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Index

Good Faith and Insurance Contracts

Page 689 Index Index Abandonment, notice of, 11.115 ABI (Association of British Insurers), 5.20 , 6.1 Absolute good faith, 1.03 Abuse of rights, 3.96 – 3.97 , 10.40 Acceptance affirm or avoid, election to, 17.115 – 17.116 formation of contract, 10.10 , 10.12 open cover, 1.50 – 1.51 premiums, 10.12 , 16.62 , 17.115 – 17.116 reinsurance treaties, 1.50 – 1.51 risk, of, 1.50 – 1.51 Account of profits, 16.11 Accounts, 6.50 Acquiescence, 16.90 , 17.164 Addendum, variation by, 17.118 Additional premium clauses, 10.32 – 10.33 adjustment of obligations, 3.57 , 10.32 – 10.33 disclosure, full, 3.59 fraudulent devices, 11.66 – 11.68 held covered clauses, 3.59 marine insurance, 3.59 materiality, 14.60 notice, 10.33 post-contractual duty, 10.32 – 10.33 pre-contractual duty, 3.59 reasonable premiums, 3.59 war risks, 10.30 , 11.65 – 11.66 Adequate disclosure, 7.22 Adjustment of obligations, 10.16 – 10.44 additional premium clauses, 3.59 , 10.32 – 10.33 cancellation clauses, 3.608, 10.35 – 10.40 change of circumstances clauses, 10.34 held covered clauses, 3.58 , 10.27 – 10.31 post-contractual duty, 3.53 – 3.61 , 3.77 , 10.15 – 10.43 , 10.61 – 10.66 pre-contractual duty, 3.53 renewals, 3.61 , 10.41 – 10.43 risk, alteration of, 3.57 variations to the insurance contract, 3.55 – 3.56 , 10.14 , 10.19 – 10.43 Admiralty Court jurisdiction, 2.30 Advice see also Legal advisers fiduciaries, 2.36 fraud, 11.86 investigations, 12.50 professional, 2.36 , 15.120 security measures, 17.148 Affirm or avoid, election to, 17.01 – 17.07 , 17.53 – 17.161 acceptance, 17.115 – 17.116 addendum, variation by, 17.118 affirmation, meaning of, 17.58 agents, 17.89 – 17.93 applicable doctrines, 17.08 – 17.52 arbitration agreements, 17.103 arbitration clauses, severance of, 17.101 , 17.103 , 17.107 – 17.108 , automatic avoidance clauses, 16.80 basis clauses, 17.02 breach of duty, 17.53 – 17.58 burden of proof, 17.18 – 17.83 , 17.162 – 17.163 , 18.05 certainty, 17.71 claims, payment of, 17.119 common law, 16.92 communication, 16.60 , 17.54 , 17.97 – 17.98 conduct, claims, payment of, 12.57 , 17.119 contractual rights, 17.100 – 17.109 defence, reliance on a policy, 17.117 policies, issue of, 17.110 – 17.114 premiums, acceptance of, 17.115 – 17.116 types of, 16.62 unequivocal, 17.95 – 17.119 variation, 17.118 waiver, 17.79 , 17.96 words, 17.54 consideration, 17.03 , 17.54 contractual rights, 17.100 – 17.109 damages, 17.01 defence, reliance on a policy, 17.117 Page 690 delay, 16.61 , 17.155 – 17.156 effect of, 16.39 election, definition of, 17.53 endorsement, 17.117 – 17.118 enquiries, 17.58 – 17.59 , 17.62 , 17.64 estoppel, 17.67 , 17.86 – 17.87 , 17.97 explanation of the facts, 17.65 facts, knowledge of, 17.57 – 17.66 , 17.71 , 17.74 – 17.75 , 17.80 question of fact, 17.70 – 17.71 final once made, 17.55 fraud, 17.01 , 17.59 , 17.61 , 17.66 , 17.93 , 17.107 inactivity, 17.155 – 17.156 inducement, 17.64 intention distinguished from knowledge, 17.88 investigations, 17.68 issue of policies, 12.47 , 17.110 – 17.114 knowledge, 17.56 – 17.93 actual, 17.67 – 17.69 agents, 17.89 – 17.93 automatic avoidance clauses, 16.80 breach of duty, 17.53 certainty, 17.71 constructive, 17.67 explanation of the facts, 17.65 fact, question of, 17.07 – 17.71 facts, of, 17.57 – 17.66 , 17.71 , 17.74 – 17.75 , 17.80 imperfect, 17.66 intention distinguished from, 17.88 legal, 17.71 , 17.77 – 17.78 , 17.81 – 17.85 legal advice, 17.77 – 17.78 , 17.81 – 17.85 life insurance, 17.91 London market, 17.84 rights, knowledge of, 17.72 – 17.87 waiver, 17.71 , 17.92 laches, 16.61 , 17.159 legal advice, 17.77 – 17.78 , 17.81 – 17.85 life insurance, 17.91 London market, 17.84 materiality, 17.01 , 17.04 , 17.64 misrepresentation, 17.01 – 17.04 , 17.61 , 17.64 non-disclosure, 17.61 objectivity, 17.98 premiums, acceptance of, 17.115 – 17.116 return of, 17.04 promissory estoppel, 17.55 , 17.86 – 17.87 , 17.116 , 17.120 – 17.161 question of fact, 17.70 – 17.72 reliance, 17.94 renewals, 17.114 replacement policies, 17.113 repudiation, 17.102 , 17.117 reservation of rights, 17.105 – 17.106 , 17.161 , 17.169 rights, knowledge of, 17.72 – 17.87 silence, 17.94 , 17.130 , 17.155 – 17.156 slips, signing, 17.112 termination, 16.72 time for, 17.05 – 17.06 unconscionability, 17.09 – 17.15 unequivocal conduct, 17.95 – 17.119 variation, 17.118 waiver, 17.18 – 17.52 conduct, 17.79 , 17.96 knowledge, 17.71 , 17.92 promissory estoppel, 17.122 – 17.123 warranties, breach of, 17.08 warranties, breach of, 17.08 , 17.116 – 17.117 words, 17.54 , 17.97 Age assured, 15.16 buildings, 15.56 cargo, 15.58 deterioration, 15.56 household goods, 15.56 knowledge, 15.57 – 15.58 marine insurance, 15.57 – 15.58 materiality of, 15.16 , 15.56 – 15.58 motor insurance, 15.56 property, 15.56 – 15.58 vessels, 15.57 Agents, 13.02 – 13.03 , 13.49 – 13.93 see also Agents, fraud of; Agents, knowledge and; Brokers affirm or avoid, election to, 17.89 – 17.93 allegations, 7.81 alter egos, 11.95 assured, of the, 13.49 – 13.50 , 13.65 – 13.67 , 13.89 – 13.92 authority, 13.65 – 13.72 actual or ostensible, 7.28 , 13.65 binding, 1.28 ostensible, 7.28 proposal forms, 13.89 – 13.91 avoidance, 16.46 breach of duty, 13.65 capacity, 13.73 claims, 11.95 – 11.98 claims handling, 13.49 co-insurers, 13.37 , 13.39 communications, 7.81 conduct, 17.101 confidentiality, 8.97 consumer insurance, 13.93 course of business, 13.56 , 13.70 , 13.72 Page 691 damages, 13.67 fraudulent claims, 11.95 – 11.98 , 16.46 information, 8.102 – 8.105 , 13.72 – 13.73 , 13.90 insurers, of, 13.50 , 13.65 , 13.89 – 13.92 intelligence, 7.81 knowledge, 8.46 , 17.89 – 17.93 late, information provided too, 8.102 – 8.105 , marine insurance, 15.10 materiality, 13.65 – 13.74 , 13.89 , 14.76 , 16.46 misrepresentation, 7.28 , 13.65 – 13.63 , 13.89 negotiations, 13.49 notice, 13.69 , 13.71 ordinary course of business, 13.56 , 13.70 , 13.73 placing, disclosure at, 12.20 , 13.51 – 13.53 principal, identification of, 13.50 notice to, 13.68 undisclosed principal, 15.10 proposal forms, completion of, 13.90 – 13.91 reinsurance, 13.55 , 13.66 representations, 7.77 , 13.49 , 13.65 – 13.67 , 13.89 representees, as, 13.68 – 13.74 representors, as, 13.65 – 13.67 rumours, allegations, communications and intelligence, 7.81 undisclosed principal, 15.10 waiver, 13.68 – 13.71 Agents, fraud of, 15.123 affirm or avoid, election to, 17.93 alter egos, 11.95 attribution, rule of, 11.96 , 11.98 authority, actual or apparent, 11.97 co-assured, 11.97 companies, alter egos of, 11.95 dereliction of duty, acting in, 11.98 genuine part of claims, 11.97 knowledge, 7.139 – 7.146 , 13.53 – 13.60 , 15.121 Marine Insurance Act 1906, 11.95 , 13.59 placing, 11.96 principal, on 7.141 – 7.144 seaworthiness, privity of assured and, 11.95 vicarious liability, 13.64 wilful misconduct, 11.95 Agents, knowledge and, 13.49 , 13.51 – 13.64 acquired other that as an agent, 13.52 – 13.58 , 13.73 actual or ostensible authority, 7.140 , 13.53 affirm or avoid, election to, 17.89 – 17.93 breach of duty, 7.139 – 7.146 , 13.52 – 13.58 capacity, 13.73 claims, fraudulent, 13.62 – 13.64 concealment, 7.140 constructive, 7.130 deemed, 7.133 dereliction of duty, 13.58 directors, 7.117 – 7.118 fraud, 7.139 – 7.146 , 13.53 – 13.60 , 13.62 – 13.64 , 15.123 principal, on, 7.141 – 7.143 general, 7.116 – 7.118 imputed knowledge, 7.111 – 7.129 , 7.139 – 7.146 , 8.14 , 13.04 , 13.63 information, 8.102 – 8.105 , 13.72 – 13.73 , 13.89 insurance contracts, 7.108 – 7.110 Lloyd’s, 7.125 marine insurance, 7.115 , 7.118 materiality, 13.52 – 13.53 , 13.57 , 13.72 , 14.76 notice, 13.71 notice other than as an agent, knowledge acquired, 13.54 – 13.60 , 13.73 placing, 12.20 , 13.51 – 13.53 proposal forms, 13.90 – 13.91 reinsurance, 13.55 Allegations see Rumours, allegations, communications and intelligence Alter egos, 11.95 , 15.26 Application of duty of good faith common law, 1.34 , 1.36 consumer insurance, 1.35 , 1.42 – 1.43 declarations, 1.34 disclosure, 1.35 , 1.47 fairness, 1.35 fire insurance, 1.33 floating policies, 1.34 inducement, 1.35 insurance instruments, 1.48 – 1.54 insurance markets, 1.33 – 1.38 knowledge, 1.47 life insurance, 1.33 marine insurance, 1.44 – 1.47 materiality, 1.35 , 1.34 – 1.40 , 1.47 open cover, 1.34 property insurance, 1.33 reform, 1.37 , 1.38 reinsurance treaties, 1.34 rejection of risk, 1.40 types of insurance policy, 1.33 – 1.51 underwriters, materiality of opinions of, 1.40 utmost good faith, 1.34 – 1.35 , 1.38 – 1.44 , 1.47 Arbitration agreements affirm or avoid, election to, 17.101 , 17.103 , 17.107 – 17.108 clauses, severance of, 17.101 , 17.103 , 17.107 – 17.108 Page 692 forfeiture, 17.107 promissory estoppel, 17.135 Assignees, 13.07 – 13.24 ‘arising out of the contract’, meaning of, 13.12 – 13.13 avoidance, 13.13 – 13.14 , 13.16 , 13.19 , 13.24 beneficial interests, 13.09 breach of the duty, 13.15 – 13.23 choses in action, 13.08 – 13.10 , 13.15 – 13.16 , 13.18 co-assured, 13.07 common law, 13.15 , 13.22 consent, 13.09 defective policies, 13.11 , 13.20 defences, 13.09 , 13.12 , 13.15 entire contract, 3.85 equities, subject to, 13.08 – 13.20 , 13.24 fraudulent claims, 13.11 insurable interest, 13.07 , 13.11 , 13.19 international trade, 13.24 Law of Property Act 1925, 13.08 , 13.10 , 13.12 life insurance, 13.08 marine insurance, 13.08 – 13.09 , 13.12 , 13.14 Marine Insurance Act 1906, 13.08 – 13.09 , 13.12 market practice, 13.14 materiality, 13.11 , 13.13 misrepresentation, 13.11 mortgagees, 1.27 mutuality, 3.89 non-disclosure, 4.37 , 4.45 , 13.11 , 13.13 notice, 13.10 , 13.14 occurrence of loss, 13.19 Policies of Marine Assurance Act 1868, 13.12 premiums, recovery of, 13.20 security for debt, 13.08 , 13.13 title to sue, 13.08 trustees, 13.15 – 13.16 undertakings, letters of, 13.21 utmost good faith, subject to duty of, 13.21 – 13.24 vicarious liability, 13.20 voidable contracts, 13.13 – 13.14 , 13.19 war risks, 1.27 Association of British Insurers (ABI), 5.20 Associations, fiduciaries and, 2.37 Assumption of responsibility, 16.152 Assured see also Co-assured age, materiality of, 15.16 agents, 13.49 – 13.50 , 13.65 – 13.67 , 13.89 – 13.92 brokers, 13.75 – 13.88 burden of proof, 18.01 – 18.06 concerns, 15.25 financial history and practices, materiality of, 15.23 – 15.24 health, materiality of, 15.18 – 15.20 history, insurance, 15.100 – 15.110 identity of assured, 11.91 – 11.93 , 13.63 – 13.64 , 15.06 – 15.10 insurable interest, materiality of, 15.21 – 15.22 , 15.59 knowledge, 13.51 – 13.53 material facts, examples of, 15.02 , 15.04 – 15.05 materiality, 14.10 – 14.90 , 14.130 – 14.132 , 15.02 , 15.04 – 15.05 moral hazard, materiality and, 15.26 – 15.49 nationality, materiality of, 15.11 – 15.15 occupation, materiality of, 15.17 origins, materiality of, 15.11 privity of the, 11.95 profession, materiality of, 15.17 race discrimination, materiality of, 15.14 representations, implied, 7.31 residence, materiality of, 15.15 unfair presentation of risk, 16.17 – 16.26 , 16.166 Australian Law Reform Commission, 5.07 , 5.26 Automatic avoidance clauses, 16.80 Aviation insurance, 1.37 , 5.21 Avoidance or rescission, 16.32 – 16.95 see also Affirm or avoid, election to; Avoidance or rescission of fraudulent claims acquiescence, 16.90 agents, 16.46 arbitration agreements, 17.103 , 17.106 assignment, 13.13 – 13.14 , 13.16 , 13.19 , 13.24 Australian Law Reform Commission, 5.26 automatic avoidance clauses, 16.80 availability, 4.60 bad faith, 16.39 , 16.52 , 16.95 basis clauses, 9.19 , 9.29 breach of contract, 16.145 breach of duty, 14.123 , 16.32 – 16.95 , 16.97 – 16.98 , 16.159 brokers, 7.26 , 13.75 , 13.79 , 13.82 cancellation, 16.103 – 16.104 change of circumstances, 10.34 claims, 11.24 , 11.26 , 11.29 – 11.30 claims co-operation clauses, 10.48 co-assured, 13.25 , 13.28 – 13.29 , 16.77 – 16.78 co-insurers, 13.44 , 13.47 common law, 4.57 , 16.33 , 16.49 – 16.50 , 16.64 , 16.90 , 16.92 – 16.93 composite insurance, 16.78 compromise, 3.76 , 12.51 Page 693 concealment, 16.38 conduct, 16.60 , 16.62 consent, 11.120 , 16.55 consumer insurance, 5.28 continuation of duty, 3.44 , 11.108 , 11.111 , 11.115 contractual avoidance, 16.08 – 16.82 damages, 4.25 , 6.36 , 16.44 , 16.127 – 16.128 , 16.136 – 16.145 , 16.159 – 16.166 deceit, 16.65 , 16.128 declarations, 6.27 , 6.30 declining claims without, avoidance 16.46 – 16.51 delay, 16.61 , 17.150 , 17.153 , 17.155 – 17.157 delivery up, 16.103 – 16.104 disclosure, 4.34 , 4.36 , 4.42 , 16.37 , 16.40 , 16.28 , 16.53 discovery, 1.45 discretion, 5.08 , 6.35 – 6.36 , 16.90 – 16.95 earlier policies or contracts, 16.71 election, 16.60 – 16.62 endorsements, 16.62 equity, 4.25 , 4.27 – 4.28 , 4.54 – 4.60 , 16.33 – 16.34 , 16.64 , 16.90 , 16.92 – 16.95 estoppel, 16.61 , 17.141 – 17.142 , 17.147 exaggerated claims, 11.63 , 16.49 exemption clauses, 16.83 – 16.89 follow the settlements, 10.52 forfeiture, 16.113 – 16.118 contractual right, 16.105 – 16.107 relief, against, 16.120 genuine part of claims, 16.49 guarantees or surety contracts, 2.13 harshness of remedy, 11.120 – 11.125 , 16.41 – 16.45 , 16.55 illegality, 16.64 inactivity, 17.150 , 17.153 , 17.155 – 17.157 inducement, 6.36 – 3.37 , 14.104 , 16.41 , 16.43 , 16.75 insurance policies, existence of, 15.125 insurers, favouring, 16.42 more than one, 16.77 , 16.79 investigations, 12.50 – 12.51 issue of policies, 12.41 joint insurance, 16.78 knowledge, 8.14 , 13.55 , 16.46 , 16.60 , 16.80 laches, 16.61 , 16.92 , 16.94 Law Commission, 5.27 – 5.28 law reform, 5.07 – 5.08 litigation, commencement of, 11.108 marine insurance, 9.41 , 9.43 11.08 – 11.09 , 16.34 , 16.56 , 16.64 , 16.91 – 16.92 Marine Insurance Act 1906, 9.41 , 11.08 – 11.09 , 16.34 , 16.56 , 16.64 , 16.92 materiality, 10.62 – 10.66 agents, 16.46 breach of duty, 14.123 condition precedent, 16.81 fraud, 16.43 , 16.46 , 16.55 inducement, 16.41 knowledge, 16.80 misrepresentation, 16.37 , 16.28 , 16.71 – 16.72 variation, 16.72 – 16.73 meaning of avoidance, 16.32 – 16.35 , 16.71 – 16.79 meaning of rescission, 16.71 – 16.78 misrepresentation, 4.51 – 4.57 , 4.60 basis clauses, 9.19 , 9.23 brokers, 7.26 damages and, 4.25 , 6.36 , 16.44 discretion, 6.35 – 6.36 , 16.93 equity, 4.25 , 4.27 – 4.28 fraudulent, 16.33 , 16.64 – 16.65 guarantees or surety contracts, 2.13 inducement, 6.36 innocent, 16.34 , 16.34 marine insurance, 9.41 , 9.43 materiality, 16.37 , 16.28 , 16.71 – 16.72 meaning of avoidance, 16.71 Misrepresentation Act 1967, 6.35 – 6.37 non-disclosure, 16.40 , 16.53 restitution, 16.64 – 16.65 retrospectivity, 11.120 motor insurance, 6.27 , 6.30 , 13.101 , 15.60 mutuality, 3.87 , 3.86 , 3.95 occupation or professional, materiality of, 15.17 open cover, 1.54 ownership, 15.60 payment of claims, 16.62 placing, 12.05 post-contractual duty, 10.15 , 10.61 – 10.66 , 11.35 , 16.53 , 16.53 – 16.55 , 16.101 – 16.102 pre-contractual duty of disclosure, 3.53 , 10.62 , 11.120 , 16.53 premiums, acceptance of, 16.62 calculation of, 12.53 recovery of, 10.62 , 16.64 , 16.70 procurement, 16.76 promissory estoppel, 17.141 – 17.142 , 17.146 proportionality, 11.24 , 11.26 , 16.15 prudent or reasonable underwriter, 16.41 public purpose, 11.122 questions, 9.41 refusal to issue policies, 16.104 rehabilitation of offenders, 6.42 Page 694 remedies, 4.57 – 4.60 renewals, 3.59 , 10.41 – 10.43 repudiation, 11.135 reservations, 16.62 restitution, 16.63 – 16.70 , 16.123 , 16.161 – 16.162 retrospectivity, 11.120 silence, 16.61 , 17.94 , 17.150 , 17.153 , 17.155 – 17.157 social or policy view of good faith, 5.07 source of, 16.32 – 16.35 subrogation, 10.53 termination, 3.49 , 3.77 , 3.83 , 10.62 , 10.65 , 10.70 third parties, 6.30 , 13.101 , 16.69 time limits, 17.164 ‘unclean hands’, 16.94 – 16.95 unconscionability, 17.09 – 17.18 unfair presentation of risk, 16.166 use, 15.68 utmost good faith, 10.15 – 10.18 , 10.61 – 10.66 , 11.120 – 11.124 , 16.32 – 16.95 valuation, 15.90 , 15.95 , 15.98 variation, 10.22 , 16.72 – 16.76 void contracts, 16.36 – 16.40 , 16.63 , 16.80 voidable contracts, 16.36 – 16.40 waiver, 17.19 – 17.21 warranties, 8.86 – 8.87 , 8.91 , 16.80 Avoidance or rescission of fraudulent claims agents, 16.46 aggravated, 16.54 common law, 16.49 compromise, 3.76 concealment, 16.38 consent, 11.120 , 16.54 continuing duty, 3.71 declining claims without avoidance, 16.248 16.51 devices, 10.62 , 11.70 discretion, 16.94 – 16.95 equity, 4.56 – 4.58 forfeiture, 11.121 , 11.126 – 11.127 , 16.48 , 16.55 full disclosure, 3.101 implied terms, 3.68 Law Commission, 5.27 – 5.28 marine insurance, 11.08 – 11.09 materiality, 16.43 , 16.46 , 16.55 misrepresentation, 16.64 – 16.65 particular claims, in reference to, 3.102 post-contractual duty, 3.14 , 16.55 prevention of fraud, 11.123 public purpose, 11.122 remedies, 11.130 – 11.132 restitution, 16.64 – 16.65 , 16.66 retrospectivity, 11.120 utmost good faith, 11.124 void contracts, 16.38 – 16.40 Bad faith, 1.03 avoidance, 16.39 , 16.52 , 16.95 co-assured, 13.30 – 13.31 deceit, 1.04 dishonesty, 1.04 fraud, 3.96 inducement, 14.92 mechanisms and devices to neutralise or lessen impact, 1.17 moral hazard, 15.27 placing, 3.06 – 3.07 , 3.12 , 7.07 terminology, 1.03 without bad faith, 1.04 Bankruptcy, 13.98 , 13.100 Barcelona, statutes of, 4.07 Basis clauses, 8.87 , 9.06 – 9.33 abolition, 5.27 accuracy of facts, 9.17 affirm or avoid, election to, 17.02 alleviation from clauses, 9.22 – 9.26 ambiguity, 9.07 , 9.14 avoidance, 9.19 , 9.29 change in circumstances, 9.22 co-assured, 9.17 conditions precedent, 9.07 , 9.14 , 9.18 – 9.19 , 9.30 consumer insurance, 5.28 , 9.15 Consumer Insurance (Disclosure and Representations) Act 2012, 9.27 – 9.33 damages, 17.01 declarations, 9.06 , 9.17 delay, 17.159 effect of clauses, 9.06 – 9.21 enquiries, 9.22 false representations, 9.06 health, 15.20 history, insurance, 15.107 inactivity, 17.159 inducement, 9.06 , 9.09 , 9.15 , 9.19 ineffectiveness of clause, 5.18 Insurance Act 2015, 9.27 – 9.33 intention, 9.08 interpretation, 9.08 , 9.14 – 9.15 language, clear and unambiguous, 9.07 , 9.10 , 9.14 Law Commission, 5.18 , 5.27 law reform, 5.21 legislation, effect of, 9.22 – 9.26 Page 695 life insurance, 9.18 , 15.107 materiality, 5.21 , 9.06 – 9.09 , 9.15 – 9.16 , 9.20 – 9.21 misrepresentation, 9.09 , 9.13 , 9.19 , 9.23 mistake, 9.22 motor insurance, 9.24 nature of, 9.06 – 9.21 negotiations, 5.04 omissions, 9.21 opinions, 9.16 placing, 9.06 – 9.33 pre-contractual representations, 9.17 , 9.27 prohibition, 9.28 – 9.29 promissory estoppel, 17.144 – 17.146 promissory warranties, 9.32 proposal forms, 9.08 , 9.17 , 9.20 questions, 8.56 , 9.14 , 9.20 , 9.39 rectification, 9.22 reinsurance, 9.18 representations, 9.07 – 9.09 , 9.13 , 9.17 – 9.20 , 9.23 silence, 17.159 social or policy view of good faith, 5.04 truth, 9.06 , 9.08 – 9.09 , 9.13 – 9.20 , 9.31 unfair contract terms, 6.42 , 9.25 void contracts, 9.06 waiver, 8.56 , 9.22 , 17.22 , 17.28 – 17.31 warranties, 9.33 Beliefs see Opinions or beliefs Beneficial interests, assignees and, 13.09 BILA (British Insurance Law Association), 5.07 Binding authorities, 1.28 Breach of contract, 1.05 , 1.15 , 1.16 , 7.48 , 8.86 Breach of duty affirm or avoid, election to, 17.53 – 17.58 agents, 7.139 – 7.146 , 13.54 – 13.60 , 13.65 – 13.67 assignees, 13.15 – 13.23 avoidance, 16.32 – 16.95 , 16.97 – 16.98 brokers, 13.75 , 13.77 – 13.81 burden of proof, 18.01 – 18.08 causation, 3.05 cause of action, elements of 7.13 co-assured, 13.25 – 13.29 co-insurers, 13.37 , 13.41 – 13.48 continuation of duty, 3.44 damages, 16.126 – 16.127 , 16.147 , 16.159 – 16.166 inducement, 14.92 , 14.97 insurer relief, elements, 7.12 issue of policies, 12.46 – 12.47 knowledge, 7.139 – 7.146 , 13.54 – 13.60 , 17.53 , 17.56 legal advisers, 13.95 materiality, 14.44 , 14.123 misrepresentation, 4.29 moral hazard, 15.45 – 15.48 past, 15.45 – 15.48 placing, at, 7.07 – 7.14 technical breach, 1.47 Third Parties (Rights