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Supreme Court reinstates Insurer’s reliance on trading debt exclusion

October 2016

The Supreme Court has overturned the Court of Appeal and allowed Insurers to exclude cover under the Solicitors Minimum Terms through applying the trading debts exclusion in Impact Funding Solutions Limited v AIG Europe Insurance.

As well as being of significant interest to Insurers of Solicitors, this case is also of wider interest to all Insurers on the construction and interpretation of insurance policy wordings. The Supreme Court explained that “an exclusion clause must be read in the context of the contract of insurance as a whole….the general doctrine…that exemption clauses should be construed narrowly, has no application to the relevant exclusion in this Policy…The extent of the cover in the Policy is therefore ascertained by construction of all its relevant terms without recourse to a doctrine relating to exemption clauses”.

Read the full article here.

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