Reinsurance E-Alert

Premium Warranties and Section 53 of the Marine Insurance Act 1906: the end of the legal fiction

Allianz Insurance Company Egypt v Aigaion Insurance Company SA [2008] EWCH 1127 (Comm)

In a recent decision the Commercial Court considered the application of section 53(1) of the Marine Insurance Act 1906 (the “MIA”) and, more importantly, the antiquated legal fiction the section was meant to enshrine.

Section 53(1) of the MIA provides: “Unless otherwise agreed, where a marine policy is effected on behalf of the assured by a broker, the broker is directly responsible to the insured for the premium.” It was argued this section aimed to codify the common law assumption that the broker is deemed to have been paid the premium by the insured, and to have forwarded it to the insurer, who then loans it back to the broker.

InSure - September 2008

This month's edition looks at the launch of the first Shariah-compliant insurance company in the UK, the CEIOPS Issue paper on the Supervisory Review, changes to the FSA logo......

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London Market Team - Legal Update September 2008 

Physical loss / damage trigger and business interruption claims

As a general rule, business interruption ("BI") losses must be the result of loss or damage to insured property before there is BI cover under the policy. In most policies, "loss or damage" in this context is commonly defined as requiring "physical loss or damage" so that BI cover is only triggered upon the occurrence of a covered physical loss or damage.

Allstate Exploration v QBE Insurance (Australia) Limited

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ACE Capital Limited v CMS Energy Corporation 

Commercial Court - Mr Justice Christopher Clarke - 30 July 2008

The English High Court has considered the inter-relationship between a US Service of Suit clause and an English Arbitration clause in the context of a policy of insurance. The decision is important in that it found the existence of the US Service of Suit clause in the policy did not override the contractural obligation of the parties to arbitrate in all disputes. 

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InSure - August 2008

This month's edition looks at the report identifying regulatory failure in the supervsion of Equitable Life, the inclusion of EEA branches of UK insurers into the scope of FSCS, the FSA TFC update......

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Reinsurance E-Alert

When there is Insurance but no Insurer: the undoing of Whiteley Insurance Consultants

Re Whiteley Insurance Consultants (also known as Kingfisher Travel Insurance Services (a firm)) [2008] All ER

In a recent decision the Chancery Division had to consider for the first time the effect of sections 20, 26 and 28 of the Financial services and Markets Act 2000 (FSMA). Those provisions regulate agreements entered into in breach of the FSMA, and provide a statutory remedy to the innocent contracting party as against the party in default, in this case Whiteley Insurance Consultants (WIC). The decision also illustrates how the Financial Services Authority (FSA) readily takes drastic action against insurance professionals who are in serious breach of the rules.