Notes

[1] Balance is no place http://www.wizvax.net/ned/poems/balance.html (12 August 2002)

[2] Supple, B, The historian and the business of insurance (Manchester : Manchester University Press, 1984), 1

[3] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982), [19].

[4] Ibid.

[5] Ibid.

[6] R v Cohen ex parte Motor Accidents Insurance Board (1979) 27 ALR 263, per Mason J at 270; the concept of insurance did not require the existence of a contract.

[7] Supple, B, The historian and the business of insurance (Manchester : Manchester University Press, 1984), 1

[8] Pynt, G, Main type of commercial and property risks: Take cover! Approach insurance with an air of assurance, paper presented to The Law Society of Western Australia, Perth 2002

[9] Niven, D, How to make an insurance claim (Melbourne : Consumer Law Centre of Victoria Limited, 1996), 3

[10] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982) [4].

[11] Ibid, [2].

[12] Ibid

[13] The World Book Encyclopedia. (London: World Book Inc., 1992) p. 281

[14] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982) [215].

[15] Ibid

[16] Ibid, [2].

[17] Horseley, K. "Section 54 of the Insurance Contracts Act" (1996) ILJ Lexis 8

[18] Ibid

[19] Australian Bureau of Statistics http://www.abs.gov.au/CA25670D007E9EA1/0/A30255BA102B5EB3CA2568F2002BF327?Open&Highlight=0,insurance (11 November 2002)

[20] The Insurance Ombudsman Bureau http://www.theiob.org.uk/digest/u/utmost_good_faith.html (31 August 2002)

[21] Above, note 14, [19].

[22] ALRC, Review of the Marine Insurance Act 1909: Report (NSW : ALRC, 2001) p.33

[23] Commercial Union Assurance Co. of Australia v Ferrcom P/L (1991) 22 NSWLR 389, at 398, per Kirby P

[24] Amongst other things, these included the remedies for nondisclosure and misrepresentation.

[25] Ibid.

[26] Ibid, per Kirby P who referred to the Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982), [139]

[27] See section 3.6. or appendix for the full text of section 54

[28] Ferrcom P/L v Commercial Union Assurance Co of Aust Ltd (1993) 176 CLR 332 per Brennan, Deane, Dawson, Gaudron and McHugh JJ at 340

[29] Commercial Union Assurance Co. of Australia v Ferrcom P/L (1991) 22 NSWLR 389, at 398, per Kirby P)

[30] The Judicial Conference of Australia's Colloquium http://www.jca.asn.au/lavarch.doc (1 November 2002); The Australian Bar Association Conference http://www.hcourt.gov.au/speeches/mchughj/mchughj_london1.htm#FOOTBODY_54 (3 November 2002)

[31] See, for example, FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38 where a failure to notify a claim or an occurrence is treated as an 'omission' under section 54(1); refer to sections 4.3.5. and 4.3.7. for further details

[32] Ferrcom P/L v Commercial Union Assurance Co of Aust Ltd (1993) 176 CLR 3

[32] is an example; refer to section 5.3.1. for further details

[33] FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38 and Ferrcom P/L v Commercial Union Assurance Co of Aust Ltd (1993) 176 CLR 332; see sections 4.3.5., 4.3.7. and 5.3.1. for further details

[34] Mann P & Lewis C, Annotated Insurance Contracts Act, 3rd ed. (Pyrmont, N.S.W. : Lawbook Co., 2001), 9

[35] The phrase 'claims' policies is used in this paper to denote 'claims made and notified' policies and 'claims made and occurrence notified' policies.

[36] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982), [32]

[37] Mann, P "Annotated Insurance Contracts Act" (Sydney: Lawbook Co., 2001), 89

[38] Above, note 35, [215]

[39] See for example, ICA s.28

[40] In other words, not insuring against third party injury which is covered under a statutory scheme. See for example, Motor Vehicle (Third Party Insurance) Act 1943 (WA)

[41] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002) [5.0090]

[42] Ibid.

[43] Another example is McInerney v Schultz (1981) 28 SASR 542; (1982) 2 ANZ Ins Cas 60-458 (FC): the policy indemnified an employer where an employee was injured in the ordinary course of carrying out their duties in respect of the employer's 'motor garage (repairs and service)' business.

[44] Ibid

[45] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002) [5.0090]

[46] Ibid.

[47] Ibid.

[48] Hewitt v London General Insurance Co Ltd (1925) 23 Ll L Rep 243; Marine Insurance Act 1909 (Cth) s.51 (recent proposed reforms affect this : Australian Law Reform Commission, Review of the Marine Insurance Act 1909, Report No 91 (2001) [9])

[49] Above, note 44, [5.0100]

[50] Ibid,

[51] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002), [5.0100]

[52] This is a variation of the actual clause in Rogers v HIH Casualty & General Insurance (NZ) Ltd (High Court of New Zealand, 11 November 1999); Another example is Kent Farms Inc. v. Zurich Insurance Co. No. 67635-6, Wash. Sup., 25 - This policy 'does not apply to bodily injury arising from a diesel fuel spill.'

[53] Rogers v HIH Casualty & General Insurance (NZ) Ltd High Court of New Zealand, 11 November 1999

[54] That is, the insurer is 'off-risk' while a set of circumstances exists.

[55] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982) [216].

[56] Tarr, A, Australian insurance law, (NSW : North Ryde, 1987), 149; In the law of insurance, a breach of warranty is equivalent to a breach of condition in general law.

[57] Mammone v RACV Insurance P/L [1976] VR 617

[58] Above, note 54; The insurer may also sue for damages. As an insurer is unlikely to have suffered a loss as a result of the breach, damages are therefore rarely sought for a breach of warranty.

[59] MacGillivray & Parkington, Insurance Law Relating to all Risks other than Marine, 7th ed. (London : Sweet & Maxwell, 1981) [533]

[60] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982), [216]; the report uses property instead of vehicle.

[61] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002), [5.0010]

[62] See sections 3.3 and 3.4 for further details

[63] Australian Law Reform Commission, Insurance Contracts, Report No. 20, NSW Government Printer, 1982

[64] Australian Law Reform Commission, Insurance Contracts, Report No. 20, NSW Government Printer, 1982; McSweeny, M. "Current Issues in Insurance Law: Aspects of prejudice in insurance law" 2001 ILJ LEXIS 16, p.4 of 26

[65] The Insurance Council of Australia http://www.ica.com.au/publications/ausinsindprofile.pdf (16 August 2002)

[66] Ibid.

[67] Ibid.

[68] Ibid.

[69] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982) [16].

[70] Australia Courts Act 1828

[71] Mabo v State of Queensland (No.2) (1992) 175 CLR 1; per Brennan, Mason and McHugh JJ at 29.

[72] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982) [16].

[73] For example, Hire Purchase Act 1959 (WA) Pt V ss.20-23; Workers' Compensation and Rehabilitation Act 1981 (WA) Pt X

[74] Life Insurance Act 1945 (Cth)

[75] Above, note 71.

[76] Newell, R. "The ambit of section 54 of the Insurance Contracts Act (Cth)" (1993) Current Issues in Insurance Law;LSWA

[77] Greig, D, & Davis, J, The Law of Contract, Law Book Co, Sydney, 1987, 22-32

[78] Maughan, C, "Economics and the law" (1994) March New Zealand Law Journal 110

[79] Greentree v FAI General Insurance Co. Ltd. (1998) 158 ALR 592

[80] Insurance Act 1902 (NSW) s.18 - see appendix for full text; see also Instruments Act 1958 (Vic) s.27

[81] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982) [221].