against Insurers) Act 1930, 13.98 waiver, 17.19 – 17.21 , 17.32 British Insurance Law Association (BILA), 5.07 Brokers assured, identity of the, 15.09 of the, 13.76 – 13.88 avoidance, 13.75 , 13.79 , 13.82 breach of duty, 13.75 , 13.77 – 13.81 capacity, 13.85 companies, parts of, 13.82 confidential information, disclosure of, 13.84 conspiracy to defraud, 13.78 constructive knowledge, doctrine of, 1.43 course of business, 3.71 , 13.83 damages, 13.74 – 13.75 , 13.81 deceit, 13.78 disclosure, independent and specific duty of, 13.49 , 13.75 , 13.81 , 13.86 – 13.88 explain the terms, duty to, 12.38 – 12.42 fiduciary relationships, 2.36 , 13.85 forfeiture, 13.78 fraud, 3.92 , 7.16 , 13.78 , 15.123 identity of the assured, 15.09 information, 8.102 – 8.105 , 13.74 , 13.77 , 13.79 , 13.82 – 13.87 Insurance Act 2015, 13.88 insurers, of, 13.76 intermediate, 13.82 knowledge, connected to company, 7.107 constructive, 7.130 deemed, 7.133 imputed, 7.119 – 7.122 Insurance Act 2015, 13.88 Marine Insurance Act 1906, 13.83 , 18.85 materiality, 13.74 , 13.77 ordinary course of business, 13.56 placing, 13.87 late, information provided too, 8.102 – 8.105 , 13.82 Marine Insurance Act 1906, 13.80 , 13.84 – 13.85 market practices and customs, 13.86 materiality, 13.74 , 13.77 , 13.79 , 13.81 , 13.83 – 13.84 misrepresentation, 7.25 – 7.26 , 13.81 Page 696 mutuality, 3.92 negotiations, 13.83 ordinary course of business, 13.74 , 13.83 personal liability, 13.81 , 13.88 placing, 13.78 – 13.88 policy, 13.87 producing, 13.83 reasonable care, exercise of, 13.77 representations, 13.78 – 13.79 role, 13.02 , 13.86 status of, 13.76 – 13.78 , 13.86 terms, duty to explain the, 12.38 – 12.42 updated information, 13.82 utmost good faith, 13.88 waiver, 8.53 Buildings, age of, 15.56 Bundle of contracts, 13.34 Burden of proof, 18.01 – 18.08 affirm or avoid, election to, 17.81 – 17.83 , 17.162 – 17.163 , 18.05 age, 15.54 allegations, 18.08 assured, 18.01 – 18.06 breach of duty, 18.01 – 18.08 concealment, 18.02 conditions, 18.02 disclosure, 18.01 – 18.08 exceptions to the duty of disclosure, 18.05 fire, 18.03 fraud, 6.34 , 7.18 , 11.43 , 18.02 – 18.04 , 18.06 – 18.08 inducement, 14.113 – 14.114 , 14.116 , 18.06 insurers, 18.01 – 18.08 knowledge, 18.04 materiality, 14.08 , 18.02 , 18.04 misrepresentation, 6.34 , 18.04 , 18.06 non-disclosure, 18.02 perils of the sea, 18.03 pleadings, 18.08 promissory estoppel, 17.162 representations, 18.02 waiver, 17.162 – 17.163 , 18.02 , 18.05 warranties, 18.02 Burglary insurance, 8.25 Cancellation abuse of rights, 10.40 adjustment of obligations, 3.60 , 10.35 – 10.40 avoidance, 16.103 – 16.104 clauses, 10.35 – 10.40 conduct, 17.146 continuing cover, 3.51 , 10.35 , 10.37 disclosure, 3.60 materiality, 10.35 misrepresentation, 10.39 motor insurance, 6.30 notice, 3.60 , 10.36 , 10.39 performance, 10.59 post-contractual duty, 10.35 – 10.40 pre-contractual duty, 3.60 promissory estoppel, 17.146 remedies, 16.103 – 16.104 termination, 3.51 Candour, 2.04 , 4.11 Cargo age, 15.58 knowledge, 8.436, 8.81 , 14.56 , 15.75 related property, 15.73 – 15.76 Causation breach of duty, 3.05 course of conduct, 3.05 disclosure, 3.05 inducement, 3.05 , 14.91 , 14.107 – 14.108 , 14.111 materiality, 3.05 nature of duty of utmost good faith, 3.05 post-contractual breaches, 3.05 utmost good faith, 3.05 Caveat emptor , 1.09 , 2.04 , 4.05 , 4.11 Certainty, 17.71 Chancery, 16.04 – 16.05 , 16.09 Change of circumstances adjustment of obligations, 10.34 avoidance, 10.34 basis clauses, 9.22 clauses, 10.34 directive on insurance contracts, proposal for, 5.15 notification, 5.15 post-contractual duty, 10.34 renewals, 5.21 silence, misrepresentation by, 7.45 Charterparty clauses, 8.43 Choses in action, assignment of, 13.08 – 13.11 , 13.15 , 13.18 – 13.19 Civil law, 1.10 , 4.08 Civil proceedings see Litigation Claims see also Exaggerated and excessive claims; Fraudulent claims affirm or avoid, election to, 17.119 agents, 11.95 – 11.98 , 13.49 assessment of claims, 12.49 – 12.61 assured, identity of the, 11.91 – 11.98 utmost good faith, duty of, 11.01 – 11.136 avoidance, 11.29 – 11.30 payment of claims, 16.62 proportionality and, 11.24 , 11.26 claims control clauses, 3.78 , 10.45 – 10.49 Page 697 claims co-operation clauses, 10.45 – 10.49 , 10.59 claims handling, 10.50 – 10.51 co-assured, 11.94 compromise, 12.51 conduct, 17.119 , 17.149 conspiracy to injure, 12.52 Consumer Insurance (Disclosure and Representations) Act 2012, 3.74 continuation of duty, 3.62 – 3.76 , 11.06 , 11.12 – 11.13 , 11.31 , 11.105 – 11.116 corporate assured, 11.91 – 11.92 deceit, 11.36 – 11.39 delay, 5.21 directive on insurance contracts, proposal for, 5.13 , 5.16 disclosure, 11.01 – 11.136 documentation, 11.06 entire, 3.64 entire contracts, 3.64 experience, 15.100 – 15.105 extent of duty of good faith, 3.14 facultative reinsurance contracts, 10.45 follow the settlements, 10.52 forfeiture, 11.118 – 11.119 genuine parts of claims, 11.59 , 11.62 – 11.63 , 11.68 , 11.97 , 11.129 , 16.49 handling, 13.49 implied terms, 10.51 , 12.52 , 12.57 – 12.61 inducement, 3.73 information, 11.04 – 11.06 Insurance Act 2015, 3.74 investigations, 3.62 , 3.66 , 3.76 , 3.90 , 11.04 , 12.49 – 12.61 knowledge, 13.62 – 13.64 legal advisers, 13.94 – 13.97 liability insurance, 10.45 Marine Insurance Act 1906, 3.14 , 11.25 , 11.29 materiality, 3.71 , 3.73 , 11.32 , 14.118 – 14.124 misrepresentation, 3.67 , 3.71 , 11.26 , 14.118 , 14.121 mutuality, 3.95 nature of duty of good faith, 3.14 , 3.62 – 3.76 negotiations, 11.01 – 11.02 non-disclosure, 3.66 – 3.67 , 3.70 – 3.71 notice, 3.66 , 5.16 , 10.45 – 10.49 payment of, avoidance, 16.62 conduct, 12.57 , 17.119 reservation of rights, 17.166 performance, 10.54 post-contractual duty of disclosure, 3.14 , 3.62 – 3.76 , 10.16 – 10.17 , 10.44 – 10.53 , 11.25 pre-contractual duty of utmost good faith, 11.01 , 11.26 , 12.55 presentation of claims, 3.62 – 3.76 , 10.16 – 10.17 , 10.44 – 10.53 , 11.03 – 11.136 promissory estoppel, 17.149 proportionality, 11.24 , 11.26 reasonableness, 12.52 reasonable time, 12.58 , 16.30 – 16.31 , 17.05 – 17.06 reinsurance, 15.113 repudiation, 5.21 reservation of rights, 17.166 restitution of proceeds of, 16.122 scope of duty, 11.22 – 11.35 Statement of General Insurance Practice, 12.56 Statement of Long-Term Insurance Practice, 12.56 subrogation, 3.76 , 10.53 termination, 10.69 treatment, 12.45 – 12.53 utmost good faith, 3.14 , 11.01 – 11.136 Claims co-operation clauses, 10.45 – 10.49 , 10.59 Classification of contracts, 2.05 – 2.08 Clauses see also Basis clauses; Held covered clauses; Terms; Warranties additional premium clauses, 3.58 , 10.33 arbitration, 17.101 , 17.103 , 17.107 – 17.108 cancellation, 10.35 – 10.40 change of circumstances, 10.34 charterparty clauses, 8.43 claims control clauses, 3.78 claims co-operation clauses, 10.45 – 10.49 , 10.59 error and omission clauses, 16.84 exemption, 16.83 – 16.89 follow the settlements, 10.52 fraudulent claims clauses, 11.99 – 11.104 pay to be paid, severance, 10.52 , 17.101 , 17.103 , 17.107 – 17.108 Club insurance, 2.37 Co-assureds, 13.25 – 13.32 agents, fraud of, 11.97 assignees, 13.07 avoidance, 13.25 , 13.28 – 13.29 , 16.77 – 16.78 bad faith, 13.30 – 13.31 basis clauses, 9.17 breach of duty, 13.25 – 13.29 claims, 11.94 composite insurance, 11.94 , 13.26 , 13.29 exaggerated claims, 13.30 fraud, 11.94 , 11.97 , 11.101 , 13.30 insurance contracts, 13.26 Page 698 insurable interest, 13.07 , 13.26 – 13.30 insurance policies, 13.26 joint insurance, 11.94 , 13.26 – 13.29 , 13.31 materiality, 13.25 , 13.32 misrepresentation, 13.30 post-contractual duty, 13.31 pre-contractual duty, 11.94 several, 13.27 , 13.32 utmost good faith, 13.06 warranties, 9.17 Codification, 6.02 , 6.06 , 6.08 – 6.01 , 17.40 Co-insurers agents, 13.37 , 13.39 avoidance, 13.44 , 13.47 breach of duty, 13.37 , 13.41 – 13.48 bundle of contracts, 13.37 causes of action, 13.46 commercial insurance, 13.36 consumer insurance, 13.36 customs, 13.39 evidence, 13.37 , 13.44 – 13.45 , 18.16 following underwriters, 13.36 – 13.48 group insurance, 13.33 – 13.35 household insurance, 13.36 inducement, 13.38 , 13.46 leading underwriters, 13.36 – 13.48 judgment and skill of, 13.40 , 13.45 – 13.46 misrepresentation, 13.40 , 13.47 notice, 13.41 open cover, declarations on, 13.45 lines, 13.36 Marine Insurance Act 1906, 13.43 materiality, 13.38 , 13.42 – 13.47 misrepresentation, 13.40 , 13.44 , 13.47 notice, 13.41 open cover, declarations on, 13.45 reliance, 13.42 , 13.46 risk assessment, 13.45 subscribing to risks, 13.36 – 13.37 tortious liability, 13.41 utmost good faith, 13.06 Commercial contracts caveat emptor , 1.09 co-insurers, 13.36 concealment, 2.04 construction, 1.11 disclosure, 1.31 misrepresentation, 1.08 , 1.09 parties, responsibility on, 1.07 public policy, 3.41 regulation, 3.41 uberrimae fidei , 1.07 , 1.31 Commercial law, 4.05 – 4.06 Commission, disclosure of, 8.72 Common law application of duty of good faith, 1.36 assignees, 13.15 , 13.22 avoidance, 4.57 , 16.34 , 16.49 – 16.50 , 16.64 , 16.90 , 16.92 – 16.93 Chancery, 16.04 – 16.05 , 16.09 codification of, 6.02 , 6.06 , 6.08 – 6.10 consideration, 1.11 courts, 16.04 damages, 16.126 – 16.127 , 16.147 , 16.159 , 16.162 , 16.164 disclosure, 2.07 equity, 4.15 , 4.62 , 16.05 – 16.12 explain the terms, duty to, 12.39 , 12.41 forfeiture, 16.115 – 16.116 fraud, 4.18 – 4.24 , 16.13 , 16.49 Judicature Acts, 16.09 law merchant, 4.03 – 4.05 , 4.11 – 4.14 , 4.31 Marine Insurance Act 1906, 6.02 , 6.06 , 6.08 – 6.01 materiality, 14.10 – 14.16 misrepresentation, 4.25 , 4.28 mistake, 4.35 negligent misrepresentation, 16.11 negotiations, 1.10 non-disclosure, 4.37 , 4.39 – 4.40 , 4.43 , 4.46 procedure, 16.09 remedies, 4.57 , 4.58 , 16.03 – 16.13 source of duty of utmost good faith, 4.02 – 4.05 , 4.08 , 4.13 – 4.15 , 4.31 , 4.62 terms, duty to explain the, 12.39 , 12.41 unconscionability, 17.10 utmost good faith, 4.02 – 4.05 , 4.08 , 4.13 – 4.15 , 4.31 , 4.62 , 10.04 Communications see Rumours, allegations, communications and intelligence Companies agents, fraud of, 11.95 alter egos, 11.95 attribution, rules of, 11.92 – 11.93 brokers, 13.82 claims, 11.91 – 11.92 departments of, 8.14 , 8.32 , 8.47 directing mind and will, 7.107 , 7.118 , 11.91 – 11.92 , 13.56 , 13.63 directors, 7.117 – 7.118 fraud, 11.9 – 11.92 , 11.95 history, insurance, 15.102 knowledge, departments of, 8.14 , 8.32 , 8.47 directing mind and will, 7.107 , 7.118 , 11.91 – 11.92 , 13.56 , 13.63 relevant information, 8.48 parts of, 8.14 , 8.32 , 13.82 predecessor, 15.102 Page 699 shares publicly offered, contracts for purchase of, 2.31 – 2.32 vicarious liability, 11.92 Composite insurance, 7.133 , 11.94 , 11.101 , 13.26 , 13.29 , 16.78 Compromise avoidance, 3.76 , 12.51 claims, 12.51 fraudulent claims, 3.76 , 12.51 identification of insurance contracts, 1.31 misrepresentation, 1.31 , 3.76 mistake of law, 1.31 utmost good faith, 1.31 Concealment agents, 7.140 avoidance, 16.38 burden of proof, 18.02 commercial contracts, 2.04 deceit, 11.88 fraud, 3.98 , 7.12 , 11.87 – 11.89 , 16.38 guarantees or surety contracts, 2.12 inducement, 1.35 , 14.93 – 14.98 , 14.108 knowledge, 7.141 materiality, 11.88 , 14.73 , 14.119 , 14.131 misrepresentation, 7.24 placing, 3.06 – 3.07 pre-contractual duty, 11.88 – 11.89 prudent or reasonable underwriter, 14.30 technical, 3.33 utmost good faith, 2.04 Conditions burden of proof, 18.02 implied, 4.32 – 4.35 law reform, 5.17 motor insurance, 6.27 precedent, 4.32 – 4.35 warranties, 8.91 Conduct affirm or avoid, election to, claims, payment of, 12.57 , 17.119 contractual rights, 17.100 – 17.109 defence, reliance on a policy, 17.117 policies, issue of, 17.110 – 17.114 premiums, acceptance of, 17.115 – 17.116 types of, 16.62 unequivocal, 17.95 – 17.119 variation, 17.118 waiver, 17.79 , 17.96 words, 17.54 agents, 17.101 avoidance, 16.60 , 16.62 cancellation provisions, 17.146 causation, 3.05 claims, payment of, 12.57 , 17.119 , 17.147 contractual rights, 17.100 – 17.109 course of, 3.05 defence, reliance on a policy, 17.117 delay, 17.99 , 17.150 – 17.161 directive on insurance contracts, proposal for, 5.13 disclosure, 2.04 examples of unequivocal, 17.99 future, promises of, 7.70 – 7.75 inactivity, 17.99 , 17.130 , 17.132 , 17.150 – 17.161 information, request for further, 17.100 inspection, 17.101 , 17.105 – 17.106 intention, 7.70 , 7.72 – 7.74 meaning of good faith, 1.14 payment of claims, 12.57 , 17.119 , 17.149 policies, issue of, 17.110 – 17.114 premiums, acceptance of, 17.115 – 17.116 promissory estoppel, 17.130 , 17.132 , 17.141 – 17.161 reasonableness, 17.98 records, 17.101 reliance, 17.139 renewals, 17.114 replacement policies, 17.113 representations, implied, 7.31 , 7.32 reservation of rights, 17.168 security measures, advice on, 17.148 silence, 17.99 , 17.130 , 17.132 , 17.150 – 17.161 unequivocal, 17.95 – 17.119 , 17.126 , 17.130 , 17.141 – 17.161 variation, 17.118 waiver, 17.48 – 17.51 , 17.96 wilful misconduct, 11.95 , 13.64 words, 17.96 Confidentiality agents, 8.97 brokers, 13.84 conflicting duties, 8.93 – 8.98 disclosure, exceptions to, 8.83 – 8.98 further information, 8.96 Insurance Act 2015, 8.97 legislation, 6.47 Marine Insurance Act 1906, 8.97 materiality, 8.95 , 8.97 official secrets, 6.47 , 8.98 statutory duty, 8.98 waiver, 8.95 Conflicting duties, 8.93 – 8.98 Conflicts of interest, 2.35 Conjecture, 7.65 – 7.66 Consensus ad idem, 1.10 Consideration affirm or avoid, election to, 17.03 , 17.54 common law, 1.10 Page 700 formation of contract, 1.11 , 10.10 misrepresentation, 4.26 total failure of, 4.26 , 4.51 Conspiracy defraud, to, 13.78 injure, to, 12.52 Consumer contracts, 2.32 Consumer insurance agents, 13.93 application of the duty of utmost good faith, 1.33 , 1.35 , 1.342– 1.43 avoidance, 5.27 – 5.28 basis clauses, 5.28 , 9.15 co-insurers, 13.36 constructive knowledge, doctrine of, 1.43 Consumer Insurance (Disclosure and Representation) Bill, 5.28 consumers, 6.12 contracting out, 6.14 , 12.60 explain the terms, duty to, 12.39 disclosure, 6.13 fraudulent claims clauses, 11.104 information, 6.13 insurer claiming relief, elements, 7.12 Law Commission, 1.38 , 5.28 , 5.37 – 5.42 Marine Insurance Act 1906, 5.28 materiality, 1.38 , 1.41 – 1.43 misrepresentation, 1.42 , 5.28 public policy, 3.41 qualifying misrepresentations, 6.13 recent reform, 5.42 regulation, 3.41 terms, duty to explain the, 12.39 unfair contract terms, 6.54 – 6.57 , 9.25 , 11.104 utmost good faith, 6.13 waiver, 8.60 Consumer Insurance (Disclosure and Representations) Act2012, 6.04 , 6.12 – 6.14 agents, 13.93 application, 1.22 , 6.12 basis clauses, 9.27 – 9.33 prohibition, 9.28 – 9.29 consumers, definition 6.12 contracting out, 6.14 , 12.60 contractual avoidance, 16.82 inducement, 14.105 introduction, 1.19 modification of duty of disclosure, 9.03 pre-contract and pre-variation information, 6.13 pre-contractual disclosure, 1.20 qualifying duty of utmost good faith, 1.06 , 1.12 , 1.20 , 1.33 , 6.13 qualifying misrepresentations, 6.13 utmost good faith, 10.02 variation, 16.76 Continental jurisdictions, 1.10 Continuation of the duty, 3.43 – 3.83 Australian Law Reform Commission, 5.26 avoidance, 3.44 , 11.108 , 11.113 breach of duty, 3.44 cancellation, 3.51 causes of action, 3.44 claims, 3.62 – 3.76 , 11.06 , 11.12 – 11.13 , 11.31 , 11.105 – 11.116 confirmation, 3.28 disclosure, 3.43 – 3.50 extension, 3.28 fairness, 3.30 formation of contract, 10.12 fraud, 11.105 – 11.116 guarantees or surety contracts, 2.21 inducement, 3.44 issue of policies, 12.45 liability, establishment of, 11.106 litigation, commencement of, 11.108 – 11.110 marine insurance, 11.113 Marine Insurance Act 1906, 11.108 , 11.110 negotiations, 11.108 placing, 3.44 – 3.52 , 12.20 post-contractual duty of good faith, 3.53 – 3.79 , 10.13 , 10.15 pre-contractual duty of good faith, 3.44 , 11.108 rejection of claims, 11.108 , 11.111 renewal, 3.28 revival, 3.28 ship’s papers, discovery of, 11.109 – 11.110 , 11.113 termination, 3.45 – 3.52 , 3.60 – 3.83 warranties, 8.86 , 9.20 Contracts see also Breach of contract; Formation of contract; Unfair contract terms classification of, 2.05 – 2.08 collateral, 4.45 , 16.137 Contracts (Rights of Third Parties) Act 1999, 13.03 definition of insurance contract, 1.22 general obligation in all contracts, 1.03 guarantees or surety contracts, 1.22 , 1.30 2.09 – 2.21 indemnities, 1.22 interpretation, 1.11 materiality, 15.129 meaning of good faith, 1.15 , 1.16 other arrangements and, 15.129 privity of contract, 13.03 , 13.98 – 13.100 Page 701 remedies, 11.133 – 11.136 shares publicly offered, contracts for purchase of, 2.31 – 2.32 spouses, between, 2.25 – 2.28 subject-matter, 15.129 utmost good faith, 1.06 , 11.133 – 11.136 Contribution, 15.129 Convictions see Previous convictions Course of business see Ordinary course of business Courts of Chancery, 4.04 Credit history, disclosure of, 2.11 – 2.12 Criminal offences see also Fraud; Rehabilitation of offenders accounts, 6.50 deception, 6.49 evidence, 15.44 false or misleading statements, 6.50 – 6.52 legislation, 6.48 – 6.53 materiality, 6.48 moral hazard, 15.41 , 15.45 – 15.46 motor insurance, 6.17 , 6.52 seriousness, 15.44 UK, in the, 6.51 withdrawal of charges, 15.44 Custom brokers, 13.86 co-insurers, 13.39 disclosure, waiver of, 8.83 experts, 18.13 law merchant, 4.03 , 4.05 , 4.11 , 4.13 materiality, 8.83 nature of duty of utmost good faith, 3.20 source of duty of utmost good faith, 4.08 trade usage, 18.13 waiver, 8.83 Damages, 16.125 – 16.166 affirm or avoid, election to, 17.01 agents, 13.65 assumption of responsibility, voluntary, 16.522 avoidance, 4.25 , 6.36 , 16.12 – 16.128 , 16.136 – 16.145 , 16.159 – 16.166 basis clause, 17.01 breach of contract, 16.142 – 16.145 , 16.160 , 16.163 – 16.166 breach of duty, 16.126 – 16.127 , 16.147 , 16.159 – 16.166 brokers, 13.74 – 13.75 , 13.81 claims co-operation clause, 10.46 – 10.47 common law, 4.28 , 16.11 , 16.126 – 16.127 , 16.147 , 16.156 , 16.159 , 16.162 , 16.164 deceit, 4.53 , 16.67 , 16.127 – 16.131 , 16.144 , 16.147 , 16.162 disclosure, 16.148 – 16.158 discretion, 16.139 – 16.140 duress, 16.164 duty of care, 16.148 – 16.158 economic loss, 16.152 , 16.155 equity, 16.146 – 16.147 , 16.159 , 16.164 fiduciary duties, 16.147 foreseeability, 16.150 – 16.152 , 16.156 forfeiture, 16.111 fraud, claims, 3.66 , 10.50 , 11.134 – 11.136 , 16.127 – 16.131 , 16.147 duty of care, 16.151 misrepresentation, 7.15 , 12.07 , 16.127 – 16.131 , 16.141 , 16.156 moral, 16.129 placing, 12.07 hardship, 16.164 implied terms, 11.134 , 16.143 – 16.144 inducement, 16.129 , 16.136 , 16.164 injunctions, 16.146 Insurance Ombudsman, 5.23 jurisdiction, 16.146 late payment, damages for, 5.29 – 5.36 , 12.53 Law Commission, 5.29 – 5.36 , 12.53 law merchant, 16.125 marine insurance, 16.164 Marine Insurance Act 1906, 16.152 materiality, 16.127 , 16.157 measure of, 16.134 , 16.157 misrepresentation, 6.34 – 6.38 avoidance, 4.25 , 16.44 breach of contract, 16.160 common law, 4.28 , 16.11 fraudulent, 16.127 – 16.131 , 16.141 , 16.156 innocent, 16.137 measure of damages, 16.134 Misrepresentation Act 1967, 16.136 – 16.141 , 16.148 negligent, 16.132 – 16.135 , 16.153 , 16.156 placing, 12.07 negligence, 16.132 – 16.135 , 16.148 – 16.149 , 16.153 , 16.156 negligent misrepresentation, 16.76 , 16.132 – 16.135 , 16.153 , 16.156 non-disclosure, 4.44 – 4.48 omissions, 16.155 opinions, 7.54 partnership agreements, 2.23 placing, 12.07 post-contractual duty, 16.159 , 16.165 pre-contractual duty, 16.156 premiums, recovery of, 16.161 Page 702 proximity, 16.150 reasonableness, 16.150 reliance, 16.150 repudiation, 12.51 restitution, 16.147 , 16.161 – 16.162 , 16.166 specific performance, 16.146 termination, 16.96 terms, 16.143 – 16.144 time limits, 17.164 tortious liability, 16.153 – 16.154 , 16.163 trust, breach of, 16.147 unconscionability, 17.11 undue influence, 16.164 utmost good faith, 16.125 – 16.126 Data protection, 