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Insurance Issues - The Choice Of Law Clause - Part II
The common law position has, however, been altered in recent years as a result of the coming into force in the UK of the 1980 Rome Convention on the Law Applicable to Contractual Obligations ("Rome Convention") on one hand and various EU Directives relating to insurance on the other. As the protection of the consumer plays a more important role than party autonomy in a number of European countries, these measures appear to be designed to make the upholding of choice of law clauses far less certain. It is therefore important that insurers which issue ARPI policies covering property located outside the UK understand that there are limitations to such clauses. As the new measures are extremely complex, the article will merely describe their general features.
In order to determine whether the Rome Convention or the EU Directives apply to a choice of law clause in an ARPI policy, several factors need to be taken into consideration:
- location of insured property (the choice of law rules relating to property located within EC territory are found in certain EU Directives whereas the rules applicable to property located outside EC territory are contained in the Rome Convention); and
timing (the Rome Convention applies in the United Kingdom to contracts made after 1 April 1991 whereas the Second Non-Life Directive containing the EU choice of law rules became effective in the UK on 1 July 1990 (SI 1990 No 1811 reg.6)—prior to these dates, the common law rules would have applied).
(a) Rome Convention
The Rome Convention has been entered into by the members of the EC. Although the ratification process in respect of the most recent EU members, Spain and Portugal, was not complete as at 1 November 1994, the treaty is in force between the UK and these new EU members. The Convention governs all choice of law disputes heard in the courts of member states whether or not the parties reside in or have selected the law of one of the member states.
About the Author
Willis J. Watson is a freelance writer since 2006, living in United States and he writes about he enjoys the most...insurance policies. If you want to read more informations about Landlord Insurance Quote and also read more reviews about Commercial Insurance Quotes, you can check out his websites.
What caused the sudden failure of Tibetan religious monarchy some 50 years ago ?
Why did China suddenly encroached upon the sovereign nation of Tibet that had quietly existed for so long ? Why did the rest of the world kept quiet on such an important issue of invasion or agression on somebody else's right to exist as a free and peaceful nation ? Is "might is right" the only answer ? Inspite of its inceasing population, China has no lack of resources and land. Only a mis-management of resources and population controls may have existed for a long time behind the iron curtain under the disguise of dictatotrial regimes, who took away even people's basic right to worship according to their own choice. Could Rome and Kabba also feel threatened the same way sometime in the future ?
China?
THE FALL OF ROME (AMERICA)is coming Your CHOICE 2011 2012 PART 2