[82] Khoury v Government Insurance Office (NSW) (1984) 165 CLR 622

[83] Marine Insurance Act 1909 (Cth) s.40

[84] Civil Aviation (Carriers' Liability) Act 1959 (Cth) s.41D

[85] see Farr v Motor Traders Mutual Insurance Society [1920] 3 KB 669; and Provincial Insurance Co Ltd v Morgan [1932] 2 KB 70 (HL) for examples of UK cases.

[86] Bashtannyk v New India Assurance Co Ltd [1968] VR 573

[87] Ibid, at 575

[88] Bashtannyk v New India Assurance Co Ltd [1968] VR 573; at 575

[89] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982) [219]

[90] Commercial Union Assurance Co. v Federal Commission of Taxation (1977) 14 ALR 651

[91] McSweeny, M. "Current Issues in Insurance Law: Aspects of prejudice in insurance law" 2001 ILJ LEXIS 16, 4 of 26

[92] Above, note 88, [16].

[93] Azevedeo v Australian and International Insurances Ltd, unreported; Supreme Court of NT; 275/73; 18 August 1976

[94] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002), [5.0110.1]

[95] Ibid.

[96] Ibid.

[97] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982) [1], [16]

[98] Ibid.

[99] Mann, P "Annotated Insurance Contracts Act" (Sydney: Lawbook Co., 2001), 7

[100] Insurance Contracts Act 1984 (Cth) s.9; These include insurance entered into in the course of state insurance or Northern Territory insurance (Workers' Compensation and Rehabilitation Act 1981 (WA) is an example), motor vehicle third party personal injury liability insurance (Motor Vehicle (Third Party Insurance) Act 1943 (WA); and Motor Accident Insurance Act 1994 (Qld)) and insurance to which the Marine Insurance Act 1909 (Cth) applies.

[101] See sections 1.3. and 2.2. for further details

[102] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982) [218].

[103] Ibid.

[104] See also Provincial Insurance Company Limited v. Morgan [1932] 2 KB 70

[105] Above, note 101, [224].

[106] Ibid.

[107] Ibid.

[108] Ibid, [219].

[109] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982) [219].

[110] Ibid, [224].

[111] Ibid, [228]

[112] Ibid.

[113] Ibid.

[114] Ibid.

[115] Ibid.

[116] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982), [226]

[117] Ibid.; This seems to recognise the insurer's ability to reduce its liability to nil.

[118] Greentree v FAI General Insurance Co Ltd (1999) 10 ANZ Ins Cas 61-423; per Mason P at 74,744.

[119] Ibid.

[120] Insurance Contracts Act does not apply to State insurance - see Insurance Contracts Act 1984 (Cth) s. 9(2); Mann, P "Annotated Insurance Contracts Act" (Sydney: Lawbook Co., 2001), 13

[121] For example, sections 53 and 58 of the ICA.

[122] Commercial Union Assurance Co. of Australia v Ferrcom P/L (1991) 22 NSWLR 389; per Kirby P at 398

[123] A reference to an 'act' under s.54 includes a reference to 'an omission.' (section 54(6))

[124] See ICA s.54(2)

[125] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 2

[126] See ICA ss.54(2)&(3)

[127] De Vito v Commercial Union Assurance Co Ltd (2000) 11 ANZ Ins Cas 61-470; Austcan Investments P/L v Sun Alliance Insurance Ltd (1992) 7 ANZ Ins Cas 61-116

[128] Ferrcom P/L v Commercial Union Assurance Co. of Australia Ltd. (1993) 176 CLR 332

[129] Australian Associated Motor Insurers Ltd v Ellis (1990) 54 SASR 61; 6 ANZ Ins Cas 60-957

[130] FAI General Insurance Ltd. v Jarvis (1999) 46 NSWLR 1; per clause 5(f) of the policy.

[131] Ibid.

[132] The NSW Court of Appeal in FAI General Insurance Ltd. v Jarvis agreed with this.

[133] Baumol, W Economics: Principles and policy (Sydney: Harcourt Brace, 1992), 393

[134] See ICA section 54(1)

[135] Australian Associated Motor Insurers Ltd v Ellis (1990) 6 ANZ Ins Cas 60-957; at 76,328 per Cox J

[136] Ibid.

[137] See section 5 for further discussion

[138] See FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38

[139] Mead, P, 'The Effect of section 54 of the Insurance Contracts Act 1984 and proposals for reform'1997 ILJ LEXIS 12

[140] Ibid.

[141] Evans, M. Outline of equity and trusts (Sydney: Butterworths, 1996), 43

[142] Insurance Law Reform Act 1977 (NZ) s. 9 - see appendix for full text; see Section 4 for more details on 'claim' policies.

[143] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002), [5.0190.25]

[144] Sinclair Horder O'Malley & Co v National Insurance Co of New Zealand Ltd [1995] 2 NZLR 257; (1995) 8 ANZ Ins Cas 61-255

[145] Ibid, at 75,866 per McKay J

[146] Ibid.

[147] Insurance Law Reform Act 1977 (NZ) s. 11 - see appendix for full text

[148] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002) [5.0190.25]

[149] Nupin Distribution Ltd v Harlick (1988) 5 ANZ Ins Cas 60-874 (CA)

[150] Above, note 147

[151] Ibid.

[152] State Insurance Ltd v Electronic Navigation Ltd (1992) 7 ANZ Ins Cas 61-115; Barnaby v The South British Insurance Co Ltd (1980) 1 ANZ Ins Cas 60-401

[153] New Zealand Insurance Co Ltd v Harris [1990] 1 NZLR 10; (1989) 6 ANZ Ins Cas 60-952; Harbour Inn Seafoods Ltd v Switzerland General Insurance Co Ltd (1991) 6 ANZ Ins Cas 61-048.

[154] State Insurance Ltd v Electronic Navigation Ltd (1992) 7 ANZ Ins Cas 61-115

[155] Above, note 147.

[156] Ibid.

[157] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002) [5.0190.25]

[158] State Insurance Ltd v Electronic Navigation Ltd (1992) 7 ANZ Ins Cas 61-115, at 77,546

[159] Dodson v Grew (1767) ER 100 at 108, per Wilmot CJ

[160] Greentree v FAI General Insurance Co Ltd (1999) 10 ANZ Ins Cas 61-423; at 74,744 per Mason P

[161] See sections 4 &5 for further details

[162] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 2

[163] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 2

[164] FTP Inc. Insurance Wholesalers http://www.ftpins.com/comp6.html (19 October 2002)

[165] Reid Crowther & Partners Ltd v Simcoe & Erie General Insurance Co [1993] 1 SCR 252 at 262-264, per McLachlin J

[166] Ibid.

[167] FAI General Insurance Company Limited v Australian Hospital Care P/L [2001] HCA 38

[168] Examples include doctors, lawyers and engineers; Reid Crowther & Partners Ltd v Simcoe & Erie General Insurance Co [1993] 1 SCR 252 at 262-264, per McLachlin J

[169] Ibid.