6.45 , 12.21 Databases enquiries, 12.26 , 12.29 knowledge, 7.133 , 8.37 De minimis rule, 7.95 Debt, security for, 13.08 , 13.13 Deceit brokers, 13.78 concealment, 11.87 damages, 4.53 , 16.67 , 16.127 – 16.131 , 16.144 , 16.147 , 16.162 fraud, 4.20 – 4.21 , 4.23 , 11.36 – 11.39 misrepresentation, 6.34 , 6.36 , 7.35 placing, 7.09 silence, 7.35 Declarations application of duty of good faith, 1.34 avoidance, 6.27 , 6.30 basis clauses, 9.06 , 9.17 directive on insurance contracts, proposal for, 5.13 discretion to accept, 1.24 floating policies, 1.53 , 3.78 fraud, 3.78 future declarations, 1.24 insurance contracts, 1.51 open cover, 1.24 , 1.50 – 1.52 , 1.54 , 3.26 , 3.78 performance, 10.58 reinsurance treaties, 1.50 – 1.52 , 1.54 termination, 3.50 value, of, 1.53 waiver, 8.62 Defective policies, 13.11 , 13.20 Definition of good faith, 1.13 – 1.18 Delay, silence or inactivity affirm or avoid, election to, 16.61 , 17.155 – 17.157 avoidance, 16.61 , 17.150 , 17.153 , 17.155 – 17.157 basis clause, 17.159 claims, 5.21 conduct, 17.99 , 17.130 , 17.132 , 17.105 – 17.161 detrimental reliance, 17.155 laches, 16.61 , 16.92 , 16.94 , 17.158 – 17.159 , 17.164 late payment of claims, 1.38 , 3.95 , 5.29 – 5.36 , 12.61 promissory estoppel, 17.150 – 17.161 reliance, 17.155 , 17.159 – 17.160 repudiation, 5.21 third parties, 17.105 waiver, 17.154 warranties, breach of, 8.91 , 17.153 – 17.154 , 17.159 Delivery up, 16.103 – 16.104 Descriptive of risk, warranties, 8.85 , 9.10 – 9.12 Deterioration, 15.56 Detriment promissory estoppel, 17.139 – 17.140 reliance, 17.155 Deviation, 8.91 , 15.69 , 15.80 Devices see Fraudulent devices Diminution of risk evidence, 8.09 – 8.10 expert evidence, 8.09 – 8.10 Insurance Act 2015, 8.09 Marine Insurance Act 1906, 8.09 materiality, 8.08 – 8.09 , 14.69 , 14.79 placing, 8.06 – 8.11 security arrangements, 8.11 Directive on insurance contracts (1979), proposal for, 5.12 – 5.16 amendments, 5.14 change in circumstances, notification of, 5.15 claims, 5.13 , 5.16 conduct of policyholders, 5.13 declarations, 5.13 disclosure, 5.14 exclusions, 5.12 notification, duty of, 5.15 – 5.16 placing, disclosure at time of, 5.14 pre-contractual duty of disclosure, 5.15 premiums, return of, 5.14 scope, 5.12 termination, 5.14 Directors, 2.31 , 7.117 – 7.118 Disability discrimination, 6.44 , 8.100 Disclosure and non-disclosure see also Breach of duty; Continuation of the duty; Exceptions to disclosure; Materiality abuse of rights, 3.96 – 3.97 additional premium clauses, 3.58 adequate, 7.22 Page 703 affirm or avoid, election to, 17.61 allegations, 7.81 – 7.85 assignment, 4.37 , 4.45 , 13.11 , 13.13 avoidance, 3.16 , 4.34 , 4.36 , 4.42 , 16.37 , 16.40 , 16.28 , 16.53 binding authority, 1.28 brokers, independent and specific duty of, 13.46 , 13.75 , 13.81 , 13.86 burden of proof, 18.01 – 18.08 cancellation, 3.29 , 3.60 causation, 3.05 claims, 3.66 – 3.67 , 3.70 – 3.71 , 11.01 – 11.136 commercial contracts, 1.31 commission, 8.72 common law, 2.07 , 4.37 , 4.39 – 4.40 , 4.43 , 4.46 communications, 7.81 – 7.85 compromise of claims, 1.31 concealment, 2.04 conditions precedent, implied, 4.32 – 4.35 conduct, 2.04 confidentiality, 8.93 – 8.98 continuation of duty, 3.43 – 3.52 contracts, extension to all, 1.02 credit history, 2.11 – 2.12 damages, 4.44 – 4.48 , 16.148 – 16.158 degrees of, 3.28 , 3.80 directive on insurance contracts, proposal for, 5.13 – 5.14 equity, 4.31 , 4.43 facts, placing and, 7.49 – 7.56 fair presentation of, 6.18 , 7.05 – 7.06 , 7.23 , 8.52 , 8.68 family members, 2.25 fiduciaries, 2.06 , 2.33 – 2.37 floating policies, 3.78 forfeiture, 16.105 fraud, 3.96 – 3.101 , 4.18 , 4.30 , 4.36 , 4.38 , 4.45 , 11.15 , 12.13 full disclosure, 7.01 – 7.30 abuse of rights, 3.95 – 3.96 cancellation, 3.29 fraud, 3.101 purpose of duty and, 3.34 , 3.38 – 3.42 renewals, 3.61 salvage, 2.30 spouses, contracts between, 2.25 utmost good faith, 2.05 – 2.06 guarantees or surety contracts, 1.30 , 2.09 – 2.21 health, 15.18 – 15.20 held covered clauses, 3.58 identification of insurance contracts, 1.30 – 1.32 identification of property, 15.51 imperfect disclosure, 1.35 implied terms, 4.32 – 4.34 , 4.38 , 4.43 , 4.46 – 4.48 inducement, 14.95 – 14.98 , 14.101 – 14.109 Insurance Act 2015, 3.16 insurance policies, existence of other, 15.127 intelligence, 7.81 – 7.85 knowledge, 5.39 –5.40 7.68 – 7.146 , 8.12 – 8.48 Law Commission, 5.27 – 5.28 law merchant, 4.40 legal advisers, 13.96 – 13.97 Marine Insurance Act 1906, 6.07 , 8.01 – 8.05 materiality, 1.47 , 4.30 , 4.32 – 4.33 , 14.01 – 14.132 misrepresentation, 2.04 , 4.38 , 4.43 , 4.47 – 4.48 , 6.37 – 6.38 , 7.03 , 7.22 – 7.48 , 12.05 – 12.08 mistake at common law, mutual, 4.35 motor insurance, 6.28 – 6.30 , 13.101 mutuality, 3.93 natural law, 4.40 negotiations, 2.04 open cover, 1.24 , 1.52 , 1.54 opinions, 7.50 – 7.56 partnership agreements, 2.22 – 2.23 placing, 3.06 – 3.13 claims, 3.62 facts, 7.49 – 7.85 fraud, 12.13 full disclosure, 7.01 – 7.146 knowledge, 7.98 – 7.146 materiality, 1.48 , 3.22 misrepresentation, 7.03 , 7.22 – 7.48 , 12.05 – 12.08 modification of duty, 9.01 – 9.44 premiums, rating and fixing, 3.17 misrepresentation and, 7.03 , 7.22 – 7.48 post-contractual duty, 4.47 – 4.49 pre-contractual duty, 4.30 , 4.43 , 4.47 – 4.49 premiums, rating and fixing, 3.17 promissory terms, 4.36 prudent or reasonable underwriter, 14.18 – 14.57 questions, 9.44 reinsurance, 1.29 , 1.54 renewals, 3.61 , 5.21 , 10.41 representations implied, 7.37 – 7.45 law, of, 7.76 repudiation, 5.21 rumours, 7.81 – 7.85 salvage, 2.30 shares publicly offered, contracts for purchase of, 2.31 – 2.32 silence, 7.37 – 7.45 Page 704 social or policy view of good faith, 5.01 – 5.07 source of duty of utmost good faith, 4.30 – 4.50 spouses, contracts between, 2.25 strict duty, 3.22 termination, 3.48 , 3.50 – 3.52 , 3.81 unusual features, 2.18 utmost good faith, 2.03 – 2.07 variations, 10.22 , 10.24 waiver, 17.30 warranties, 4.36 Discovery avoidance, 1.45 marine insurance, 1.44 – 1.46 reasonable endeavours, 1.44 ship’s papers, 1.46 , 10.07 , 11.109 – 11.110 , 11.113 third parties, 1.44 – 1.47 Discrimination disability discrimination, 6.44 , 8.100 justification, 6.44 legislation, 6.43 – 6.44 , 8.100 materiality, 15.14 placing, 8.100 rating risks, 8.100 race discrimination, 6.44 , 8.100 , 15.14 sex discrimination, 6.44 , 8.100 Dishonesty see also Fraud allegations, 7.84 claims co-operation clause, 10.48 communications, 7.84 follow the settlements, 10.48 guarantees or surety contracts, 2.15 intelligence, 7.84 knowledge, 7.105 misrepresentation, 7.24 moral hazard, 15.26 – 15.27 , 15.30 – 15.44 , 15.49 opinions, 7.52 placing, 7.07 previous convictions, 15.30 – 15.38 purpose of duty of good faith, 3.36 , 3.39 rumours, 7.84 Double insurance, 15.126 Due diligence, 2.18 , 3.42 , 8.39 Duration of the duty see Continuation of the duty Duress, 12.39 , 16.164 Earlier policies or contracts, 16.71 EClaw see EU law Economic loss, 16.152 , 16.155 Election see Affirm or avoid, election to Electronic communications, 8.20 Endorsements, 3.56 , 10.23 , 16.62 , 17.117 – 17.118 Enquiries, 3.35 , 12.24 – 12.27 see also Questions affirm or avoid, election to, 17.58 – 17.59 , 17.62 , 17.64 basis clauses, 9.24 course of business, 3.17 , 7.131 , 12.20 , 12.24 , 12.30 databases, 12.26 , 12.29 due diligence, 8.39 identification of property, 15.52 inducement, 14.117 Internet, 12.26 knowledge, due diligence, 8.39 insurers, by, 8.32 , Lloyd’s, 12.30 market information, 12.26 , 12.32 ordinary course of business, 3.17 , 7.131 records, 12.31 seaworthiness, 8.77 waiver, 8.77 – 8.78 , 8.81 Law Commission, 5.18 Lloyd’s Casualty List, 12.26 , 12.30 Lloyd’s List, 12.26 , 12.27 , 12.30 Marine Insurance Act 1906, 12.32 market information, 12.26 , 12.32 materiality, 12.24 , 12.28 opinions, 7.53 , 12.23 ordinary course of business, 3.17 , 7.131 , 12.25 , 12.30 , 12.32 placing, 8.04 – 8.05 public domain, information in the, 12.29 reasonableness, 12.25 records, 12.31 reservation of rights, 17.166 risk assessment, 12.24 – 12.37 seaworthiness, 8.77 waiver, 8.51 , 8.65 , 8.69 – 8.74 , 8.78 – 8.79 , 8.81 warranties, 8.89 , 8.91 Entire contracts, 3.64 , 3.85 , 11.100 , 11.102 Equities, assignees subject to, 13.08 – 13.20 , 13.24 Equity account of profits, 16.11 avoidance, 4.57 – 4.60 , 16.33 – 16.34 , 16.64 , 16.90 , 16.92 – 16.95 Chancery, 16.09 common law, 4.14 , 4.62 , 16.07 – 16.12 damages, 16.146 – 16.147 , 16.159 , 16.164 estoppel, 17.120 fraud, 4.18 , 4.20 – 4.22 Judicature Acts, 16.09 Page 705 jurisdiction, 16.06 , 16.13 laches, 17.159 law merchant, 4.05 , 4.15 misrepresentation, 4.25 , 4.27 – 4.28 non-disclosure, 4.31 , 4.43 precedent, 16.10 procedure, 16.09 remedies, 4.31 , 4.54 – 4.60 , 16.09 – 16.13 source of duty of utmost good faith, 4.15 , 4.62 unconscionability, 17.10 – 17.13 Error and omission clauses, 16.84 Estoppel see also Promissory estoppel affirm or avoid, election to, 17.67 , 17.86 – 17.87 , 17.97 avoidance, 16.61 caveat emptor , 1.09 equitable, 17.120 representation, by, 17.35 – 17.38 , 17.41 waiver, 8.50 – 8.50 , 17.36 – 17.38 , 17.41 EU law Directive on insurance contracts (1979), proposal for, 5.12 – 5.16 non-disclosure, 4.50 proportionality, 5.08 self-incrimination, 8.100 unfair contract terms, 6.354 6.57 Evidence, 18.01 – 18.16 see also Experts best evidence, 1.48 burden of proof, 18.01 – 18.08 criminal charges, 15.44 diminution of risk, 8.09 – 8.10 documentary, 18.15 inducement, 14.114 – 14.116 , 18.16 insurers, 13.37 , 13.44 – 13.45 , 18.16 issue of policies, 12.40 materiality, 18.15 moral hazard, 15.40 records, 18.15 representations, effect of, 18.16 standard of proof, 18.09 testimony of parties, 18.15 – 18.16 Exaggerated and excessive claims, 3.63 – 3.64 avoidance, 11.63 , 16.49 co-assured, 13.30 degree of exaggeration, 11.61 – 11.64 formation of contract, 11.120 fraudulent claims, 11.38 , 11.44 , 11.54 – 11.64 fraudulent claims clauses, 11.102 genuine elements of claims, 11.59 , 11.63 ‘horse trading’, 11.64 initially honest claims, 11.84 – 11.86 knowledge, 11.45 misrepresentation, 11.55 – 11.57 negotiations, 11.57 , 11.64 pre-contractual misrepresentation, 11.56 quantum of claim, 11.54 – 11.55 spin, 11.64 substantial fraud, 11.60 – 11.64 types, 11.58 Examples of material facts see Material facts, examples of Exceptions to disclosure burden of proof, 18.05 confidentiality, 8.93 – 8.98 conflicting duties, 8.93 – 8.98 diminution of risk, 8.06 – 8.11 discrimination, 8.100 enquiries, 8.04 – 8.05 fraud, 7.16 – 7.17 inducement, 8.04 knowledge, 8.01 , 8.12 – 8.48 late, information received too, 8.102 – 8.105 , law reform, 5.17 list of, 8.03 Marine Insurance Act 1906, 8.01 – 8.05 materiality, 8.01 – 8.04 misrepresentation, 8.04 – 8.05 motor insurance, 6.30 placing, 8.01 – 8.105 rehabilitation of offenders, 8.99 self-incrimination, privilege against, 8.100 waiver, 8.49 – 8.83 warranties, 8.04 , 8.84 – 8.92 Excess of loss reinsurance, 15.119 Excessive claims see Exaggerated and excessive claims Exemption clauses avoidance, 16.83 – 16.89 burden of proof, 16.89 error and omission clauses, 16.84 fraud, 16.84 – 16.86 , 16.89 gains, 16.89 materiality, 16.83 – 16.84 misrepresentation, 16.83 – 16.89 unfair contract terms, reasonableness and, 16.87 warranties, 16.88 Experts, 18.10 – 18.14 course of business, 18.13 custom, 18.13 diminution of risk, 8.09 – 8.10 impartiality, 18.11 investigations, 12.50 juries, 18.12 knowledge, 18.13 Marine Insurance Act 1906, 18.13 market practice, 18.13 – 18.14 materiality, 15.133 , 18.10 , 18.12 – 18.14 objectivity, 18.10 Page 706 opinions, 18.11 prudent underwriters, 14.23 , 18.11 reasonableness, 18.10 trade usage, 18.13 waiver, 18.14 warranties, 9.16 Explanations, 12.38 – 12.42 affirm or avoid, election to, 17.65 brokers, 12.38 , 12.42 common law, 12.37 , 12.39 consumers, 12.39 duress, 12.39 facts, 17.65 hardship, 12.40 insurers, 12.38 – 12.42 knowledge, 17.65 materiality, 12.41 terms, duty to explain, 12.38 – 12.42 undue influence, 12.39 unfair contract terms, 12.39 Extent of duty of good faith, 3.14 Facts see also Material facts, examples of accuracy, 9.16 affirm or avoid, election to, 17.57 – 17.66 , 17.71 , 17.74 – 17.75 , 17.80 allegations, 7.81 – 7.85 assumptions on, incorrect, 3.18 communications, 7.81 – 7.85 conduct, promises of future, 7.70 – 7.75 explanations, 17.65 fears, 7.64 – 7.69 inferences, 7.64 – 7.69 intelligence, 7.81 – 7.85 intention, 7.70 – 7.75 knowledge, affirm or avoid, election to, 17.57 – 17.66 , 17.71 , 17.74 – 17.75 , 17.80 knowledge, 17.57 – 17.66 , 17.71 , 17.74 – 17.75 , 17.80 promissory estoppel, 17.124 – 17.129 law, representations of, 7.76 – 7.76 new, discovery of, 7.121 opinions or beliefs, statements of, 7.50 – 7.56 placing, 7.49 – 7.56 promissory estoppel, 17.124 – 17.129 representations, 7.76 – 7.80 rumours, 7.81 – 7.85 speculations, 7.64 – 7.69 Facultative reinsurance, 10.45 , 15.119 False or misleading representations ambiguity, 7.89 , 7.90 basis clauses, 9.06 causes of action, 7.86 clear, natural and ordinary meaning, 7.89 , 7.90 criminal offences, 6.51 – 6.52 de minimis rule, 7.95 existence of representation, 7.90 false impressions, 7.86 , 7.90 incomplete representations, 7.90 inducement, 1.09 industry or market practice, 7.90 interpretation, 7.90 Marine Insurance Act 1906, 7.94 materiality, 7.93 – 7.96 meaning of representation, 7.88 – 7.91 misrepresentation, 7.86 , 7.93 , 7.97 motor insurance, 6.17 , 7.89 objectivity, 7.87 proof, 7.92 questions put to the assured, meaning of, 7.88 – 7.89 reasonableness, 7.89 , 7.90 substantial truth, 7.93 , 7.59 – 7.96 trivial falsity, 7.93 , 7.95 vagueness or obscurity, 7.89 , 7.90 variance from the truth, 7.92 – 7.96 Family members disclosure, duty of full, 2.25 family provision, 2.27 intention to create legal relations, 2.26 materiality, 2.26 settlements between, 2.25 – 2.28 Fears, 7.64 – 7.69 Fidelity policies, 2.20 , 3.51 Fiduciaries advice, 2.36 associations, 2.37 brokers, 2.36 , 13.85 categories of, 2.35 club insurance, 2.37 conflicts of interest, 2.34 damages, 16.147 disclosure by, 2.06 , 2.25 – 2.28 mutual insurance, 2.37 opinions, 2.36 partnership agreements, 2.22 – 2.23 professional advice, 2.36 shares publicly offered, contracts for purchase of, 2.31 utmost good faith, 2.06 , 2.34 – 2.37 Financial history and practices fraud, 15.24 knowledge, 15.24 materiality of, 15.23 – 15.24 records, 15.23 security devices, 15.23 Financial Ombudsman Service, 5.23 Fire insurance Page 707 application of duty of good faith, 1.33 burden of proof, 18.03 history, insurance, 15.102 waiver, 8.58 Floating policies application of duty of good faith, 1.34 declarations, 1.53 , 3.78 disclosure, 3.78 fraud, 3.78 identification of property, 15.55 marine insurance, 1.53 Marine Insurance Act 1906, 6.07 obligatory, as being, 1.53 performance, 10.58 termination, 3.49 time of making, 1.49 , 1.53 value, declarations of, 1.53 Follow the settlements clauses, 10.52 Following underwriters, 13.36 – 13.48 Foreign law, 7.80 , 15.121 Foreseeability, 16.150 – 16.152 , 16.158 Forfeiture, 16.105 – 16.121 arbitration agreements, 17.103 avoidance, 16.113 – 16.118 contractual right, 16.105 – 16.107 fraud, 11.121 , 11.126 – 11.129 , 16.48 , 16.55 relief, against, 16.120 brokers, 13.78 claims, 11.118 – 11.119 common law, 16.115 – 16.116 consumer contracts, 16.107 contractual right, absence of express, 16.108 – 16.119 damages, 16.111 entire contracts, 11.100 , 11.102 fraudulent claims, 11.08 , 11.100 , 11.102 , 11.121 , 11.126 – 11.129 16.48 , 16.55 , 16.105 – 16.121 fraudulent devices, 11.73 genuine part of claim, 11.129 implied terms, 16.114 jurisdiction, 16.122 , marine insurance, 16.113 Marine Insurance Act 1906, 16.113 materiality, 14.122 meaning, 11.129 misrepresentation, 16.105 , 16.1124, 16.114 non-consumer contracts, 16.107 non-disclosure, 16.105 penalties, 16.106 placing, 16.118 post-contractual duty, 16.118 premiums, 16.106 relief against forfeiture, 16.120 – 16.121 remedies, 11.118 – 11.119 , 11.1261– 11.129 repudiation, 16.111 termination, 16.101 transparency requirements, 16.107 utmost good faith, 11.118 – 11.119 , 11.126 – 11.129 void contracts, 11.128 , 16.106 Formation of contract acceptance, 10.10 , 10.12 benefit, of all, 11.126 –11.12914 consideration, 1.11 , 10.10 continuing duty, 10.12 exaggerated claims, 11.126 insurance policies, before issuing of, 10.13 intention to create legal relations, 1.11 , 10.10 life insurance, 10.12 Lloyd’s, 10.11 materiality, 10.09 , 10.12 , 10.26 misrepresentation, 10.09 negotiations, 10.09 – 10.10 non-consumer contracts, 10.26 offer, 10.10 post-contractual duty, 10.08 – 10.14 premiums, acceptance of, 10.12 proposal forms, 10.11 relevance to formation, 1.06 slips, initialling, 10.11 , 10.14 utmost good faith, 10.09 variation of contracts, 10.09 , 10.14 Fraud, 3.14 , 3.15 , 3.64 – 3.72 , 10.49 see also Agents, fraud of; Fraud, materiality and; Fraudulent claims; Fraudulent devices abuse of rights, 3.96 – 3.97 additional premium clauses, 11.66 – 11.68 advice, 11.86 affirm or avoid, election to, 17.01 , 17.59 , 17.66 , 17.93 , 17.107 assignees, 13.11 assured, identity of, 15.06 avoidance, 3.68 , 3.71 , 3.76 , 3.101 – 3.102 , 16.64 – 16.65 bad faith, 3.96 breach of duty, 4.29 brokers, 3.92 , 7.16 , 13.78 , 15.123 burden of proof, 6.34 , 7.18 , 18.02 – 18.04 , 18.06 – 18.08 claims co-operation clause, 10.47 co-assured, 13.30 common law, 4.18 – 4.24 , 16.13 compromise, 3.76 concealment, 3.98 , 7.17 conspiracy to defraud, 13.78 constructive, 4.19 , 4.22 course of business, 13.56 Page 708 criminal offences, 6.52 damages, claims, 3.66 , 10.50 , 11.134 – 11.136 , 16.127 – 16.131 , 16.147 duty of care, 16.151 misrepresentation, 7.15 , 12.7 , 16.127 – 16.131 , 16.141 , 16.156 moral, 16.129 placing, 12.07 deceit, 4.20 – 4.21 , 4.23 deemed, 71.133 disclosure, 3.96 – 3.101 duty of care, 16.151 engine of fraud, good faith as an, 3.96 – 3.103 equity, 4.18 – 4.22 exceptions, 7.16 – 7.17 exemption clauses, 16.84 – 16.86 financial history and practices, 15.24 floating policies, declarations and, 3.78 forfeiture, 16.105 – 16.121 hardship, 3.99 identity of the assured, 15.06 inducement, 3.73 , 7.17 – 7.18 , 14.110 , 14.113 intention, 4.20 jurisdiction, 4.19 , 4.22 , knowledge, 7.98 – 7.146 13.53 – 13.60 , 15.1123 law merchant, 4.11 legal advisers, 13.97 liability insurers, control of proceedings and, 3.78 marine insurance, 7.16 , 7.18 misrepresentation, 7.15 – 7.21 avoidance, 16.64 – 16.65 breach of duty, 4.29 burden of proof, 6.34 co-assured, 13.30 damages, 16.127 – 16.131 , 16.141 , 16.156 fraudulent, 7.02 , 7.15 – 7.21 , 12.07 – 12.08 , 13.30 inducement, 14.17 , 14.122 knowledge, 7.98 , 7.107 non-disclosure, 3.99 , 4.18 placing, 7.02 , 7.15 – 7.21 , 12.07 – 12.08 remedies, 4.52 – 4.54 , 4.56 , 16.64 – 16.65 moral, 16.129 moral hazard, 15.26 – 15.28 mutuality, 3.92 , 3.95 non-disclosure, 3.99 , 4.18 , 4.30 , 4.36 , 4.38 , 4.45 notice provisions, 3.78 open cover, declarations and, 3.78 ordinary course of business, 13.56 performance, 10.54 – 10.61 placing, 3.06 – 3.07 , 7.02 , 7.15 – 7.21 , 12.07 – 12.08 , 12.13 pleadings, 18.08 post-contractual, 3.64 – 3.79 , 4.18 – 4.24 , 10.07 , 10.15 – 10.18 pre-contractual duty, 3.53 , 4.18 – 4.24 premiums, recovery of, 7.15 prevention of, 3.33 – 3.34 , 3.39 promissory estoppel, 17.131 proof, 7.18 , 7.20 questions, 9.41 reasonableness, 3.96 , 3.99 reinsurance contracts, 4.19 reliance, 7.15 remedies, 4.52 – 4.54 , 4.56 , 16.64 – 16.65 renewals, 10.42 representations of law, 7.78 restitution, 16.122 social or policy view of good faith, 5.02 source of duty of utmost good faith, 4.11 , 4.18 – 4.24 standard of proof, 18.09 subrogation, 10.53 substantial, 7.14 , 11.60 – 11.64 technical, 4.19 termination, 13.03 , 16.101 underwriters, 3.96 , 3.99 valuation, 15.86 , 15.89 – 15.96 waiver, 17.31 warranties, 9.17 Fraud, materiality and, 7.16 – 7.21 avoidance, 16.43 , 16.46 , 16.55 claims, 14.116 – 14.124 devices, 11.74 –11.830, 14.123 