LML4805 – INSURANCE LAW EXAM
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◉ Under what legislation did Statutory Assignment become possible?
Answer: Policies of Assurance Act 1867
◉ Which secondary legislation can there be a Statutory Assignment of
the benefit of a policy?
Answer: Section 136 of the Law of Property Act 1925
◉ Five essentials for the formation of a valid contract
Answer: Agreement (offer and acceptance), Intention to create legal
regulations, Consideration (for simple contracts), In the form required by
law (if any), The parties must have capacity to contract
◉ What special rules restrict the capacity to contract?
Answer: If the parties of the contract are minors, mental patients, and
drunken persons; the contract must also not be illegal or contrary to
public policy
◉ Two types of terms in a contract
Answer: Express terms and implied terms
,◉ Implied terms
Answer: a missing term that is not expressly stated in an offer or a
contract that can reasonably be supplied in fact, by custom or in law
◉ Contracts can be defective as a result of?
Answer: Illegality, Improper pressure, Mistake, Misrepresentation, or
Non-disclosure
◉ A contract may be discharged by?
Answer: Performance, Breach, Frustration, Agreement, or Operation of
Law
◉ Main remedies in the law of contract?
Answer: Termination, an Action for damages, an Action for specific
performance and an Action for an injunction
◉ What legislation governs claims for breach of contract?
Answer: Limitation Act 1980
◉ How many years does a claimant have to bring a claim on a simple
contract?
Answer: 6 years
◉ Privity of contract
,Answer: A doctrine which restricts the rights and duties created by a
contract to the persons who originally made it
◉ Two types of assignment
Answer: Statutory and Equitable
◉ Assignment of the subject matter of a contract
Answer: Does not carry with it any automatic assignment of the policy
in question, rather the material that was used to form contract (i.e. car,
house)
◉ Assignment of the benefit of a contract
Answer: can be either statutory or equitable
◉ Assignment of the contract itself
Answer: does not work freely for personal contracts, but works for
policies such as life insurance (provided the identity of the life insured
does not change), because there is no change in risk; this also works for
some marine cargo policies
◉ Law of agency
Answer: an area of commercial law dealing with relationships that
involve a person (the agent) that is authorised to act on behalf of another
(the principal) to create legal relations with a third party
, ◉ Task of agent
Answer: Often, this is to bring about a contract between the principal
and a third person (referred to as a third party)
◉ The relationship of the principal and agent may come about in three
main ways:
Answer: by agreement (consent), by ratification, or by necessity
◉ What legislation is responsible for unlimited insurable interest in
spousal relationships?
Answer: Married Women's Property Act 1882
◉ Two main examples of insurable interest in the field of life insurance
Answer: Family relationships, Business relationships
◉ Three types of family relationships (life insurance)
Answer: Own life (every person has unlimited insurable interest in their
own life), Spouses (husband and wife have an unlimited insurable
interest in the life of each other), Other family relationships (no other
family relationship automatically gives rise to an insurable interest, ex.
children cannot insure their parents and vice versa)
◉ Three types of business relationships (life insurance)
Answer: Partners, Employer/employee, Creditor/debtor
PACK STUDY GUIDE WITH
ACCURATE ANSWERS 2026
COMPLETE REVIEW PACKAGE
◉ Under what legislation did Statutory Assignment become possible?
Answer: Policies of Assurance Act 1867
◉ Which secondary legislation can there be a Statutory Assignment of
the benefit of a policy?
Answer: Section 136 of the Law of Property Act 1925
◉ Five essentials for the formation of a valid contract
Answer: Agreement (offer and acceptance), Intention to create legal
regulations, Consideration (for simple contracts), In the form required by
law (if any), The parties must have capacity to contract
◉ What special rules restrict the capacity to contract?
Answer: If the parties of the contract are minors, mental patients, and
drunken persons; the contract must also not be illegal or contrary to
public policy
◉ Two types of terms in a contract
Answer: Express terms and implied terms
,◉ Implied terms
Answer: a missing term that is not expressly stated in an offer or a
contract that can reasonably be supplied in fact, by custom or in law
◉ Contracts can be defective as a result of?
Answer: Illegality, Improper pressure, Mistake, Misrepresentation, or
Non-disclosure
◉ A contract may be discharged by?
Answer: Performance, Breach, Frustration, Agreement, or Operation of
Law
◉ Main remedies in the law of contract?
Answer: Termination, an Action for damages, an Action for specific
performance and an Action for an injunction
◉ What legislation governs claims for breach of contract?
Answer: Limitation Act 1980
◉ How many years does a claimant have to bring a claim on a simple
contract?
Answer: 6 years
◉ Privity of contract
,Answer: A doctrine which restricts the rights and duties created by a
contract to the persons who originally made it
◉ Two types of assignment
Answer: Statutory and Equitable
◉ Assignment of the subject matter of a contract
Answer: Does not carry with it any automatic assignment of the policy
in question, rather the material that was used to form contract (i.e. car,
house)
◉ Assignment of the benefit of a contract
Answer: can be either statutory or equitable
◉ Assignment of the contract itself
Answer: does not work freely for personal contracts, but works for
policies such as life insurance (provided the identity of the life insured
does not change), because there is no change in risk; this also works for
some marine cargo policies
◉ Law of agency
Answer: an area of commercial law dealing with relationships that
involve a person (the agent) that is authorised to act on behalf of another
(the principal) to create legal relations with a third party
, ◉ Task of agent
Answer: Often, this is to bring about a contract between the principal
and a third person (referred to as a third party)
◉ The relationship of the principal and agent may come about in three
main ways:
Answer: by agreement (consent), by ratification, or by necessity
◉ What legislation is responsible for unlimited insurable interest in
spousal relationships?
Answer: Married Women's Property Act 1882
◉ Two main examples of insurable interest in the field of life insurance
Answer: Family relationships, Business relationships
◉ Three types of family relationships (life insurance)
Answer: Own life (every person has unlimited insurable interest in their
own life), Spouses (husband and wife have an unlimited insurable
interest in the life of each other), Other family relationships (no other
family relationship automatically gives rise to an insurable interest, ex.
children cannot insure their parents and vice versa)
◉ Three types of business relationships (life insurance)
Answer: Partners, Employer/employee, Creditor/debtor