[170] Ibid.

[171] www.PersonalInjuryLawyers.com.au http://www.personalinjurylawyers.com.au/case.asp (14 September 2002)

[172] Mesotheliomaweb http://www.mesotheliomaweb.org/faq.htm (14 September 2002)

[173] Above, note 167

[174] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 2

[175] Above, note 167

[176] Ibid.

[177] Ibid.

[178] Ibid.

[179] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 2

[180] Sparke Helmore http://www.sparke.com.au/Sparke_Practice.nsf/a63e3486cced2c844a2569a4001b5110/235b9efdfa68439c4a2565d8002721ce?OpenDocument (5 October, 2002)

[181] Breville Appliances P/L v Ducrou (1992) 7 ANZ Ins Cas 61-125, at 77,627 per Cole J

[182] Newcastle City Council v GIO (1997) 9 ANZ Insurance Cases 61-380; cited merely as 'terms of the policy' without relevant clause number and other descriptions.

[183] Breville Appliances P/L v Ducrou (1992) 7 ANZ Ins Cas 61-125 at 77,627

[184] Ibid.

[185] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 2

[186] Sparke Helmore http://www.sparke.com.au/Sparke_Practice.nsf/a63e3486cced2c844a2569a4001b5110/235b9efdfa68439c4a2565d8002721ce?OpenDocument (5 October, 2002)

[187] Schoombee, A, Recent decisions on notification of claims & circumstances, sections 54 & 40 of the Insurance Contracts Act, paper presented to the Law Society of Western Australia Continuing Legal Education Programme, Perth 1997, 1

[188] Above, note 184

[189] HIH Casualty & General Insurance Aust P/L v DellaVedova (1999) 10 ANZ Ins Cas 61-431 at 74,871: Clause 2 of the 'Accountants' Professional Indemnity Insurance Certificate of Insurance'

[190] Greentree v FAI General Insurance Co Ltd (1999) 44 NSWLR 706, at 718 per Mason P; Breville Appliances P/L v Ducrou (1992) 7 ANZ Ins Cas 61-125 at 77,627 per Cole J

[191] Reid Crowther & Partners Ltd v Simcoe & Erie General Insurance Co [1993] 1 SCR 252 at 262-264, per McLachlin J

[192] Ibid.

[193] Ibid.

[194] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 2

[195] Ibid, p.3

[196] For example, FAI General Insurance Co Ltd v Perry (1993) 30 NSWLR 89; 7 ANZ Ins Cas 61-164

[197] Above,note 193, p.3

[198] As part of its disclosure prior to entering into an insurance contract; Ibid, p.3; see also ICA s.28.

[199] FAI General Insurance Company Ltd v Australian Hospital Care P/L (1999) 10 ANZ Ins Cas 61-445 per Derrington J at 75,088.

[200] An example from FAI v Aust Hospital Care P/L [1999] QCA 243

[201] HIH Casualty & General Insurance Aust P/L v DellaVedova (1999) 10 ANZ Ins Cas 61-431 at 74,871: Clause 2 of the 'Accountants' Professional Indemnity Insurance Certificate of Insurance'

[202] HIH Casualty & General Insurance Aust P/L v DellaVedova (1999) 10 ANZ Ins Cas 61-431 at 74,871 - 74,872 - The Full Court of the Federal Court of Australia (Lee, North, Mansfield JJ) held that a more positive state of awareness about the prospect of a claim against the insured might be required in some cases.

[203] Permanent Trustee Australia Ltd v FAI General Insurance Co Ltd (1998) 153 ALR 529 per Hodgson J at 567-568

[204] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 3

[205] FAI General Insurance Company Ltd v Australian Hospital Care P/L (1999) 10 ANZ Ins Cas 61-445 per Derrington J at 75,086

[206] Above, note 203

[207] Schoombee, A, "Antico's case and other recent decisions on notification of claims and circumstances: Sections 54 and 40 of the Insurance Contracts Act" (1997) ILJ Lexis 8, p.1

[208] Ibid.

[209] FAI General Insurance Co Ltd v Perry (1993) 7 ANZ Ins Cas 61-164, at 77,893 per CJ Gleeson

[210] Einfeld v HIH Casualty & General Insurance (1999) 10 ANZ Ins Cas 61-450; FAI General Insurance Co Ltd v Perry (1993) 7 ANZ Ins Cas 61-164, at 77,893 per CJ Gleeson

[211] See section 3.6 for a fuller explanation of s.54

[212] See section 4.4.2. for further details regarding how later policies may not, for various reasons, respond to the claim.

[213] East End Real Estate P/L v C E Heath Casualty and General Insurance Ltd (1991) 7 ANZ Ins Cas 61-092 (NSW CA - Gleeson CJ, Mahoney, Clarke JJ)

[214] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 4

[215] Above, note 212, at 77,358

[216] Ibid, at 77,360; per Gleeson CJ

[217] East End Real Estate P/L v C E Heath Casualty and General Insurance Ltd (1991) 7 ANZ Ins Cas 61-092, at 77,360; per Gleeson CJ

[218] Ibid, at 77,364; per Mahoney J

[219] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 4

[220] Above, note 216, at 77,363; per Mahoney J

[221] Ibid, at 77,360; per Gleeson CJ

[222] C E Heath Casualty & General Insurance Ltd v East End Real Estate Pty Ltd (1992) 7 Leg Rep SL 2

[223] Antico v Heath Fielding Australia P/L (1997) 188 CLR 652

[224] Ibid.

[225] FAI General Insurance Co Ltd v Perry (1993) 7 ANZ Ins Cas 61-164

[226] Ibid, at 77,892

[227] Ibid, at 77,889

[228] Ibid.

[229] Majority being Gleeson CJ and Clarke JA. Kirby P dissented; Above, note 224, at 77,890

[230] Ibid.

[231] Ibid., at 77,893 per Gleeson CJ

[232] FAI General Insurance Co Ltd v Perry (1993) 7 ANZ Ins Cas 61-164, at 77,893 per CJ Gleeson

[233] Ibid.

[234] Ibid.

[235] Ibid. Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 5; See also Clarke, J, "After the Dust Settles on Antico: FAI v Perry Lives" (1995) ILJ LEXIS 16

[236] Above, note 231, at 77,893 per CJ Gleeson

[237] Clarke, J, "After the Dust Settles on Antico: FAI v Perry Lives" (1995) ILJ LEXIS 16

[238] Above, note 231, at 77,893 per Gleeson CJ; Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 5

[239] See section 4.4.1.1. for details on such criticisms.

[240] See section 3.5. for further details on ALRC's recommendations.

[241] See section 4.4.1.1. for further details on such criticisms.

[242] Seery and anor v. John R Carr and Associates P/L and Ors, unreported; Supreme Court of NSW, 3 November 1995; see also Kelly v NZ Insurance Co Ltd (1996) 9 ANZ Ins Cas 61-317 - the Full Court of the WA Supreme Court held that the insured's failure to provide list of valuable items meant that the insured had chosen not to expand the level of cover. It was therefore, an inaction.

