Observation

Candidates who attempted the question did not do justice to it, few of the candidates that attempted the question were just listing type of breach.

Some of the responses expected from the candidates were:

(a)        Remedies for the breach of utmost good faith:
(i)         The insurer may avoid contact by either repudiating the contract from inception or avoiding liability in the event of a loss.

(ii)        To sue the insured for damages in addition to (i) above if concealment or fraudulent misrepresentation is involved.

(iii)       To waive his right to (i) and (ii) above and allow the contract to continue.
However, the aggrieved party must exercise any of the above within a reasonable time of discovery of the breach, otherwise it will be assumed that he has decided to waive his rights.                                                                                                                                                                                                                                                                       
(b)   Situations that would give rise to insurable interest are:
(i)         Sole owner: where a person owns a property like shop, motor vehicle, house etc, he has insurable interest on them and insure.

(ii)        Bailees: A person in possession of property of others either for payment or gratuitously may insure such property e.g jewelers, dry cleaners, watch repairers etc.

(iii)       Innkeepers: hotels, guest houses etc fall under this category and can insure property entrusted to them by the lodgers