"I fully realize, as a good citizen, that private property is sacred and no man
should be robbed except by the proper business methods."1

Property Law Table of Contents

In this chapter

Generally

(a)	Definition
(b)	Insurable Interest
(c)	Duty of Disclosure

Indemnity

(a)	Generally
(b)	Double Insurance
(c)	Averaging

Subrogation
Procedure of Effecting Insurance
Types of Insurance

(a)	Marine Insurance
(b)	Life Assurance
(c)	Accident Insurance

Conveyancing and Insurance

(a)	Generally
(b)	Insurance by Purchaser
(c)	Passing of Title to and Insurance of Personal Property



1.	Generally.

(a)	Definition.

The basis of insurance is that one person, the insurer (or underwriter), 
contracts with another, the insured, that on the occurrence of some event 
which is uncertain the insurer will pay money to the insured. In consideration of 
this promise the insured promises to pay to the insurer a sum of money called a 
premium. Insurance is a form of contract and the principles of contract law 
apply.

(b)	Insurable Interest.

For an insurance policy to be valid the insured must have some pecuniary 
interest in the subject matter of the insurance. The insured must stand to benefit 
from the existence of the thing insured or a detriment from the loss of it to be 
said to have an insurable interest. For example, the owner of a house has an 
insurable interest in his property.

The concept of insurable interest distinguishes wagering and insurance 
contracts. At one stage a practice developed of effecting policies on the lives of 
public figures and criminal. Thus it was possible to take out a policy on those 
condemned to death.

In Macuara v. Northern Assurance Co. Ltd2  an assignment of timber was made 
by Macuara to a limited company which he formed and controlled. The timber 
however was insured in his own name. Subsequently, a fire destroyed the 
timber and Macuara himself tried to recover the loss from the insurance 
company. The Court held that he had no insurable interest as the timber was 
owned by the company. Macuara had no legal or equitable relation to the timber. 
The company would have succeeded had it had its own policy.

Section 86 of the Life Insurance Act, 1945 (Cwth) sets out the persons deemed 
to have an insurable interest in another life. Section 19 of the Insurance 
Contracts Act, 1984 (Cwth) adds to the definition in the earlier Act. The word 
"assurance" is used where an event must happen e.g. in life assurance the 
attainment of the age of 60 or earlier death. Whereas insurance denotes 
something which may not happen e.g. fire insurance.

For contracts of indemnity insurance the insured must have the insurable interest 
at the time of the loss. With regards to life policies the interest needs to exist 
when the contract is made3  .

If the insured has no insurable interest a claim made under the policy cannot be 
enforced. Life policies are void4   and generally speaking the premiums paid are 
not recoverable5  .

(c)	Duty of Disclosure.

There is no obligation on parties to a contract to volunteer information to the 
other party. For example, if A wishes to sell his car to B, A does not have to 
"volunteer" information to B about the car's condition or about defects which 
only he knows about. He must not misrepresent the condition of the car but if B 
doesn't ask and has not been led to believe that the car is in good condition then 
B has no recourse under common law against A. The situation is different with 
regards to insurance.

A fundamental principle in insurance is that of uberrimae fidei (utmost good 
faith). Both the insured and insurer must make full disclosure to each other of all 
matters material to the risk. If good faith is not shown the contract is voidable by 
the aggreived party and unenforceable by the offending party. There is a heavy 
onus on the insured because it is often only on the information supplied by him 
that the insurer can assess risk. The duty is to disclose everything material. A 
fact is material if knowledge of it would have influenced a reasonably prudent 
insurer in determining whether to accept the risk and, if so, at what premium 
and on what conditions.

In Marene Knitting Mills Pty. Ltd. v. Greater Pacific General Insurance Pty. 
Ltd.6   the plaintiff obtained a cover note from the defendant. The plaintiff had 
taken over the business of other companies operating in Melbourne. These other 
businesses had fires, all of which occurred in Melbourne and none of which 
were disclosed to the defendant. The plaintiff, on obtaining the cover note, 
decided to move to Sydney and take all its operations with it. This was disclosed 
to the defendant. A fire occurred in Sydney and the defendant argued a breach of 
disclosure and the principle of utmost good faith in reference to the non 
disclosure of previous fires. The Privy Council held that the plaintiff was still 
carrying on the same form of business as had been carried on and that there was 
a non disclosure of material facts in that the previous fires which were known to 
the plaintiff.