[243] Antico v Heath Fielding Australia P/L (1997) 188 CLR 652

[244] Ibid, <AUSLii> p.4 of 16; per Dawson, Toohey, Gaudron and Gummow JJ

[245] Khoury v Government Insurance Office (NSW) (1984) 165 CLR 622 at 638. per Mason, Brennan, Deane and Dawson JJ

[246] Antico v Heath Fielding Australia P/L (1997) 188 CLR 652 <AUSLii> p.14 of 16

[247] Ibid, 188 CLR 652 at 669-670

[248] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 8; Not every failure to exercise a 'right, choice or liberty' given under an insurance policy is, however, an omission under section 54. The section required that there be a sufficient causal connection between the insurer's refusal to pay a claim and the act or omission of the insured before the failure could be construed as an omission. (see Antico v Heath Fielding Australia P/L (1997) 188 CLR 652 <AUSLii>)

[249] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 8

[250] An example is Greentree v FAI General Insurance Co Ltd (1999) 10 ANZ Ins Cas 61-423, at 74,750

[251] Greentree v FAI General Insurance Co Ltd (1999) 10 ANZ Ins Cas 61-423, at 74,750

[252] The insured was unable to satisfy the judgement debt.

[253] see the Law Reform (Miscellaneous Provisions) Act 1946 (NSW) s.6

[254] Ibid, at 74,737

[255] Greentree v FAI General Insurance Co Ltd S171/1998 (18 June 1999)

[256] Above, note 250 at 74,741 per Spiegelman J

[257] Ibid.

[258] Ibid.

[259] Permanent Trustee Australia Ltd v FAI General Insurance Co Ltd (1998) 153 ALR 529; 10 ANZ Ins Cas 61-408

[260] Mann, P "Annotated Insurance Contracts Act" (Sydney: Lawbook Co., 2001) 165,166

[261] Ibid.

[262] Permanent Trustee Australia Ltd v FAI General Insurance Co Ltd (1998) 153 ALR 529; 10 ANZ Ins Cas 61-408, at 74,510

[263] Ibid.

[264] Allens Arthur Robinson Publications Insurance High Court delivers judgment in FAI v Australian Hospital Care http://www.aar.com.au/publications/fobhjul01.htm#Andrea%20Martignoni (21 September 2002)

[265] See FAI General Insurance Company Ltd v Australian Hospital Care P/L (1999) 10 ANZ Ins Cas 61-445, per Chesterman J at 75,100; See also Einfeld v HIH Casualty & General Insurance (1999) 10 ANZ Ins Cas 61-450; 75,166

[266] Antico v CE Heath Casualty & General Insurance Ltd (1995) 8 ANZ Ins Cas 61-268 at 76,011 per Giles CJ Comm Div

[267] Ibid

[268] FAI General Insurance Company Ltd v Australian Hospital Care P/L (1999) 10 ANZ Ins Cas 61-445

[269] Ibid.

[270] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 12

[271] Ibid.

[272] HIH Casualty & General Insurance Aust P/L v DellaVedova (1999) 10 ANZ Ins Cas 61-431

[273] The case dealt with a provision identical with that considered in the Hospital Care case. The Full Federal Court held that a failure as a matter of choice to exercise the right to extend the cover of the policy by notifying the insurer of the relevant occurrence would be an omission to which section 54 would apply.

[274] FAI General Insurance Company Ltd v Australian Hospital Care P/L [1999] QCA 243, at [2]

[275] Ibid, at [4-5] per Derrington J

[276] Ibid, at [4]

[277] Ibid, at [4-5] per Derrington J

[278] Ibid, at [22-24] per Derrington J

[279] FAI General Insurance Company Ltd v Australian Hospital Care P/L [1999] QCA 243 at [21] per Derrington J

[280] Ibid.

[281] Ibid.

[282] Ibid, at [19] per Derrington J

[283] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 16

[284] Einfeld v HIH Casualty [1999] NSWSC 867

[285] Einfeld v HIH Casualty [1999] NSWSC 867

[286] Ibid, [25]

[287] Ibid, [45]

[288] Ibid, [55-56]

[289] Insurance and Superannuation Commission "Sections 40 and 50 of the Insurance Contracts Act 1984' Insurance Contracts Act Circular No. IC1/95, Sept 1995. http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002)

[290] FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38 at [48]

[291] McHugh, Gummow, Kirby and Hayne JJ; Gleeson CJ dissenting

[292] Ibid, at [88]

[293] Ibid, at [39]

[294] Ibid, at [41]; (emphasis added.)

[295] Muscillo, M, "The lesser of two evils: FAI General Insurance Co Ltd v Australian Hospital Care Pty Ltd" [2001] QUTLJJ 20 (AustLII: July 30, 2002)

[296] Ibid, at [42]

[297] FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38 at [42]

[298] Ibid.

[299] Stapleton & Anor v NTI Limited [2002] QDC 204

[300] Stapleton & Anor v NTI Limited [2002] QDC 204 at [13]

[301] Stapleton & Anor v NTI Limited [2002] QDC 204 at [29]

[302] Ibid. at [79,80,81]

[303] Ibid, at [79,80]; See section 4.3.4. for more details

[304] Permanent Trustee Australia Ltd v FAI General Insurance Co Ltd (1998) 44 NSWLR 186 at 227; See section 4.3.4. for more details

[305] See section 4.3.4. for more details

[306] Above note, at [84,85]

[307] Ibid, at [44] per McHugh, Gummow and Hayne JJ

[308] FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38 at [9]

[309] Muscillo, M, "The lesser of two evils: FAI General Insurance Co Ltd v Australian Hospital Care Pty Ltd" [2001] QUTLJJ 20 (AustLII: July 30, 2002)

[310] See section 3.5. for details on these recommendations

[311] East End Real Estate P/L v C E Heath Casualty and General Insurance Ltd (1991) 25 NSWLR 400; 7 ANZ Ins Cas 61-092; see also King v McKean & Park Ors (2002) 12 ANZ Ins Cas 61-534

[312] Antico v Heath Fielding Australia P/L (1997) 188 CLR 652 and FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38

[313] Mann, P "Annotated Insurance Contracts Act" (Sydney: Lawbook Co., 2001), 169

[314] See section 4.3.1. for details on the case.

[315] See section 4.3.2. for details on the case.

[316] FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38; and Einfeld v HIH Casualty & General Insurance (1999) 10 ANZ Ins Cas 61-450

[317] See sections 4.1.2. and 4.1.3. for details regarding the distinction between the two types of policies

[318] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 18

[319] Insurance and Superannuation Commission "Sections 40 and 50 of the Insurance Contracts Act 1984' Insurance Contracts Act Circular No. IC1/95, Sept 1995. http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002)

[320] See sections 4.1.1. and 4.2. for details regarding the distinction between the two types of policies

[321] See section 4.1. for details on the 'long tail' problem

[322] Insurance and Superannuation Commission "Sections 40 and 50 of the Insurance Contracts Act 1984' Insurance Contracts Act Circular No. IC1/95, Sept 1995. http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002)

[323] Reinsurance involves the original insurer (the reinsured) taking out insurance cover with another insurer (the reinsurer) to indemnify the reinsured against liability or payments under the original contract of insurance. (Nygh P & Butt P (eds.), Butterworths Concise Australian Legal Dictionary, (Australia : Ligare Pty Ltd, 1997, 341)

[324] Above, note 318;

[325] Insurance Council of Australia http://www.ica.com.au/liabilitysub/pressure.asp (6 October 2002)

[326] Above, note 318; e.g., solvency calculations, profit and loss calculations and taxation accounts.