facts, examples of, 15.123 inducement, 14.73 , 14.124 insurers, 14.127 – 14.128 knowledge, 14.120 Law Commission, 1.38 Marine Insurance Act 1906, 3.71 , 3.73 , 14.17 misrepresentation, 14.10 , 14.17 , 14.45 , 14.73 , 14.122 placing, 12.15 , 14.127 post-contractual duty, 11.42 recklessness, 14.120 substantial fraud, 11.40 – 11.41 Fraudulent claims, 11.06 , 11.36 – 11.77 see also Avoidance or rescission of fraudulent claims; Fraudulent claims clauses abandonment, notice of, 11.115 advice, 11.86 agents, 11.95 – 11.98 , 13.62 – 13.64 , 16.46 alter egos, 11.95 Page 709 assured, identity of the, 11.91 – 11.98 , 13.63 – 13.64 burden of proof, 11.43 claims control clauses, 3.78 co-assured, 11.94 common law, 16.49 companies, 11.91 – 11.92 , 11.95 compromise, 3.76 , 12.51 concealment, 11.87 – 11.89 , 16.38 consent, 11.120 , 16.54 consequences of, 11.07 continuation of duty, 11.105 – 11.116 co-operation, 11.18 corporate assured, 11.91 – 11.92 , 11.95 culpability, 11.32 – 11.33 damages, 3.66 , 10.50 , 11.133 – 11.134 , 16.127 – 16.131 , 16.147 declining claims without avoidance, 16.48 – 16.51 defence to claims, insurers’, 11.45 , 11.49 – 11.53 deterrence, 11.16 – 11.17 disclosure, 11.15 discretion, 16.94 – 16.95 documentation, 11.109 enquiries, 11.18 exaggerated and excessive, 3.64 – 3.65 , 11.38 , 11.45 , 11.54 – 11.64 , 11.76 , 11.84 false statements, 11.05 , 11.37 – 11.38 forfeiture, 11.08 , 11.76 , 11.100 , 11.102 , 11.121 , 11.126 – 11.129 16.48 , 16.55 , 16.105 – 16.121 fraudulent claims clauses, 11.99 – 11.104 fraudulent devices, 11.42 , 11.45 – 11.47 , 11.65 – 11.74 – 11.83 inducement, 3.73 , 11.28 , 11.38 , 11.81 information, 11.15 , 11.18 , 11.23 , 11.38 initially honest claims, 11.84 – 11.86 intention, 11.38 invented losses, 11.48 investigations, 11.18 , 12.50 knowledge, 11.37 – 11.38 , 11.45 , 11.85 , 13.62 – 13.64 Law Commission, 5.27 liability, establishment of, 11.106 litigation, commencement of, 11.78 , 11.108 – 11.111 , 11.116 , 12.54 – 12.56 loss suffered, when, 11.79 marine insurance, 11.08 – 11.09 , 11.113 , 11.115 Marine Insurance Act 1906, 11.09 , 11.108 , 11.110 misrepresentation, avoidance, 16.64 – 16.65 compromise, 3.76 culpable, 11.32 defences to claims, insurers, 11.49 – 11.53 utmost good faith, 11.28 , 11.38 negligence, 11.27 , 11.32 negotiations, 11.108 post-contractual duty, 11.42 , 16.55 pre-contractual duty, 11.108 , 11.108 premiums, calculation of, 12.53 presentation of claims, 11.07 , 11.102 , 11.105 – 11.107 , 12.49 – 12.50 prevention of fraud, 11.123 proof, 11.43 public policy, 11.72 , 11.103 public purpose, 11.122 pure fraud, 11.48 recklessness, 11.37 – 11.38 rejection of claim, 11.108 , 11.111 , 12.51 , 12.54 , 12.56 remedies, 16.27 – 16.29 repudiation, 3.66 , 11.133 , 11.135 restitution, 16.64 – 16.65 , 16.68 retrospectivity, 11.120 risk, 11.81 ship’s papers, discovery of, 11.109 – 11.110 , 11.113 standard of proof, 11.43 substantial fraud, 11.40 – 11.42 suspicion, 11.85 termination, 3.81 – 3.82 , 10.69 trivial fraud, 11.40 types, 3.75 , 11.44 – 11.83 utmost good faith, 3.75 , 11.28 , 11.38 void contracts, 16.38 – 16.40 wilful blindness, 11.85 wilful misconduct, 11.48 withdrawal, 11.90 Fraudulent claims clauses, 11.99 – 11.104 co-assured, 11.101 composite insurance, 11.101 consumer contracts, 11.104 effect of, 11.100 – 11.104 exaggerated claims, 11.102 forfeiture of entire contract, 11.100 , 11.102 interpretation, 11.100 – 11.102 , 11.104 liability insurance, 11.99 marine insurance, 11.102 property insurance, 11.99 reasonableness, 11.104 recklessness, 11.102 retrospectivity, 11.100 unfair contract terms, 11.104 void contracts, 11.99 – 11.102 Fraudulent devices, 11.65 – 11.83 additional premiums, 11.66 – 11.68 avoidance, 10.61 , 11.70 Page 710 forfeiture, 11.73 genuine claims, support of, 11.68 inducement, 11.73 Insurance Act 2015, 11.130 – 11.132 materiality, 11.42 , 11.73 nature of duty of good faith, 3.73 – 3.74 , premiums, additional, 11.66 – 11.68 public policy, 11.72 recklessness, 11.68 remedies, 11.65 types of fraudulent claims, 11.44 – 11.47 war risks insurance, 11.66 – 11.67 warranties, breach of, 11.69 – 11.70 Freedom of information, 6.45 – 6.46 Full disclosure, 3.29 , 3.96 , 3.101 General obligation in all contracts, 1.03 Genuine part of claims agents, 11.97 avoidance, 16.49 exaggerated and excessive claims, 11.60 , 11.64 forfeiture, 11.118 fraudulent devices, 11.68 Global affairs, knowledge of, 8.18 – 8.19 Greatest good faith, 1.03 Group insurance, 13.33 – 13.35 Guarantees or surety, contracts of, 3.42 avoidance for misrepresentation, 2.13 banks, 2.11 , 2.20 concealment, 2.12 continuing duty of good faith, 2.21 credit history, disclosure of, 2.11 – 2.12 disclosure, 1.30 , 2.09 – 2.21 dishonesty, 2.15 due diligence, 2.18 fidelity guarantees, 2.20 inquiry, put on, 2.09 insurance contracts, characterisation of, 1.22 ‘intrinsic circumstances’, 2.16 materiality, 2.17 , 2.19 misrepresentation, 2.10 , 2.13 – 2.15 unusual features, disclosure of, 2.18 , 2.19 utmost good faith, 2.09 – 2.21 Hardship, 3.99 , 12.40 , 16.164 Hazard see Moral hazard Health basis clauses, 15.20 disclosure, extent of, 15.18 – 15.20 materiality, 15.02 , 15.18 – 15.20 medical records, 6.45 , 7.121 , 12.21 prudent or reasonable underwriter, 15.19 warranties, 15.19 – 15.20 Held covered clauses additional premium clauses, 3.59 additional terms, 10.27 adjustment of obligations, 3.58 , 10.27 – 10.31 breach of, 3.58 conditions precedent, 3.59 descriptive warranties, 3.58 disclosure, 3.58 marine insurance, 10.27 – 10.30 materiality, 14.60 misrepresentation, 10.29 notice, 3.59 , 10.27 , 10.30 post-contractual duty, 10.27 – 10.31 pre-contractual duty, 3.58 premiums, payment of additional, 3.58 , 10.30 promissory warranties, 3.58 utmost good faith, 3.58 Hire purchase, 15.60 Historical background, 1.01 – 1.02 , 4.02 – 4.17 History of assured, 15.100 – 15.110 basis clause, 15.107 businesses, identity of, 15.102 claims experience, 15.100 – 15.105 companies, predecessor, 15.104 credit history, 2.11 – 2.12 financial history and practices, 15.23 – 15.24 fire insurance, 15.102 identity of the assured, 15.06 , 15.08 life insurance, 15.107 – 15.108 loss experience, 8.60 , 8.73 , 15.100 – 15.105 , 15.113 marine insurance, 15.106 , 15.107 materiality, 15.100 – 15.110 questions, prior refusals and, 15.108 property, 15.101 – 15.103 refusals, prior, 15.106 – 15.110 reinsurance, 15.113 risk assessment, 15.100 – 15.101 underwriters, reaction of, 15.106 – 15.110 Honour, 1.03 , 2.22 , 5.01 House insurance age of goods, 15.56 co-insurers, 13.36 squatters, knowledge of, 8.29 waiver, 8.60 Household insurance, 1.39 Identification see Identification of insurance contracts; Identification of property; Identity of assured Identification of insurance contracts, 1.22 – 1.32 binding authorities, nature of, 1.28 classification of contract, 1.22 compromise of claims, 1.31 Page 711 definition of insurance contract, 1.22 disclosure, 1.30 – 1.32 duties, 1.24 guarantee, contracts of, 1.22 indemnities, 1.22 , 1.29 premiums, 1.22 reinsurance, contracts for, 1.24 risk, evaluation of, 1.25 substantial character of insurance contracts, 1.25 , 2.05 substantive purpose of contracts, 1.22 utmost good faith, 1.23 , 1.25 , 1.27 , 1.31 – 1.32 war risks policies, 1.27 Identification of property enquiries, 15.52 floating policies, 15.55 marine insurance, 15.53 – 15.55 Marine Insurance Act 1906, 15.55 misrepresentation, 15.51 – 15.54 non-disclosure, 15.51 vessels, 15.53 – 15.54 waiver, 15.52 Identity of assured brokers, 15.09 businesses, 15.102 claims, 11.91 – 11.98 fraud, 11.91 – 11.98 , 13.61 , 15.06 history, insurance, 15.06 , 15.08 marine insurance, 15.06 materiality, 15.06 – 15.09 proposers, 15.08 reinsurance, 15.117 risk assessment, 15.06 Illegality avoidance, 16.64 English law, 15.122 foreign law, 15.121 fraud, 16.64 marine insurance, breach of warranty and, 15.122 materiality, 15.121 – 15.122 moral hazard, 15.122 previous convictions, 15.32 representations of law, 7.76 – 7.80 warranties, 15.122 Implied representations another representation, by, 7.32 assured, by, 7.31 conduct, 7.31 , 7.32 form, 7.31 intention, 7.72 knowledge, 7.31 misrepresentation, 7.31 – 7.34 , 7.37 – 7.45 non-disclosure, 7.37 – 7.45 opinions, 7.49 – 7.56 oral representations, 7.31 performance, 7.34 silence, 7.37 – 7.45 written, 7.31 Implied terms claims, 10.50 – 10.51 , damages, 11.134 , 16.143 – 16.144 forfeiture, 16.115 inducement, 14.122 materiality, 14.122 non-disclosure, 4.32 – 4.34 , 4.38 , 4.43 , 4.46 – 4.48 payment of claims, 12.58 – 12.59 post-contractual duty, 10.06 Inactivity see Delay, silence or inactivity Indemnities characterisation of insurance contracts, 1.22 identification of insurance contracts, 1.22 , 1.29 late payment, damages for, 5.30 reinsurance, 1.29 restitution, 16.123 Inducement actual risk, reference to the, 14.112 affirm or avoid, election to, 17.64 application of the duty of utmost good faith, 1.35 avoidance, 14.104 , 16.41 , 16.43 , 16.75 – 16.76 bad faith, 14.92 basis clauses, 9.06 , 9.09 , 9.15 , 9.19 breach of duty, 14.92 , 14.97 burden of proof, 14.113 – 14.114 , 14.116 , 18.06 causation, 3.05 , 14.91 , 14.107 – 14.108 claims, 3.73 co-insurers, 13.38 , 13.46 concealment, 1.02 , 14.93 – 14.98 , 14.108 Consumer Insurance (Disclosure and Representations) Act 2012, 14.105 continuation of duty, 3.44 contributing influence test, 14.99 damages, 16.129 , 16.136 , 16.164 enquiries, 14.107 , 14.117 evidence, 14.114 – 14.116 , 18.16 false representations, 1.02 fraud, 7.17 – 7.18 , 14.110 , 14.1113 avoidance, 16.41 , 16.43 , 16.75 claims, 3.73 , 11.28 , 11.38 devices, 11.74 – 11.83 implied terms, 14.122 incredible statements, 14.112 inference, 14.110 – 14.114 , 14.116 Insurance Act 2015, 14.105 Page 712 insurance policies, existence of other, 15.127 insurers, 14.99 , 14.115 , 14.127 , 14.131 – 14.132 marine insurance, 14.97 – 14.99 Marine Insurance Act 1906, 14.97 – 14.99 , 14.101 – 14.105 materiality, 14.05 – 14.09 , 14.65 – 14.71 , 14.81 , 14.92 – 14.111 fraudulent misrepresentation, 14.17 , 14.122 implied terms, 14.122 insurers, 14.127 , 14.131 – 14.132 misrepresentation, 14.02 , 14.17 , 14.88 – 14.90 14.122 motor insurance, 14.46 prudent or reasonable underwriter, 14.68 misrepresentation, basis clause, 9.19 caveat emptor , 1.09 damages, 6.36 equity, 4.27 fraud, 14.17 , 14.122 materiality, 14.02 , 14.17 , 14.88 – 14.90 14.122 placing, 14.91 , 14.95 – 14.97 , 14.100 – 14.105 , 14.109 qualifying, 14.105 reliance, 14.01 remedies, 4.51 motor insurance, 14.46 , 14.97 mutuality, 3.90 negligence, 14.111 , 14.117 non-disclosure, 14.95 – 14.98 , 14.102 – 14.109 objectivity, 14.92 opinions, 14.92 , 14.98 placing, 7.08 , 8.04 , 12.15 , 12.17 , 12.22 , 14.91 – 14.117 pre-contractual duty, 14.96 , 14.102 presumption or inference, 14.110 – 14.117 , 18.16 proof, 14.97 , 14.99 , 14.106 – 14.117 prospectuses, 14.95 prudent or reasonable underwriter, 14.68 , 14.92 , 14.98 , 14.111 – 14.115 real and substantial cause, 14.108 reliance, 14.107 remedies, 4.51 renewals, 10.43 risk assessment, 14.94 risk, reference to the actual, 14.112 sue and labour, 14.113 termination, 13.03 unconscionability, 17.11 waiver, 14.113 withholding information, 1.02 Inferences, 14.110 – 14.117 facts, 7.64 – 7.69 knowledge, 8.75 , 8.79 – 8.81 opinions, 7.69 reliance, 14.110 Information agents, 8.102 – 8.105 , 13.72 – 13.73 , 13.89 brokers, 8.92 – 8.93 , 13.74 , 13.77 , 13.79 , 13.82 – 13.88 claims, 11.04 – 11.06 confidentiality, 8.93 – 8.98 fraud, 11.15 , 11.18 , 11.23 , 11.38 freedom of, 6.45 – 6.46 further, 8.96 , 17.100 insurers, 15.120 late, provided too, 8.102 – 8.105 , 13.82 materiality, 15.120 occurrence of loss or insured peril, 15.120 only, for, 7.47 personal duties, 13.88 professional advice, 15.120 prudent or reasonable underwriter, 14.41 public domain, in the, 12.29 sources of, 3.35 Third Parties (Rights against Insurers) Act 1930, 13.100 updated, 13.82 withholding, 1.02 Injunctions, 16.146 Innominate terms, 10.46 – 10.47 Inquiries see Enquiries Insolvency, 13.98 , 13.100 Insurable interests assignees, 13.07 , 13.11 , 13.19 co-assured, 13.07 , 13.26 – 13.30 law merchant, 4.07 life insurance contracts, 15.22 materiality, 15.21 – 15.22 , 15.59 meaning, 15.21 ownership, 15.59 – 15.60 , 15.63 vessels, in, 15.63 Insurance Act2015, 6.04 , 6.17 – 6.24 agents 13.61 application, 1.22 , 6.18 assured’s concerns, 15.25 avoidance, 10.61 – 10.66 , 11.21 , 16.14 – 16.31 basis clauses, 9.27 – 9.33 breach of warranty, 9.33 burden of proof, 18.06 claim handling by insurer, 10.51 conditions precedent, 9.30 prohibition, 9.28 – 9.29 promissory warranties, 9.32 truth, 9.31 confidentiality, 8.97 Page 713 contracting out, 6.22 , 6.24 , 12.60 deemed knowledge, 7.137 – 7.138 , 8.45 – 8.48 dereliction of duty, 13.60 diminution of risk, 8.09 disclosure, 1.21 fair presentation, duty of, 6.18 , 8.52 , 8.68 force, in, 1.02 fraud, 6.23 held-covered clauses, 10.31 implied term, 6.21 inducement, 14.105 insurer’s duty, 12.02 – 12.04 introduction, 1.19 knowledge 6.18 imputed 7.128 – 7.129 insured, of, 6.18 insurer, of, 6.18 late information, 8.102 – 8.105 marine insurance, 6.17 materiality, 8.16 – 8.17 , 10.26 , 14.87 modification of duty of disclosure, 9.03 non-marine insurance, 6.17 payment of claims, 6.21 – 6.22 , 12.57 – 12.61 placing, 8.01 , 8.05 , 12.23 promissory warranties, 6.20 qualifying duty of utmost good faith, 1.05 , 1.12 , 6.17 reforms introduced, 5.40 remedies, 1.06 , 6.18 , 11.130 – 11.132 , 16.14 – 16.31 termination, 16.102 unfair presentation of risk by assured, 16.17 – 16.26 utmost good faith, 10.02 warranties, breach of, 17.21 – 17.52 Insurance Conduct of Business Sourcebook, 5.25 , 6.15 – 6.16 Insurance claims see Claims Insurance instruments, 1.48 – 1.54 Insurance market application of the duty of utmost good faith, 1.33 – 1.54 assignees, 13.14 brokers, 13.86 enquiries, 12.26 , 12.32 experts, 18.13 – 18.14 false or misleading representations, 7.90 issue of policies, 12.46 knowledge, 7.108 – 7.110 , 8.41 – 8.48 market practice and customs, assignees, 13.14 brokers, 13.86 knowledge, 7.115 , 8.41 – 8.48 materiality, 15.133 nature of duty of utmost good faith, 3.20 placing, 9.01 prudent or reasonable underwriter, 14.29 risk assessment, 12.34 waiver, 8.83 Insurance Ombudsman, 5.22 – 5.24 consumer, meaning, 5.25 damages, 5.23 Dispute Resolution Rules, 5.23 – 5.24 establishment of, 5.23 Financial Ombudsman Service, 5.23 Lloyd’s, 5.23 Insurance policies see also Floating policies affirm or avoid, election to, 17.110 – 17.114 best evidence, 1.48 co-assured, 13.26 conduct, 17.110 – 17.114 development of, 4.08 earlier, 16.71 fidelity, 3.51 issuing, 12.43 – 12.47 , 17.110 – 17.114 margins of policies, 7.47 other policies, existence of, 15.124 – 15.128 refusal to issue, 16.104 replacement of, 17.113 stamped, 12.40 types, 1.33 – 1.54 voyage, 15.74 – 15.75 , 15.77 war risks, 1.27 Insured see Assured Insurers agents, 13.50 , 13.65 , 13.89 – 13.92 avoidance, 16.42 , 16.77 , 16.79 brokers, 13.76 burden of proof, 18.01 – 18.08 changes in law, 12.02 claims reasonable time, 12.58 , 16.30 – 16.31 , 7.105 – 7.106 treatment and investigation of, 12.49 – 12.61 co-insurers, 16.77 , 16.79 duty, 12.01 – 12.61 enquiries, insurer’s own, 12.24 – 12.37 explain the policy terms, duty to, 12.38 – 12.42 inducement, 14.17 , 14.88 – 14.90 14.99 , 14.115 materiality and, 14.127 , 14.131 – 14.132 information, 15.120 investigation of claims, 12.45 – 12.61 issue the policy, duty to, 12.43 – 12.47 knowledge, 8.12 –8.487, 8.75 – 8.82 , 14.126 materiality, 12.01 , 14.84 – 14.87 , 14.126 – 14.132 Page 714 mutuality, 12.01 placing, 12.05 – 12.23 , 14.126 – 14.132 post-contractual duty, 12.48 risk assessment, 12.24 – 12.37 social or policy view of good faith, 5.03 – 5.04 unconscionability, 17.09 – 17.18 variation, 10.21 , 14.84 – 14.87 Intelligence see Rumours, allegations, communications and intelligence Intention affirm or avoid, election to, 17.88 basis clauses, 9.06 change of intention, 7.70 current intention, 7.70 facts, 7.70 – 7.75 fraud, 4.19 – 4.20 , 11.38 implied representations, 7.72 knowledge, 17.88 legal relations, to create, 1.11 , 2.26 , 10.10 materiality, 7.70 , 7.73 – 7.75 placing, 3.07 promises of future conduct, 7.70 , 7.72 – 7.75 representations, 7.70 – 7.75 third parties, 7.74 – 7.75 use, 15.68 warranties, continuing, 7.73 Intention to create legal relations, 1.11 , 2.26 , 10.10 International law, 4.03 International trade, 4.04 , 4.07 , 13.24 Internet, 8.02 , 12.26 Invented losses, 11.48 Investigations advice, 12.50 affirm or avoid, election to, 17.68 avoidance, 12.50 –20.51 claims, 3.62 , 3.66 , 3.76 , 3.95 , 11.04 , 12.49 – 12.61 co-operation, 12.50 experts, 12.50 fraud, 11.18 , 12.50 – 12.51 knowledge, 3.62 marine insurance, 12.44 mutuality, 3.95 questions, 12.50 reasonableness, 12.56 – 12.57 ship’s papers, discovery of, 3.76 utmost good faith, 3.76 Issuing policies affirm or avoid, election to, 12.47 , 17.110 – 17.114 avoidance, 12.41 breach of duty, 12.46 – 12.47 conduct, 17.110 – 17.114 continuity of the duty, 12.45 duty to, 12.43 – 12.47 evidence, 12.44 formation of contract, 10.12 insurer’s duty, 12.43 – 12.47 marine insurance, 12.44 market practice, 12.46 materiality, 12.43 slips, signing of the, 12.43 – 12.46 stamped policies, 12.44 Joint insurance avoidance, 16.78 co-assured, 11.94 , 13.26 – 13.29 , 13.31 Judicature Acts, 16.09 Jurisdiction Admiralty Court jurisdiction, 2.30 agreements, 17.103 Chancery, 16.04 , 16.146 contracts between spouses and family members, 2.27 – 2.28 damages, 16.146 equity, 16.06 , 16.13 , 16.92 , 16.147 forfeiture, 16.121 fraud, 4.19 , 4.22 ship’s papers, ordering, 1.45 , 10.07 unconscionability, 17.11 Knowledge, 3.34 – 3.37 see also Agents, knowledge and actual, 7.99 – 7.110 , 7.121 , 8.12 – 8.17 affirm or avoid, election to, 17.67 – 17.69 exceptions to disclosure, 8.12 – 8.17 Marine Insurance Act 1906, 8.13 – 8.15 Insurance Act 2015, 8.16 – 8.17 promissory estoppel, 17.124 , 17.143 waiver, 8.75 – 8.82 affirm or avoid, election to, 17.57 – 17.93 actual, 17.67 – 17.69 agents, 17.89 – 17.93 automatic avoidance clauses, 16.80 breach of duty, 17.53 certainty, 17.71 constructive, 17.67 explanation of the facts, 17.65 fact, question of, 17.70 – 17.71 facts, of, 17.57 – 17.66 , 17.71 , 17.74 – 17.75 , 17.80 imperfect, 17.66 intention distinguished from, 17.88 legal, 17.71 , 17.77 – 17.78 , 17.81 – 17.85 legal advice, 17.77 – 17.78 , 17.81 – 17.85 life insurance, 17.91 Page 715 London market, 17.84 rights, of, 17.72 – 17.87 waiver, 17.71 , 17.92 age, 15.57 – 15.58 agents, 17.89 – 17.93 application of the duty of utmost good faith, 1.47 assured, 13.51 – 13.53 attribution to company, 7.107 – 7.110 avoidance, 8.14 , 13.55 , 16.46 , 16.80 breach of duty, 7.139 – 7.146 , 13.54 – 13.60 , 16.31 , 17.53 brokers, constructive, 7.130 imputed, 7.119 – 7.122 Marine Insurance Act 1906, 13.85 materiality, 13.74 , 13.77 ordinary course of business, 13.56 placing, 13.87 burden of proof, 18.04 burglary insurance, 8.25 business practices, 7.126 , 7.133 – 7.134 capacity, 13.73 cargo, age of, 15.58 nature of, 8.43 , 8.81 , 15.75 certainty, 17.71 characteristics and usage of insured trade, 8.41 – 8.44 charterparty clauses, 8.43 claims, 13.62 – 13.64 common knowledge, 8.12 , 8.18 – 8.24 Marine Insurance Act 1906, 8.18 – 8.21 Insurance Act 2015, 8.22 – 8.24 companies, 7.107 , 7.117 – 7.118 , 11.91 – 11.92 , 13.56 , 13.63 composite insurance, 7.133 concealment, 7.140 constructive, 7.130 – 7.136 affirm or avoid, election to, 17.67 brokers, 1.43 consumer insurance, 1.43 placing, 3.11 promissory estoppel, 17.125 consumer insurance, 1.43 course of business, 7.130 – 7.136 , 7.142 agents, 13.56 constructive knowledge, 3.11 deemed knowledge, 7.133 enquiries, 3.17 fraud, 13.56 imputed knowledge, 7.111 , 7.123 , 7.126 , 7.128 – 7.129 insurers, knowledge of, 7.128 – 7.129 , 8.12 , 8.25 – 8.48 normal and unusual risks, 8.26 – 8.31 placing, 