By virtue of section 21(1) of the Insurance Contracts Act, 1984 an insured has a 
duty to disclose to the insurer, before the contract is made, every matter that is 
known to the insured, being a matter that the insurer knows to be a matter 
relevant to the insurer or a reasonable person in the circumstances would be 
expected to know to be relevant. This substantially modifies the common law 
rule where an insured had to disclose all he actually knew to be material and all 
that he ought to have known to be material. The test provided by the Act allows 
regard to be had to such things as the insured's education.

There may occur misrepresentations of fact which induce the making of the 
insurance contract and breaches of warranties (undertakings) contained in the 
contract. It is common that the insurance policy is issued on the basis of the 
completed proposal form. The policy may also provide that compliance with all 
warranties is a condition to the insurers liability to pay.

In many insurance contracts an insured's answers to the questions asked are the 
"basis of the contract" between the parties. This means that any question asked 
in the proposal will be material whether such a question satisfies the 
"materiality" definition or not. In Dawsons Ltd. v. Bonnin7   a proposal form 
asked a question as to the usual address of where a motor lorry was garaged. 
This was answered incorrectly and the form contained a basis clause. A fire 
destroyed the vehicle and the plaintiff claimed on the policy. The Court said that 
had it not been for the basis clause the answer to the question would not have 
been material. However, the basis clause made it material and allowed the 
insurer to avoid the contract.

The Insurance Contracts Act, 1984 provides that the insurer, before the contract 
is entered into, must clearly inform the insured in writing of the general nature 
and effect of the duty of disclosure. Insurers who do not comply with this 
cannot exercise their right in respect of a failure to comply with the duty of 
disclosure unless that failure was fraudulent.

Breach of the duty of disclosure renders the contract voidable at the option of the 
insurer. The insurer can exercise his option by either rescinding the contract or 
by allowing it to continue in force. Once exercised, the option cannot be 
reversed. However legislation has to some extent modified this duty of 
disclosure.

Where a person makes an untrue statement, but the statement was made on the 
basis of a belief that he held and the belief is one which a reasonable person 
would have held, such a statement is not misrepresentation8  . Furthermore, a 
statement does not amount to a misrepresentation unless the person who made 
the statement or a reasonable person in the circumstances could be expected to 
have known that the statement would have been relevant to the decision of the 
insurer to accept the risk, and if so, on what terms9  .

A person shall not be taken to have made a misrepresentation by reason only that 
he failed to answer a question included in a proposal form or gave an obviously 
incomplete or irrelevant answer to such question10  . Where there is a breach of 
the duty of disclosure or a misrepresentation is made in a general insurance 
policy and the insurer would not otherwise have entered into the contract for the 
same premium and on the same terms and conditions, then if the breach or 
misrepresentation is fraudulent the insurer may avoid the contract11  . If the 
breach or misrepresentation is innocent, the insurer can reduce his liability by 
the amount of a higher premium only.

Similar rules apply to breaches of the duty of disclosure or misrepresentation in 
life policies, but where the breach or misrepresentation is in respect of the date 
of birth of the life insured, the policy is valid except that the insurer may vary 
the amount insured, in accordance with a stated formula12  . An insurer must 
exercise his right to avoid a life policy because of non-disclosure or 
misrepresentation within three years after the contract was entered into. If not, 
there is no remedy13  .

Where the court is of the opinion that the insurer has not been prejudiced by the 
non-disclosure or misrepresentation, or where it believes such prejudice is 
minimal, it may disregard the insurer's evidence14  . 

The duty of disclosure arises at renewal time for non-life policies and premiums 
paid by an insured before the insurer discovers the breach are generally not 
recoverable. Certain matters need not be disclosed,e.g. facts which lessen the 
risk, facts which are common knowledge, facts which the insurer knows or 
should know, facts which the insurer can work out from the given answer and 
facts waived by the insurer.

