Fire and Consequential Loss Insurance - IC 57 Exam Study Notes

The liability in such circumstances in which the insured peril is only one of several events all of which have simultaneously or successively produced the loss has to be determined in the light of the legal maxim of proximate cause.
The classic definition of proximate cause is: 'the active efficient cause that sets in motion a train of events, which brings about a result, without the intervention of any force started and working actively from a new and independent source.'
A warranty is an undertaking by the insured i. that some particular thing shall or shall not be done or ii. that some condition shall be fulfilled or iii. Whereby he affirms or negatives the existence of a particular state of facts.
Representations are statements made orally or in writing before or at the time of concluding the contract. A representation must be substantially true and should be made in utmost good faith.
Ex-gratia payments are claims which are paid as a matter of grace where the loss is outside the scope of the policy or the liability under the policy, in strict legal terms, is doubtful.

Important Points for IC 57 - Fire and Consequential Loss Insurance Exam