Insurance | Judiciary.org

You first! Pay‑to-be-paid clauses upheld in marine liability insurance policies in UK: South African lessons

In November 2025 the UK Court of Appeal confirmed that a “pay-first” clause in a marine liability policy is valid when it accordingly prevents direct recovery by a third party from the insurer when the insured is unable to discharge its underlying liability.

Because the insured was insolvent, the court refused a direct claim by a third party under the UK Third Parties (Rights Against Insurers) Act 2010. The ruling matters for South African charterers, brokers and claimants because many local … Read the rest

Civil Law

Article 25 of the Judicial Interpretation III of the Insurance Law in Judicial Practice

Focusing on Accidental Injury Insurance

I. Introduction of the Issue to Be Discussed

Article 25 of the Judicial Interpretation III of the Insurance Law stipulates that “Where it is difficult to determine whether the insured’s losses are caused by a covered event, a non-covered event or a disclaimer, if the parties concerned request that the insurer makes insurance payout, the People’s Court may support in accordance with the corresponding ratio.” Through searching by the author, this judicial interpretation is frequently … Read the rest

Civil Law

The Impact of the New Company Law on Insurance Corporate Governance

The newly revised Company Law (“New Company Law”) was adopted at the 7th Session of the Standing Committee of the 14th National People’s Congress on December 29, 2023, and has come into effect on July 1, 2024. This article provides a concise analysis of the implications of the New Company Law for corporate governance in insurance companies, offering insights for readers’ reference.

I. Further Emphasizing Corporate Social Responsibility

The concept of corporate governance has long been debated in narrow and … Read the rest

Civil Law

Are Restaurants, Bars and Other Businesses Entitled to Insurance Coverage for Covid/Pandemic Shutdowns?

Like many lawyers with expertise in insurance coverage, I was immediately contacted after the pandemic hit by business owners – often restaurant and bar owners – about seeking business interruption coverage under their insurance policies. My usual conclusion was that you could at least submit a claim and see what happens, but that, unless you had particularly deep pockets and/or large losses, I didn’t suggest bringing suit. My advice was based on two points: first, that recovering insurance benefits under … Read the rest

Supreme Court

Justices seem to favor IRS in dispute over shareholder’s life insurance policy

The justices were considerably more subdued in the argument in Connelly v. Internal Revenue Service than they were on Tuesday, when they confronted the FDA’s treatment of the abortion drug mifepristone. This is a case about the tax treatment of life insurance policies that closely held corporations use to manage the death of a shareholder. Assume, as is common, a small corporation owned by members of the same family. When one dies, if the surviving shareholders want to keep … Read the rest

Supreme Court

Justices appear sympathetic to insurance company in asbestos bankruptcy

Tuesday’s argument in Truck Insurance Exchange v. Kaiser Gypsum Co. considered a technical question under the Bankruptcy Code, how to decide when an entity is a “party in interest” under the statute, which gives it a right to “be heard on any issue” in a Chapter 11 proceeding. The debtor, a failed asbestos company, claims that it will perform its insurance contracts in full: It will pay all the deductibles it owes, 100 cents on the dollar. Accordingly, it … Read the rest

Supreme Court

Justices to consider choice-of-law clauses in maritime insurance contracts

Tuesday’s argument in Great Lakes Insurance v. Raiders Retreat Realty offers a breather between the divisive disputes about the CFPB and voting rights topping the headlines at the advent of the October Term 2023. Perhaps some of the justices will even enjoy a return to their law-school days, as they consider whether state or federal law should govern the enforceability of maritime choice-of-law clauses.

For the readers who decided to continue past my opening paragraph, Great Lakes Insurance falls … Read the rest

Civil Law

Distinguish the Insurance Agent and the Insurance Broker under PRC Law

In dealing with PRC related insurance disputes, one question is often raised by Chinese court or arbitration institute: what is the insurance agent or the insurance broker? The relationship between the insurance agent, broker, insurer, policyholder, insured and beneficiary always confused the judge and arbitrator. This article will elaborate the concept, function, difference of these two parties in the framework of PRC insurance law.

Definition and Characteristics of the Insurance Agent and the Insurance Broker under the PRC Law

i.… Read the rest