The Insurance Contracts Act, 1902 (NSW) also contains provisions dealing 
with the enforceability of certain contracts of insurance. Section 18A provides 
that a contract of insurance is not rendered unenforceable: by reason of a false or 
misleading statement made by the insured unless the statement was material to 
the insurer and either the statement was fraudulent or the insured knew or ought 
to have known that the statement was material to the insurer; or by reason  of a 
non-disclosure unless the matter not disclosed was material and the omission 
was deliberate or the insured knew ought to have known that it was not 
disclosed. Section 18A however does not apply to life policies, marine 
insurance, motor vehicle third party insurance or worker's compensation.

2.	Indemnity.

(a)	Generally.

There is a principle of insurance that the insured on the occurrence of a loss is 
not to be placed in a position better than that which he had occupied had the loss 
not taken place. The insured is not entitled to make a profit. For example, if X 
has a tyre stolen from his car which is insured against fire, accident or theft, he 
is not entitled to a new tyre or the market value thereof, X is only entitled to be 
compensated for his actual loss.

If a car is insured for $ 6,000.00 and is destroyed (written off), as long as there 
is no agreed value policy, the insurer undertakes to pay only the value of the car 
at the time of the accident less any scrap value of the car. Replacement value 
policies are exceptions to the principle of indemnity and the parties agree 
beforehand on what the insured's loss will be and this can be recovered even 
though it is greater than the actual loss suffered.

Indemnity applies to all contracts of insurance except life, personal accident and 
sickness policies as these types of insurance provide for the payment of a fixed 
amount upon the happening of a specified event.

(b)	Double Insurance.

An insured may take out more than one policy of insurance, over-insuring his 
property. This is known as double insurance and is not advantageous as the 
insured is entitled to recover only from one insurer. The insured may elect from 
which insurer he will recover and the insurer is entitled to an 
adjustment/contribution from the other insurers. Policies often provide that the 
insured shall notify the insurer if any subsequent insurance is taken out and in 
breach of this provision all the insured's rights are forfeited.

(c)	Averaging.

In some cases where a person has underinsured his property he may receive less 
than an indemnity. This will occur where a policy has an averaging clause. For 
example, a factory worth $ 100,000.00 is insured for $ 50,000.00 against loss 
from fire. A fire occurs and causes damage worth $ 20,000.00. In this case, as 
the insured has only 50 % coverage, then he will only be able to recover 50 % 
of the loss, i.e., $ 10,000.00.

Where the policy relates to residential property and/or contents the calculation is 
cushioned to the extent of 20 %15  . If instead of being a factory the property in 
the above example was a residential property the calculation would be as 
follows:-

Amount Payable = Damage x Sum Insured / 80 % of true value at 
time of contract

		=	$ 20,000.00 x $ 50,000.00 / 80 % x $ 100,000.00

		=	$ 12,500.00

Where a residential property and/or contents is insured for 80 % or more of its 
true value an average clause has not effect. An insurer cannot rely on an average 
clause unless pre-contract disclosure in writing has been made, regarding the 
clause and its effect.

3.	Subrogation.

The doctrine of subrogation applies to indemnity insurance and states that the 
insurer on payment of a claim has the right to exercise all the rights previously 
vested in the insured in respect of the loss. For example, if A's car is damaged 
as a result of B's negligence and A claims indemnity from his insurer XYZ. 
After meeting the claim XYZ may sue B for the recovery of damages. It is 
sometimes said that XYZ "stands in the shoes" of A.

The right of subrogation does not attach to life or personal accident policies 
because they are not contracts of indemnity, rather they provide that a specified 
amount becomes payable on the happening of a certain event.

A number of rules have developed in respect to the application of the doctrine of 
subrogation. All rights possessed by the insured against the party causing the 
loss, after payment by the insurer, are transferred to the insurer. Legal action 
taken by the insurer against the party causing the loss is taken in the insured's 
name. Money received by the insured from any source (e.g. the party causing 
the loss or another insurer) must be deducted from the amount now claimed. 
Money received after payment by the insurer to the insured is held on trust for 
the insurer. The insured must not do anything by which the insurer's claim may 
be prejudiced. Where the insured has been fully indemnified, the insurer is 
entitled to retain for himself any profit which he may obtain.

