Representation In Insurance Contract

September 22, 2021

Issues in representations and warranties insurance claim disputes. In insurance, this information is crucial to the crafting of the policy by the insurer.

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Failure to disclose important information might nullify the insurance contract.

Representation in insurance contract. A consumer was required to volunteer all relevant information to an insurer to allow them to consider entering into a contract of insurance, even where the consumer may have been unaware of what the insurer considered relevant. The representation must be known to the representee. Clause examples do not significantly differ in either language or clause elements included.

The defendant hid a serious defect in a product, and when the representee discovered this defect, he claimed this was misrepresented to him. It also consists of the application and the initial premium. Insurance representations and warranties representation is made by the proposer to the insurer relating to a proposed risk.

The insurance clause represents that all insurance policies have been disclosed, the amounts are proper for the company, there are no significant claims against any of those polices and that there is nothing that would cause the policies to lapse. The remedy for a breach of contract claim will depend on the nature of the representation and whether it is classed as a condition or warranty. Representation refers to the act of disclosing important information either in written form or orally that will help the one being disclosed to form the proper course of action.

This is why the offer and acceptance of an insurance contract are not complete until. In particular, black’s law dictionary defines a representation as “a presentation of fact—either by words or by conduct—made to induce someone to act, especially to enter into a contract.” A representation is a factual statement made by the insured at the time of, or prior to, the issuance of the policy to give, information to the insurer and otherwise induce him to enter into the insurance contract.

A representation is a statement of fact which is relied on by the receiving party and induces them to enter into the contract. In an insurance contract, consideration is given by the applicant in exchange for the insurer’s promise to pay benefits. “a contract of marine insurance is a contract based upon utmost good faith and if the utmost good faith is not observed by either party, the contract may be voided by the other party.”49 in u.n.i.c v u.c.i.c ltd50the court in.

A discussion of key issues that are likely to arise in numerous claims on r&w policies in. Representation — a statement made in an application for insurance that the prospective insured represents as being correct to the best of his or her knowledge. Insurance contract may be divided into two forms—first life insurance contract and second contract of indemnity.

Simply put, a ‘representation’ is a statement of fact relating to an existing or past event based on which an acquirer is induced into entering the contract, while a ‘warranty’ is an. But it may qualify an implied warranty 6. The marine insurance act which is now part of the laws of the federation of nigeria provides specifically that;

A representation as to the future is a promise, unless it is merely a statement of a belief or an expectation 5. To bring a breach of contract claim the representee must be able to show that the representation was included in the principal contract between the contracting parties or in a separate collateral contract. A statement made by an applicant for insurance, before the contract is made, which affects the willi

They may be entitled to rescind the contract, which means that the contract would be set aside and the receiving party. A representation is defined as an account or statement of facts, allegations, or arguments. This was illustrated by the case of lambert v co.

Horsfall v thomas(1862) 1 h & c 90 is an excellent example of this. Representations present everything from its past to its current status. If the insurer relies on a representation in entering into the insurance contract and if it proves to be false at the time it was made, the insurer may have legal grounds to void the contract.

It is normally before the contract, but may be repeated in the contract as well. A representation cannot qualify an express provision in a contract of insurance; A representation may be altered or withdrawn before the insurance is affected, but not afterwards 7.

In relation to disclosure and representation, the law treated an insurance contract as a contract of utmost good faith. A party may claim misrepresentation where a false representation has been made. A representation will not be actionable and will not have induced the representee unless the representee was aware of the representation.

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