Insurance And Reinsurance Weekly Update - 5 August 2014

Lim (an infant) v Walia

Court of Appeal decides whether deceased had severable interest in life insurance policy benefit/insurers' duty to exercise discretion reasonably

http://www.bailii.org/ew/cases/EWCA/Civ/2014/1076.html

The claimant, whose mother had died, applied under the Inheritance Act 1975 for an order that the court re-distribute assets from her estate. The deceased had taken out a joint life insurance policy with her husband. The policy provided that the insurer would pay out on the first death of the couple and also that "on proof to the [insurer]'s satisfaction that the life insured is suffering from a terminal illness, we will bring forward the payment of the sum insured".