International Commercial Insurance Law (LAWS90293)

Almost none of the daily individual and business activities would be performed as they are without an insurance backing behind them. We do not realise the significance of insurance until we suffer a considerable amount of loss which we may try to recover, if it is insured, from the insurer. An insurance cover is obtained through an insurance contract. Whilst it is true that general contract law principles apply, insurance is a specialist type of contract which cannot be understood only based on general contract law principles, some of which differ greatly from those of insurance law.  

It is also true that every jurisdiction has its own separate statutory or common law principles governing insurance contracts. However, the principal concepts of insurance are all universal, including the assured’s pre-contractual duties, subrogation, insured and excluded risks, and causation. 

This subject aims at first introducing the crucial role that insurance contracts play for individuals and businesses. Participants will recognise when insurance is placed in the protection of the parties’ interests in commercial transactions, whether a contract of sale, lease, and buying or selling a financial product.  

The main questions that this subject addresses include :  

• What are the main duties imposed on the assured? 
• How do we understand the key terms of insurance contracts? 
• What differences does it make when a contractual obligation is defined as a warranty or a condition? 
• Why are insurance brokers regarded as ‘servants of the market’ and how influential they are in almost every stage of an insurance contract? 

The London insurance market participates in insuring and reinsuring commercial risks in many different jurisdictions in the World. English insurance law has been influential in the establishment of the principles of insurance and reinsurance law not only in the other common law countries but some civil law systems. Therefore we focus mainly on English court cases.  

Intended learning outcomes

On completion of this subject, students should be able to:

• Explain and assess critically the key duties imposed on the assured in insurance contracts (this includes statutory and contractual duties).
• Recognise and evaluate the interactions between insurance cover and other underlying contractual or tort law relationships.
• Critically distinguish between general contract law principles and insurance contract law.
• Assess insurance claims from the assured and insurer's points of view by considering the statutory and contractual principles governing the contract.
• Argue and cogently justify whether there is a valid claim under the insurance contract and if so how to argue against the insurer and vice versa.
• Recognise the significance of reinsurance in all the protections provided by insurers.

Generic skills

• Advanced understanding of the specialist insurance contract law principles.
• Ability to evaluate and synthesise existing knowledge in insurance law.
• Well-developed problem solving abilities, characterised by flexibility of approach.
• Advanced competencies in legal research and analysis.
• Capacity to communicate, orally and in writing.
• Capacity to manage competing demands on time.
• Understanding of the significance and value of knowledge to the wider community.
• Capacity to value and participate in teamwork.