M05/2020 M05: Insurance law M05 coursework assignment questions Question 1 - Learning Outcome 2 (10 marks) Simon is a claims handler for TP Ltd, an insurer, and works in the first notification of loss (FNOL) department. Simon receives a phone call from one of TP Lid's policyholders, to make a claim for damage to their property. The policyholder asks Simon if building repair work on the property can proceed, pending the outcome of the claim. Simon states that "it can" as he is sure "it will be fine". A few weeks later, Simon checks the claim record to discover that the claim had been declined. However, the building repair work had already commenced. (a) Identify, with justification, the tort that Simon may have committed. (6) (b) Explain briefly, the main legal remedy available to the policyholder. (4) Question 2 - Learning Outcome 3 (10 marks) Bella is currently employed by KL Ltd, an insurance broker. KL Ltd operates a single office in New Town. Bella has a contract of employment with KL Lid, which states that 'On leaving the firm, employees are not permitted to work at any insurance broker within 25 miles of KL Ltd for a period of five years'. Bella intends to resign from KL Lid and establish her own insurance brokerage in New Town. Joe, a competitor to KL Lid, is to buy the insurance broking business from KL Ltd. (a) Explain, with justification, whether Bella is entitled to establish her own brokerage in New Town. Refer to one relevant case in support of your explanation. (6) (b) Explain, with justification, how Joe could prevent the directors of KL Ltd from establishing another insurance broking business in New Town. (4) Question 3 - Learning Outcome 4 (10 marks) GB Lid is an insurance broker. They engaged a specialist recruitment company to find an account manager, which led to the employment of Finley by GB Ltd. GB Lid recently discovered that both GB Lid and Finley are paying recruitment commission to the recruitment company, of which neither were aware. GB Lid had specified to the recruitment company that all potential candidates must have at least two years' account management experience. However, GB Ltd has since discovered, after employing Finley, that he does not have the required level of experience