Insurance Law Monthly
Co-insurance: the nature of composite policies
Co-insurance policies covering the different interests of a number of people are known as “composite”, and are generally taken to mean that each policyholder has a distinct agreement with the insurer. In New Zealand Fire Service Commission v Insurance Brokers Association of New Zealand Incorporated and Another [2015] NZSC 59 the Supreme Court of New Zealand was required to consider whether that analysis was correct or whether there was an alternative possibility that a composite policy contained joint obligations.
The Supreme Court accepted the distinction, but held on the facts that the former was correct. The lengthy judgment contains
a detailed analysis of the English authorities on composite insurance, and is critical of them for lack of analysis.