Feasey v Sun Life Assurance Company of Canada & Ors [2003] EWCA Civ 885 (26 June 2003)

Feasey v Sun Life Assurance Company of Canada & Ors [2003] EWCA Civ 885 (26 June 2003)

Steamship Mutual had an insurable interest under the Master Lineslip policy as the policy was intended to cover its exposure to liabilities to members, and the benefit levels were set to track those liabilities; the policy was not a wagering contract and was not void under section 1 of the Life Assurance Act 1774; the construction of the policy wording and the factual matrix supported the existence of insurable interest; Centaur lacked authority to bind Phoenix to the reinsurance extension after 1 October 1998.

Citation
[2003] EWCA Civ 885
Parties
Claimant/appellant: Anthony Feasey; Defendant/respondent: Sun Life Assurance Company of Canada; Defendant/respondent: Phoenix Home Life Mutual Insurance Company; Interested Party: Steamship Mutual Underwriting Association (Bermuda) Limited
Jurisdiction
England and Wales
Judgment Date
26 June 2003
Procedural Posture
Appeal (civil) / Court of Appeal Judgment Following Appeal From High Court (commercial Court)
Outcome
Appeal dismissed in respect of insurable interest; authority point determined in favour of Sun Life (Centaur lacked authority to bind Phoenix).
Legal Topics
Insurable Interest, Life Assurance Act 1774, Reinsurance, Authority of Agent, Policy Construction
Insurance Law Contract Law Insurable Interest Life Assurance Act 1774 Reinsurance Authority of Agent Policy Construction

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Parties

Anthony Feasey

Claimant/appellant

Sun Life Assurance Company of Canada

Defendant/respondent

Phoenix Home Life Mutual Insurance Company

Defendant/respondent

Steamship Mutual Underwriting Association (Bermuda) Limited

Interested Party

Procedural Posture

Appeal (civil) / Court of Appeal Judgment Following Appeal From High Court (commercial Court)

Legal Issues

  1. 1 Whether Steamship Mutual had an insurable interest under the Master Lineslip policy within the meaning of the Life Assurance Act 1774
  2. 2 Whether the policy was void for lack of insurable interest or as a wagering contract
  3. 3 Whether Centaur had authority to bind Phoenix to the reinsurance extension

Ratio Decidendi

Steamship Mutual had an insurable interest under the Master Lineslip policy as the policy was intended to cover its exposure to liabilities to members, and the benefit levels were set to track those liabilities; the policy was not a wagering contract and was not void under section 1 of the Life Assurance Act 1774; the construction of the policy wording and the factual matrix supported the existence of insurable interest; Centaur lacked authority to bind Phoenix to the reinsurance extension after 1 October 1998.

Court Disposition

Appeal dismissed in respect of insurable interest; authority point determined in favour of Sun Life (Centaur lacked authority to bind Phoenix).

Orders

  • Declaration that Steamship Mutual had an insurable interest under the Master Lineslip policy.
  • Declaration that Centaur lacked authority to bind Phoenix to the reinsurance extension after 1 October 1998.