PART 2The duty of fair presentation

8Remedies for breach

1

The insurer has a remedy against the insured for a breach of the duty of fair presentation only if the insurer shows that, but for the breach, the insurer—

a

would not have entered into the contract of insurance at all, or

b

would have done so only on different terms.

2

The remedies are set out in Schedule 1.

3

A breach for which the insurer has a remedy against the insured is referred to in this Act as a “qualifying breach”.

4

A qualifying breach is either—

a

deliberate or reckless, or

b

neither deliberate nor reckless.

5

A qualifying breach is deliberate or reckless if the insured —

a

knew that it was in breach of the duty of fair presentation, or

b

did not care whether or not it was in breach of that duty.

6

It is for the insurer to show that a qualifying breach was deliberate or reckless.