4.	Procedure of Effecting Insurance.

A person desiring to effect insurance makes a written offer to the insurer (a 
proposal). The insurer may then write to the insured stating that it will grant 
insurance on the payment of a premium. Sometimes when stated a policy will 
not come into force until a premium is paid and therefore any loss suffered 
before the premium is paid will not have to be paid by the insurer.

It is also possible to obtain a cover note from an insurer which is an interim 
contract for insurance pending acceptance of the insured's proposal. The cover 
note will operate for a stated period and the insurer usually reserves the power to 
determine the cover on giving notice. When the policy subsequently issues it 
takes effect usually from the commencement of the cover note.

5.	Types of Insurance.

(a)	Marine Insurance.

One of the earliest classes of insurance was marine insurance to cover losses due 
to marine adventure. It is covered by the Marine Insurance Act, 1909 (Cth). The 
insured must have an insurable interest at the time of the loss and must also have 
an expectation of acquiring such interest when taking out the policy16  .

(b)	Life Assurance.

A contract of life assurance is a contract by which an insurer promises to pay a 
specified sum (the "sum assured") upon the death of a particular person (the 
"life assured") or on the happening of some other specified event connected 
withe the life assured to a person identified in the policy (the "beneficiary") in 
consideration of a premium to be paid at regular intervals during the term of the 
contract. The person who promises to pay the premiums is called the 
"proponent" or "proposer". The same person may fill the role of two or even all 
three of the said parties.

In a whole life policy, the risk covered is the death of the life insured. Under 
the Life Insurance Act the insurer must allow a period of grace for a premium to 
be paid without forfeiting the policy. When a policy has been in force for two 
years it will have a paid up value without the necessity for further premiums. 
The paid up value represents a sum insured commensurate with the total 
premiums paid after provision for the risk already taken by the insurer. After 
two years the policy will have a surrender value which is a figure derived by use 
of a formula  involving premiums paid and profits earned. The insured can 
surrender his benefits under the policy in return for a cash payment of this 
amount.

Endowment insurance without a life cover is a contract in which the sum 
insured is paid at the end of a stated period. This is really a form of investment. 
A life endowment policy is a contract in which the sum insured is payable at 
the end of a stated period or upon the death of the life insured whichever takes 
place first. With an annuity a lump sum is paid by the insured (or another) to 
the insurer and the insurer then makes annual payments of a specified sum 
during the life of the insured. In recent years there has been a proliferation of 
variations of life policies with special terms to fit the insured's needs.


(c)	Accident Insurance.

Accident insurance falls into the categories of liability insurance, insurance of 
the person (not life) and property insurance. Liability insurance is designed to 
provide indemnity against liability for injuries to employees and customers in the 
course of the operation of a business. Each State in Australia requires employers 
to maintain workers compensation insurance.

Public liability or public risk insurance is to protect the insured if through some 
neglect by themselves or their employees a member of the public should suffer 
personal injury or loss of or damage to property and a liability to pay damages 
arises.

Each State in Australia has legislation requiring what is commonly known as 
compulsory third party insurance. These policies provide indemnity against 
liability to persons injured as a result of the negligent manner in which a motor 
vehicle is driven.

Personal accident insurance had its origin at about the time when railways were 
established. It was designed to give monetary compensation to individuals (or 
their dependants) for injuries received (or death arising) from railway accidents. 
Like life assurance, personal accident insurance ins not one of indemnity. The 
amount of compensation stated in the policy is payable upon the happening of 
the event insured against regardless of the actual loss sustained. Policies may 
provide compensation for specified accidents and/or illness.

Property insurance is where the subject matter of insurance is the property of the 
policy-holder or property for which he is responsible. For example, cash in 
transit and plate glass insurance. Some options in relation to both real and 
personal property include: fire (usually extended to storm and tempest, 
earthquake, impact but not flooding); malicious damage; loss of profits; removal 
of debris from a building. Some options for personal property include burglary 
and accidental damage.