[327] Breville Appliances P/L v Ducrou (1992) 7 ANZ Ins Cas 61-125 at 77, 628; per Cole J

[328] Baumol, W "Economics: Principles and policy" (Sydney: Harcourt Brace, 1992) p.393

[329] ABC Online: Govts reach agreement on public liability laws http://www.abc.net.au/news/australia/nt/metnt-15nov2002-7.htm (18 November 2002); 7.30 Report http://www.abc.net.au/7.30/s569235.htm (5 June 2002)

[330] See section 3.5. for details on the ALRC's recommendations on reforming the law

[331] FAI General Insurance Company Ltd v Australian Hospital Care P/L [1999] QCA 243 (9 July 1999) at [12], per Pincus JA

[332] Ibid.

[333] See section 4.3.7. for details on the 'inherently important' test

[334] FAI General Insurance Company Ltd v Australian Hospital Care P/L [1999] QCA 243 (9 July 1999) at [45] per Chesterman J; Note the effect of section 54(5) - see the appendix for full text.

[335] Rolfe J in Einfeld; Chesterman J in Australian Hospital Care; Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 6; See also Clarke, J, "After the Dust Settles on Antico: FAI v Perry Lives" (1995) ILJ LEXIS 16

[336] Clarke, J, "After the Dust Settles on Antico: FAI v Perry Lives" (1995) ILJ LEXIS 16

[337] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 5

[338] Ibid.

[339] Einfeld v HIH Casualty 10 ANZ Ins Cas 61-450 at 75,167, per Rolfe J

[340] See FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38

[341] ISC Circular 1/95 'Section 40 and 50 of the ICA' http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002);

[342] Ibid.; Although realistically, if the insured does not notify during the original policy period, they would have to notify in the next policy period when they have a pre-contractual duty to disclose facts and circumstances.

[343] This is subject to non-disclosure rules and other terms of the contract; See section 4.4.2. for further details on this.

[344] Above, note 337;

[345] Doctors face levy under indemnity deal http://news.ninemsn.com.au/National/story_28388.asp (23 October 2002)

[346] Ibid.

[347] Ibid.

[348] Ibid.

[349] Other reforms include tort law reform

[350] Craig, W.J., ed., All's Well that Ends Well: The Complete Works of William Shakespeare. (London: Oxford University Press, 1914) Act IV. Scene III verse 28

[351] Although it should be noted that where the situation concerned an optional occurrence notification clause, the claim would most likely be covered by a later policy anyway. See section 4.4.2. for further details.

[352] This would, however, be difficult to prove.

[353] An example is where the insured has honestly believed that a claim would not later arise after having obtained legal advice; See section 4.3.7. for further details on the example

[354] That is, whether the insured honestly believes that the occurrence would not later give rise to a claim.

[355] ISC Circular 1/95 'Section 40 and 50 of the ICA' http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002); Although it should be noted that where the situation concerned an optional occurrence notification clause, the claim would most likely be covered by a later policy anyway. See section 4.4.2. for further details.

[356] see section 3.5. on the ALRC's recommendations

[357] Above, note 351; see section 3.5 regarding the spirit of the ALRC in reforming the law

[358] See section 3.5. for further discussions

[359] Ibid.

[360] ISC Circular 1/95 'Section 40 and 50 of the ICA' http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2003); See section 4.3. for more details on why the insured may not want to notify certain things.

[361] See section 5 for further discussion on the issue of prejudice

[362] Salinger, Jerome, Catcher in the Rye (Boston : Little, Brown & Co., 1951), 173

[363] For example, Kirby P in FAI General Insurance Co Ltd v Perry (1993) 30 NSWLR 89 at 103

[364] FAI General Insurance Company Ltd v Australian Hospital Care P/L (1999) 10 ANZ Ins Cas 61-445, at 75,089 per Derrington J; also Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 21

[365] Ibid.

[366] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 21

[367] See section 5

[368] FAI General Insurance Company Ltd v Australian Hospital Care P/L [1999] QCA 243, at [52], per Chesterman J

[369] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 19

[370] Newcastle City Council v GIO (1997) 9 ANZ Insurance Cases 61-380

[371] That is, the insurer's liability is limited or excluded because notice of a third party's claim is not given to the insurer to the insurer during the policy period - See sections 4.1. and 4.2. for further information on the distinction between these policies.

[372] Above, note 368

[373] ICA s.40(3)

[374] AHC

[375] ISC Circular 1/95 'Section 40 and 50 of the ICA' http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002); See sections 4.1.1. and 4.2. for more details on the distinction between the two types of policies.

[376] Greentree v FAI General Insurance Co Ltd (1999) 10 ANZ Ins Cas 61-423, at 74,748 per Mason P

[377] Above, note 371;

[378] whether intentional or unintentional

[379] Einfeld v HIH Casualty & General Insurance (1999) 10 ANZ Ins Cas 61-450; per Rolfe J at 75,165

[380] East End Real Estate P/L v C E Heath Casualty and General Insurance Ltd (1991) 7 ANZ Ins Cas 61-092, at 77,364 per J Mahoney

[381] Ibid

[382] Ibid, at 77,365, per Clarke J

[383] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 20

[384] Ibid.

[385] FAI General Insurance Co Ltd v Perry 7 ANZ Ins Cas 61-164 at 77,02, per Clarke J

[386] East End Real Estate P/L v C E Heath Casualty and General Insurance Ltd (1991) 25 NSWLR 400; 7 ANZ Ins Cas 61-092; per Gleeson CJ

[387] Gosford City Council v GIO General Ltd (2002) 12 ANZ Ins Cas 61-527

[388] See sections 4.3.5. and 4.3.6. for further details on these cases.

[389] Finn, C, "Insurers claw back ground on s.54" (2002) 13 ILJ 290

[390] MEC McInally Nominees P/L v HTW Valuers (Brisbane) P/L (2001) 188 ALR 439; ANZ Ins Case 61-507

[391] Ibid, at 75,889

[392] Gosford City Council v GIO General Ltd (2002) 12 ANZ Ins Cas 61-527

[393] Ibid., [2002] NSWSC 511, at [38]

[394] Ibid.

[395] Finn, C, "Insurers claw back ground on s.54" (2002) 13 ILJ 290, 293

[396] Ibid, 292

[397] Gosford City Council v GIO General Ltd [2003] NSWCA 34

[398] See section 4.2. for further discussion on this

[399] Finn, C, "Insurers claw back ground on s.54" (2002) 13 ILJ 290, 292

[400] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 20

[401] Ibid., p.22

[402] Ibid., p.2

[403] Above, note 400

[404] Ibid, p.23

[405] as he then was; now High Court judge

[406] FAI General Insurance Co Ltd v Perry (1993) 30 NSWLR 89; 7 ANZ Ins Cas 61-164, at 77,900 per Kirby P

[407] Ibid.

[408] QBE Insurance Ltd v Moltoni Corporation P/L (2000) 11 ANZ Ins Cas 61-468

[409] Insurance and Superannuation Commission "Sections 40 and 50 of the Insurance Contracts Act 1984' Insurance Contracts Act Circular No. IC1/95, Sept 1995. P.9 http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002)

[410] Ibid.

