The insurable interest doctrine

The only relevance of the interposition of the company was to maintain the pretence that it was being carried on by others. Characteristics of insurable risks[ edit ] Risk which can be insured by private companies typically share seven common characteristics.

Rates are calculated in the following way. The excess insurance does not respond, however, until the limits of liability in the primary layer have been exhausted.

In case of Griffith v. The final amount made in payment of a covered loss. It was submitted that the authorities justified piercing the corporate veil in three, possibly overlapping, cases: These percentages vary somewhat according to the particular type of insurance.

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He followed Adams v Cape Industries in rejecting the submission as applied to case iii. One can own a house, and therefore there is entitlement to insure it. If the insurer can successfully prove the insured lacked an insurable interest in the property, a court will hold the insurance contract is void on grounds of public policy.

Jones v Lipman [] 1 WLR was a case of very much the same kind. In each of these cases, the right of the court to pierce the corporate veil was said to be subject to there being no third party interests engaged, such as unconnected minority shareholders or creditors.

These restrictions may be so severe that insurance in some lines becomes unavailable in the marketplace. Certain types of insanity have to be watched for—notably the impulse to set fires. The separate personality and property of a company is sometimes described as a fiction, and in a sense it is.

Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims.


If it can be shown that one party was partly to blame, then that party may not collect from any negligence of the other party. Contract law In general, an insurance contract must meet four conditions in order to be legally valid: An instance where the question whether insurability exists is contested is the case of nanotechnology.

Creditor has the insurable interest on life of the debtor to that extent on which amount he has the position to recover from debtor. In the United States most regulation of insurance is in the hands of the individual states, although the federal government also has authority over insurers when it is deemed that state regulation fails to regulate effectively activities such as unfair trade practices, misleading advertisingboycottsand monopolistic practices.

The husband has acted improperly in many ways. Clause Language in a policy that describes, limits or modifies coverage granted.

It does not provide coverage for the negligent operation of vehicles that the insured owns or has on long-term lease. A practical solution, subject to obtaining professional advice from a tax consultant, is to have the Trust Deed drafted in such a way that the Trustees bear the tax element of the income coming to the Trust.

A secured creditor such as a mortgagee has an insurable interest in the property on which money has been lent. For example, a master is liable not only for his own acts but also for the negligent acts of servants or others legally representing him.

The ownership of the respondent companies proved to be more difficult to establish. The term endorsement is usually associated with property and casualty policies while the term rider is normally used with life, accident and health contracts. For more information on gross receipts exceptions, go to IRS.

Flat Cancellation The cancellation of a policy as of the time it attached, with all of the premium refunded to the policyholder. Insuring Agreement The portion or section of an insurance policy that details what is covered by the contract for causes of loss or perils, subject to other provisions such as exclusions, limitations and conditions.

The interest must be pecuniary i.

Prest v Petrodel Resources Limited and others [2013] UKSC 34

Legal aspects of insurance Government regulation The insurance business is subject to extensive government regulation in all countries. Introduction Inheritance in Nigeria is normally determined by the customary rules of where the deceased person originates from and not by where he resides or lives, or, where the property is situated.

These examples illustrate the breadth, at least as a matter of legal theory, of the concept of abuse of rights, which extends not just to the illegal and improper invocation of a right but to its use for some purpose collateral to that for which it exists.

In meeting minimum standards of financial solvency, state laws specify minimum capital requirements, accounting practices, minimum security deposits with state insurance commissioners, and procedures for liquidating insolvent insurers.

My mailing particulars are as stated on the last page of this paper. But there is no presumption of any such relationship in the absence of an express agreement between the parties it will be difficult to establish one.

Limits The maximum amount of benefit the insurance company will pay for a given situation or occurrence.

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This was an appeal from Scotland in which the House of Lords declined to allow the principal shareholder of a company to recover compensation for the compulsory purchase of a property which the company occupied.

But he warned against departing from fundamental legal principle. Where assets belong to a company owned by one party to the marriage, the proper claims of the other can ordinarily be satisfied by directing the transfer of the shares.Made Whole Doctrine.

In Ortiz Southern Fire & Cas. Ins. Co., S.W.2d (Tex), the Texas Supreme Court ingrained in Texas jurisprudence the Made Whole killarney10mile.comr, the extent and breadth of that case has been grossly misunderstood, and inthe Texas Supreme Court clarified that the terms of a Plan or policy can negate the application of the Doctrine.

October, Legal Security for Credit and Investment in Small and Medium Scale Industries in Nigeria. Introduction. There is an acknowledgement, worldwide, that the development of any economy is dependent on small and.

Introduction Cl. regulates the issues of causation and incidence of loss. The provision firstly states the general requirement that there should be a causal connection between the insured peril and the loss suffered by the assured, the insured interest.

Home > Judgments > archive. Prest v Petrodel Resources Limited and others [] UKSC Appeal to the Supreme Court by a wife concerning properties vested in several companies and whether they could be treated in ancillary relief proceedings as beneficially belonging to the husband.

Economic Loss Doctrine. Intermediate Rule. Property damage to a defective product alone, which results from a sudden calamitous event attributable to the dangerous defect or design of the product itself, is recoverable under a strict liability cause of action.

A busybody, do-gooder, meddler, marplot or a is someone who meddles in the affairs of others. An early study of the type was made by the ancient Greek philosopher Theophrastus in his typology, Characters, "In the proffered services of the busybody there is much of the affectation of kind-heartedness, and little efficient aid.".

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The insurable interest doctrine
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