COURSE DESCRIPTION
The course will examine the theory and elements of the practice of insurance law, with reference to the most common forms of both first party and third party insurance: property, life and motor vehicle insurance. The issues addressed will include; the history and basic theory of insurance as a loss spreading mechanism; the structure, marketing strategies and regulation of the insurance industry. The basic principles of indemnity insurance: Insurable interest; Valuation; Subrogation; Contribution and other consequences of indemnity. It will also examine issues like the duty of disclosure; The creation and nature of the insurance contract. i.e. The role of agents, Form and formation, Cover, and The claims process. Also the duty of good faith dealing
Insurance issues figure prominently in many litigation and business matters. This course will as well deal with basic insurance concepts and proceed to examine some of the ways insurance issues come up in litigation and business practice. We will examine first and third party coverage, discussing such issues as policy content and interpretation, trigger of coverage, duty to defend and bad faith in insurance contracts.
The course will also examine the regulation of insurance contracts and insurance companies, including underwriting regulation, doctrines of contract interpretation, claims-processing regulation, solvency regulation, and special remedies for breach. The course covers both the property/casualty and life/health “sides” of the insurance industry, with an emphasis on policy issues and economics.
LEARNING OUTCOMES
By the end of the course, students will be able to:
- Narrate
their understanding of the principles and different concepts guiding insurance
law.
- Appreciate
the development of the institution of insurance; know when it developed and
why?
- Assess the
real role of insurance law and insurance practice in the economy
- Make
critical comparative analysis of the laws and practice in the field of
insurance law
- Acquire insight
into the structure and substance of insurance policies
- Evaluate
the effectiveness of legislation in controlling the insurance industry and
protecting the position of policy holders
COURSE CONTENT
Introductory: Technical Terminology;
- The
Historical Origin Development and Function of Insurance Business
- Insurance in the era of Mercantile
- The
Triangular (Slave & Ivory)
- Insurance and Finance Monopoly Capitalism
- The Nature and Scope of the Contract of
Insurance
- Insurable Interest and Wagers (legal &
illegal);
- The Risk and Loss;
- The
Principle of Indemnity;
- Reinstatement
and Subrogation (Double Insurance;
- Claims and Claim Settlement
- Compulsory Insurance and Social Security
COMPULSORY READINGS AND SELCETED OUTCOME
- Iwan, D. (1992). Textbook on Commercial Law, London, Blackstone Press Ltd.,
- Raoul Colinvaux, The Law of Insurance (latest edition)
OPTIONAL READING MATERIALS
- Harold E. Raynes, Insurance Chapter 1 & 2 pp. 1-30.
- McGillivray on Insurance Law, (latest edition)