[411] The successor of the ISC. Insurance Journal - The Property Casualty Magazine http://www.insurancejournal.com/magazines/west/2002/12/16/newsbriefs (21 February 2003)

[412] The writer contacted by email APRA and ASIC regarding this issue on Oct 8, 2002.

[413] The writer contacted by email the Treasury regarding this issue on Oct 21, 2002.

[414] ICA http://www.ica.com.au/liabilitysub/pressure.asp (6 October 2002)

[415] A Submission by the Insurance Council of Australia for Amendment to Section 54 of the Insurance Contracts Act 1984 December 2001 http://www.aph.gov.au/senate/committee/economics_ctte/publib_insur/submissions/67_G.doc (1 October 2002)

[416] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 24; ISC Circular 1/95 'Section 40 and 50 of the ICA' http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002)

[417] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 24; ISC Circular 1/95 'Section 40 and 50 of the ICA'

[418] ISC Circular 1/95 'Section 40 and 50 of the ICA' 'http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002)

[419] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 24

[420] Limitation Act 1935 (WA) s.38A(6); see appendix for full text

[421] Limitation Act 1935 (WA) s.38A(3)

[422] ABC Online: Ministers show support for negligence laws http://www.abc.net.au/news/2002/10/item20021002084547_1.htm (2 October 2002); although there is a difference in policy between a liability cap under the Limitation Act and a liability cap under the public liability insurance reform. The cap under the public liability crisis is not so much concerned with the 'long-tail' business type issue.

[423] See section 4.4.2.2. for further discussion on this.

[424] ISC Circular 1/95 'Section 40 and 50 of the ICA' 'http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002)

[425] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 24

[426] ISC Circular 1/95 'Section 40 and 50 of the ICA' 'http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002)

[427] Select Ins. Co. v. Superior Court (1990) 226 Cal.App.3d 631, 639.

[428] Burns v. International Insurance Co 929 F.2d (9th Cir. 1991)

[429] Slater v. Lawyers' Mutual Ins. Co. (1991) 227 Cal.App.3d 1415, 1421-1422, 1424.

[430] Above, note 423.

[431] Ibid, in this case, 60 days

[432] Above, note 421.

[433] Arkansas Insurance Code 23-79-306, s.13; See appendix for full text

[434] Colorado Revised Statutes, 1994 Repl. Vol. 10-4-419 (2) (d), s.1; See appendix for full text

[435] See section 4.4.1.3 for further details

[436] Ibid.

[437] Cases of 'double insurance' might arise where the insured was aware of an occurrence, but had honestly believed that a claim would not later arise as a result of an occurrence: see Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002) [10.0010]

[438] As was the case in Greentree: see section 4.3.4. for further details

[439] See section 4.3.4 for details on Greentree

[440] FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38, at [42]

[441] See section 4.4.1.1. for more details on this

[442] See section 4.4.1.3. for details on these cases.

[443] that both a failure to notify a claim and an occurrence are treated as 'omissions' that may be 'excused' under section 54; see section 4.3.5. for further details on Australian Hospital Care.

[444] Please refer to the appendix for the proposed legislation without the explanations.

[445] See section 4.4.1.3. for further details regarding the difference between section 54 and section 40.

[446] See section 4.2 for details

[447] as will be discussed in Section 5

[448] See section 54(7)(a)(ii)(A) for more details

[449] See section 4.4.1.1. for further details

[450] This is as opposed to situations where the insured had honestly believed that a claim would not later arise. In which case, that should be an omission under section 54(1): see section 4.4.1.1. for more details on this.

[451] See section 4.4.1.1. for other arguments for reviving the 'omission/inaction' dichotomy.

[452] FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38; per Gleeson CJ at [11]

[453] See section 4.4.2.2. for comparision

[454] See section 4.4.2. for the situation where the insured was not aware of an occurrence during the policy period.

[455] ISC Circular 1/95 'Section 40 and 50 of the ICA' http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002);

[456] FAI General Insurance Company Ltd v Australian Hospital Care P/L [1999] QCA 243 (9 July 1999) at [24] per Derrington J

[457] Ibid.

[458] Ibid.

[459] Breville Appliances P/L v Ducrou (1992) 7 ANZ Ins Cas 61-125 at 77, 628; per Cole J

[460] Ibid.

[461] Ibid.

[462] Sutton, K, Section 54 - is Perry a terminal Hospital Case?, paper presented to the Australian Insurance Law Association, Perth 2001, 4

[463] See sections 4.1. and 4.2. for further details regarding the 'long tail' problems

[464] Australian Law Reform Commission, Review of the Marine Insurance Act 1909, Report No 91 (2001) [9.62]: Amongst other things, the ALRC considered the broad implications that section 54 and the Australian Hospital Care decision might impose on 'held covered' clauses that allowed the insured to extend the level of cover provided by a policy upon the notification of a certain fact. (Ibid, [9.105]) The Institute Time Clause Hulls contract terms, for example, include a 'held covered' clause that allows the insured to remain covered under the policy following a breach of warranty as to 'cargo, trade, locality, towage, salvage services or date of sailing' provided notice is given to the insurer. (Ibid, [9.106]) Where the insured had failed to notify the insurer of a certain fact, the current approach in section 54 would allow an insured's failure to notify to be 'excused.'(Ibid, [9.106]) The ALRC found this to be unacceptable, since the insured is permitted to 'unilaterally alter the bargain made by the parties, arguably to the extent of fundamentally changing the scope of the insurance.' (Ibid, [9.120])

[465] Australian Law Reform Commission, Review of the Marine Insurance Act 1909, Report No 91 (2001) [9.106]

[466] Little, W et al. Oxford English Dictionary, (Oxford : Clarendon press, 1973), 1655

[467] Collins Dictionary, (London : HarperCollinsPublishers, 1993), 1130

[468] McSweeny, M, "Current issues in insurance law: Aspects of prejudice in insurance law" [2001] ILJ LEXIS 16

[469] Ibid.

[470] Limitation Act 1935 (WA) s.47A(3)

[471] Stollznow v Calvert [1980] 2 NSW LR 749; Micallef v ICI Australia Operations Pty Ltd & Anor [2001] NSWCA 274

[472] ICA s.28(3)

[473] Mann, P "Annotated Insurance Contracts Act" (Sydney: Lawbook Co., 2001), 89

[474] ICA s.31(2)

[475] ICA s.52(1)

[476] Akai P/L v Peoples Insurance Co Ltd (1996) 188 CLR 418

[477] McSweeny, M. "Current Issues in Insurance Law: Aspects of prejudice in insurance law" 2001 ILJ LEXIS 16; see section 3.6 or the appendix for the exact wording of s.54

[478] Ibid., p.22 of 26

[479] Masel, G, 'Antico v Heath Fielding Australia Pty Ltd' (1997) 12 Aust Ins LB 90 at 92.; Insurance and Superannuation Commission "Sections 40 and 50 of the Insurance Contracts Act 1984' Insurance Contracts Act Circular No. IC1/95, Sept 1995. P.9 http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002)

[480] Kennedy v NZI Insurance Aust Ltd Unreported, QDC, Robin QC DCJ, 16 April 1992

[481] Mannolini, J "The uncertain ambit of section 54 of the Insurance Contracts Act" (1996) Aug ABLR p.209

[482] Masel, G, 'Antico v Heath Fielding Australia Pty Ltd' (1997) 12 Aust Ins LB 90 at 92.

