Defences

Abstract

This chapter considers three types of defences available to an insurer to resist claims under the policy: defences external to the policy, defences intrinsic to the policy and defences arising from the presentation of claims. The role of the Financial Services Authority (FSA) is to monitor the solvency of United Kingdom (UK) insurance companies as well as the type of business being written and to authorise insurance companies in relation to particular classes of business. Furthermore, the FSA has powers of intervention as well as power to withdraw authorisation from an insurance company generally, thereby preventing it from carrying out any further business. To obtain authorisation to carry on insurance business in the UK, the insurer will be required to provide the necessary information set out in regulations made under the Financial Services and Markets Act and also to satisfy the criteria of sound and prudent management.