Common use of Duty of Fair Presentation Clause in Contracts

Duty of Fair Presentation. remedies for breach – variation a) if such breach is deliberate or reckless, the insurer may: i) by notice to the insured treat this policy as having been terminated from the time when the variation was concluded; and ii) retain the premium; b) if such breach is not deliberate or reckless, and the insurer would not have entered into the variation but for the breach, the insurer may treat this policy as if the variation was never made, in which case the insurer shall return any additional premium relating to the variation; and c) in all other cases if, but for the said breach, the insurer would have entered into the variation but: i) on different terms (other than terms relating to the premium), the insurer may require that the variation is treated as if it had been entered into on those different terms; ii) would have increased the premium by more than it did or at all, the insurer may charge such higher premium, effective from the effective date of the variation, and the insured shall pay such higher premium no later than fourteen (14) days after receiving the insurer’s written notice that such higher premium is payable; or iii) would not have reduced the premium by as much as it did or at all, the insurer may require the insured to reimburse to the insurer a sum equal to any reduction in premium no later than fourteen (14) days after receiving the insurer’s written notice that such amount is payable.

Duty of Fair Presentation. remedies The insured must make a fair presentation of the risk (as set out in the Insurance Act 2015 or successor or amending legislation) in proposing for, or proposing to vary, this insurance. 5.11.1 Remedies for breach – variationof the duty of fair presentation 5.11.2 If the insured or anyone acting on its behalf breaches the insured’s duty of fair presentation then the insurer’s remedies shall be as follows: a) if such breach is deliberate or reckless, the insurer may: i) by notice to the insured treat this policy as having been terminated from the time when the variation was concludedits inception; and ii) retain the premium; b) if such breach is not deliberate or reckless, reckless and the insurer would not have entered into the variation this policy but for the breach, the insurer may by notice to the insured treat this policy as if the variation was never made, having been terminated from its inception in which case the insurer shall return any additional premium relating to the variationpremium; and c) in all other cases if, but for the said breach, the insurer would have entered into the variation but:this i) on different terms (other than terms relating to the premium), the insurer may require that the variation this policy is treated as if it had been entered into on those different terms;terms from the outset; or ii) would have increased the premium by more than it did or at allcharged a higher premium, the insurer may may: I) reduce proportionately the amount to be paid on a claim (and, if applicable, the amount already paid on prior claims). In those circumstances, the insurer shall pay only X% of what it would otherwise have been required to pay, where X = (premium actually charged/higher premium) x 100; or II) charge such higher premium, effective from the effective date of the variationinception, and the insured shall pay such higher premium no later than fourteen (14) days after receiving the insurer’s written notice that such higher premium is payable; or iii) would not have reduced the premium by as much as it did or at all, the insurer may require the insured to reimburse to the insurer a sum equal to any reduction in premium no later than fourteen (14) days after receiving the insurer’s written notice that such amount is payable.

Duty of Fair Presentation. remedies for breach – - variation a) if such breach is deliberate or reckless, the insurer may: (i) by notice to the insured treat this policy as having been terminated from the time when the variation was concluded; and (ii) retain the premium; b) if such breach is not deliberate or reckless, and the insurer would not have entered into the variation but for the breach, the insurer may treat this policy as if the variation was never made, in which case the insurer shall return any additional premium relating to the variation; and c) in all other cases if, but for the said breach, the insurer would have entered into the variation but: (i) on different terms (other than terms relating to the premium), the insurer may require that the variation is treated as if it had been entered into on those different terms; (ii) would have increased the premium by more than it did or at all, the insurer may charge such reduce proportionately the amount to be paid on a claim arising out of events after the variation. In those circumstances, the insurer shall pay only X% of what it would otherwise have been required to pay, where X = (premium actually charged/higher premium, effective from the effective date of the variation, and the insured shall pay such higher premium no later than fourteen (14) days after receiving the insurer’s written notice that such higher premium is payablex 100; or (iii) would not have reduced the premium by as much as it did or at all, the insurer may require reduce proportionately the insured amount to reimburse to be paid on a claim arising out of events after the variation. In those circumstances, the insurer a sum equal shall pay only X% of what it would otherwise have been required to any reduction in pay, where X = (premium no later than fourteen (14actually charged/reduced total premium) days after receiving the insurer’s written notice that such amount is payablex 100.