3.11 databases, 7.133 , 8.37 deemed, 7.98 , 7.131 – 7.139 , 8.24 agent or employee of company, 8.47 common law, 8.25 – 8.44 Insurance Act 2015, 8.45 – 8.48 Marine Insurance Act 1906, 8.25 – 8.44 relevant information, 8.48 departments in insurance companies, 8.14 , 8.26 , 8.32 , 8.47 dereliction of duty, 13.58 directing mind and will of the company, 7.107 , 7.118 , 13.56 , 13.63 directors, 7.107 , 7.117 – 7.118 disclosure, 5.27 – 5.28 , 8.12 – 8.48 dishonesty, 7.7.105 due diligence, 8.39 electronic communications, 8.20 , 8.20 enquiries, due diligence, 8.39 insurers, by, 8.27 , 8.34 – 8.35 Lloyd’s, 12.27 market information, 12.26 , 12.32 ordinary course of business, 3.17 , 7.131 records, 12.31 seaworthiness, 8.77 waiver, 8.77 – 8.78 , 8.81 equality in, 3.35 explanation of the facts, 17.65 fact, question of, 17.70 – 17.71 facts, affirm or avoid, election to, 17.57 – 17.66 , 17.71 , 17.74 – 17.75 , 17.80 knowledge, 17.57 – 17.66 , 17.71 , 17.74 – 17.75 , 17.80 promissory estoppel, 17.124 – 17.129 financial history and practices, 15.24 fraud, 7.139 – 7.146 , 13.53 – 13.60 agents, 15.120 claims, 11.37 – 11.38 , 11.45 , 11.85 , 13.62 – 13.64 devices, 11.42 , 11.45 – 11.47 , 11.65 – 11.74 – 11.83 materiality, 14.120 misrepresentation, 7.98 , 7.110 general knowledge, 8.24 global affairs, 8.18 – 8.19 housing insurance, squatters and, 8.29 imperfect knowledge, 17.66 imputed knowledge, 7.111 – 7.129 , 7.139 – 7.146 , 8.14 , 13.63 , 14.76 inferences, 8.75 , 8.79 – 8.81 insurers, of, 7.108 – 7.110 , 8.12 – 8.48 , 8.75 – 8.82 , 14.126 Page 716 intention, 17.88 Internet, 8.40 investigations, 3.62 late, information provided too, 8.103 legal advice, 17.77 – 17.78 , 17.81 – 17.85 legal knowledge, 17.72 , 17.77 – 17.78 , 17.81 – 17.85 life insurance, 8.37 , 17.91 Lloyds’s, agents, 7.125 knowledge, 12.28 Lloyd’s List and Lloyd’s Casualty Lists, 8.32 London market, 17.84 marine insurance, 7.115 , 7.118 , 8.27 , 8.43 , 8.75 – 8.81 , 11.08 – 11.09 Marine Insurance Act 1906, 8.12 , 8.25 , 13.55 – 13.57 market information, 12.26 , 12.32 masters’ discretion at sea, 8.43 materiality, 7.98 – 7.106 , 7.130 – 7.133 , 7.139 – 7.142 agents, 13.52 – 13.53 , 13.57 assured, 13.51 – 13.53 avoidance, 16.80 fraud, 13.53 , 14.120 imputed, 7.111 , 7.115 , 7.111 – 7.129 , 14.76 insurers, 8.13 – 8.16 , 8.75 , 8.77 – 8.78 , 14.126 means of knowledge, 8.32 – 8.40 public records, access to, 8.32 waiver, 8.75 , 8.77 – 8.78 means of knowledge, 8.32 – 8.40 medical records, access to, 7.133 memory, refreshing the, 7.106 misrepresentation, 7.98 , 7.107 , 7.127 mutuality, 3.86 natural persons, 13.56 new facts, discovery of, 7.121 non-disclosure, 7.98 – 7.146 normal and unusual risks, 8.20 – 8.25 opinions, 7.54 ordinary course of business, 7.130 – 7.136 , 7.142 agents, 13.56 constructive knowledge, 3.11 enquiries, 3.17 fraud, 13.56 imputed knowledge, 7.111 , 7.123 , 7.126 , 7.128 – 7.129 , insurers, knowledge of, 8.12 , 8.24 – 8.48 normal and unusual risks, 8.20 – 8.25 placing, 3.11 particular knowledge, 8.26 , 8.29 – 8.30 past knowledge, 8.35 placing, 7.07 – 7.10 , 8.12 – 8.48 , 13.51 – 13.53 agents, imputed to, 12.20 , 13.51 – 13.53 knowledge, 3.11 Marine Insurance Act 1906, 8.01 non-disclosure, 7.98 – 7.146 ordinary course of business, 3.11 ports, 8.43 premiums, rate of, 8.77 presumed, 8.12 – 8.48 , 8.75 – 8.72 promissory estoppel, 17.124 – 17.131 , 17.135 , 17.143 , 17.145 proposal forms, 13.90 – 13.91 prudent or reasonable underwriter, 14.29 public records, access to, 8.32 questions, 9.34 reasonableness, 7.101 , 7.134 –7.1364, 8.75 records, 12.31 reinsurance, 8.25 , 8.28 , 8.28 , 8.44 , 8.82 , 13.55 related property, 15.75 representations, implied, 7.31 reservation of rights, 17.169 rights, of, 17.72 – 17.87 , 17.124 – 17.129 risks, normal and unusual, 8.20 – 8.25 salvage, 2.29 seaworthiness, 8774 subject matter of insurance, agent with knowledge of, 7.115 suspicion, 7.104 termination, 13.04 trade usage, 7.115 , 8.41 – 8.44 types of insurance, 8.76 – 8.77 underwriters, 8.18 , 14.29 unusual risks, 8.20 – 8.25 utmost good faith, 8.13 valuation, 15.98 vessels, age of, 15.57 nature of, 8.43 waiver, 8.50 , 8.64 , 8.66 , 8.75 – 8.82 warranties, 7.134 , 9.16 – 9.17 wilful blindness, 3.17 , 7.104 – 7.106 , 7.133 Laches affirm or avoid, election to, 16.61 avoidance, 16.61 , 16.92 , 16.94 delay, silence or inactivity, 17.158 – 17.159 equity, 17.159 time limits, 17.164 Language, clear and unambiguous, 9.07 , 9.10 , 9.14 Late, information received too agents, 8.102 – 8.103 brokers, 8.102 – 8.105 , 13.82 Page 717 knowledge, 8.103 Marine Insurance Act 1906, 8.102 – 8.105 materiality, 8.102 – 8.103 placing, 8.102 – 8.105 Late payment of claims, 1.38 , 3.95 , 5.29 – 5.36 , 12.61 Law Commission, 5.18 – 5.20 , 5.27 – 5.42 avoidance, 5.27 – 5.28 basis clauses, abolition, 5.27 ineffectiveness of, 5.18 consumer insurance, 1.34 , 5.28 Consumer Insurance (Disclosure and Representations) Act 2012, 5.42 Damages for late payment and the insurer’s duty of good faith , 5.28 – 5.36 directive on insurance contracts (1979), proposal for, 5.18 disclosure, 5.27 – 5.28 , 5.38 – 5.39 enquiries, making reasonable, 5.18 Enterprise Act 2016, 5.42 fraud, 1.34 , 5.26 Insurance Act 2015, 5.42 Insurance Contract Law: Misrepresentation, Non-Disclosure and Breach of Warranty by the Assured , 1.38 , 5.27 – 5.28 late payment of claims, 1.38 , 3.95 5.29 – 5.36 , 12.61 Law Reform Committee, 5.18 materiality, 1.37 – 1.38 , 5.09 , 5.18 misrepresentation, 1.38 , 5.18 , 5.27 negligence, 1.38 , 5.27 post-contractual disclosure, 5.41 pre-contractual disclosure, 5.37 – 5.40 proposal forms, enquiries and, 5.18 reasonableness, 5.18 recent reform, 1.19 – 1.21 , 5.37 – 5.42 reinsurance, 5.19 Statements of Insurance Practice, 5.18 utmost good faith, 1.38 , 5.27 , 5.37 – 5.42 warranties, 5.27 Law merchant Barcelona, statutes of, 4.07 candour, 4.11 caveat emptor , 4.05 , 4.11 civil law, 4.08 commercial law, 4.05 – 4.06 common law, 4.03 – 4.05 , 4.08 , 4.11 – 4.14 , 4.31 Courts of Chancery, 4.04 custom, 4.03 , 4.05 , 4.11 , 4.13 damages, 16.125 equity, 4.05 , 4.15 Europe, development in, 4.07 fraud, 4.11 historical background, 4.02 – 4.17 insurance contracts, development of, 4.07 insurable interest, 4.07 international law, 4.03 international trade, 4.04 , 4.07 legislation, 4.07 Lloyd’s, 4.10 marine insurance, 4.11 – 4.12 Marine Insurance Act 1906, 4.12 , 6.07 – 6.08 maritime law, 4.08 non-disclosure, 4.40 remedies, 16.02 sources of duty of utmost good faith, 4.04 – 4.17 , 4.61 subrogation, 4.07 utmost good faith, 4.15 – 4.17 Law of Property Act 1925, assignees under, 13.08 – 13.09 , 13.12 Law reform, 5.01 – 5.42 see also Law Commission application of duty of good faith, 1.37 , 1.38 Association of British Insurers, 5.20 Australian Law Reform Commission, 5.07 , 5.26 avoidance, 5.07 – 5.08 basis clauses, 5.21 British Insurance Law Association, 5.07 conditions, 5.18 consumers, 5.25 directive on insurance contracts (1979), proposal for, 5.12 – 5.16 disclosure, 5.21 , 5.25 , 5.37 – 5.42 exceptions, 5.17 Insurance Act 2015, 5.40 , 5.42 Insurance Conduct of Business Sourcebook, 5.25 Insurance Ombudsman, 5.22 – 5.24 Law Reform Committee, 1.37 , 5.17 – 5.18 , 14.22 – 14.23 legislation, 6.03 Lloyd’s, 5.20 materiality, 5.09 , 5.17 misrepresentation, 5.17 post-contractual disclosure, 5.41 pre-contractual disclosure, 5.11 , 5.37 – 5.40 proportionality, 5.08 proposal forms, 5.21 prudent or reasonable underwriter, 14.22 – 14.23 recent legislation, 1.19 – 1.21 renewal notices, 5.21 repudiation, 5.21 rescission, 5.08 Page 718 social or policy view of good faith, 5.01 – 5.07 , 5.17 Statement on General Insurance Practice, 5.20 – 5.22 Statements on Long-Term Practice, 5.20 – 5.22 underwriter, prudent, 5.09 voluntary, 5.20 – 5.25 Law, representations of, 7.76 – 7.80 Leading underwriters, 13.36 – 13.48 Legal advisers, 13.94 – 13.97 affirm or avoid, election to, 17.77 – 17.78 , 17.81 – 17.85 authority of, 13.97 breach of duty, 13.95 claims, 13.94 – 13.97 disclosure, 13.96 – 13.97 duties of, 13.97 fraud, 13.97 knowledge 17.77 – 17.78 , 17.81 – 17.85 litigation, commencement of, 13.96 – 13.97 privilege, 13.96 utmost good faith, 13.95 – 13.96 Legislation on duty of good faith, 6.01 – 6.57 see also Marine Insurance Act 1906 confidentiality, 6.47 criminal offences, 6.48 – 6.52 deemed knowledge, 7.131 – 7.136 discrimination, 6.43 – 6.44 , 8.100 freedom of information, 6.45 – 6.46 law merchant, 4.11 – 4.12 law reform, 6.03 materiality, 14.10 – 14.16 misrepresentation, 6.33 –6.83, 9.23 motor insurance, 6.02 , 6.25 – 6.32 , 9.24 rehabilitation of offenders, 6.39 – 6.42 , 8.99 unfair contract terms, 6.54 – 6.57 , 9.25 Letters of undertakings, 1.27 , 13.21 Liability insurance claims, 10.45 defence, right of control over, 3.15 fraud, 3.78 , 11.99 post-contractual duty, 3.78 , 10.15 Life insurance affirm or avoid, election to, 17.91 application of duty of good faith, 1.33 assignees, 13.08 basis clauses, 9.18 , 15.107 formation of contract, 10.12 history, insurance, 15.107 , 15.108 insurable interest, 15.22 knowledge, 8.37 , 17.91 materiality, 14.18 – 14.19 , 14.21 official secrets, 8.98 opinions, 7.60 prior refusal, 15.107 , 15.108 proposal forms, 7.60 prudent or reasonable underwriter, 14.18 – 14.19 reinsurance, 15.112 renewals, 10.42 utmost good faith, 1.12 waiver, 8.64 Lines, 1.48 , 13.36 Listing Rules, 2.32 Litigation assignees, 13.08 – 13.11 , 13.15 , 13.18 – 13.19 avoidance, 11.108 choses in action, 13.08 – 13.11 , 13.15 , 13.18 – 13.19 commencement of, 11.108 – 11.11 , 11.116 , 12.54 – 12.56 continuation of duty, 11.108 – 11.109 , 11.111 , 11.115 fraud, 11.108 , 11.110 , 11.113 – 11.116 , 12.54 , 12.56 legal advisers, 13.96 – 13.97 remedies, 11.108 termination, 3.81 – 3.82 , 10.69 title to sue, 13.08 Lloyd’s agents, 7.125 casualty list, 8.32 , 12.26 , 12.30 enquiries, 12.26 – 12.27 , 12.30 , 12.32 establishment of, 4.09 formation of contract, 10.11 Insurance Ombudsman, 5.23 knowledge, 7.125 law merchant, 4.09 law reform, 5.20 Lloyd’s List, 8.32 , 12.27 , 12.30 , 12.32 proposal forms, 10.11 rejection of risk, 1.40 slips, initialling, 10.11 Statements, 6.15 London market affirm or avoid, election to, 17.84 knowledge, 17.84 risk assessment, 12.34 Loss experience, 8.70 , 8.73 , 15.100 – 15.105 , 15.113 Maintenance agreements, 2.26 Marineinsurance see also Cargo; Marine Insurance Act 1906; Vessels abandonment, notice of, 11.115 additional premiums clauses, 3.59 age, 15.57 – 15.58 agents, Page 719 knowledge of, 6.18 , 7.115 undisclosed principal, doctrine of, 15.10 application of duty of good faith, 1.44 – 1.47 assignees, 13.08 – 13.09 , 13.12 , 13.14 Australian Law Reform Commission, 5.26 avoidance, 9.41 , 11.08 – 11.09 , 16.34 , 16.64 , 16.91 burden of proof, 18.08 charterparty clauses, 8.43 claims, 3.14 continuation of duty, 11.115 damages, 16.164 deviation, 8.91 , 15.68 , 15.80 disclosure, materiality and, 1.12 discovery, 1.44 – 1.47 discretion, 16.91 floating policies, 1.53 forfeiture, 16.113 fraud, 7.11 , 7.15 , 11.102 , 11.113 , 11.115 held covered clauses, 10.27 – 10.30 history of assured, insurance, 15.106 , 15.109 identification of property, 15.53 – 15.55 identity of the assured, 15.06 illegality, 15.122 inducement, 14.97 – 14.99 issue of policies, 12.40 knowledge, 7.115 , 7.118 , 8.25 , 8.27 , 8.32 – 8.40 , 8.75 – 8.81 , 11.08 – 11.09 law merchant, 4.11 – 4.12 masters’ discretion, 8.43 materiality, 1.37 , 1.39 , 3.19 , 14.13 , 15.53 – 15.57 , 15.62 – 15.65 , 15.67 , 15.74 – 15.82 mutuality, 3.88 ownership, 15.62 – 15.63 perils of the sea, 18.03 ports, 8.43 post-contractual duty, 10.07 premiums, 7.15 , 15.120 prudent or reasonable underwriter, 14.37 , 14.53 questions, 9.41 refusal of, 15.106 repudiation, 5.21 , 16.122 restitution, 16.64 salvage, 2.29 – 2.30 , 9.25 , 14.66 scuttling, 1.44 seaworthiness, 8.77 , 11.95 ship’s papers, discovery of, 1.44 – 1.47 third parties, discovery of documents held by, 1.44 – 1.47 underwriters, attitudes of other, 15.109 prudent or reasonable, 14.37 , 14.53 undisclosed principal, doctrine of, 15.10 utmost good faith, 1.12 , 1.39 , 3.02 valuation, 15.93 – 15.99 voyage, location and timing of, 15.77 – 15.80 waiver, 17.23 warranties, breach of, 15.122 Marine Insurance Act 1906, 6.06 – 6.11 agents, 11.95 , 13.59 assignees, 13.08 – 13.09 , 13.12 avoidance, 9.41 , 11.08 – 11.09 , 16.34 , 16.55 , 16.64 , 16.92 brokers, 13.80 – 13.88 Chalmers, Sir Mackenzie, 6.06 , 6.08 claims, 11.25 , 11.29 codification, 17.40 co-insurers, 13.43 common law, codification of, 6.02 , 6.06 , 6.08 – 6.10 confidentiality, 8.97 consolidating act, as, 17.44 continuation of duty, 11.108 , 11.110 damages, 16.152 diminution of risk, 8.09 disclosure, 6.07 , 8.01 – 8.05 drafting, 6.06 enquiries, 12.32 exceptions to disclosure, 8.01 – 8.05 experts, 18.13 false or misleading representations, 7.94 floating policies, 6.07 forfeiture, 16.113 fraud, 11.09 , 11.95 , 11.108 , 11.110 identification of property, 15.55 inducement, 14.97 – 14.99 , 14.101 – 14.105 knowledge, 8.12 , 8.25 , 13.55 – 13.57 , 13.59 late, information provided too, 8.102 – 8.105 late payment of claims, 5.34 , 12.61 law merchant, 4.13 , 6.07 – 6.08 materiality, 14.13 – 14.14 , 14.17 , 14.49 , 14.76 , 14.80 , 14.90 non-marine insurance, application to, 6.11 placing, 8.01 , 8.05 post-contractual duty, 10.01 – 10.03 , 10.15 , 10.17 promissory estoppel, 17.35 – 17.41 , 17.44 – 17.52 prudent or reasonable underwriter, 14.37 , 14.39 representations, 6.07 risk assessment, 12.34 valuation, 15.93 – 15.97 waiver, 17.23 – 17.52 warranties, 8.88 , 8.90 – 8.91 Market see Insurance market Material facts, examples of, 15.01 – 15.134 accumulation of non-material circumstances, 15.130 – 15.132 Page 720 age, 15.16 , 15.56 – 15.58 allegations, 15.39 – 15.44 assured, 15.02 , 15.04 – 15.49 basis clauses, 9.06 – 9.09 , 9.15 – 9.18 , 9.20 – 9.21 class of vessels, 15.81 – 15.82 confidentiality, 8.95 , 8.97 conflicting duties, 8.93 consumer insurance, 1.341– 1.43 contracts and arrangements, other, 15.129 experts, 15.133 financial history and practices, 15.23 – 15.24 fraud, 15.123 health, 15.18 – 15.20 history, insurance, 15.100 – 15.110 identity of assured, 15.06 – 15.09 identity of property, 15.51 – 15.55 illegality, 15.121 – 15.122 information, insurance related, 15.120 insurable interests, 15.21 – 15.22 , 15.59 knowledge, 15.133 marine insurance, age, 15.57 class of vessels, 15.81 – 15.82 current use, 15.67 identification of property, 15.53 – 15.55 intended use, 15.69 licences of vessels, 15.81 – 15.82 nationality, class, licences and registration, 15.81 – 15.82 ownership, 15.62 – 15.63 previous use, 15.65 related property, nature of, 15.74 – 15.76 voyage, location and timing of, 15.77 – 15.80 market practice, 15.133 medical insurance, 15.02 moral hazard, 15.26 – 15.27 , 15.49 obviously material circumstances, 15.133 – 15.134 occupation, 15.17 origins, of, 15.11 other policies, existence of other, 15.124 – 15.128 ownership, 15.62 – 15.63 post-contractual duty, 10.01 , 10.15 professions, 15.17 property, 15.51 – 15.82 prudent underwriter, 15.02 race discrimination, 15.14 reinsurance, 15.111 – 15.119 related property, nature of, 15.74 – 15.76 residence, 15.15 scandal-mongering, 15.44 social or policy view of good faith, 5.02 – 5.03 subject matter of insurance, 15.02 , 15.51 – 15.82 value, 15.83 – 15.99 voyage, location and timing of, 15.77 – 15.80 Materiality, 14.01 – 14.132 see also Fraud, materiality and; Material facts, examples of; Placings, materiality and additional premiums, 14.60 affirm or avoid, election to, 17.01 – 17.07 , 17.63 age, 15.16 , 15.56 – 15.58 allegations, 7.81 – 7.85 application of the duty of utmost good faith, 1.35 , 1.38 – 1.44 , 1.47 agents, 13.65 – 13.73 avoidance, 16.46 knowledge, 13.52 – 13.53 , 13.57 , 13.73 , 14.76 misrepresentation, 13.89 pertinent information, receipt of, 13.73 assignees, 13.11 , 13.13 assured, concerns, 15.25 identity of the, 15.06 – 15.09 placing, 14.10 – 14.90 prudent assured test, 14.130 prudent underwriters, 14.18 – 14.23 reasonable, 14.18 – 14.23 , 14.80 Australian Law Reform Commission, 5.26 aviation insurance, 1.37 avoidance, 10.61 – 10.66 agents, 16.46 breach of duty, 14.123 condition precedent, 16.81 fraud, 16.43 , 16.45 , 16.55 inducement, 16.41 knowledge, 16.80 misrepresentation, 16.47 , 16.71 – 16.72 variation, 16.72 – 16.73 basis clauses, 5.21 basis for test of, 14.83 – 14.83 breach of duty, 14.44 , 14.123 brokers, 13.74 , 13.77 , 13.79 , 13.81 , 13.83 – 13.84 burden of proof, 10.35 , 14.08 , 18.02 , 18.04 causation, 3.05 circumstances, material, 14.15 , 14.76 , 14.129 claims, 3.71 , 3.73 , 11.32 , 14.118 – 14.124 co-assured, 13.25 , 13.32 co-insurers, 13.38 , 13.41 – 13.47 common law, 14.10 – 14.16 communications, 7.81 – 7.85 concealment, 14.73 , 14.119 , 14.131 condition precedent, 16.81 consent, 14.06 Page 721 consumer insurance, 1.38 contributing influence test, 14.41 , 14.44 , 14.48 – 14.49 , 14.55 – 14.56 criminal offences, 6.17 , 6.48 custom, 8.83 damages, 16.127 , 16.158 decisive influence test, 14.41 , 14.44 , 14.47 – 14.50 , 14.54 – 14.56 diminution of risk, 8.08 – 8.09 , 14.69 , 14.79 direct materiality, 14.72 disclosure, 1.47 , 4.30 , 4.32 – 4.33 , 14.01 – 14.132 enquiries, 12.25 , 12.28 evidence, 14.193, 18.15 evolution of test, 14.18 – 14.57 exemption clauses, 16.83 – 16.84 experience, 14.23 experts, 15.133 , 18.10 , 18.12 – 18.14 explain the terms, duty to, 12.41 facts, 7.49 false or misleading representations, 7.93 – 7.96 family members, 2.26 financial history and practices, 15.22 – 15.23 forfeiture, 14.122 formation of contract, 10.09 , 10.12 guarantees or surety contracts, 2.17 held covered clauses, 14.60 household insurance, 1.39 identity of the assured, 15.06 – 15.09 immaterial questions, 5.18 implied terms, 14.122 inducement, 14.05 – 14.09 , 14.65 – 14.71 , 14.92 – 14.111 implied terms, 14.122 insurers, 14.127 , 14.131 – 14.132 misrepresentation, 14.02 , 14.17 , 14.88 – 14.90 14.122 motor insurance, 14.46 prudent or reasonable underwriter, 14.68 Insurance Act 2015, 14.15 insurers, duty, 12.01 inducement, 14.127 , 14.131 – 14.132 knowledge, 14.126 liability, 14.123 placing, 14.126 – 14.132 variation, 14.84 – 14.87 intelligence, 7.81 – 7.85 intention, 7.70 , 7.74 – 7.75 issue of policies, 12.43 knowledge, 7.98 – 7.106 , 7.130 – 7.121 , 7.139 – 7.146 agents, 13.52 – 13.53 , 13.57 assured, 13.51 – 13.53 avoidance, 16.80 fraud, 13.53 , 14.120 imputed, 7.111 , 7.115 , 7.120 – 7.123 , 14.76 insurers, 8.13 – 8.16 , 8.75 , 8.77 – 8.79 , 14.126 means of knowledge, 8.32 – 8.40 public records, access to, 8.32 waiver, 8.75 , 8.77 – 8.79 late, information provided too, 8.102 – 8.105 Law Commission, 1.37 – 1.38 , 5.09 , 5.18 law reform, 5.09 , 5.17 Law Reform Committee, 1.37 , 14.22 – 14.23 life insurance, 14.18 – 14.19 , 14.21 marine insurance, 1.37 , 1.39 , 3.19 , 14.13 Marine Insurance Act 1906, 14.13 – 14.14 , 14.17 , 14.49 , 14.76 , 14.80 , 14.90 meaning, circumstances, materiality of, 14.62 experts, 18.10 inducement, 14.02 Marine Insurance Act 1906, 14.14 misrepresentation, 14.03 , 14.10 , 14.81 , 14.88 – 14.89 motor insurance, 6.27 , 14.38 risk, pertaining to the, 14.68 misrepresentation, 14.02 – 14.13 agents, 13.89 avoidance, 16.47 , 16.72 claims, 14.118 , 14.121 co-insurers, 13.44 , 13.47 fraud, 14.10 , 14.17 , 14.45 , 14.73 inducement, 14.02 , 14.17 , 14.88 – 14.90 , 14.122 non-disclosure, 17.18 objective connection to risk, 14.62 placings, 7.02 , 7.08 , 12.11 , 12.22 prudent underwriter, 14.42 , 14.49 , 14.88 – 14.90 risk, connection to the, 14.89 settlements, 3.76 silence, by, 7.37 , 7.39 , 7.43 third parties, 7.29 time of representation, 14.61 modification by agreement, 14.16 moral hazard, 14.69 , 15.26 – 15.49 motor insurance, basis clauses, 9.24 basis of test for materiality, 14.82 criminal offences, 6.17 definition, 6.27 misrepresentation, 6.26 – 6.28 , 13.101 prudent or reasonable underwriter, 14.38 third parties, 6.26 , 6.29 