The economics of insurance law

1807, Godsall v. Boldero 3 App. Cas. 279 (H.L. 1877), at 340. Abraham, 1986 Schwartz, 1990, The Ethics and the Economics of Tort Liability Insurance, Cornell Law Review, 75, 313 Gravelle, 1991, Insurance Law and Adverse Selection, International Review of Law and Economics, 11, 23, 10.1016/0144-8188(91)90024-8 Posner, 1986, Economic Analysis of Law, 95 Keeton, 1988, 138 Harnett, 1948, Insurable Interest in Property: A Socio-Economic Reevaluation of a Legal Concept, Columbia Law Review, 48, 1162, 10.2307/1118527 1987, Constitution Insurance Co. of Canada v. Kosmopoulos Elton, 1806 Stat. 16 Car. II.c. 7. Stat. George III, c. 48. 3 B. & P. 195, 100 E.R. 808 (1790). 2 Cowp. 729, 98 E.R. 1331 (1778). Subsequent to the flurry of betting on his gender, d'Éon declared that he was a woman and lived as a woman until his death in 1810. At that time i Subsequent to the flurry of betting on his gender, d'Éon declared that he was a woman and lived as a woman until his death in 1810. At that time i 1743, Sadlers' Co. v Badcock, 734 Stat. 19 Geo. 2, c. 37. Stat. 19 Geo. 2, c. 37, at 207. Daston, 1987, 1, 237 Daston, 1987, The Domestication of Risk: Mathematical Probability and Insurance 1650–1830, 1, 237 Daston, 1987, 1, 239 1813, Campbell v. Richardson 1862, Beadles v. Bless 1782, Le Cras v. Hughes, 552 2 Bos. & P.N.R. 269, 127 E.R. 630 (H.L. 1805). 106 N.Y. 535, 13 N.E. 337 (1887). 1888, Farmers Mutual Insurance Co. v. New Holland Turnpike Co. 1987, Constitution Insurance Co. of Canada v. Kosmopoulos 155(2)(b). Keeton and Widess, op cit., p. 185. They also state that “A modest body of judicial precedent [in the United States] requires the consent of t Ramey v. Carolina Life Insurance Co. 135 S.E. 2d. 363 (S.C.S.Ct 1964). Liberty National Life Insurance Co. v. Weldon 100 So 2d. 696 (Ala. S.Ct. 1957). The Supreme Court of the United States stated: Obviously it is a very different thing from granting such a general license [to insure anyone], to allow the holder of a valid insurance upon his own life to transfer it to one whom he, the party most concerned, is not afraid to trust. [Girgsby v. Russell, 222 U.S. 149 (1911), at 155–156.] This argument is consistent with both the externality and moral hazard arguments. Shavell, 1982, On Liability and Insurance, Bell Journal of Economics, 13, 120, 10.2307/3003434 1909, Breeden v. Frankfort Marine Accident & Plate Glass Insurance Co. Schwartz, 1990, The Ethics and the Economics of Tort Liability Insurance, Cornell Law Review, 75, 313 34 O.R.2d 488 (1981). Hasson, 1984, Reform of the Law Relating to Insurable Interest in Property: Some Thoughts on Chadwick v. Gibraltar General Insurance, Canadian Business Law Journal, 8, 114 In a more recent case, a court upheld an insurance contract on jewelry that was subject to forfeiture for having been illegally brought into the country, unbeknownst to the owner. Hamzeh v. Safeco Insurance Co. of America 32 C.C.L.I. 83 (Alta. Q.B. 1988). The decision in Kosmopolous may have expanded the concept of insurable interest to encompass stolen goods. If the purchaser knows that the goods are stolen, the insurance would be invalid on the basis that one should not be able to benefit from criminal acts (see below). 