Member Login  |   Join Us  |  Resources  |  FAQs  |  News  |  Events  |  Contact Us  


  Search for a Solicitor Advocate

 contact@solicitoradvocates.org

Follow us   

 

General

Extension to consultation on insurable interest 23/08/2018 The Scottish Law Commission has announced an extension to the deadline for comments on the Insurable Interest Bill.

Extension to consultation on insurable interest

The Scottish Law Commission has announced an extension to the deadline for comments on the Insurable Interest Bill. The new deadline is now set for 31st October 2018.

The Law Commission and the Scottish Law Commission launched the consultation in June, seeking comments on draft legislation intended to pull the law of insurable interest into the 21st century.

Insurable interest is the requirement that someone taking out insurance must be at risk of suffering a loss or disadvantage if the insured event occurs. Without insurable interest, an insurance contract is void.

But the current law, some of which dates from 1774, is antiquated and overly restrictive. It prevents insurers from selling economically and socially useful insurance products that people want to buy - including life insurance for loved ones.

The draft Bill suggests broadening the concept of insurable interest for life-related insurance in the following ways:

  • Providing that individuals have an automatic insurable interest in cohabitants, not just spouses or civil partners.
  • Extending insurable interest to cover children and grandchildren, so that they could lawfully be covered under travel or health policies.
  • Confirming in law that pension trustees and other administrators of group schemes have an insurable interest in the lives of members of the group. This would ensure that employers’ life and health policies have the full support of the law.
  • Allowing for trustees of private trusts to purchase life insurance bonds if the settlor or truster of the trust would have had the necessary insurable interest to do so.

“We have had several requests for extensions to the deadline for comments on the Insurable Interest Bill, particularly because the consultation took place over the summer,” said the SLC. “In order to give people and organisations more time to respond, we are therefore extending the deadline to Wednesday 31st October.”

More details can be found here.

 

Find a Solicitor Advocate
Looking for a solicitor advocate to
represent you or your client?
Learn more
 
 

Sitemap  |  Privacy and legal  |  Accessibility  |  Cookies Policy  |  Terms and Conditions  |  Scam Alert

© Copyright 2012 The Society of Solicitor Advocates

Website by Red Towers (Scotland) Limited