Brokers not responsible for BI test case insurance policies under contract law, argues FCA
The business interruption test case policies under scrutiny in the Financial Conduct Authority’s test case are presented ‘in the manner which most benefits insurers’ and therefore brokers should not take the blame for any contractual breaches, the regulator has argued.
The FCA’s BI test case names eight insurers as defendants: Arch, Argenta, Ecclesiastical, Hiscox, MS Amlin, RSA, QBE and Zurich. However, at least 16 are expected to be affected by the outcome.
Meanwhile the FCA is arguing on behalf of policyholders, alongside policyholder groups the Hiscox Action Group and the Hospitality Insurance Group Action.
Responsibility
In its original defence, which it has since amended, RSA had sought to pin contractual responsibility on the policyholder as the
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