1972, Scarola v. Insurance Co. of North America Swift, 1953, Insurable Interest Changes in Texas, Insurance Law Journal, 666 Swift, 1953, Insurable Interest Changes in Texas, Insurance Law Journal, 1183 Shavell, 1979, On Moral Hazard and Insurance, Quarterly Journal of Economics, 93, 541, 10.2307/1884469 Winter, 1992, Moral Hazard and Insurance Contracts, 61 Arnott, 1983 Abraham, 1986 15 C.B. 365, 139 E.R. 465 (1854). Glynn v. Scottish Union & Nat. Ins. Co. 40 D.L.R. (2d) 929 (Ont. C.A. 1963). Akerlof, 1970, The Market for ‘Lemons’: Qualitative Uncertainty and the Market Mechanism, Quarterly Journal of Economics, 84, 488, 10.2307/1879431 Glynn v. Scottish Union & Nat. Ins. Co. 40 D.L.R. (2d) 929 (Ont.C.A. 1963). 3 Burr. 1905, 97 E.R. 1162 (1766). 3 Burr. 1905, 97 E.R. 1162 , at 1909. Steven Shavell, 1991. Rea, 1984, Arm-Breaking, Consumer Credit and Personal Bankruptcy, Economic Inquiry, 22, 188, 10.1111/j.1465-7295.1984.tb00678.x Wilson, 1977, A Model of Insurance Markets with Incomplete Information, Journal of Economic Theory, 16, 167, 10.1016/0022-0531(77)90004-7 Gravelle, 1977, A Model of Insurance Markets with Incomplete Information, Journal of Economic Theory, 16, 167, 10.1016/0022-0531(77)90004-7 Rea, 1992, Insurance Classifications and Social Welfare, 377 Doherty, 1990, Rational Insurance Purchasing: Consideration of Contract Nonperformance, Quarterly Journal of Economics, 105, 243, 10.2307/2937829 Ontario, Insurance Act, R.S.O., 1980, Chapter 218, s. 265 (1). 64 D.L.R. (2d) 715 (S.C.C., 1967). 1830, Amicable Society v. Bolland Unless the contract otherwise provides, a violation of any criminal or other law in force in the Province or elsewhere shall not, ipso facto, render unenforceable a claim for indemnity under a contract of insurance except where the violation is committed by the insured, or by another person with the consent of the insured, with intent to bring about loss or damage.… [Acts of New Brunswick 1968, c. 6, s. 2.] 56 D.L.R. (3d) (S.C.C. 1975). 56 D.L.R. (3d) (S.C.C. 1975), at 562. Hasson, 1976, The Supreme Court of Canada and the Law of Insurance 1975, Osgoode Hall Law Journal, 14, 769, 10.60082/2817-5069.2158 Brown, 1982, 208 Canadian Indemnity Co. v. Walkern Machinery Ltd. 53 D.L.R. (3d) 1 (S.C.C. 1975). Canada, Criminal Code s. 202. Schwartz, 1990, The Ethics and the Economies of Tort Liability Insurance, Cornell Law Review, 75, 313 Diplock, 1964, 770 388 A. 2d 603 (N.J. 1978). When the form of insurance policies is mandated, as in the case of automobile insurance in Ontario, there is no way for insurers and insureds to avoid providing benefits to third parties. Ontario, Insurance Act, s. 226 (1), (4), (13). [1989] 1 S.C.R. 1445. 1981, Wiens v. Fireman's Fund Insurance Co. of Canada, 1 1924, P. Samuel and Co. Ltd. v. Dumas Scott, supra, at 1454. Rea, 1984, Arm-Breaking, Consumer Credit and Personal Bankruptcy, Economic Inquiry, 22, 188, 10.1111/j.1465-7295.1984.tb00678.x Caves, 1924 Keeton, 1924, P. Samuel and Co. Ltd. v. Dumas, 527 Posner, 1977, Impossibility and Related Doctrines in Contract Law: An Economic Analysis, Journal of Legal Studies, 6, 83, 10.1086/467564 This may be less likely in Canada after Kosmopolous, supra. For example, T. Eaton Co. v. Smith 92 D.L.R. (3d) 425 (S.C.C.,1978).