Chapter 11 - Insurance law. At the end of this chapter you should understand: how a contract of insurance is made, the term ‘cover note’, the concept of insurable interest at common law and how it has been modified by the Insurance Contracts Act 1984 (Cwlth), the concept of indemnity and its operation in contracts of insurance,. | This is the prescribed textbook for your course. Available NOW at your campus bookstore! 11- Copyright © 2000 McGraw-Hill Australia Insurance Law Chapter 11 Insurance contract Premium (consideration) Insurer Insured/Assured (Proponent) Promise of payment by the insurer The proposal is the offer. The policy is evidence of the contract. 11- Copyright © 2000 McGraw-Hill Australia Cancellation of insurance policy (via written notice) A breach of the duty of utmost good faith of disclosure Misrepresentation before the contract was entered into Failure to comply with a provision of the contract A fraudulent claim made under the contract, or under some other contract of insurance in operation at the time Cover note may be cancelled at any time with three days notice (S60(4)) 11- Copyright © 2000 McGraw-Hill Australia Cover notes Contract requiring payment whether proposal accepted or rejected Contract for interim insurance for up to one month. 11- Copyright © 2000 McGraw-Hill Australia Australian Prudential Regulation Authority (APRA) Prudential regulator of banks, insurance companies and superannuation funds Issues guidelines Prevents certain promotional material 11- Copyright © 2000 McGraw-Hill Australia Fundamental principles of insurance law Insurable interest: The insurer will benefit from the property being preserved, and will suffer detriment if the property is damaged or destroyed. Code of Practice: “The general Insurance Code of Practice (the Code) is a self-regulatory code to promote good relations between insurers, agents and consumers, and good insurance practice by describing standard of good practice and service”. Resolution of disputes: General insurance – Insurance Enquiries and Complaints Ltd (IEC) Life insurance – Life Insurance Complaints Service Insurance brokers – Insurance Brokers’ Dispute Facility 11- Copyright © 2000 McGraw-Hill Australia Fundamental principles of insurance law Indemnity principle: Insurer agrees to . | This is the prescribed textbook for your course. Available NOW at your campus bookstore! 11- Copyright © 2000 McGraw-Hill Australia Insurance Law Chapter 11 Insurance contract Premium (consideration) Insurer Insured/Assured (Proponent) Promise of payment by the insurer The proposal is the offer. The policy is evidence of the contract. 11- Copyright © 2000 McGraw-Hill Australia Cancellation of insurance policy (via written notice) A breach of the duty of utmost good faith of disclosure Misrepresentation before the contract was entered into Failure to comply with a provision of the contract A fraudulent claim made under the contract, or under some other contract of insurance in operation at the time Cover note may be cancelled at any time with three days notice (S60(4)) 11- Copyright © 2000 McGraw-Hill Australia Cover notes Contract requiring payment whether proposal accepted or rejected Contract for interim insurance for up to one month. 11- Copyright © 2000 .
