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
Airmic research and guidance 2 2 www.airmic.com
3 Insurance urance Poli licy cy Condit ditions ions Iden entif tifying ing Conditions con ondition ditions s A quick ck reminder inder precedent to the prece eceden dent validity of the contract Term labelled as a • condition precedent The significance of • the term identifies it Conditions as a condition precedent precedent to the insurers liability Consequences of • term breach are set out Policy has a sweeper • Bare conditions clause www.airmic.com
Clauses to be aware of 4 Swee eepe per clau ause ses s Critica ical l infor formation tion claus lauses es A clause declaring all terms in a A clause converting pre- • • 4 policy to be conditions precedent contractual representations made by an insured into warranties Can circumvent the requirement • that warranties become Can counter-effect the • suspensive conditions requirement that basis clauses are abolished Review polices and resist the • inclusion of sweeper clauses Review policies and understand • the impact of any critical information clauses www.airmic.com
5 Protecting against conditions precedent 1 2 Policy endorsement Legal review Proposals for risk managers 4 3 Identify conditions precendent Be aware www.airmic.com
6 Georgina.Oakes@airmic.com Thank you Alexander.Oddy@hsf.com www.airmic.com
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