The duty to disclosure in insurance law essay

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The duty to disclosure in insurance law essay

Acting under a charter sanctioned by the Dutch government, the Dutch East India Company defeated Portuguese forces and established itself in the Moluccan Islands in order to profit from the European demand for spices. Investors in the VOC were issued paper certificates as proof of share ownership, and were able to trade their shares on the original Amsterdam Stock Exchange.

Shareholders were also explicitly granted limited liability in the company's royal charter. The best-known example, established inwas the East India Company of London. Queen Elizabeth I granted it the exclusive right to trade with all countries to the east of the Cape of Good Hope.

Some corporations at this time would act on the government's behalf, bringing in revenue from its exploits abroad. Subsequently, the Company became increasingly integrated with English and later British military and colonial policy, just as most corporations were essentially dependent on the Royal Navy 's ability to control trade routes.

Labeled by both contemporaries and historians as "the grandest society of merchants in the universe", the English East India Company would come to symbolize the dazzlingly rich potential of the corporation, as well as new methods of business that could be both brutal and exploitative.

Subsequent stock offerings demonstrated just how lucrative the Company had become. The rapid inflation of the stock value in the s led to the Bubble Actwhich restricted the establishment of companies without a royal charter.

A similar chartered companythe South Sea Companywas established in to trade in the Spanish South American colonies, but met with less success.

The South Sea Company's monopoly rights were supposedly backed by the Treaty of Utrechtsigned in as a settlement following the War of the Spanish Successionwhich gave Great Britain an asiento to trade in the region for thirty years.

The duty to disclosure in insurance law essay

In fact the Spanish remained hostile and let only one ship a year enter. Unaware of the problems, investors in Britain, enticed by extravagant promises of profit from company promoters bought thousands of shares.

Bythe South Sea Company was so wealthy still having done no real business that it assumed the public debt of the British government. This accelerated the inflation of the share price further, as did the Bubble Actwhich possibly with the motive of protecting the South Sea Company from competition prohibited the establishment of any companies without a Royal Charter.

The share price rose so rapidly that people began buying shares merely in order to sell them at a higher price, which in turn led to higher share prices. As bankruptcies and recriminations ricocheted through government and high society, the mood against corporations and errant directors was bitter.

In the late 18th century, Stewart Kydthe author of the first treatise on corporate law in English, defined a corporation as: The British Bubble Act 's prohibition on establishing companies remained in force until its repeal in By this point, the Industrial Revolution had gathered pace, pressing for legal change to facilitate business activity.

Without cohesive regulation, proverbial operations like the "Anglo-Bengalee Disinterested Loan and Life Assurance Company" were undercapitalised ventures promising no hope of success except for richly paid promoters.

As a result, many businesses came to be operated as unincorporated associations with possibly thousands of members.

The duty to disclosure in insurance law essay

Any consequent litigation had to be carried out in the joint names of all the members and was almost impossibly cumbersome. Though Parliament would sometimes grant a private act to allow an individual to represent the whole in legal proceedings, this was a narrow and necessarily costly expedient, allowed only to established companies.

Then, inWilliam Gladstone became the chairman of a Parliamentary Committee on Joint Stock Companies, which led to the Joint Stock Companies Actregarded as the first modern piece of company law. For the first time in history, it was possible for ordinary people through a simple registration procedure to incorporate.

Limited liability[ edit ] However, there was still no limited liability and company members could still be held responsible for unlimited losses by the company.

This allowed investors to limit their liability in the event of business failure to the amount they invested in the company — shareholders were still liable directly to creditorsbut just for the unpaid portion of their shares.

The principle that shareholders are liable to the corporation had been introduced in the Joint Stock Companies Act The Act allowed limited liability to companies of more than 25 members shareholders. Insurance companies were excluded from the act, though it was standard practice for insurance contracts to exclude action against individual members.

Limited liability for insurance companies was allowed by the Companies Act This prompted the English periodical The Economist to write in that "never, perhaps, was a change so vehemently and generally demanded, of which the importance was so much overrated.

In the later nineteenth century, depression took hold, and just as company numbers had boomed, many began to implode and fall into insolvency. Much strong academic, legislative and judicial opinion was opposed to the notion that businessmen could escape accountability for their role in the failing businesses.

Further developments[ edit ] Lindley LJ was the leading expert on partnerships and company law in the Salomon v.Furthermore, the very wellspring of the doctrine of disclosure in insurance law, namely Lord Mansfield’s judgment in Carter v.

If one was to consider risk, then the assumption that the insured knows more than the insurer stands valid by the duty of disclosure in case law. Hence, it gave rise to effect of distorting the true information. The effect to non-disclosure is that PIC has the right to void the contract and refuse claims under it. The General rule to Duty to Disclose is found in Woolcott v Sun Alliance and London Insurance Ltd. Misrepresentation by the insured avoiding the contract. Australian Insurance Law Case Study Essay. insured-Steve was entitle to rely on the insurance policy he purchased to obtain indemnity after he misrepresented the material facts of the insured house. The focal point is whether Steve have constituted a violation of duty of disclosure and mis-presentation under Australian insurance laws.

Boehm, is unambiguous in its contention that such a duty applies to both parties to the insurance contract.

This essay delves deeply into the origins of the Vietnam War, critiques U.S. justifications for intervention, examines the brutal conduct of the war, and discusses the .

Archives and past articles from the Philadelphia Inquirer, Philadelphia Daily News, and arteensevilla.com If one was to consider risk, then the assumption that the insured knows more than the insurer stands valid by the duty of disclosure in case law.

As you can see from the chart, the percentage of Americans who had a “great deal” or a “fair amount” of trust in the news media has declined from over 70 percent shortly after .

Human Rights laws in India: lays down laws for the protection of every person from all kinds of discrimination, be it social, econimic, political in India.

Non-disclosure: Insurance and Good Faith - Sample Essays