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Webinar The Insurance Act Guarding against the consequences of a - - PowerPoint PPT Presentation
Webinar The Insurance Act Guarding against the consequences of a - - PowerPoint PPT Presentation
Webinar The Insurance Act Guarding against the consequences of a breach of a condition precedent to liability Georgina Oakes, Research and Development Manager, Airmic 25 th October, 2017 Alexander Oddy, Partner, Herbert Smith Freehills
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Conditions precedent to the validity of the contract
Insurance urance Poli licy cy Condit ditions ions A quick ck reminder inder
Conditions precedent to the insurers liability Bare conditions
Iden entif tifying ing con
- ndition
ditions s prece eceden dent
- Term labelled as a
condition precedent
- The significance of
the term identifies it as a condition precedent
- Consequences of
term breach are set
- ut
- Policy has a sweeper
clause
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Swee eepe per clau ause ses s Critica ical l infor formation tion claus lauses es
- A clause declaring all terms in a
policy to be conditions precedent
- Can circumvent the requirement
that warranties become suspensive conditions
- Review polices and resist the
inclusion of sweeper clauses
- A clause converting pre-
contractual representations made by an insured into warranties
- Can counter-effect the
requirement that basis clauses are abolished
- Review policies and understand
the impact of any critical information clauses
Clauses to be aware of
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Proposals for risk managers 2 4 3 1
Policy endorsement Be aware Identify conditions precendent Legal review
Protecting against conditions precedent
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