[483] See Section 4 for further discussions on this

[484] See section 4.4.1.2. x for further discussion on this

[485] FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38, at [21]

[486] Ibid.

[487] Jimaco Clothing Pty Ltd v Norwich Winterthur Insurance (Aust) Ltd (1985) 3 ANZ Ins Cas 60-640; Stevenson v Metropolitan Meat Industry Commission (1937) 37 SR (NSW) 109

[488] See section 4.3.1. for more details on East End

[489] East End Real Estate P/L v C E Heath Casualty and General Insurance Ltd (1991) 7 ANZ Ins Cas 61-092; at 77,801

[490] McSweeny, M. "Current Issues in Insurance Law: Aspects of prejudice in insurance law" 2001 ILJ LEXIS 16, p.14 of 26; see section 4.3.3. for more details on the case

[491] Ibid.

[492] Antico v C E Heath Casualty and General Insurance Ltd, unreported; Supreme Court of NSW; 17 December 1998

[493] Ibid.

[494] Zollo v National Australia Bank, unreported; Supreme Court of South Australia (FC); 21 March 1997

[495] Above, note 487.

[496] FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38; per Kirby J at [61]

[497] FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38; per Kirby J at [61]

[498] Section 54(1) See section 3.6 or the appendix for full text of the section

[499] Ferrcom P/L v Commercial Union Assurance Co of Aust Ltd (1993) 176 CLR 332; 7 ANZ Ins Cas 61-156 (HC)

[500] Moltoni Corporation P/L v QBE Insurance Ltd [2001] HCA 73

[501] Moltoni Corporation P/L v QBE Insurance Ltd [2001] HCA 73 at [18]; Ferrcom P/L v Commercial Union Assurance Co. of Australia Ltd. (1993) 176 CLR 332; 340

[502] Moltoni Corporation P/L v QBE Insurance Ltd [2001] HCA 73 at [18]

[503] QBE Insurance Ltd. v Moltoni Corporation P/L (2000) 11 ANZ Ins Cas 61-468

[504] Antico v Heath Fielding Australia Pty Ltd (1997) 188 CLR 652, 673-4.

[505] Above, note 496

[506] Gibbs Holdings P/L v Mercantile Mutual Insurance (Australia) Ltd. [2000] QCA 524

[507] Ferrcom P/L v Commercial Union Assurance Co. of Australia Ltd. (1993) 176 CLR 332

[508] Mann, P "Annotated Insurance Contracts Act" (Sydney: Lawbook Co., 2001) 173

[509] Above, note 501, 336 (Darling Harbour site in Sydney)

[510] Ibid, 341

[511] Ibid, 342

[512] Ibid.

[513] Ibid, (1993) 7 ANZ Ins Cas 61-156 at 77,831

[514] Ferrcom P/L v Commercial Union Assurance Co of Aust Ltd (1993) 7 ANZ Ins Cas 61-156 at 77,831

[515] Ibid, (1993) 176 CLR 332, at 341

[516] Ibid, at 342

[517] Moltoni Corporation P/L v QBE Insurance Ltd [2001] HCA 73, [20]

[518] Tillotson v ANZ Life Assurance Co. Ltd (1996) 17 SR (WA) 34

[519] Moltoni Corporation P/L v QBE Insurance Ltd [2001] HCA 73

[520] Mann, P "Annotated Insurance Contracts Act" (Sydney: Lawbook Co., 2001), 178

[521] Above, note 513.

[522] QBE Insurance Ltd v Moltoni Corporation P/L (2000) 11 ANZ Ins Cas 61-468; Justices Ipp and Wallwork (Justice Murray dissenting)

[523] QBE Insurance Ltd v Moltoni Corporation P/L [2000] WASCA 82 [22 ]

[524] Ibid.

[525] Ibid; as cited by Mann, P "Annotated Insurance Contracts Act" (Sydney: Lawbook Co., 2001), 178

[526] McSweeny, M. "Current Issues in Insurance Law: Aspects of prejudice in insurance law" 2001 ILJ LEXIS 16, p.16 of 26

[527] Ibid.

[528] Moltoni Corporation P/L v QBE Insurance Ltd HCA (27 October 2000) Special Leave Application p.4

[529] Ibid.

[530] Ibid.

[531] Moltoni Corporation P/L v QBE Insurance Ltd [2001] HCA 73

[532] Ibid, at [24]

[533] Moltoni Corporation P/L v QBE Insurance Ltd [2001] HCA 73, at [18]

[534] Ibid.

[535] Ibid, at [19]

[536] Ibid.

[537] Ibid, at [20]; This reaffirmed the position in Ferrcom.

[538] Ferrcom P/L v Commercial Union Assurance Co. of Australia Ltd. (1993) 176 CLR 332; 342; Above, note 527.

[539] Above, note 527

[540] Ibid.

[541] High Court Rules on Notice of Claims Provision www.pwturk.com.au/Downloads/Articles/QBEvMoltoni.pdf (19 October 2002)

[542] Moltoni Corporation P/L v QBE Insurance Ltd [2001] HCA 73, at [21]

[543] Above, note 535

[544] Advance (NSW) Insurance Agencies Pty Limited v Matthews (1987) 4 ANZ Ins Cas 60-813 at 74,989

[545] Pickering, M, "Proving Underwriting Practices in Court on Issues of Non-Disclosure and Breach of Contract" (1991) 4 ILJ 52, 69

[546] Insurance and Superannuation Commission "Sections 40 and 50 of the Insurance Contracts Act 1984' Insurance Contracts Act Circular No. IC1/95, Sept 1995. P.9 http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002)

[547] Above, note at [20]

[548] High Court Rules on Notice of Claims Provision www.pwturk.com.au/Downloads/Articles/QBEvMoltoni.pdf (19 October 2002)

[549] ICA s. 28(3)

[550] Mann, P "Annotated Insurance Contracts Act" (Sydney: Lawbook Co., 2001), 173

[551] See section 3.6.2 for facts of Australian Associated Motor Insurers Ltd v Ellis (modification of the vehicle without consent); see section 5.2.1. for Gibbs Holdings P/L v Mercantile Mutual Insurance (Australia) Ltd. (failure to notify a change in tenancy); and see section 5.2.1. for Ferrcom P/L v Commercial Union Assurance Co of Aust Ltd (failure to give notice of registration of the crane);

[552] Tarr, A, 'The Insurance Contracts Act Revisited', (1991) 4 Aust Ins LB 216 at 239.

[553] Ibid.

[554] ICA s.54(2); Above, note 546.

[555] See section 5.4.1. for further discussion.

[556] From a subsequent event.

[557] Pickering, M, "Proving Underwriting Practices in Court on Issues of Non-Disclosure and Breach of Contract" (1991) 4 ILJ 52, 69

[558] Ball, M, "Ferrcom P/L v Commercial union Assurance Co of Australia Ltd" (1993) 6 ILJ 85

[559] Ball, M 'Case Note' (1993) 6 ILJ 85

[560] Moltoni Corporation P/L v QBE Insurance Ltd [2001] HCA 73 at [18]

[561] Ibid.

