LEGAL ISSUES REGARDING INSURANCE AND SURETY BONDS:FOCUSING ON THE WILLFUL ACT OF THE PROPOSER AND THE SPECIAL CLAUSES
Date Issued
2008
Date
2008
Author(s)
Chen, Yuan-Wun
Abstract
Bonding insurance is relative new to the insurance market, and the Insurance Act had not formally adopted it until the 1992 revision. This thesis seeks to conduct a deep review of the current legislation and its practical issues, focusing primarily on fidelity bonds and surety bonds. In Chapter 2 of this thesis, by a comparative study of the US, UK, and Japanese legal system, it is concluded that Article 95-1, 95-2, and 95-3 of the Insurance Act is under inclusive and indistinct. The deficiency of the Articles is further discussed in the following chapters. In Chapter 3 “The Willful Act of The Proposer in Surety Bonds”, suggests the application of Article 29 (2) should be restricted in surety bonds. The insurer is not liable for the willful act of the proposer or insured under Article 29 (2) of the Insurance Act. However, in surety bonds, if the obligor being the proposer and obligee being the insured, the deliberate act of the obligor is still fortuitous to the obligee, therefore should not constitute an exception to insurance coverage. And in Chapter 4 “The Special Clauses of Fidelity Bonds ”, this thesis discusses the difference between construing an exception of risk or a breach of the special clauses, when the insured employer failed to exercise supervision over the bonded employee. It is suggested to distinguish the risk control of the surety from the indemnification of damage. Chapter 5 summarizes the inadequacies of the current legislation, and suggests a new proposal for future revision of the Insurance Act.
Subjects
BONDING INSURANCE
PROPOSER’S WILLFUL ACT
THE FORTUITY OF RISKS
SPECIAL CLAUSES
WARRANTY
EXCEPTIONS
Type
thesis
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