mutuality, 3.91 – 3.92 negligence, 1.38 negotiations, 12.24 , 14.10 , 14.59 Page 722 non-disclosure, 4.30 , 4.32 – 4.33 objective nature of, 14.09 , 14.12 , 14.22 , 14.62 – 14.81 , 18.10 occurrence of loss, 14.69 official secrets, 8.98 omissions, 14.89 open cover, 1.24 , 3.27 opinions, damages, 7.54 disclosure, 7.54 – 7.69 expectations, 7.62 inferences, 7.69 misrepresentation, 7.57 – 7.58 , 7.61 – 7.63 questions, 9.36 reasonableness, 7.68 , 14.19 , 14.22 , 14.43 underwriters, materiality of opinions of, 1.40 partnership agreements, 2.22 pertinent information, receipt of, 13.72 ports of loading and discharge, 15.77 premiums, 14.60 , 14.82 – 14.83 presentation of material facts, 14.12 previous convictions, 15.30 – 15.38 proof of, 14.08 proposal forms, 1.42 , 5.21 prudent or reasonable underwriter test, 14.77 – 14.81 characteristics of, 14.24 – 14.30 , 14.37 , 14.56 circumstances, materiality of, 14.129 effect on the, 14.31 – 14.57 inducement, 14.68 misrepresentation, 14.42 , 14.49 , 14.88 – 14.90 premiums, level of, 14.14 reasonable assured and, 14.18 – 14.23 reform, 1.37 risk, material to the, 14.63 – 14.72 , 14.77 – 14.81 time for applying the, 14.58 – 14.61 variation, 14.84 – 14.87 purpose of duty, 14.52 quality of, 14.05 , 14.07 , 14.65 questions, 9.34 – 9.44 reasonableness, assured, of the, 1.38 , 14.18 – 14.23 , 14.80 consent, 14.06 – 14.07 Law Commission, 1.38 , 5.18 experts, 18.10 misrepresentation, 14.03 recklessness, claims and, 14.120 rehabilitation of offenders, 6.41 – 6.42 , 15.38 reinsurance, 1.29 , 15.119 renewals, 3.61 , 10.43 , 14.80 risk, assessment, 12.35 , 14.14 diminution of, 14.69 , 14.79 misrepresentation, 7.23 , 14.89 objective connection to the, 14.62 – 14.81 , 14.89 rumours, 7.81 – 7.85 salvage, 9.36 , 14.66 shares publicly offered, contracts for purchase of, 2.31 silence, 7.37 , 7.39 , 7.43 spouses, contracts between, 2.26 statutory requirements, 14.10 – 14.16 subject matter of the risk, 14.67 subjectivity, 14.22 subrogation, 14.66 , 14.78 termination, 13.03 – 13.05 terms, duty to explain the, 12.41 time for testing, 14.58 – 14.61 transport insurance, 1.37 underwriters, opinions of, 1.40 unfair contract terms, 6.56 , 9.25 use, 15.64 – 15.69 utmost good faith, 1.39 variation, 10.19 – 10.26 , 14.60 , 14.73 , 14.84 – 14.90 , 16.72 – 16.73 waiver, 8.49 – 8.63 , 8.66 – 8.74 , 8.83 warnings, 5.21 warranties, 7.48 , 8.84 – 8.92 , 9.11 Meaning of good faith, 1.13 – 1.18 , 3.23 Medical records, 6.45 , 7.1133, 12.21 Merchantlaw see Law merchant Misleading representations see False or misleading representations; Misrepresentation Misrepresentation affirm or avoid, election to, 17.01 – 17.07 , 17.61 , 17.64 agents, 7.28 , 13.65 – 13.67 , 13.89 allegations, 7.83 assignees, 13.11 assured, 7.25 – 7.30 Australian Law Reform Commission, 5.26 avoidance or rescission, 4.51 – 4.60 basis clauses, 9.19 , 9.29 brokers, 7.26 damages and, 4.25 , 6.36 , 16.44 discretion, 6.35 – 6.36 , 16.93 equity, 4.25 , 4.27 – 4.28 fraudulent, 16.33 , 16.64 – 16.65 guarantees or surety contracts, 2.13 inducement, 6.36 – 6.37 innocent, 16.34 , 16.38 marine insurance, 9.41 material, 16.37 , 16.47 , 16.72 meaning of avoidance, 16.71 Page 723 Misrepresentation Act 1967, 6.35 – 6.37 non-disclosure, 16.40 , 16.53 restitution, 16.64 – 16.65 retrospectivity, 11.120 basis clauses, 9.09 , 9.13 , 9.19 , 9.23 breach of duty, 4.28 brokers, 7.25 – 7.26 , 13.81 burden of proof, 6.34 , 18.04 cancellation, 10.39 causes of action, 7.26 caveat emptor , 2.04 claims, 3.67 , 3.73 , 11.26 , 11.55 – 11.56 , 14.118 , 14.121 co-assured, 13.30 co-insurers, 13.340, 13.44 , 13.47 common law, 4.25 , 4.28 , 16.11 communications, 7.83 compromise, 1.31 , 3.76 concealment, 7.24 conflicting duties, 8.93 consideration, total failure of, 4.26 consumer insurance, 5.28 damages, 6.34 – 6.38 avoidance, 4.25 , 16. breach of contract, 16.160 common law, 4.28 , 16.11 fraudulent, 16.127 – 16.131 , 16.141 , 16.156 innocent, 16.137 measure of damages, 16.134 Misrepresentation Act 1967, 16.136 – 16.141 , 16.148 negligent, 16.76 , 16.132 – 16.135 , 16.153 , 16.156 placing, 12.07 defences, 11.49 – 11.53 disclosure, 2.04 , 4.38 , 4.43 , 4.47 – 4.48 , 6.37 – 6.38 , 7.03 , 7.22 – 7.48 discretion, 16.93 dishonesty, 7.24 equity, 4.25 , 4.27 – 4.28 , 4.55 exaggerated and excessive claims, 11.55 – 11.55 exemption clauses, 16.83 – 16.89 facts, 7.49 – 7.79 fair presentation of risk, 6.18 , 7.05 – 7.06 , 7.23 , 8.52 , 8.68 false or misleading representations, 7.86 – 7.97 forfeiture, 16.105 , 16.112 , 16.114 formation of contract, 10.09 fraud, 7.15 – 7.21 avoidance, 16.64 – 16.65 breach of duty, 4.29 burden of proof, 6.34 co-assured, 13.30 damages, 16.127 – 16.131 , 16.141 , 16.156 fraudulent, 7.02 , 7.15 – 7.21 , 12.07 – 12.08 , 13.30 inducement, 14.17 , 14.122 knowledge, 7.98 , 7.107 materiality, 14.10 , 14.17 , 14.45 , 14.73 , 14.122 non-disclosure, 3.99 , 4.19 placing, 7.02 , 7.15 – 7.21 , 12.07 – 12.08 remedies, 4.52 – 4.54 , 4.56 , 16.64 – 16.65 group insurance, 13.34 guarantees or surety contracts, 2.10 , 2.13 – 2.15 held covered clauses, 10.30 identification of property, 15.51 – 15.55 implied representations, 7.31 – 7.34 inducement, basis clause, 9.19 caveat emptor , 1.09 damages, 6.36 equity, 4.27 fraud, 14.17 , 14.122 materiality, 14.02 , 14.17 , 14.88 – 14.90 , 14.122 placing, 14.91 , 14.95 – 14.97 , 14.100 – 14.105 , 14.109 qualifying, 14.105 reliance, 14.01 withholding information, 1.02 innocent misrepresentation, 4.25 – 4.29 avoidance, 16.16 , 16.38 claims, 11.26 Law Commission, 5.18 remedies, 4.52 – 4.54 , 4.56 , insurance policies, existence of other, 15.127 intelligence, 7.83 knowledge, 7.98 , 7.107 , 7.127 Law Commission, 1.38 , 5.18 , 5.26 law reform, 5.17 law, representations of, 7.76 – 7.80 leading underwriters, 13.40 , 13.47 legislation, 6.33 – 6.38 , 9.23 materiality, 14.02 – 14.13 agents, 13.89 avoidance, 16.47 , 16.72 claims, 14.118 , 14.121 co-insurers, 13.44 , 13.47 fraud, 14.10 , 14.17 , 14.45 , 14.73 inducement, 14.17 , 14.71 , 14.88 – 14.90 , 14.122 non-disclosure, 17.22 objective connection to risk, 14.62 placings, 7.02 , 7.08 , 12.11 , 12.22 prudent underwriter, 14.42 , 14.49 , 14.88 – 14.90 risk, connection to the, 14.89 Page 724 settlements, 3.76 silence, by, 7.37 , 7.39 , 7.43 third parties, 7.29 time of representation, 14.61 Misrepresentation Act 1967, 6.33 – 6.38 moral hazard, 15.47 motor insurance, 6.26 – 6.30 , 13.101 mutuality, 3.87 , 3.91 , 3.94 negligent, 4.25 – 4.29 common law, 16.11 damages, 6.34 16.132 – 16.135 , 16.153 , 16.156 inducement, 6.36 open cover, 1.54 opinions, 7.50 – 7.56 , 7.54 , 7.57 – 7.63 placing, 7.02 – 7.14 disclosure, 12.05 – 12.23 enquiries, 8.04 – 8.05 facts, 7.49 – 7.85 falsity or untruth of, 7.86 – 7.97 material, 7.02 , 7.08 , 12.11 , 12.22 non-disclosure, 7.07 , 7.22 – 7.48 remedies, 7.03 , 7.08 – 7.10 truth and, 3.12 post-contractual duty, 10.01 , 10.03 proposal forms, 1.42 prospectuses, 4.52 prudent underwriters, 14.24 – 14.25 , 14.30 , 14.42 , 14.49 , 14.88 – 14.90 questions, 9.40 , 9.41 , 9.44 rectification, 7.27 reinsurance, 1.54 , 7.30 , 15.115 remedies, 4.25 , 4.27 , 6.34 – 6.38 , 7.03 , 7.08 – 7.10 renewals, 10.41 – 10.43 repudiation, 5.21 rescission, 4.51 – 4.60 restitution, 16.64 – 16.65 risk, connection to the, 14.89 rumours, 7.83 settlements, 3.76 silence, by, 7.35 – 7.45 source of, 4.25 – 4.29 , 7.25 – 7.30 termination, 3.81 , 13.03 third parties, 7.28 – 7.29 truth, 3.12 underwriters, 13.40 , 13.47 use, 15.68 utmost good faith, 2.04 valuation, 15.89 , 15.95 – 15.96 , 15.98 variations, 10.22 , 10.24 vessels, loading and discharge of, 15.77 voidable contracts, 7.48 waiver, 8.65 , 17.22 , 17.30 warranties, 7.46 – 7.48 , 8.90 – 8.91 withholding information, 1.02 Mistake basis clauses, 9.22 caveat emptor , 1.09 common law, 4.35 compromise, 1.31 error and omission clauses, 16.84 law, mistake of, 1.31 mutual, 4.35 Modification of the duty of disclosure at placing, 9.01 – 9.44 basis clauses, 9.06 – 9.33 Consumer Insurance (Disclosure and Representations) Act 2012, 9.03 Insurance Act 2015, 9.02 market practice, 9.01 materiality, 9.01 – 9.05 proposal forms, 9.05 questions from the insurer, 9.34 – 9.44 transparency, 9.02 , 16.82 , 16.107 unilateral, 9.05 waiver, 9.05 warranties, 9.06 – 9.33 Money had and received, 16.122 Moral hazard allegations, 15.39 – 15.44 alter egos, 15.26 bad faith, 15.27 breaches of duty, past, 15.45 – 15.48 convictions, past, 15.30 – 15.38 , 15.45 criminal charges, 15.40 , 15.43 – 15.44 dishonesty, 15.26 – 15.27 , 15.30 – 15.44 , 15.49 evidence, 15.40 fraud, 15.26 – 15.28 illegality, 15.122 materiality, 14.69 , 15.26 – 15.49 meaning, 15.26 misrepresentation, 15.47 renewals, 10.43 third parties, 15.26 valuation, 15.28 Most perfect good faith, 1.03 Motor insurance age of vehicles, 15.56 avoidance, declarations, 6.27 , 6.30 ownership, 15.60 third parties, 6.30 , 13.101 basis clauses, 9.24 cancellation, 6.30 conditions, 6.27 criminal offences, 6.31 , 6.52 disclosure, 6.38 – 6.30 , 13.101 exceptions to liability, 6.30 Page 725 false statements, 6.17 , 7.89 hire purchase, 15.60 inducement, 14.46 , 14.97 legislation, 6.02 , 6.25 – 6.32 , 9.24 materiality, basis clauses, 9.24 basis of test for materiality, 14.82 criminal offences, 6.17 definition, 6.27 misrepresentation, 6.26 – 6.28 , 13.101 prudent or reasonable underwriter, 14.38 third parties, 6.25 – 6.30 misrepresentation, 6.26 – 6.28 . 13.101 Motor Insurers’ Bureau, 6.30 notification, duty of, 13.101 ownership, 15.60 – 15.61 previous convictions, 15.30 – 15.31 prudent or reasonable underwriter, 14.38 public policy, 6.25 rehabilitation of offenders, 6.27 Road Traffic Acts, 6.25 – 6.32 , 13.101 self-incrimination, privilege against, 8.101 stolen cars, 15.61 third parties, protection of, 6.02 , 6.25 – 6.30 , 9.24 , 13.101 time limits, 6.27 , 13.101 truth, 9.24 , 9.31 Mutuality, 3.84 – 3.95 assignment, 3.9 avoidance, 3.87 , 3.90 , 3.93 , 3.95 brokers, fraud by, 3.92 claims, investigation of, 3.95 presentation of, 3.85 , 3.94 – 3.95 definition, 1.05 entire contracts, 3.89 fraud, 3.92 , 3.95 inducement, 3.90 insurer’s duty, 12.01 investigation, 3.95 knowledge, 3.86 late payment of claims, 3.95 , 5.32 – 5.33 marine insurance, 3.88 materiality, 3.91 – 3.92 misrepresentation, 3.87 , 3.91 , 3.94 non-disclosure, 3.94 placing, 3.85 post-contractual duty, 10.03 repudiation, 3.95 utmost good faith, 3.93 , 10.03 variations, 10.21 Nationality, materiality of, 15.11 – 15.15 Natural law, 4.02 – 4.03 , 4.40 Nature of duty of utmost good faith, 3.01 – 3.103 adaptation of duty, 3.24 adjustment of obligations, 3.53 – 3.61 after contracts are made, 3.53 – 3.78 boundaries of duty, 3.18 , 3.23 , 3.30 causation, 3.05 claims, 3.14 , 3.62 – 3.76 classification of principle of utmost good faith, 3.02 commercial reality, 3.30 content of duty, 3.20 – 3.21 , 3.309 continuity of duty of good faith, 3.30 , 3.43 – 3.83 course of action, commitment to, 3.26 customs, 3.20 disclosure, 3.02 , 3.06 – 3.13 elasticity, 3.23 fair presentation, duty of, 6.18 , 8.52 , 8.68 fairness, 3.30 fraud, good faith as an engine of, 3.96 – 3.103 implementation of principle of good faith, 3.04 incidence of duty, 3.20 interpretive principle, as, 3.31 , 6.15 , 12.02 mutuality, 3.84 – 3.95 obligations, identification of, 3.04 operation of contracts, 3.77 – 3.79 placing, 3.06 – 3.13 , 3.22 , 3.44 – 3.52 policies, 3.03 practicable, duty must be, 3.24 pre-contractual disclosure, 3.02 principles, utmost good faith as a set of, 3.02 , 3.30 purpose of duty of good faith, 3.33 – 3.42 qualifying, 1.05 , 1.12 , 6.17 reform, 5.40 rules, 3.04 scope of duty, 3.30 structured duty, 3.01 – 3.21 tailoring the duty, 3.22 – 3.32 termination of duty, 3.80 – 3.83 trade practice, 3.20 Negligence damages, 16.132 – 16.135 , 16.148 – 16.149 , 16.153 , 16.154 fraud, 11.26 , 11.32 inducement, 14.111 , 14.117 Law Commission, 1.38 misrepresentation, 4.25 – 4.29 , 6.34 , 6.36 , 16.132 – 16.135 , 16.153 , 16.156 placing, 7.08 representations of law, 7.77 termination, 13.03 Negotiations agents, 13.49 Page 726 basis clauses, 5.04 brokers, 13.83 caveat emptor , 2.04 claims, 11.01 – 11.02 , 11.57 common law, 1.10 Continental jurisdictions, 1.10 continuation of duty, 11.108 exaggerated and excessive claims, 11.57 , 11.64 examples of requirements, 1.14 fairness, 3.15 formation of contract, 10.09 – 10.10 fraud, 11.108 materiality, 12.24 , 14.10 , 14.59 meaning of good faith, 1.14 post-contractual duty, 10.09 – 10.10 unfair contract terms, 6.56 utmost good faith, 2.03 Non-disclosure see Disclosure and non-disclosure Notice and notification abandonment, notice of, 11.115 additional premium clauses, 10.32 agents, 13.65 , 13.71 assignees, 13.10 , 13.14 cancellation, 3.58 , 10.35 – 10.40 change in circumstances, 5.15 , 10.34 claims, 3.66 , 5.16 , 10.45 – 10.49 co-insurers, 13.41 directive on insurance contracts, proposal for, 5.15 – 5.16 fraud, 3.78 , 11.115 held covered clauses, 3.59 , 10.27 , 10.30 leading underwriters, 13.41 motor insurance, 6.27 , 13.101 post-contractual duty, 3.78 Objectivity affirm or avoid, election to, 17.98 experts, 18.10 false or misleading representations, 7.87 inducement, 14.92 materiality, 14.09 , 14.12 , 14.22 , 14.62 – 14.81 , 18.10 opinions, 7.55 prudent or reasonable underwriter, 14.22 Obligations, adjustment of see Adjustment of obligations Occupation, materiality of, 15.17 Offenders see Rehabilitation of offenders Offer, formation of contract and, 10.10 Official secrets, 6.47 , 8.98 Ombudsman see Insurance Ombudsman Omissions basis clauses, 9.22 damages, 16.155 error and omission clauses, 16.84 materiality, 14.89 promissory estoppel, 17.135 silence, 7.38 Open cover acceptance of risk, 1.50 – 1.51 application of duty of good faith, 1.34 avoidance, 1.54 co-insurers, 13.45 contracts for insurance, 1.24 , 1.50 declarations, co-insurers, 13.46 discretion to accept, 1.24 fraud, 3.78 future, 1.24 materiality, 1.24 , 3.27 reinsurance, 1.50 – 1.52 , 1.54 disclosure, 1.24 , 1.52 good faith, 1.24 materiality, 1.24 , 3.27 misrepresentation, 1.54 non-disclosure, 1.54 obligatory, 1.54 options, 1.52 performance, 10.58 termination, 3.48 terms, 1.50 – 1.52 time of making, 1.49 – 1.51 Openness and probity, 3.40 Opinions or beliefs basis clauses, 9.16 conjecture, 7.65 – 7.66 damages, 7.54 disclosure, 7.50 – 7.63 dishonesty, 7.52 enquiries, making, 7.53 , 12.27 experts, 18.11 facts, 7.50 – 7.56 fear, 7.65 fiduciaries, 2.36 good faith, 7.52 – 7.53 implied representations, 7.50 – 7.56 inducement, 14.92 , 14.99 inferences, 7.69 information, 7.59 intelligence, 7.66 justification for, 7.50 – 7.56 knowledge, 7.54 life insurance proposal forms, 7.60 materiality, 1.40 , 7.54 , 7.57 – 7.58 , 7.61 – 7.65 misrepresentation, 7.50 – 7.63 objectivity, 7.65 proposal forms, 7.60 prudent or reasonable underwriter, 14.19 Page 727 questions, 9.36 reasonableness, 7.53 – 7.55 , 7.67 – 7.69 , 14.19 , 14.22 , 14.43 representations, 7.33 , 7.57 – 7.63 implied 7.50 – 7.56 speculations, 7.65 – 7.66 suspicion, 7.65 underwriters, 1.40 , 14.19 valuation, 15.84 , 15.86 , 15.96 warranties, 9.16 wilful blindness, 7.55 Ordinary course of business agents, 13.56 brokers, 13.74 , 13.83 enquiries, 12.25 , 12.30 , 12.32 experts, 18.13 fraud, 13.56 insurers, 8.12 , 8.25 – 8.44 knowledge, 3.17 , 7.111 , 7.123 , 7.126 , 7.130 – 7.125 , 7.129 , 8.25 – 8.48 normal and unusual risks, 8.20 – 8.25 placing, 3.11 warranties, 9.11 Origins, materiality of, 15.12 Other policies, existence of avoidance, 15.125 contribution, 15.126 double insurance, 15.126 inducement, 15.127 misrepresentation, 15.127 non-disclosure, 15.127 over-insurance, 15.124 , 15.126 questions, 15.124 renewals, 15.128 valuation, excessive, 15.124 , 15.126 Over-insurance, 15.124 , 15.126 Ownership avoidance, 15.60 hire purchase, 15.60 insurable interest, 15.59 , 15.63 marine insurance, 15.62 – 15.63 materiality, 15.59 – 15.72 motor insurance, avoidance of, 15.60 hire purchase, 15.60 stolen cars, 15.61 vessels, 15.62 – 15.63 Partnership agreements, 2.21 – 2.23 Past convictions see Previous convictions Pay to be paid clauses, 10.52 Payments affirm or avoid, election to, 17.119 avoidance, 16.572 claims, 12.57 – 12.61 , 16.62 , 17.119 , 17.166 conduct, 17.119 court, into, 17.149 held covered clauses, 3.58 , 10.30 late payment of claims, 1.38 , 12.61 premiums, 3.58 , 10.30 reasonable time, 12.58 , 16.30 – 16.31 reservation of rights, 17.166 Performance cancellation, 10.59 claims, 10.54 claims co-operation clauses, 10.59 co-operation during, 3.15 declarations, 10.58 floating policies, 10.58 fraud, 10.54 – 10.61 meaning of good faith, 1.15 open cover, 10.58 post-contractual duty, 3.78 , 10.16 – 10.17 , 10.54 – 10.61 relevance of duty to performance, 1.05 utmost good faith, 10.54 – 10.61 valuation, 10.56 – 10.58 Placing see also Placings, materiality and agents, 11.96 , 12.20 , 13.51 – 13.53 arbitration agreements, 17.103 , 17.108 avoidance, 12.02 – 12.03 bad faith, 3.06 – 3.07 , 3.12 , 7.07 brokers, 13.78 – 13.88 causes of action, elements of, 7.13 concealment, 3.07 continuity of duty, 3.44 – 3.50 , 12.20 damages, 12.07 , 12.09 data protection, 12.21 deceit, 7.09 directive on insurance contracts, proposal for, 5.14 disclosure, 3.06 – 3.13 claims, 3.62 facts, 7.49 – 7.85 fraud, 12.13 full, 7.01 – 7.146 knowledge, 7.98 – 7.146 misrepresentation, 7.03 , 7.22 – 7.42 , 12.05 – 12.08 modification of duty, 9.01 – 9.44 premiums, rating and fixing, 3.17 dishonesty, 7.07 duty of care, 3.09 facts, 7.49 – 7.85 forfeiture, 16.118 forgetfulness, 7.07 fraud, 7.15 – 7.21 agents, 11.96 bad faith, 3.06 – 3.07 Page 728 disclosure, 12.13 misrepresentations, 7.02 , 7.15 – 7.21 , 12.07 – 12.08 governing principle, 3.06 , 3.10 inducement, 7.08 , 12.15 , 12.18 , 12.22 , 14.91 – 14.117 insurers, 12.05 – 12.23 , 14.126 – 14.132 intention, 3.07 knowledge, 7.08 – 7.10 agents, imputed to, 12.20 , 13.51 – 13.53 constructive, 3.11 non-disclosure, 7.98 – 7.146 ordinary cause of business, 3.11 medical records, access to, 12.21 misrepresentation, 7.02 – 7.14 disclosure, 7.07 , 7.22 – 7.48 , 12.05 – 12.08 enquiries, 8.04 – 8.05 facts, 7.49 – 7.85 falsity or untruth of, 7.85 – 7.96 non-disclosure, 7.07 , 7.22 – 7.48 remedies, 7.03 , 7.08 – 7.10 truth, 3.12 mutuality, 3.85 nature of duty of utmost good faith, 3.06 – 3.13 , 3.22 negligence, 7.08 ordinary course of business, knowledge in the, 3.11 placing, 8.01 – 8.105 pre-contractual disclosure, 3.07 – 3.09 , 3.13 , 3.44 premiums, rating and fixing, 3.17 recovery of, 12.05 – 12.08 reasonableness, 3.10 , 12.11 , 12.14 records, 12.21 remedies, 7.03 , 7.08 – 7.10 social or policy view of good faith, 5.01 utmost good faith, 3.06 – 3.13 , 3.17 warranties, 8.86 Placings, materiality and assured, at, 14.10 – 14.90 definition, 12.14 – 12.15 disclosure, 1.48 , 3.22 exceptions, 8.01 – 8.04 fraud, 12.15 , 14.127 insurance instruments, 1.48 insurers, 12.05 , 12.10 , 12.17 – 12.19 , 14.126 – 14.132 medical records, access to, 12.21 misrepresentation, 7.02 , 7.06 , 7.08 , 12.11 , 12.22 modification of duty, 9.01 – 9.44 reasonableness, 3.10 , 3.12 Policies see Insurance policies Policy 3.41 , 6.25 , 11.90 see also Social or policy view of good faith Ports, knowledge and, 8.43 Post-contractual duty, 10.01 – 10.70 additional premium clauses, 10.32 – 10.33 adjustment of obligations, 3.53 – 3.61 , 10.15 – 10.43 , 10.61 – 10.66 avoidance, 10.15 , 10.61 – 10.66 , 11.35 , 16.53 , 16.53 –16.57 cancellation clauses, 10.35 – 10.40 causation, 3.05 change of circumstances, 10.34 claims, 3.62 – 3.76 control clauses, 3.78 extent of duty, 3.14 presentation of, 10.16 – 10.17 , 10.44 – 10.53 , 11.25 co-assured, 13.31 continuing nature of duty, 3.53 – 3.78 , 10.02 , 10.15 damages, 16.159 , 16.165 disclosure, 4.47 – 4.49 forfeiture, 16.118 formation of the contract of insurance, 10.08 – 10.14 fraud, 3.64 – 3.78 , 4.18 – 4.24 , 10.07 , 10.15 – 10.18 , 11.42 , 16.55 held covered clauses, 10.27 – 10.31 implied terms, 10.06 insurer’s duty, 