[562] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002) [5.0190.20]

[563] Note that the insurer has a limited right to cancel the policy under s.60 of the ICA

[564] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002) [5.0190.20]

[565] McSweeny, M. "Current Issues in Insurance Law: Aspects of prejudice in insurance law" 2001 ILJ LEXIS 16, p.10 of 26

[566] Above, note 561.

[567] Ibid.

[568] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002) [5.0190.20]

[569] Ibid.

[570] See section 4.4.1.1. for further discussion on these recommendations

[571] Koning, JPM "Book review: Principles of Insurance by Kelly and Ball" (2001) 12 ILJ 281

[572] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002) [5.0190.20]

[573] See section 5.2.1. for details on Ferrcom

[574] Above, note 566.

[575] See section 5.2.2. for further discussion

[576] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002) [5.0190.20]

[577] Ibid.

[578] McSweeny, M. "Current Issues in Insurance Law: Aspects of prejudice in insurance law" 2001 ILJ LEXIS 16, p.17 of 26

[579] Ibid.

[580] See section 3.5. for the ALRC's recommendation of proportionality

[581] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002) [5.0190.20]

[582] Ibid, at [8.0080.30]

[583] Trade Practices Act 1974 s.52

[584] Poseidon Ltd v Adelaide Petroleum NL (1994) 179 CLR 332; 120 ALR 16

[585] High Court Rules on Notice of Claims Provision www.pwturk.com.au/Downloads/Articles/QBEvMoltoni.pdf (19 October 2002)

[586] Ibid.

[587] Ibid.

[588] See Tarr's argument in section 5.3.1.

[589] See section 5.3.2. for further discussion

[590] Commercial Union Assurance Co. of Australia v Ferrcom P/L (1991) 6 ANZ Ins Cas 61,042 at 77,004; per Priestley JA

[591] Ibid.

[592] Australian Law Reform Commission, Review of the Marine Insurance Act 1909, Report No 91 (2001) [10.36-10.46]

[593] Australian Law Reform Commission, Review of the Marine Insurance Act 1909, Report No 91 (2001) [10.24]

[594] Australian Law Reform Commission, Review of the Marine Insurance Act 1909, Report No 91 (2001) [10.24]

[595] See section 4.4 for the benchmarks for reform

[596] See section 5.2. for more details on these tests

[597] That is, whether or not the insurer would have gone 'off-risk.'; See section 5.2. for more details on this.

[598] See section 5.3.5. for details

[599] See sections 5.3.1. and 5.3.2. for details

[600] See section 3.5 for details on the principle of proportionality.

[601] As in Ferrcom P/L v Commercial Union Assurance Co of Aust Ltd (1993) 176 CLR 332

[602] As in Moltoni Corporation P/L v QBE Insurance Ltd [2001] HCA 73

[603] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982), [228]

[604] McSweeny, M. "Current Issues in Insurance Law: Aspects of prejudice in insurance law" 2001 ILJ LEXIS 16; p.5 of 26

[605] Ibid, p.7 of 26

[606] The Shorter Oxford English Dictionary, (Oxford : Clarendon Press, 1992) p.1688

[607] That is, that principle after the reform contained in the contributory fault legislation: see Astley v Austrust Limited (1999) 197 CLR 1; also Law Reform (Miscellaneous Provisions) Amendment Act 2000 (NSW)

[608] Luntz, H, Torts: cases and commentary, (NSW : Butterworths, 1995) p.354

[609] See section 5.3.3. for details on example

[610] Horseley, K. "Section 54 of the Insurance Contracts Act" (1996) ILJ Lexis 8

[611] Kelly and Ball, Principles of Insurance Law, Butterworths, Sydney, 2001 at 5439 [5.0190.20]; Kelly, D, 'Further Thoughts on the Ferrcom case A re-examination of the Principal of "Proportionality"' (1993) 8 Aust Ins LB 57 at 59

[612] Ferrcom P/L v Commercial Union Assurance Co of Aust Ltd (1993) 176 CLR 332, at 341

[613] Ferrcom P/L v Commercial Union Assurance Co of Aust Ltd (1993) 176 CLR 332; at 341

[614] McSweeny, M. "Current Issues in Insurance Law: Aspects of prejudice in insurance law" 2001 ILJ LEXIS 16, p.12 of 26

[615] Kelly, B, & Ball, M, Principles of insurance law, (Australia : LexisNexis Butterworths, 2002) [5.0190.20]

[616] Ibid.

[617] See section 4.4. for the benchmarks for reform

[618] Luntz, H, Torts: cases and commentary, (NSW : Butterworths, 1995), 525

[619] Ibid, 354

[620] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982), [228]

[621] Insurance and Superannuation Commission "Sections 40 and 50 of the Insurance Contracts Act 1984' Insurance Contracts Act Circular No. IC1/95, Sept 1995. http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002)

[622] Moltoni Corp Pty Ltd v QBE Insurance Ltd HCA (27 October 2000) Special Leave Application. P.4 of 5

[623] McSweeny, M. "Current Issues in Insurance Law: Aspects of prejudice in insurance law" 2001 ILJ LEXIS 16, p.17 of 26

[624] FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38; per CJ Gleeson at [11]; see section 4.3.5 and 4.3.7. for further discussion on the case.

[625] FAI General Insurance Company Ltd v Australian Hospital Care P/L [2001] HCA 38; per CJ Gleeson at [11]

[626] Insurance and Superannuation Commission "Sections 40 and 50 of the Insurance Contracts Act 1984' Insurance Contracts Act Circular No. IC1/95, Sept 1995. http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ic1-95.pdf/$file/ic1-95.pdf (5 October 2002)

[627] See section 4.4.1.4. for further information on the email sent earlier

[628] ICA s.11

[629] Australian Law Reform Commission, Insurance Contracts, Report No 20 (1982), [228]

[630] Hancy, G, Recent case trends in insurance law, paper presented to the Law Society of Western Australia, Perth 1994, 27

[631] See section 4 for discussion

[632] See section 4.3.7. for further details.

[633] Ibid.

[634] Australian Insurance Law Association: Winning Formula - Mid-Term alterations in the risk - What can be done? (NSW : International Business Communications P/L, 1990) p.23

[635] Moltoni Corporation P/L v QBE Insurance Ltd [2001] HCA 73; Ferrcom P/L v Commercial Union Assurance Co of Aust Ltd (1993) 176 CLR 332; Australian Associated Motor Insurers Ltd v Ellis (1990) 54 SASR 61;and Antico v Fielding Australia P/L (1997) 146 ALR 385

[636] Moltoni Corporation P/L v QBE Insurance Ltd [2001] HCA 73 p. 4 of transcript per McHugh J

[637] Greentree v FAI General Insurance Co Ltd (1999) 10 ANZ Ins Cas 61-423, at 74,744

[638] See sections 4.3.3. and 4.3.5 for details on Antico and Australian Hospital Care respectively.

[639] Fabro, A & Clout, J, "Auditing gets the axe as premiums spiral", The Australian Financial Review [F2 Network] 12 Nov 2002

[640] This is a question which is, in any event, outside the scope of this paper.

[641] Andrews R, Cassell Dictionary of Contemporary Quotations, (Finland : Sterling Publishing Co. Inc., 1999), 391

[642] See section 4.4. for the benchmarks for reform

[643] See section 4.4.2 and 5.4.3 for further details