All Class Insurance Brokers Pty Ltd (in liquidation) v Chubb Insurance Australia Limited (No 2)

[2021] FCA 782

Federal Court of Australia

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For Australian Law.

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Interrogate

Catchwords

1. Insurance
2. › Duty of disclosure
3. › Non-disclosure
4. › Fraudulent non-disclosure
5. › Knowledge of sole director attributed to corporate insured
1. Insurance
2. › Duty of disclosure
3. › Section 21 Insurance Contracts Act 1984 (Cth)
4. › Whether insured a party to the contract or third party beneficiary under s 48
1. Insurance
2. › Duty of disclosure
3. › Waiver
4. › Whether insurer waived duty under s 21A or s 22 of Insurance Contracts Act 1984 (Cth)
1. Insurance
2. › Construction of policy
3. › Crime coverage
4. › Meaning of 'Employee'
5. › Whether sole director an 'Employee' under insuring clause

Quick Take

Where a sole director's fraudulent misappropriation of trust funds is undertaken in material part for the benefit of the company, the director's knowledge of that fraud is attributable to the company for the purposes of the duty of disclosure under s 21 of the Insurance Contracts Act 1984 (Cth), and the fraud exception to attribution does not apply.