Introduction to Cyprus Insurance Law and Practice

Περιγραφή

This course aims to train lawyers and claims handlers in the application of insurance law, and the practice of dealing with insurance contracts in their everyday work.

‍Why this seminar is important for you?

The insurance industry is the second largest industry in Cyprus, behind banking, and our seminar titled ‘Introduction to Insurance Law ’ will provide you with the opportunity to explore insurance law, regulation and practice.

Insurance law is a dynamic and exciting aspect of commercial law that all law practitioners would benefit from developing an understanding of to underpin their wider legal studies. Following interviews and requests from a number of employers, insurance law practice training is now a required tool for all claims handlers (including lawyers). This course offers an excellent introduction whether you wish to specialise in insurance law or merely to widen your understanding of a key component of commercial law.

Insurance Law is deeply ingrained in our modern society. Individuals and businesses take a number of risks every day. Travelling from one place to another, driving, working as a professional eg as a solicitor or barrister or medical doctor or a plumber, on a bigger scale operating financial institutions, and importing – exporting goods all involve risks.

Individuals and businesses take into account the risks involved and take out insurance against such risks. When we go on a holiday we take out travel insurance, if we take out a mortgage the bank requires us to take out a life insurance policy, when you purchase a coffee from a chain coffee shop you must know that inevitably they are insured against their liabilities eg for accidentally spilling the coffee and injuring their customers, importers of goods insure their cargoes carried from overseas countries, airline, train line, and bus companies purchase insurance insuring their liability to passengers, shipowners purchase hull insurance against loss of or damage to their expensive ships and insurance against their liabilities to their employees as well as the companies that they trade with.

Businesses may insure against their loss of profit (business interruption) as a pure economic loss. Whether you do public or private law you must know that there is insurance behind several risks that one may encounter in a day.

Employers recognize the importance of insurance law practice since the issue of insurance can touch upon a number of claims that the law firm/insurance broker or claims handling department deals with or defends on a daily basis.

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Attending a course on an introduction to insurance practice can be highly beneficial for lawyers, insurance brokers, and claims handlers for the following reasons:

1. Comprehensive Understanding: The course provides a holistic overview of insurance practices, covering key concepts, principles, and regulations in the insurance industry. Participants will gain a thorough understanding of insurance policies, claims processes, legal frameworks, and industry practices.

2. Legal Knowledge Enhancement: For lawyers, attending the course will enhance their understanding of insurance law and regulations. It will provide insights into insurance contracts, coverage analysis, policy interpretation, and legal issues related to insurance claims. This knowledge will enable lawyers to effectively represent clients in insurance-related matters and provide informed legal advice.

3. Industry Insight: Insurance brokers and claims handlers will benefit from attending the course as it will offer a comprehensive understanding of the insurance market, different types of insurance policies, risk assessment, and underwriting processes. This knowledge will enable brokers to effectively guide clients in selecting appropriate insurance coverage, while claims handlers will gain insights into the claims evaluation and settlement procedures.

4. Compliance and Regulatory Awareness: Insurance is a heavily regulated industry, and staying updated with the evolving legal and regulatory landscape is crucial. The course will cover relevant insurance regulations, compliance requirements, and industry standards, ensuring that participants can operate within legal boundaries and fulfill their professional responsibilities.

5. Professional Development: Attending the course will contribute to professional development by expanding participants’ knowledge base and skill set. It will provide them with the necessary tools and expertise to navigate insurance practices, negotiate insurance policies, handle claims efficiently, and effectively communicate with clients and insurance providers.

6. Risk Management: Understanding insurance practices is essential for risk management professionals, as it enables them to identify potential risks, evaluate insurance options, and make informed decisions to protect businesses and individuals. The course will enhance participants’ ability to assess risk exposures, analyze insurance policies, and develop risk management strategies.

‍7. Client Representation: Lawyers, insurance brokers, and claims handlers represent clients in insurance-related matters. By attending the course, participants will gain insights into client representation techniques, effective communication strategies, and negotiation skills. This will enable them to better advocate for their clients’ interests and achieve favorable outcomes in insurance transactions and claims settlements.

Ενότητες

UNIT 1: Introduction

Introduction to the general principles of insurance law.
How is the Formation of an insurance contract done
Privity and third-party rights in insurance contracts – what you should know and look out for in the contract.
Insurable interest
Insurance intermediaries
Regulation of Insurance in Cyprus law.
Questions and answers
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UNIT 2: The components of the Cyprus Insurance market

The function of the regulator in ensuring that firms are compliant with the regulatory framework
How does the regulator carry out its functions (on-site, off-site etc.).
The functions, scope and main operations conducted by the insurance company
The functions, scope and main operations conducted by intermediaries such as brokers and agents, and sellers.
Scenarios to consider
Questions and answers.
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UNIT 3: General principles and the formation of an insurance contract

Types of insurance contracts
The basic principles of insurance
Insurable interest
Utmost good faith
Proximate cause
Indemnity
Subrogation
Contribution
The procedure that the insurance companies take in forming the contracts
Principles of construction of insurance contracts
The essential elements of an insurance contract
Formation of a contract – (offer, acceptance, consideration)
Formality and legality of an insurance contract from the perspective of insurance law
Questions and answers –
Scenario working and
Discussion
UNIT 4: The different types of policy terms

Basis of the contract clauses. Turning proposals into warranties in the contract
Warranties (in Cyprus can a policyholder take steps to remedy the breach so that the insurer is no longer able to discharge their liability?)
The legal consequence of the breach of a warranty in an insurance contract
Conditions precedent
The legal consequence of breach of a condition precedent in an insurance contract
Can insurance companies contract out of certain provisions of the law?
The principle of utmost good faith
Elements of the duty of utmost good faith
Non – disclosure
Facts material to insurance contracts
Misrepresentation
Is there a post-contractual duty of good faith?
Agents and proposal forms
Remedies for breach of duty
The insurer’s duty of utmost good faith
The process of underwriting
Questions and answers
Scenario working
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UNIT 5: How insurance companies mitigate their risk – what you should be aware of

How do insurance companies mitigate their risk
Navigating the obligations that have been imposed on the insured in a claim
Separating the contractual obligations that may be classified as either warranties or conditions
Implementing the right strategy depending on if the mitigation is in a form of a warranty or a condition
Strategies for evaluating the insurance contract in light of the common law rules and the law
Questions and answers
Scenario working and discussion
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UNIT 6: Insurance claims

Privity of contract and the right of a beneficiary under the insurance contract
Measure of indemnity
Notice and proof of claim
Salvage and abandonment
Subrogation and contribution
Scenario working and discussion
Questions and answers