12.48 liability insurance, 3.78 , 10.15 making of contract of insurance, 10.09 – 10.14 marine insurance, 10.07 Marine Insurance Act 1906, 10.01 – 10.03 , 10.15 , 10.17 materiality, 10.01 , 10.15 , 10.26 misrepresentation, 10.01 , 10.03 mutual duty, 10.03 negotiations, 10.09 – 10.10 non-consumer contracts, 10.26 notice provisions, 3.78 operation of the contract, 3.77 – 3.79 , 10.54 – 10.61 parties, 10.08 performance of obligations, 3.78 , 10.16 – 10.17 , 10.54 – 10.61 pre-contractual duty, 3.53 , 3.57 , 10.07 premiums, calculation of, 3.78 renewals, 10.41 – 10.43 repudiation, 10.15 revival of duty, 3.52 ship’s papers, discovery of, 10.07 source of duty, 10.06 termination of duty of utmost good faith, 10.61 – 10.70 Page 729 unconscionability, 17.11 utmost good faith, 10.01 – 10.08 , 10.15 – 10.17 , 10.61 – 10.70 variations to the insurance contract, 3.55 , 10.19 – 10.26 warranties, 8.86 when parties are in a post-contractual relationship, 10.08 Precedent, 16.10 Pre-contractual duty additional premium clauses, 3.59 adjustment of parties’ obligations, 3.53 Australian Law Reform Commission, 5.26 avoidance, 3.55 , 10.61 , 11.120 , 16.53 basis clauses, 9.17 boundaries of, 3.18 cancellation, notices of, 3.60 claims, 11.01 , 11.26 , 11.56 co-assured, 11.94 concealment, 11.88 – 11.89 continuation of duty, 3.44 , 11.108 damages, 16.156 directive on insurance contracts, proposal for, 5.15 exaggerated and excessive claims, 11.56 fraud, 3.53 , 4.18 – 4.24 , 11.106 – 11.107 held covered clauses, 3.58 increase in risk, 3.55 inducement, 14.96 , 14.102 law reform, 5.11 nature of duty of utmost good faith, 3.02 non-disclosure, 4.30 , 4.43 , 4.47 – 4.49 placing, 3.07 – 3.09 , 3.13 , 3.44 post-contractual duty of disclosure, 3.53 , 3.57 , 10.07 relevance to pre-contractual duty, 1.05 renewals, 3.61 , 10.41 revival, 3.54 source of duty, 10.06 utmost good faith, 10.06 variation of the contract, 3.55 – 3.56 endorsement, by, 3.56 post-contractual, 3.57 waiver, 8.50 warranties, 8.86 – 8.87 Premiums see also Premiums, recovery of acceptance, 10.12 , 16.62 , 17.115 – 17.116 additional premium clauses, 3.59 , 10.33 , 11.66 – 11.68 affirm or avoid, election to, 17.115 – 17.116 assignees, 13.20 avoidance, acceptance of, 16.62 calculation of premiums, 12.53 election, 17.115 – 17.117 recovery, 10.63 , 16.64 , 16.70 Australian Law Reform Commission, 5.26 calculation of, 3.78 , 12.53 , 14.35 – 14.40 , 14.51 , 14.82 – 14.83 conduct, 17.115 – 17.116 disclosure, 3.59 forfeiture, 16.106 formation of contract, 10.12 fraudulent devices, 11.66 – 11.68 identification of insurance contracts, 1.22 knowledge, 8.77 marine insurance, 7.15 materiality, 14.14 , 14.60 , 14.82 – 14.83 post-contractual duty, 3.78 promissory estoppel, 17.135 prudent or reasonable underwriter, 14.14 , 14.35 – 14.40 , 14.51 rate of, 8.77 reinsurance, 15.114 warranties, 8.89 Premiums, recovery of affirm or avoid, election to, 17.04 assignees, 13.20 Australian Law Reform Commission, 5.26 avoidance, 10.63 , 16.64 , 16.70 damages, 16.161 directive on insurance contracts, proposal for, 5.14 fraud, 7.15 marine insurance, 7.15 placing, 12.07 promissory estoppel, 17.145 restitution, 16.122 Previous convictions see also Rehabilitation of offenders dishonesty, 15.30 – 15.38 illegality, 15.32 materiality, 15.32 – 15.38 moral hazard, 15.30 – 15.38 , 15.49 motor insurance, 15.30 – 15.31 waiver, 15.33 Principles, utmost good faith as a set of, 3.02 , 3.30 Privilege legal advisers, 13.96 self-incrimination, against, 8.100 Privity of contract, 13.03 , 13.98 – 13.100 Professional advice, 2.36 , 15.120 see also Legal advisers Professions, materiality of, 15.17 Promissory estoppel, 17.120 – 17.161 affirm or avoid, election to, 17.55 , 17.86 – 17.87 , 17.116 , 17.120 – 17.161 arbitration, 17.135 Page 730 avoidance, 17.141 – 17.142 , 17.146 basis clause, 17.144 – 17.145 burden of proof, 17.126 – 17.163 cancellation, 17.146 claims, paying, 17.149 conduct, cancellation provisions, 17.146 claims, payment of, 17.149 delay, 17.150 – 17.161 inactivity, 17.130 , 17.132 , 17.150 – 17.161 payments into court, 17.149 reliance, 17.138 – 17.139 security measures, advice on, 17.148 silence, 17.130 , 17.132 , 17.150 – 17.161 unequivocal, 17.1263, 17.132 , 17.141 – 17.161 delay, 17.50 – 17.161 detriment, 17.139 – 17.140 equitable estoppel, 17.120 fraud, 17.131 inactivity, 17.130 , 17.132 , 17.150 – 17.161 knowledge, 17.124 – 17.31 actual, 17.125 , 17.143 apparent, 17.125 , 17.130 , 17.135 constructive, 17.125 facts, of, 17.125 – 17.129 rights, of, 17.125 – 17.129 warranties, breach of, 17.145 Marine Insurance Act 1906, 17.35 – 17.40 , 17.44 – 17.52 omissions, 17.135 payments into court, 17.149 premiums, payment of, 17.135 recovery of, 17.145 reliance, 17.132 – 17.139 cancellation provision, on, 17.146 detriment, 17.139 – 17.140 warranties, breach of, 17.145 repudiation, 17.144 reservation of rights, 17.169 security measures, advice on, 17.148 silence, 17.130 , 17.132 , 17.150 – 17.161 suspensory, as, 17.123 waiver, affirm or avoid, election to, 17.122 – 17.123 avoidance, 17.21 Marine Insurance Act 1906, 17.08 reliance, 17.134 , 17.145 warranties, breach of, 17.22 , 17.29 – 17.39 , 17.41 – 17.52 warranties, breach of, 17.125 – 17.128 , 17.131 , 17.136 – 17.134 , 17.144 – 17.149 Proof see also Burden of proof false or misleading representations, 7.92 fraud, 7.18 , 7.20 , 11.43 inducement, 14.97 , 14.99 , 14.106 – 14.117 materiality, 14.08 standard of proof, 11.43 , 18.09 Property age of, materiality of, 15.56 – 15.58 application of duty of good faith, 1.33 class of vessels, 15.81 – 15.82 condition of, 15.71 – 15.72 current use, 15.66 – 15.67 fraudulent claims clauses, 11.99 history of assured, insurance, 15.101 – 15.103 identification of property, materiality of, 15.51 – 15.55 intended use, 15.68 – 15.69 licences of vessels, 15.80 – 15.82 location, 15.66 – 15.67 , 15.77 – 15.80 marine insurance, materiality and, age, 15.57 class of vessels, 15.81 – 15.82 current use, 15.67 identification, 15.52 – 15.55 intended use, 15.69 licences of vessels, 15.81 – 15.82 nationality, class, licences and registration, 15.81 – 15.82 ownership, 15.62 – 15.63 previous use, 15.65 related property, nature of, 15.74 – 15.76 voyage, location and timing of, 15.77 – 15.80 materiality, 15.51 – 15.82 nationality of vessels, 15.81 – 15.82 nature of property, 15.71 – 15.72 non-marine, materiality of, age, 15.56 current use, 15.66 identification, 15.51 – 15.52 intended use, 15.68 ownership, 15.59 – 15.61 previous use, 15.64 related property, nature of, 15.72 ownership, materiality of, 15.59 – 15.63 premises, use of, 8.59 previous use, 15.64 – 15.65 qualifications of person in charge or with custody of, 15.70 registration of vessels, 15.81 – 15.82 related property, 15.73 – 15.76 safety of, 15.71 – 15.72 storage, 15.69 subject matter insured, 15.50 – 15.82 Third Parties (Rights against Insurers) Act 1930, 13.99 voyage, location and timing of, 15.77 – 15.80 Page 731 Proportionality application of the duty of utmost good faith, 1.41 avoidance, 11.24 , 11.26 , 16.15 claims, 11.24 , 11.26 EU law, 5.08 law reform, 5.08 unconscionability, 17.14 – 17.15 Proposal forms agents, 13.89 – 13.91 basis clauses, 9.08 , 9.17 , 9.20 completion, 13.90 – 13.91 formation of contract, 10.11 knowledge, 13.90 – 13.91 Law Commission, 5.18 law reform, 5.21 life insurance, 7.60 Lloyd’s, 10.11 materiality, 1.42 , 5.21 misrepresentation, 1.42 opinions, 7.60 placing, 9.05 questions, 9.38 social or policy view of good faith, 5.04 Statement of General Insurance Practice, 1.42 Statements of Long-Term Insurance Practice, 1.42 waiver, 8.50 , 8.54 – 8.64 warnings, 1.342, 5.21 warranties, 9.11 Prospectuses, 2.31 – 2.32 , 4.52 , 14.95 Proximity, 16.150 Prudent or reasonable underwriter see also Prudent or reasonable underwriter, materiality and application of duty of good faith, 1.37 avoidance, 16.41 characteristics of, 14.24 – 14.30 concealment, 14.30 contributing influence test, 14.41 , 14.44 , 14.48 – 14.49 , 14.55 – 14.56 decisive influence test, 14.41 , 14.44 , 14.47 – 14.50 , 14.54 – 14.56 disclosure, 14.18 – 14.57 effect of duty on the underwriter, 14.31 – 14.57 experts, 14.23 , 18.11 health, 15.19 inducement, 14.68 , 14.92 , 14.98 , 14.111 – 14.114 information, 14.41 knowledge, 14.29 law reform, 5.09 Law Reform Committee, 14.22 – 14.23 life insurance, 14.18 – 14.19 marine insurance, 14.37 , 14.53 Marine Insurance Act 1906, 14.37 , 14.39 market practice, 14.29 materiality, circumstances, meaning of, 14.37 , 14.56 facts, examples of, 15.02 misrepresentation, 14.42 , 14.49 , 14.88 – 14.90 misrepresentation, 14.24 – 14.25 , 14.30 , 14.42 , 14.49 , 14.88 – 14.90 motor insurance, 14.38 objectivity, 14.22 opinions, 14.19 premiums, calculation of, 14.35 – 14.40 , 14.51 reasonable assured, 14.18 – 14.23 , 14.28 – 14.29 risk assessment, 14.41 , 14.56 social or policy view of good faith, 5.02 subjectivity, 14.22 valuation, 15.87 Prudent or reasonable underwriter, materiality and, 14.77 – 14.81 application of duty of good faith, 1.37 characteristics of prudent underwriter, 14.24 – 14.30 circumstances, materiality of, 14.15 , 14.129 effect on the, 14.31 – 14.57 inducement, 14.68 misrepresentation, 14.42 , 14.49 , 14.88 – 14.90 premiums, level of, 14.14 reasonable assured and, 14.18 – 14.23 risk, material to the, 14.63 – 14.72 , 14.77 – 14.81 time for applying the, 14.58 – 14.61 variation, 14.84 – 14.87 waiver, 8.74 Public domain, information in the, 12.29 Public offers see Shares publicly offered, contracts for purchase of Public policy, 3.41 , 6.25 , 11.72 , 11.103 Public records, access to, 8.32 Purpose of duty of good faith, 3.33 – 3.42 concealment, technical, 3.33 disclosure, full, 3.35 , 3.38 – 3.42 dishonesty, 3.38 due diligence, 3.42 enquiries, making, 3.35 fraud, prevention of, 3.33 – 3.34 , 3.39 guarantees, contracts of, 3.42 knowledge of parties, 3.34 – 3.37 openness and probity, 3.40 public policy, 3.41 reciprocity, 3.36 regulatory requirements, 3.41 Page 732 risk, 3.37 sources of information, 3.35 speculation, relationship as one of, 3.37 utmost good faith, 3.36 Questions see also Enquiries absence of question, 8.57 answered or unanswered, 8.62 – 8.65 avoidance, 9.41 basis clauses, 8.56 , 9.14 , 9.20 , 9.39 false or misleading representations, 7.86 – 7.89 fraud, 9.41 history of assured, insurance, 15.108 implied waiver, 8.56 – 8.65 incomplete answers, 8.63 – 8.64 insurance policies, existence of other, 15.124 investigations, 12.50 knowledge, presumed, 9.36 marine insurance, 9.41 , 9.43 materiality, 9.34 – 9.44 misrepresentation, 9.41 , 9.42 , 9.44 non-disclosure, 9.44 non-marine insurance, 9.41 – 9.42 – 9.43 placing, 9.34 – 9.44 proposal forms, 9.38 refusal, prior, 15.108 selection of, 8.56 – 8.61 waiver, 8.54 – 8.55 , 9.38 Race discrimination, 6.44 , 8.100 , 15.14 Rating risks, discrimination and, 8.100 Reasonableness see also Prudent or reasonable underwriter additional premium clauses, 3.59 claims, 12.52 conduct, 17.98 damages, 16.150 discovery, 1.44 enquiries, 12.51 exemption clauses, 16.87 experts, 18.10 false or misleading representations, 7.89 , 7.90 fraud, 3.96 , 3.99 , 11.104 knowledge, 7.101 , 7.134 – 7.138 , 8.75 Law Commission, 1.38 , 5.18 materiality, 1.38 , 5.18 , 14.03 , 14.06 – 14.07 , 14.18 – 14.23 , 14.80 , 18.10 opinions, 7.53 , 7.55 , 7.67 – 7.69 placing, 3.10 , 12.11 , 12.14 unfair contract terms, 11.104 , 16.87 valuation, 15.98 warranties, 8.91 , 9.12 Recklessness, 11.37 – 11.38 , 11.68 , 11.92 , 14.120 Records conduct, 17.98 enquiries, 12.31 evidence, 18.15 financial history and practices, 15.23 knowledge, 7.133 medical, 6.45 , 7.133 , 12.21 placing, 12.21 public, access to, 8.32 Recovery of premiums see Premiums, recovery of Rectification, 7.27 , 7.41 – 7.45 , 9.22 Reform see Law reform Refusal avoidance, 16.104 history of assured, insurance, 15.106 – 15.110 issue policies, to, 16.104 marine insurance, 15.108 prior, 15.108 – 15.110 reinsurance, 15.115 Regulatory requirements, 3.41 Rehabilitation of offenders, 6.39 – 6.42 avoidance, 6.42 discretion, 6.41 – 6.42 , 8.99 fines, 6.40 imprisonment, 6.40 legislation, 6.39 – 6.42 , 8.99 materiality, 6.41 –6.242, 15.38 motor insurance, 6.42 placing, 8.99 spent convictions, 6.39 – 6.42 , 8.99 , 15.38 Reinsurance see also Reinsurance treaties agents, 13.55 , 13.66 basis clauses, 9.18 business, nature and terms of, 15.116 claims insurance, 15.113 disclosure, materiality and, 1.29 excess of loss policies, 15.119 facultative reinsurance, 10.45 , 15.119 follow the settlements, 10.52 fraud, 4.18 fronting, 7.30 history, insurance, 15.113 identification of insurance contracts, 1.25 identity of reassured, materiality of, 15.119 indemnities, 1.25 knowledge, 8.25 , 8.28 , 8.48 , 8.82 , 13.55 Law Commission, 5.19 life insurance, retention and, 15.112 loss experience, 15.113 material facts, examples of, 15.111 – 15.119 misrepresentation, 1.54 , 7.30 , 15.115 Page 733 pay to be paid clauses, 10.52 pool, 1.29 premium income, estimated, 15.114 proportional, 15.119 quota share, 15.119 refusal by another reinsurer, prior, 15.115 restitution, 16.123 retention, 15.112 risk assessment, 15.118 termination, 13.04 Third Parties (Rights against Insurers) Act 1930, 13.99 waiver, 8.72 – 8.73 Reinsurance treaties acceptance of risk, 1.50 – 1.51 application of duty of good faith, 1.34 declarations, 1.50 – 1.52 , 1.54 materiality, 15.119 misrepresentation, 1.54 non-disclosure, 1.54 obligatory, 1.54 options, 1.52 terms, 1.50 – 1.52 time of making, 1.49 – 1.51 Rejection application of the duty of utmost good faith, 1.40 claims, 11.108 , 11.111 , 12.51 , 12.54 claims co-operation clause, 10.47 continuation of duty, 11.108 , 11.111 fraud, 11.108 , 11.111 , 12.51 , 12.54 termination, 3.81 Related property, 15.73 – 15.76 cargo, 15.74 – 15.76 knowledge, 15.75 seaworthiness, 15.74 – 15.75 vessels, 15.74 – 15.76 voyage policies, 15.74 – 15.75 Reliance affirm or avoid, election to, 17.94 , 17.117 cancellation, 17.146 co-insurers, 13.42 , 13.46 conduct, 17.117 , 17.141 damages, 16.150 delay, 17.154 , 17.159 – 17.161 detriment, 17.139 – 17.140 , 17.155 fraud, 7.15 inactivity, 17.154 , 17.159 – 17.161 inducement, 14.107 , 14.116 inferences, 14.116 laches, 159 promissory estoppel, 17.132 – 17.138 , 17.145 – 17.146 silence, 17.154 , 17.159 – 17.161 warranties, breach of, 17.145 Remedies, 16.01 – 16.166 see also Avoidance; Damages; Remedies, fraudulent claims and; Restitution; Termination account of profits, 16.11 available, 16.14 – 16.31 avoidance, 4.56 – 4.60 cancellation, 16.103 – 16.104 common law, 4.57 , 4.59 , 16.03 – 16.13 consideration, total failure of, 4.52 deceit, 4.53 delivery up, 16.103 – 16.104 difficulties, 16.14 equity, 4.31 , 4.54 – 4.60 , 16.03 – 16.04 , 16.09 – 16.13 forfeiture, 11.118 – 11.119 , 11.126 – 11.129 inducement, 4.51 injunctions, 16.146 law merchant, 16.02 misrepresentation, 4.25 , 4.27 , 4.51 – 4.57 , 4.60 , 6.34 – 6.38 , 7.36 , 7.41 , 16.02 placing, 7.03 , 7.08 – 7.10 reasonable time, failure to pay in, 16.30 – 16.31 rescission, 4.51 silence, 7.36 , 7.37 source of duty of utmost good faith, 4.51 – 4.60 specific performance, 16.146 statutory intervention, 16.15 – 16.16 utmost good faith, 11.117 – 11.136 unfair presentation of risk by assured, 16.17 – 16.26 Remedies, fraudulent claims and, 11.07 – 11.09 , 16.27 – 16.29 see Avoidance of fraudulent claims continuation of duty, 11.117 contractual remedies, 11.133 – 11.136 forfeiture, 11.118 – 11.119 , 11.126 – 11.129 fraudulent devices, 11.71 inducement, 11.28 Insurance Act 2015, 11.130 – 11.132 , 16.27 litigation, commencement of, 11.108 misrepresentation, 4.56 , 11.28 non-liability, 16.28 recovery of payments, 16.28 source of, 4.52 – 4.53 termination, 16.29 tortious liability, 12.50 types of claims, 11.47 – 11.48 wilful misconduct, 11.48 Renewals adjustment of obligations, 3.61 , 10.41 – 10.43 affirm or avoid, election to, 17.114 avoidance, 3.61 , 10.41 – 10.43 changes in circumstances, 5.21 Page 734 conduct, 17.114 continuation of duty, 3.28 disclosure, 3.61 , 5.21 fraud, 10.42 inducement, 10.43 insurance policies, existence of other, 15.128 law reform, 5.21 life insurance, 10.42 materiality, 3.61 , 10.43 , 14.80 misrepresentation, 10.41 – 10.43 moral hazard, 10.43 non-disclosure, 10.41 post-contractual duty, 10.41 – 10.43 pre-contractual disclosure, 3.61 , 10.41 representations, 3.61 , 10.42 warnings, 5.21 Replacement policies, 17.113 Representations see also False or misleading representations; Misrepresentation agents, 13.49 , 13.65 – 13.67 , 13.89 basis clauses, 9.07 – 9.09 , 9.13 , 9.17 – 9.20 , 9.23 , 9.27 – 9.33 breaches of, 7.48 brokers, 13.78 – 13.79 burden of proof, 18.02 estoppel, 17.35 – 17.38 , 17.41 evidence, 18.16 implied representations, 7.31 – 7.34 , 7.37 – 7.38 , 7.50 – 7.56 , 7.65 incorporated into documents, 7.47 information only, for, 7.47 intention, 7.70 – 7.75 law of, 7.76 – 7.80 margins of policy, 7.47 Marine Insurance Act 1906, 6.07 opinions, 7.450– 7.69 renewals, 3.61 , 10.42 substantial truth, 7.48 waiver, 8.50 – 8.51 warranties, 7.46 – 7.48 Representations of law agents, 7.77 disclosure, 7.76 facts, representations of, 7.76 – 7.80 foreign law, 7.76 , 7.80 fraud, 7.78 illegality, 7.76 – 7.77 misrepresentation, 7.76 – 7.78 negligence, 7.77 warranties, 7.76 Repudiation affirm or avoid, election to, 17.102 , 17.117 aviation insurance, 5.21 avoidance, 11.135 claims, delay and, 5.21 damages, 12.51 forfeiture, 16.111 fraudulent claims, 3.66 , 11.133 , 11.136 law reform, 5.21 marine insurance, 5.21 misrepresentation, 5.21 mutuality, 3.95 non-disclosure, 5.21 post-contractual duty, 10.15 promissory estoppel, 17.144 termination, 16.96 – 16.97 , 16.100 waiver, 17.24 warranties, breach of, 5.21 Rescission see Avoidance or rescission Reservation of rights affirm of avoid, election to, 17.112 – 17.113 , 17.165 , 17.169 avoidance, 16.62 claims, payment of, 17.166 conduct, 17.168 enquiries, 17.166 explicit reservation, 17.168 implied reservation, 17.167 knowledge, 17.169 promissory estoppel, 17.169 warranties, breach of, 17.169 Residence, materiality of, 15.15 Restitution, 16.122 – 16.124 avoidance, 16.63 – 16.70 , 16.123 , 16.161 – 16.162 claims, proceeds of, 16.122 damages, 16.147 , 16.161 – 16.162 , 16.166 fraud, 16.64 – 16.65 , 16.68 , 16.122 indemnities, 16.123 marine insurance, 16.64 , 16.122 money had and received, 16.122 purpose, 16.124 reinsurance, 16.123 third parties, 16.123 Revival of duty, 3.54 Rights, knowledge of, 17.72 – 17.87 , 17.124 – 17.129 Risk see also Risk assessment acceptance, 1.50 – 1.51 adjustment of obligations, 3.57 connection to the, 14.89 diminution of, 8.06 – 8.11 , 14.69 , 14.79 discrimination, 8.100 fair presentation of, 6.18 , 7.05 – 7.06 , 7.23 , 8.52 , 8.68 evidence, 8.09 – 8.10 expert evidence, 8.09 – 8.10 Marine Insurance Act 1906, 8.09 materiality, 8.08 – 8.09 materiality, 14.62 – 14.81 , 14.89 Page 735 misrepresentation, 7.23 normal and unusual, 8.26 – 8.31 open cover, 1.50 – 1.51 prudent or reasonable underwriter, 14.63 – 14.72 , 14.77 – 14.81 rating, discrimination and, 8.100 security arrangements, 8.11 termination, 3.46 , 3.52 unfair presentation by assured, 16.17 – 16.26 variations, 10.19 , 10.22 – 10.26 Risk assessment assured, identification of, 15.06 insurance history of, 15.100 – 15.101 co-insurers, 13.44 enquiries, 12.25 – 12.32 history of assured, insurance, 15.100 – 15.101 identification of insurance contracts, 1.25 identity of the assured, 15.06 inducement, 14.94 insurer’s duty, 12.24 – 12.37 judgement and skill, 12.33 , 12.37 London market practice, 12.34 Marine Insurance Act 1906, 12.34 materiality, 12.33 , 12.36 , 14.14 premiums, calculation of, 12.35 prudent or reasonable underwriter, 14.41 , 14.56 purpose of duty, 3.37 reinsurance, 15.119 Road Traffic Acts, 6.25 – 6.32 , 13.101 Rumours, allegations, communications and intelligence agents, 7.81 burden of proof, 18.08 current intelligence, 7.82 disclosure, 7.81 – 