Last Class Summary

1
Last Class Summary

• Insurable Interest
• Look to statute to define insurable interests
• You can make anyone you want your beneficiary
• Must have insurable interest if you take out a
  life insurance policy on someone
• Partners
• Blood
• Majority rule includes siblings (Noah)
• Dependents

2
Last Class Continued

• Actual Cash Value
• Three tests
• market value
• replacement cost less depreciation
• the "broad evidence" rule. 
• Application in Elberton Bathing
• Ambassador Insurance

3
Regulation of Insurance

• Note 1 state or federal regulation
• Note 2 gender discrimination
• Note 3 racial discrimination
• Redlining
• Note 4 and Note 5 Other discrimination
• Sexual orientation
• Genetic

4
Vlastos

• Warranty or misrepresentation?
• Why does it matter? Materiality
• Why do we care if it is a janitor?

5
Why Do We Need this Guy?
6
Vlastos

• Warranty or misrepresentation?
• Why does it matter? Materiality
• Why do we care if it is a janitor?
• Owner occupied (Note 3)
• When in doubt, warranty or misrepresentation?
• Promissory v. affirmative warranties
• How do we define ambiguity?
• How does the court actually rule?

7
Berger

• Did he remember he had diabetes?
• Where do we go to find out what a
  misrepresentation or breach of warranty means?
• First step is always look for a statute
• What did your find?
• Misrepresentation
• Material to hazard
• Material to insurance agreement
• Diabetes did not contribute

8
Berger Continued

• Plaintiffs Argument
• Ignore statute
• Always a loser
• Materiality must be cause of death
• Court says materiality is measured at time of
  agreement
• Court says what would a prudent insurer do.
  Three possible tests
• Objective
• Subjective
• Hybrid

9
Mutual Benefit

• What is a key man?
• Underscoring material

10
Waxse and Notes

• HIV/AIDS
• Blood disorder
• Are you healthy?
• Moral of the story dont ask for opinions
• Note 2 legal fraud
• Inducements
• Duty to volunteer (note 6) and supply additional
  information (continuing duty)
• Misrepresentation of age

11
Huge Insurance Law News

• There will be
• NO CLASS NEXT WEEK!