsurers’ consent for settlements and admissions of liability - Whether condition precedent to reinsurers’ liability - Whether reinsurers entitled to withhold consent from reinsureds’ settlements.

[2001] Lloyd's Rep IR 667

HIH CASUALTY AND GENERAL INSURANCE LTD AND OTHERS v CHASE MANHATTAN BANK AND OTHERS

Insurance (time variable contingency) - Insurance securing repayment of financing for production of films - Facultative policies (contracts of insurance) and Line Slip facility (contract for insurance) - Allegations of fraud and recklessness by brokers placing contracts of insurance and for insurance - Whether insurers having right to avoid contracts - Whether assured liable in damages to insurers for misrepresentations of brokers - Effect of Truth of Statements Clause - Whether brokers liable in damages to insurers for breach of duty of utmost good faith - Whether brokers owed duty of care to insurers.

[2001] Lloyd's Rep IR 703

CALLERY v GRAY RUSSELL v PAL PAK CORRUGATED LTD

Procedure - Costs - After the event insurance - Conditional fee arrangements - “Funding arrangements” - Whether ATE premium could be included in costs awarded in costs-only proceedings - Whether costs could be recovered for a CFA entered into before the commencement of proceedings - Amount of appropriate uplift for CFA - Access to Justice Act 1999, section 29 - Civil Procedure Rules, rule 44.

[2001] Lloyd's Rep IR 743

CALLERY v GRAY (No 2)

Costs - After the event insurance - Recovery of ATE premium by way of costs - Access to Justice Act 1999, section 29 - Elements of premium which were recoverable - Whether premium for collateral benefits was recoverable - Whether premium representing own costs insurance was recoverable - Recoverability of insurance premium tax.

[2001] Lloyd's Rep IR 765

GREAT NORTH EASTERN RAILWAY v AVON INSURANCE PLC

Insurance (material damage and business interruption) - Existence of exclusion for inherent vice - Insurance placed by brokers containing inherent vice exclusion - Insurance renewed by different brokers - Whether renewal terms the same as for the earlier policy - Whether agreement between insurers and renewing brokers to change terms of policy and remove inherent vice exclusion.

[2001] Lloyd's Rep IR 793

K/S MERC-SCANDIA XXXXII v CERTAIN LLOYD’S UNDERWRITERS OCEAN MARINE INSURANCE CO LTD AND OTHERS

Insurance (marine liability) - Marine Insurance Act 1906, s17 - Claim against Assured by third party - Underwriters taking over Assured’s defence - Assured denying validity of exclusive jurisdiction clause and producing forged letter denying authority of agent - Post-contract fraud - Utmost good faith - Whether forged letter breach of post-contract duty of utmost good faith - Whether material - Whether Underwriters induced by false statement - Effect of immaterial fraud - Notice of Claims clause - Effect of breach by Assured - Innominate term - Whether Underwriters suffering serious consequences due to breach - Assured becoming insolvent - Third Parties (Rights against Insurers) Act 1930.

[2001] Lloyd's Rep IR 802