Insurers' obligations prior to underwriting risks

Abstract

The thesis analyses the obligations of the insurer at the moment prior to underwriting risks, thus it envisages the whole process which takes place before a contract is signed. The important duty of uberrima fides in the moment antecedent to the contract is examined. Other important obligations include the duty of disclosure, and the consequences of non-disclosure and misrepresentation. This also involves an analyses of marketing advertisements which are ultimately targeted to consumers in general. Another examination on the position of the insurance intermediary at the pre-contractual stage is made in the thesis. Similarly, an insurance intermediary has obligations to adhere to when negotiating a contract of insurance. The focus of the study is not only limited to insurers and intermediaries, but also highlights their obligations and duties in relation to the Malta Financial Services Authority (MFSA) as the regulatory authority; and in relation to prospective policy holders and consumers in general. There will also be an analysis on various types of classes of insurance policies including long-term business insurance such as life policies and general business insurance such as motor, travel, and home policies. A comparative approach including European Union Regulation and proposed amendments thereto is considered. Furthermore, the duty of disclosure and good faith principle are analysed comparatively between English Law and German Law. Another brief comparative approach is made in relation to Investment Services products and Banking products, with particular emphasis on the pre-contractual stage. The thesis includes an in depth market review as it examines the results of online questionnaires answered by various local insurance companies. An interesting survey conveys consumer trends and their view on the pre-contractual aspects of insurance policies.