BULAW1503
Assignment Semester 2, 2013
Due Date: Friday, week 8
Length: 2000 words in total (approximately).
For more information on format and other requirements, please read the relevant section in the course description
Part A (15 marks)
“At the heart of every insurance transaction is a requirement that both parties exercise utmost good faith towards each other….The principle is…sometimes expressed by saying that insurance contracts are contracts uberrimae fidae.” (Petony, Graw, Lennard and Parker, Understanding Business Law, 5th ed, Lexis Nexis, 2011, p702)
Required:
a. Explain what is meant by “utmost good faith” and why it is of particular importance in the context of insurance contracts. (10 marks)
b. How is this principle reflected in the provisions of the Insurance Contracts Act 1984 (Cth) as amended? (5 marks)
Part B (20 marks)
Miranda leased a shop as the headquarters for her cosmetics retail business, and took out an insurance policy against fire and theft. The building was later destroyed in a fierce blaze. Damaged equipment and items found on the site after the fire indicated that the premises were used not only as a shop but as a manufacturing plant for Miranda cosmetics. Miranda had not disclosed this intended use in the insurance proposal.
Required:
a. Explain to Miranda, using appropriate case law and legislation, whether the insurer can now reject Miranda’s fire claim. (12 marks)
b. Would it make any difference to your answer to Part a. of this question if an insurance investigator finds evidence of a break-in, and concludes that the fire may well have been started by burglars seeking to hide the fact they had stolen goods and equipment? (8 marks)
You May Also Find These Documents Helpful
-
Appellant believes the court hindered his ability to provide a defense based on his alibi that he was not present at the scene of the crime when the fire occurred and that he claimed the fire resulted by way of accidentally leaving a hot plate on. The prosecution proved the appellant conspired to ignite the fire later when he was not present. Prosecution also proved that by pouring the accelerant around the hot plate with the power on, is not indicative of an accident. The defense must prove "impossibility of the accused's presence," for which the court found no basis for error in the original trial.…
- 1597 Words
- 7 Pages
Better Essays -
c) Provide an analysis of the impact of the requirements for a valid contract in the situation above.…
- 826 Words
- 4 Pages
Good Essays -
(TCO A, C) Jim worked for AAA Job Shop, Inc. for over 30 years. Two months before Jim retired, the head of human resources told Jim that the company would pay for health insurance for Jim and his wife for the remainder of his life, and for his wife’s life if she were to survive him, and handed Jim a letter from the company describing this. Jim had always known that the company provided this benefit to a few of its select employees. Jim didn’t really expect that he would receive it, although he had secretly hoped so for some time. Four years after retirement, Jim contracted cancer and incurred substantial medical bills under his insurance plan. Jim then received a letter from his former employer saying that the employer was discontinuing its payment of health insurance for those retirees who were receiving this benefit. Jim is considering suing the company to force it to live up to its agreement. Discuss the issues and likely resolution of Jim’s case.…
- 3550 Words
- 11 Pages
Good Essays -
Under the insured’s businessowners policy, State Farm has a duty to defend and indemnify the insured against any “suit” seeking “property damage” to which “this insurance applies.” Accordingly, in order to fall within the coverage provisions of the policy, the following elements must be satisfied: 1) the person seeking coverage must be an insured; 2) the insured must seek a defense against a suit; 3) the suit must allege “bodily injury,” “property damage,” or “personal and advertising injury”; and 4) the insurance must apply. In the liability section of the policy there would appear to be little dispute that Kathryn Norman is an insured.…
- 728 Words
- 3 Pages
Good Essays -
61) How does the definition of value for purposes of holder in due course differ from the definition of consideration? Why do you think there is a difference? Should there be a difference?…
- 5022 Words
- 21 Pages
Good Essays -
A brief summary of what was going on in the trial while you were watching.…
- 653 Words
- 3 Pages
Good Essays -
Clarkson, Miller, and Cross (2012) clarified the MASS statute by pointing out that “...an insurance applicant is bound by any false statements that appear in the application...” (p. 1002). the authors go further to note that “...Because the insurance company evaluates the risk based on the information included in the insurance application, misstatements or misrepresentation can void a policy, especially if the insurance company can show that it would not have extended insurance if it had known the facts...” (p. 1002). The fact pattern suggested that the Duffys in applying to General Star Indemnity Co. for insurance coverage indicated on the 1994 insurance application that the premises of which the insurance was to cover, had sprinkler systems. General Star issued an insurance policy in reliance on this application that the Duffys submitted to them.…
- 1091 Words
- 5 Pages
Powerful Essays -
Write the course description for the class you create. Your course description must include the following:…
- 708 Words
- 3 Pages
Good Essays -
Where the seller at the time of contracting knows about a particular purpose for which the buyer wants the goods, and knows that the buyer is relying on the seller’s skill or judgment, there is an implied warranty that the goods shall be fit for such purpose.…
- 991 Words
- 4 Pages
Satisfactory Essays -
The issue is whether a customer can take action against the property owner for negligence. If the case satisfies the duty of care owed, the breach of standard of care and the damage simultaneously, Elsie can sue the Promenade’s management for negligence.…
- 1357 Words
- 4 Pages
Good Essays -
Answer all questions in detail (At least 15 lines AND no more than 50 lines for each answer – including sub sections). Provide your justification based on earlier cases or other supporting material. Structure and presentation of your answers will affect the points. (Cite your references in the body of the answers if needed)…
- 1767 Words
- 6 Pages
Powerful Essays -
In Shaeffer, the court found that “an insurance company has a duty to defend in good faith Grange's remaining duty under the insurance contract was owed to their insured, which was to defend in good faith and to pay any judgment assessed against its insured which was…
- 646 Words
- 2 Pages
Good Essays -
Re: Could a complaint be dismissed due to failure to state claim upon relief in the state of North Carolina…
- 475 Words
- 2 Pages
Satisfactory Essays -
In 1987, the trustee of a property trust employed CDG Pty Ltd (the first respondent) to design the foundations of a commercial building. The second respondent was a civil engineer employed by the first respondent and was its project manager in relation to the complex’s design and construction.…
- 2813 Words
- 10 Pages
Best Essays -
“Insurance is a contract upon speculation. The special facts, upon which the contingent chance is to be computed, lie most commonly in the knowledge of the insured once…
- 1427 Words
- 6 Pages
Good Essays