7.85 dishonesty, 7.84 facts, 7.81 – 7.85 materiality, 7.81 – 7.85 , 15.39 – 15.44 media reports, 7.85 misrepresentation, 7.83 moral hazard, 15.39 – 15.44 opinions, 7.66 past intelligence, 7.82 pleadings, 18.08 standard of proof, 18.09 unconscionability, 17.11 verification, 7.83 Salvage Admiralty Court jurisdiction, 2.30 disclosure, full, 2.30 knowledge, 2.29 lump sum, 2.30 materiality, 9.34 , 14.66 reward, 2.30 utmost good faith, 2.29 – 2.30 Scandal-mongering, 15.45 Scuttling, 1.44 Seaworthiness agents, fraud of, 11.95 knowledge, 8.77 privity of assured, 8.91 , 11.95 related property, 15.74 – 15.75 waiver, 17.41 warranties, 8.89 , 8.91 17.41 Security advice, 17.148 assignees, 13.08 , 13.13 conduct, 17.148 debt, for, 13.08 , 13.13 diminution of risk, 8.11 financial history and practices, 15.23 materiality, 15.71 – 15.72 measures, 17.148 promissory estoppel, 17.148 warranties, 8.90 Self-incrimination, privilege against, 8.100 Settlements see Compromise Severance, 17.102 , 17.103 , 17.107 – 17.108 Sex discrimination, 6.44 , 8.100 Shares publicly offered, contracts for purchase of, 2.31 – 2.32 directors, 2.31 disclosure, 2.31 – 2.32 fiduciary relationships, 2.31 Financial Services and Markets Act 2000, 2.32 Listing Rules, 2.32 materiality, 2.31 promoters, 2.31 – 2.32 prospectuses, 2.31 – 2.32 silence, 2.32 utmost good faith, 2.31 – 2.32 Ships see Marine insurance; Ship’s papers, discovery for; Vessels Ship’s papers, discovery of, 1.44 – 1.47 continuation of duty, 11.109 – 11.110 , 11.113 discretion, 11.109 fraud, 11.109 – 11.110 , 11.113 investigations, 3.76 post-contractual duty, 10.07 Silence affirm or avoid, election to, 17.94 avoidance, 16.61 , 17.94 , 17.150 , 17.153 , 17.155 – 17.157 change in circumstances, 7.45 Page 736 conduct, 17.99 , 17.130 , 17.132 , 17.150 – 17.161 deceit, 7.35 false impressions, 7.38 – 7.43 implied representations, 7.37 – 7.38 materiality, 7.37 , 7.39 , 7.44 misrepresentation, 7.35 – 7.45 non-disclosure, 7.37 – 7.38 omissions, 7.38 promissory estoppel, 17.130 , 17.132 , 17.150 – 17.161 rectification, 7.41 – 7.45 remedies, 7.36 , 7.42 shares publicly offered, contracts for purchase of, 2.31 – 2.32 utmost good faith, 7.36 waiver, 8.51 Slips affirm or avoid, election to, 17.112 formation of contract, 10.11 , 10.14 insurance instruments, 1.48 issue of policies, 12.43 – 12.46 lines, 1.48 Lloyd’s, 10.11 signing, 1.48 , 10.11 , 10.14 , 12.43 – 12.46 , 17.112 terms, 1.48 Social or policy view of good faith, 5.01 – 5.07 avoidance, 5.07 basis clauses, negotiation of, 5.04 disclosure, 5.01 – 5.07 fairness, 5.06 fraud, 5.02 honour, insurer bound in, 5.01 insurers, advantageous position of, 5.03 – 5.04 materiality, 5.02 – 5.03 placing, 5.01 proposal forms, statements in, 5.04 underwriters, prudent, 5.02 universal provisions, 5.04 viability of insurance industry, 5.05 Source of duty of utmost good faith, 4.01 – 4.62 common law, 4.02 – 4.05 , 4.08 , 4.13 – 4.15 , 4.31 , 4.62 custom, 4.08 equity, 4.15 , 4.62 fraud, 4.11 , 4.18 – 4.24 insurance policies, development of, 4.08 law merchant, 4.02 – 4.17 , 4.61 Lloyd’s, establishment of, 4.10 misrepresentation, 4.25 – 4.29 natural law, 4.02 – 4.03 non-disclosure, 4.30 – 4.50 post-contractual duty, 10.06 pre-contractual duty, 10.06 remedies for breach of duty, 4.51 – 4.60 tribunals, 4.08 Specific performance, 16.146 Speculation, 3.35 , 7.64 – 7.69 Spouses, contracts between, 2.25 – 2.28 disclosure, duty of full, 2.25 family provision, 2.27 intention to create legal relations, 2.26 maintenance agreements, 2.27 materiality, 2.26 Squatters, knowledge of, 8.29 Stamped policies, 12.40 Standard of proof, 11.43 , 18.09 Statements of Insurance Practice claims, 12.56 Law Commission, 5.18 law reform, 5.20 – 5.22 proposal forms, 1.42 waiver, 8.54 , 8.61 Storage, 15.69 Structured duty, good faith as a, 3.01 – 3.21 Subject-matter contracts and other arrangements, 15.129 knowledge, 7.114 materiality, 14.67 , 15.02 , 15.50 – 15.82 Subrogation avoidance, 10.53 claims, 3.76 , 10.53 fraud, 10.53 law merchant, 4.07 materiality, 14.66 , 14.78 utmost good faith, 10.53 Sue and labour, 14.113 Suretyship, contracts of see Guarantees or surety contracts Suspicion, 7.65 , 7.104 , 11.85 Tailoring duty of good faith, 3.22 – 3.32 Technical breaches of duty, 1.44 , 3.33 , 4.19 Termination of duty agreements on contacts of insurance, 3.45 – 3.46 alteration of risk, 3.52 avoidance, 3.49 , 3.81 , 3.783, 10.61 , 10.65 , 10.70 cancellation, 3.49 claims, 10.69 declarations, 3.48 – 3.50 disclosure, 3.46 , 3.48 – 3.52 , 3.80 – 3.81 fidelity policies, 3.51 floating policies, 3.49 fraudulent claims, 3.81 – 3.83 , 10.69 further disclosure, 3.47 , 3.50 Page 737 litigation, commencement of, 3.81 – 3.82 , 10.69 materiality, 3.48 , 3.50 – 3.52 misrepresentation, 3.81 non-disclosure of material facts, 3.46 , 3.48 – 3.52 open cover, 3.48 placing, 3.45 – 3.52 post-contractual duty, 10.67 – 10.70 presentation of the risk, 3.46 rejection of claims, 3.81 risk, 3.46 , 3.52 terms, 3.46 , 3.48 utmost good faith, 10.67 – 10.70 Termination of insurance contracts, 16.96 – 16.102 see also Avoidance affirmation, 16.96 avoidance, 10.61 , 10.62 breach of duty, 16.97 , 16.100 – 16.102 claims co-operation clause, 10.46 damages, 16.96 directive on insurance contracts, proposal for, 5.14 fair presentation of risk, 16.98 forfeiture, 16.101 fraud, 16.101 misrepresentation, 16.99 repudiation, 16.96 – 16.98 , 16.100 Terminology, 1.03 Terms see also Clauses; Implied terms; Unfair contract terms; Warranties binding authority, 1.28 damages, 16.141 , 16.143 – 16.144 explanation of the, 12.27 – 12.42 innominate, 10.46 – 10.47 open cover, 1.50 – 1.52 promissory, 4.35 reinsurance treaties, 1.50 – 1.52 slips, 1.48 termination, 3.46 , 3.48 Testimony of parties, 18.15 – 18.16 Third parties, 13.01 – 13.101 see also Agents; Assignees; Co-assureds; Co-insurers; Legal advisers avoidance, 6.30 , 13.101 , 16.69 Contracts (Rights of Third Parties) Act 1999, 13.03 delay, 17.150 discovery, 1.44 – 1.47 fraud, 13.03 inactivity, 17.150 inducement, 13.03 intention, 7.64 – 7.76 knowledge, 13.04 marine insurance, 1.44 – 1.47 materiality, 13.03 – 13.05 misrepresentation, 7.28 – 7.29 , 13.03 moral hazard, 15.26 motor insurance, 6.02 , 6.25 – 6.30 , 9.24 , 13.101 negligence, 13.03 privity of contract, 13.03 , 13.98 – 13.100 reinsurers, 13.04 restitution, 16.123 silence, 17.150 Third Parties (Rights against Insurers) Act 1930, 13.98 – 13.100 Third Parties (Rights against Insurers) Act 2010, 13.98 – 13.100 Third Parties (Rights against Insurers) Act1930, 13.98 – 13.100 bankruptcy, 13.98 , 13.100 breach of duty, 13.96 disclosure, 13.100 information, 13.100 insolvency, 13.96 , 13.100 liability, 13.98 – 13.100 property insurance, 13.99 reinsurance, 13.99 Third Parties (Rights against Insurers) Act2010, 13.98 – 13.100 Time limits acquiescence, 17.164 affirm or avoid, election to, 17.05 – 17.06 avoidance, 17.164 damages, 17.164 laches, 17.164 motor insurance, 6.27 , 13.101 warranty, breach of, 17.164 Title to sue, 13.08 Tortiousliability see also Negligence co-insurers, 13.41 damages, 16.153 – 16.156 , 16.163 remedies, 12.50 Trade usage expert evidence, 18.13 knowledge, 7.115 , 8.41 – 8.44 nature of duty of utmost good faith, 3.20 waiver, 8.83 Transport insurance, 1.37 Trivial falsity, 7.93 , 7.95 , 11.40 – 11.41 Trusts assignees, 13.15 – 13.18 breach of, 16.147 damages, 16.147 trustees, 13.15 – 13.18 Truth see also False or misleading representations basis clauses, 9.06 , 9.08 – 9.09 , 9.13 – 9.20 , 9.31 Page 738 motor insurance, 9.24 substantial, 7.48 warranties, 9.14 Uberrimae fidei/Uberrimae fides see also Utmost good faith commercial contracts, 1.07 , 1.31 designation of contracts as, 1.10 disclosure, 1.24 Unconscionability affirm or avoid, election to, 17.09 – 17.17 avoidance, 17.10 – 17.17 common law, 17.10 damages, 17.13 discretion, 17.16 equity, 17.10 – 17.13 fair dealing, principle of, 17.14 – 17.15 inducement, 17.13 insurers, 17.10 – 17.14 intelligence, disclosure of, 17.11 jurisdiction, 17.13 post-contractual duty, 17.10 proportionality, 17.14 – 17.15 utmost good faith, 17.09 waiver, 17.08 , 17.37 warranties, breach of, 17.17 Undertakings, letters of, 1.27 , 13.21 Underwriters see also Prudent or reasonable underwriter attitudes of, 15.106 – 15.110 following, 13.36 – 13.48 fraud, 3.96 , 3.99 history of assured, insurance, 15.106 – 15.110 judgment and skill of, 13.40 , 13.45 – 13.46 knowledge, 8.18 , 8.48 leading underwriters, 13.36 – 13.48 marine insurance, attitudes of other underwriters and, 15.109 materiality, 1.40 opinions, 1.40 rejection of risk, 1.40 Undue influence, 12.39 , 16.162 Unfair contract terms basis clauses, 6.57 , 9.25 consumer contracts, 6.54 – 6.57 , 9.25 , 11.104 directive, 6.54 – 6.57 , 9.25 exemption clauses, 16.87 explain the terms, duty to, 12.39 fraudulent claims clauses, 11.104 implementation, 6.55 legislation, 6.54 – 6.57 , 9.25 materiality, 6.56 , 9.24 negotiated, terms individually, 6.56 plain, intelligible language, 6.56 , 9.26 reasonableness, 11.104 , 16.87 standard forms, 6.56 Unfair presentation of risk, 16.17 – 16.26 available remedies, 16.26 , 17.01 avoidance, 16.166 consumer, 16.17 cumulative remedies, 16.25 deliberate failure, 16.18 – 16.19 different terms, 16.21 higher premium, charged, 16.23 – 16.24 inducement, 16.19 non-consumer, 16.17 premium, 16.20 reckless failure, 16.18 – 16.19 Untruth see False or misleading representations; Misrepresentation Updated information, 13.82 Use avoidance, 15.68 change of use, 15.68 – 15.69 current use, 15.66 – 15.67 deviation, 8.91 , 15.69 , 15.80 intention, 15.67 – 15.69 materiality of, 15.64 – 15.70 misrepresentation, 15.68 premises, 8.59 previous use, 15.65 vessels, current use, 15.67 deviation, 8.91 , 15.69 , 15.80 employment, 15.67 previous use, 15.65 voyage of, 15.69 Utmost good faith see also Breach of duty; Continuation of the duty acknowledgment of applications, 3.16 application of duty, 1.34 – 1.38 , 1.47 assignees, 13.21 – 13.24 avoidance, 3.16 , 10.15 – 10.18 , 10.61 – 10.66 , 11.120 – 11.124 , 16.32 – 16.95 binding authority, 1.28 brokers, 13.87 candour, degree of, 2.04 causation, 3.05 caveat emptor , 2.04 circumstances for, 2.06 claims, 11.01 – 11.136 classification of contracts, 2.06 – 2.08 co-assured, 13.06 co-insurers, 13.06 common law, 4.02 – 4.05 , 4.08 , 4.13 – 4.15 , 4.31 , 4.62 , 10.04 comparison with ordinary contracts, 2.02 – 2.08 Page 739 compromise, 1.31 concealment, 2.04 contracts, 1.03 , 1.06 , 1.12 , 1.34 , 1.44 – 1.47 , 2.01 – 2.37 , 11.133 – 11.136 damages, 16.125 – 16.126 definition, 3.04 disclosure, 2.03 – 2.07 fair and open dealing, 2.07 fair presentation, duty of, 6.18 , 8.52 , 8.68 families, settlements between, 2.25 – 2.28 fiduciaries, disclosure by, 2.06 , 2.32 – 2.37 forfeiture, 11.117 – 11.118 , 11.126 – 11.129 formation of contract, 10.09 fraud, 1.38 , 6.23 guarantees/sureties, 2.09 – 2.21 held covered clauses, 3.58 identification of insurance contracts, 1.22 , 1.25 , 1.26 , 1.317– 1.32 implied terms, 6.18 insurer’s duty, 12.02 – 12.04 investigations of claims, 3.76 knowledge, 6.18 , 8.13 Law Commission, 1.38 law merchant, 4.15 – 4.17 life insurance, 1.12 marine insurance, 1.12 , 1.39 , 3.02 materiality, 1.39 meaning, 1.13 misrepresentation, 2.04 , 7.37 mutuality, 10.03 nature of duty of, 3.01 – 3.103 negligence, 1.38 negotiations, 1.39 , 2.02 – 2.03 partnerships, 2.22 – 2.24 performance, 10.54 – 10.61 placing, 3.17 post-contractual duty, 10.01 – 10.08 , 10.15 – 10.17 , 10.67 – 10.70 pre-contractual duty, 6.18 purpose of duty, 3.36 remedies, 3.16 , 11.117 – 11.136 salvage contracts, 2.29 – 2.30 shares publicly offered, contracts for purchase of, 2.31 – 2.32 ship’s papers, discovery of, 1.44 – 1.47 silence, 7.37 source of duty, 4.01 – 4.62 spouses, contracts between, 2.25 – 2.28 termination, 10.67 – 10.70 types of contracts subject to, 1.39 , 2.01 – 2.37 unconscionability, 17.09 Valuation avoidance, 15.90 , 15.95 , 15.98 declarations, 1.53 excessive value, 11.60 – 11.64 , 15.83 – 15.98 , 15.124 , 15.126 floating policies, 1.53 fraud, 15.86 , 15.89 – 15.96 grossly excessive 15.97 insurance policies, existence of other, 15.124 , 15.126 knowledge, presumed, 15.94 marine insurance, 15.93 – 15.97 avoidance, 15.95 fraud, 15.94 – 15.96 knowledge, presumed, 15.94 Marine Insurance Act 1906, 15.93 – 15.97 materiality, 15.83 – 15.99 misrepresentation, 15.89 , 15.95 – 15.96 , 15.98 moral hazard, 15.28 opinions, 15.84 , 15.86 , 15.96 over valuation, 15.83 – 15.99 performance, 10.56 – 10.58 prudent underwriter test, 15.89 reasonableness, 15.98 under valuation, 15.83 unvalued policies, 15.89 , 15.92 Variations addendum, by, 17.118 additional risk, 10.19 , 10.22 – 10.26 adjustment of obligations, 3.53 – 3.55 , 10.16 – 10.17 , 10.19 – 10.43 affirm or avoid, election to, 17.118 avoidance, 10.22 , 16.72 – 16.73 conduct, 17.118 cover, fundamental alteration to the, 10.25 endorsement, 3.64 , 10.23 formation of contract, 10.09 , 10.14 insurers, by, 10.21 materiality, 10.19 – 10.26 , 14.60 , 14.73 , 14.84 – 14.90 , 16.72 – 16.73 misrepresentation, 10.22 , 10.24 mutuality, 10.21 non-consumer contracts, 10.26 non-disclosure, 10.22 , 10.24 post-contractual duty, 3.57 , 10.19 – 10.26 pre-contractual duty, 3.53 – 3.54 prudent or reasonable underwriter, 14.84 – 14.87 Vessels see also Cargo; Marine insurance; Seaworthiness age, of, 15.57 class of, 15.81 – 15.82 current use, 15.67 deviation, 8.91 , 15.69 , 15.80 employment, of, 15.67 identification of, 15.53 – 15.55 insurable interests, in, 15.62 Page 740 intended use, 15.69 knowledge, 8.43 , 15.57 licences, 15.81 – 15.82 nationality, 15.81 – 15.82 ownership, 15.62 – 15.63 previous use, 15.65 registration, 15.81 – 15.82 related property, nature of, 15.74 – 15.76 salvage, 2.29 – 2.30 , 9.36 , 14.66 use, 15.65 , 15.67 , 15.69 voyage, location and timing of, 15.77 – 15.80 Vicarious liability, 11.82 , 13.20 , 13.64 Voidable or void contracts assignees, 13.13 – 13.14 , 13.19 avoidance, 16.36 – 16.40 , 16.53 , 16.80 basis clauses, 9.06 forfeiture, 11.128 , 16.106 fraud, 11.99 – 11.102 , 16.38 – 16.40 misrepresentation, 7.48 Voluntary assumption of responsibility, 16.152 Voyage departure date, 15.79 deviation, 15.80 location of vessel, 15.77 – 15.80 misrepresentations, 15.77 policies, 15.74 – 15.75 , 15.77 ports, at or from, 15.77 , 15.80 loading or discharge, 15.77 – 15.78 materiality, 15.77 related property, 15.74 – 15.75 timing, 15.77 – 15.80 voyage policies, 15.77 warranties, 8.91 Waiver affirm or avoid, election to, 17.19 – 17.52 , 17.79 burden of proof, 17.162 – 17.163 , 18.02 , 18.05 conduct, 17.79 , 17.96 knowledge, 17.71 , 17.92 promissory estoppel, 17.122 – 17.123 warranties, breach of, 17.08 agents, 13.68 – 13.71 application of the duty of utmost good faith, 1.42 avoidance, 17.19 – 17.21 basis clause, 8.56 , 17.22 , 17.28 – 17.31 breach of duty, 17.19 – 17.21 , 17.32 brokers, 8.53 burden of proof, 17.162 – 17.163 , 18.02 , 18.05 commission, disclosure of, 8.72 conduct, 17.48 – 17.51 , 17.96 confidentiality, 8.95 consumer insurance, 8.60 custom, 8.83 declarations, 8.62 delay, 17.154 details, 8.67 disclosure, exceptions to, 8.49 – 8.83 election, by, 17.08 , 17.19 – 17.52 enquiries, 8.51 , 8.65 , 8.69 – 8.74 , 8.77 – 8.78 , 8.81 estoppel, 8.50 – 8.51 promissory, 17.08 , 17.21 – 17.22 , 17.29 – 17.39 , 17.41 – 17.52 , 17.122 – 17.123 , 17.134 , 17.145 – 17.146 representation, by, 17.35 – 17.38 , 17.41 exceptions to disclosure, 8.49 – 8.83 experts, 18.14 express, 8.53 fire insurance policies, 8.58 fraud, 17.31 house insurance, 8.60 identification of property, 15.52 implied representations, 8.50 implied waiver, 8.54 – 8.65 inactivity, 17.154 incomplete answers, 8.62 – 8.63 inducement, 14.113 knowledge, 8.50 , 8.64 , 8.66 , 8.75 – 8.82 life insurance, 8.64 loss experience, disclosure of, 8.70 , 8.73 marine insurance, 17.23 Marine Insurance Act 1906, 17.23 – 17.48 codification, as, 17.40 consolidating Act, as, 17.44 promissory estoppel, 17.35 – 17.39 , 17.44 – 17.52 market practice, 8.83 materiality, application of the duty of utmost good faith, 1.42 custom, 8.83 details, 8.67 disclosure of, 8.49 , 8.54 , 8.56 – 8.65 summary of, 8.66 – 8.74 misrepresentation, 8.65 , 17.22 , 17.30 non-disclosure, 17.30 placing, 8.49 – 8.83 , 9.05 pre-contractual duty of disclosure, 8.49 previous convictions, 15.33 promissory estoppel, affirm or avoid, election to, 17.122 – 17.123 avoidance, 17.21 Marine Insurance Act 1906, 17.08 Page 741 reliance, 17.134 , 17.145 warranties, breach of, 17.22 , 17.29 – 17.39 , 17.41 – 17.52 proposal forms, 8.56 – 8.59 , 8.62 , 9.38 questions, 8.54 – 8.56 absence of question, 8.57 answered or unanswered, 8.62 – 8.65 basis clause, 8.56 implied waiver, 8.56 – 8.61 incomplete answers, 8.63 – 8.64 proposal forms, 9.38 selection of, 8.56 – 8.61 reinsurance, 8.72 – 8.73 representations, 8.50 – 8.51 repudiation, 17.24 seaworthiness, warranties of, 17.41 silence, 8.51 , 17.154 Statement of General Insurance Practice, 8.54 , 8.61 Statement of Long-Term Insurance Practice, 8.54 summary of material facts, 8.66 – 8.74 terminology, 17.19 trade usage, 8.83 types of policies, 8.58 unconscionability, 17.09 , 17.37 underwriters, reasonable and prudent, 8.74 use of premises, 8.59 warranties, breach of, 17.08 , 17.22 – 17.52 War risks policies additional premium clauses, 10.33 , 11.66 – 11.68 assignment, 1.27 fraudulent devices, 11.66 – 11.68 identification of insurance contracts, 1.27 letters of undertakings, 1.27 mortgagees, assignment to, 1.27 protection and indemnity clubs, letters of undertakings and, 1.27 speak, duty to, 1.27 utmost good faith, 1.24 Warranties see also Basis clauses accuracy of facts, 9.16 affirm or avoid, election to, 17.08 , 17.116 – 17.117 ambiguity, 9.14 avoidance, 8.86 – 8.87 , 8.91 , 16.80 breach, delay, inactivity or silence, 17.153 – 17.154 , 17.159 fraudulent devices, 11.69 – 11.68 misrepresentation, 7.428 repudiation, 5.21 reservation of rights, 17.169 time limits, 17.164 unconscionability, 17.15 waiver of, 7.48 , 17.08 , 17.22 – 17.52 burden of proof, 18.02 business practices, 7.134 co-assured, 9.17 conditions, 8.91 continuing, 7.73 , 8.86 , 9.2 course of business, 9.11 definition, 8.85 delay, 8.91 , 17.153 – 17.155 , 17.159 descriptive of risk, 3.58 , 8.85 , 9.10 – 9.12 deviation, 8.91 disclosure, exceptions to, 8.84 – 8.92 documents, incorporated into, 7.47 enquiries, 8.89 , 8.91 exemption clauses, 16.88 experts, 9.16 fraud, 9.17 , 11.69 – 11.71 health, 15.19 – 15.20 held covered clauses, 3.58 illegality, 15.122 implied, 8.89 inactivity, 17.153 – 17.155 , 17.159 intention, 7.73 interpretation, 9.12 , 9.14 knowledge, 7.134 , 9.16 – 9.17 language, natural and ordinary, 9.14 marine insurance, 8.88 , 8.89 , 8.91 , 15.1 18.22 Marine Insurance Act 1906, 8.88 , 8.89 , 8.91 materiality, 7.48 , 8.86 – 8.92 , 9.11 misrepresentation, 7.48 , 8.90 – 8.91 non-disclosure, 4.35 occurrence of certain events, 8.91 opinions, 9.16 placing, 8.04 , 8.84 – 8.92 , 9.06 – 9.33 post-contractual duty of disclosure, 8.86 pre-contractual duty of disclosure, 8.86 – 8.87 premiums, 8.89 privity of the assured, 8.91 promissory estoppel, 17.125 – 17.128 , 17.131 , 17.136 – 17.137 , 17.142 – 17.149 promissory warranties, 3.58 , 8.85 – 8.86 , 9.10 – 9.11 , 9.32 proposal forms, 9.11 reasonableness, 8.91 , 9.12 reliance, 17.145 representations, 7.46 – 7.48 , 7.76 , 9.27 – 9.33 repudiation, 5.21 reservation of rights, 17.169 seaworthiness, 8.89 , 8.91 , 17.41 security, 8.90 strict compliance, 7.48 , 9.09 , 9.11 – 9.12 superfluity by reason of, 8.84 – 8.92 time limits, 17.164 Page 742 truth, 9.14 types of, 8.85 unconscionability, 17.15 voyage, change of, 8.91 waiver, 7.48 , 17.08 , 17.22 – 17.52 Wilful blindness fraud, 11.85 knowledge, 3.17 , 7.104 – 7.106 , 7.133 opinions, 7.55 Wilful misconduct, 11.48 , 13.64 Words affirm or avoid, election to, 17.54 , 17.96 conduct, 17.96

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