MODULE SPECIFICATION UNDERGRADUATE PROGRAMMES KEY FACTS

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1 MODULE SPECIFICATION UNDERGRADUATE PROGRAMMES KEY FACTS Module name Insurance Law Module code FR3106 School Cass Business School Department or equivalent UG Programme UK credits 15 ECTS 7.5 Level 6 Delivery location (partnership programmes only) MODULE SUMMARY Module outline and aims The aim of the course is to provide an understanding of the legal environment in which the important commercial practice of insurance operates. The course analyses the relationship between the parties to an insurance contract (the insured and the insurer), examines how the contract is formed and how it operates, and considers the legal issues that surround the claims process. The course also considers the legal issues that arise when an insurance contract is formed through an insurance broker or other intermediary. Finally, the course considers the regulation of insurance business, i.e. the legal relationship between the firms and individuals operating in the insurance market and the government agencies and industry bodies that are responsible for supervising it. Although the course is primarily based on (UK) Common Law, international comparisons are made throughout the programme, making it equally suitable for non-uk students. The course will give you a sound understanding of an important area of commercial law and valuable practical insights into one of the principal industries of the financial sector (and one that plays a key role in the British economy). It will be of particular interest and value to undergraduate students in the field of finance (including banking, investment, risk management and insurance), business studies or law. Content outline Session 1 Introduction to insurance law General principles of contract law and agency (review). The formation of insurance contracts. The principle of insurable interest and its application to life and general insurance. Session 2 Utmost good faith and the duty of disclosure The doctrine of good faith. Misrepresentation and non-disclosure. Material facts. Remedies for breach of good faith. Proposals for law reform. Voluntary codes of conduct. International comparisons.

2 Session 3 The terms of insurance contracts Classification of terms in insurance contracts. Conditions and warranties. Void and illegal insurances. Session 4 Assignment and agency in insurance General principles governing assignment. Application to insurance contracts. Agency in insurance: creation of the agency relationship, the authority of the agent, rights and duties of agent and principal, the effect of insurance contracts made through an agent, termination of agency. Session 5 Making an insurance claim Principles governing notice and proof of loss, construction (interpretation) of insurance contracts, the doctrine of proximate cause. Session 6 Measuring the loss The principle of indemnity and its application to various classes of insurance. Salvage and abandonment. The doctrines of subrogation and contribution. Session 7 Principles of insurance regulation Reason for the regulation of insurance. Aims of insurance regulation. Regulatory tools and techniques. Who and what is regulated. Who the regulators are. Statutory and self regulation. Session 8 Regulation of insurance in the UK Regulation of insurers: the Insurance Companies Acts and other relevant legislation. Regulation of intermediaries. Regulation of policy terms. Session 9 Regulation of insurance at European and international level European law affecting insurance business. Formation of the Single Market in insurance. Regulation of insurance in other major world markets (e.g. USA, Japan). Session 10 Review SYLLABUS Principles of insurance contract law The formation of an insurance contract: insurable interest; utmost good faith and the duty of disclosure. The operation of insurance contracts: warranties and other terms of insurance contracts; void and illegal contracts. The claims process: indemnity, subrogation and contribution; notice and proof of loss; the doctrine of proximate cause. Agency and insurance Principles of the law of agency: types of agent; creation of agency and the authority of an agent; duties of principles and agents; relationship of principal, agent and third party; termination of agency. Application of agency principles to insurance. The regulation of insurance business The reasons for and aims of insurance regulation. Common regulatory techniques. State regulation and self regulation. Regulation of insurers, intermediaries and policy terms, including the effect of voluntary codes of conduct. Regulation of insurance in the

3 EU and Europe. Principles of EC law. The `Single Market? legislation and its effect on insurers and intermediaries. Other European legislation affecting insurance. An outline of regulatory systems in selected non-european countries, including the USA and Japan. WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and understanding: - Understand the key legal principles that apply to insurance contracts and to the regulation of insurance business; Skills: - Adopt legal thinking, and apply the legal principles governing insurance to real situations and problems. Values and attitudes: - Appreciate fairness in business dealings though the course content is largely factual and is morally neutral HOW WILL I LEARN? Lectures, practical exercises, case studies, tutorials and project. Teaching pattern: Teaching component Teaching type Contact Selfdirected study Placement Tutorial / Tutorial Discussion Lectures Lecture Totals Total student learning WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments Coursework and exam. Assessment pattern:

4 Assessment component Coursework Examination 2.25 Assessment criteria Assessment type Written assignment, including essay Written Exam Weighting Minimum qualifying mark Pass/Fail? 30 0 N/A 70 0 N/A Assessment Criteria are descriptions of the skills, knowledge or attributes students need to demonstrate in order to complete an assessment successfully and Grade-Related Criteria are descriptions of the skills, knowledge or attributes students need to demonstrate to achieve a certain grade or mark in an assessment. Assessment Criteria and Grade-Related Criteria for module assessments will be made available to students prior to an assessment taking place. More information will be available from the module leader. Feedback on assessment Following an assessment, students will be given their marks and feedback in line with the Assessment Regulations and Policy. More information on the timing and type of feedback that will be provided for each assessment will be available from the module leader. Assessment Regulations The Pass mark for the module is 40%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module. INDICATIVE READING LIST Course textbook Very detailed notes covering virtually the whole of the syllabus are provided. However, students are expected to purchase at least one book on insurance contract law. The recommended texts (available from the University bookshop) are: Birds, J. Modern Insurance Law, Butterworth Clarke, M. Policies and Perceptions of Insurance, OUP Clarendon Law Series

5 Other reading Parsons, C. Legal Aspects of Insurance, Chartered Insurance Institute. Chapters 4-12 are useful, and form the basis of some of the course notes. Parsons, Green & Mead, Company and Contract Law and their application to Insurance, Chartered Insurance Institute. The sections on the general principles of contract are quite useful. The sections on the special legal principles of insurance contracts are out of date and unreliable. Use Birds, the course notes and the other texts recommended. Reference works There are a number of major standard works on insurance law which you may wish to consult on points of detail. The following are recommended: Clarke, M. The Law of Insurance Contracts Merkin and McGee Insurance Contract Law Libraries City University The Business School library has a few law books, but most of the law collection is in the main library at Northampton Square. Besides law books there is a full range of law reports (all the major series are available) and law journals, including the major US and foreign law journals. There is also a wide range of electronic resources (see below). A specialist law librarian is available to help students with queries. Chartered Insurance Institute Library The library of the Chartered Insurance Institute (20, Aldermanbury, EC2) is an excellent resource, and is within a few minutes walk of the Business School. Books may be borrowed by members of the Institute only but non-members may use the library for reference on payment of a small fee. The CII website ( is very useful. The library pages give a good list of other insurance websites. Electronic Resources There are many good electronic resources for legal materials. These include the wellknown Lexis and Sweet and Maxwell s Current Legal Information. The latter is available (free) at the University and the CII Library. For American legal materials, there is an excellent free website at this gives the full text of virtually all US cases and statutes. Version: 1.0 Version date: July 2012 For use from: Appendix: see for the full list of JACS codes and descriptions

6 CODES HESA Code Description Price Group 29 Social Studies D JACS Code Description Percentage (%) M200 The study of particular 100 aspects of law.