There are two main types of motor vehicle insurance apart form compulsory 
third party insurance. Third party property is where the risk covered is not 
the loss or damage of the insured's car but liability for damage caused to the 
property of others by the use of the insured's car. Comprehensive motor 
insurance is where the risk covered is the loss arising form the loss or damage to 
or damage by or through the use of the insured's vehicle.

Products liability insurance protects the manufacturer of a product against 
liability arising out of the defective nature of their products. Professional 
indemnity insurance (compulsory in some professions) protects the insured 
against liability for damages arising out of mistakes or deliberate wrongdoing  in 
the conduct of a profession by the insured.

6.	Conveyancing and Insurance.

(a)	Generally.

There is a well-settled principle that upon entry into a valid and binding contract 
for the sale of land the vendor (being still the holder of the legal estate) becomes 
in equity a trustee for the purchaser and the beneficial ownership passes to the 
purchaser. This is subject to the vendor having made out his title according to 
the contract and the contract being specifically enforceable.

This is a qualified "trusteeship" only and does not co-incide entirely with normal 
concepts of trusteeship. The vendor still has interests in his own property e.g. 
the vendor's lien for unpaid purchase price, the right to remain in possession 
pending completion and the right to the rents and profits pending completion. 
From the vendor being a trustee flows the obligation to manage and care for the 
property pending completion of the sale.

From the principle of the purchaser being "beneficial owner" flows the rule that 
the property is at the purchaser's risk between contract and completion. In the 
absence of want of reasonable care by the vendor in the use and management of 
the property, the purchaser bears any diminution in the value of the property. 
For example, if a building on the land is, without fault on the part of the vendor, 
destroyed or damaged by fire the purchaser is not entitled to any abatement of 
the purchase price.

The parties may agree that the risk shall not pass to the purchaser until 
completion e.g. in relation to strata title properties in condition 14A(e)(i) in the 
1988 edition of the standard contract for sale of land17  . Such an agreement may 
also be implied e.g. where a contract provides for the sale of land with a 
building to be constructed by the vendor and the vendor binds himself to restore 
any part of the building damaged during the course of construction.

(b)	Insurance by Purchaser.

Until recently the purchaser was required to take out insurance against damage 
to or destruction of the property. That is, he had an insurable interest from the 
time of entry into an enforceable contract. Moreover the purchaser could not rely 
on the fact that the vendor had the property insured. A purported assignment by 
the vendor to the purchaser of the vendor's insurance policy would be 
ineffective without the insurer's consent. If the vendor was entitled to benefits 
under an insurance policy and the purchaser later paid the purchase price the 
insurer may recover the amount paid to the vendor by subrogation.

Under s. 50 of the Insurance Contracts Act, 1984 (Cth) which came into force 
on the 1st January, 1986 a purchaser may be entitled to claim under a policy of 
insurance maintained by the vendor over the subject. However a number of 
problems with this section have been highlighted.18   If the purchaser pays the 
full purchase price to the vendor (as he must do if the risk has passed) the 
vendor has suffered no loss, and as a consequence there is no "money payable" 
under the vendor's policy (an insurance policy being a contract of indemnity 
only). Presumably, as no claim could be made under the vendor's policy by the 
vendor if the full purchase price is paid, so also no claim can be made by the 
purchaser under that policy, there being nothing in section 50 to overturn the 
principle that a policy of insurance is one of indemnity only.

Section 50 also suffers from the deficiency that it provides protection to a 
purchaser only where the vendor has a current policy of insurance; and further, 
if provides protection only to the extent of the cover maintained by the vendor. 
Nor by its terms, will s. 50 apply where the risk has not passed to the purchaser 
as in the case of dwelling-houses within the provisions of Conveyancing 
(Passing of Risk) Amendment Act, 1986.

On the 1st May, 1986 the Conveyancing (Passing of Risk) Amendment Act, 
1986 came into operation. The risk of damage is now postponed until 
completion or some time after the purchaser has entered into possession of the 
property. This legislation makes provision for the rescission of a contract by the 
purchaser by notice in writing served within 28 days of the purchaser becoming 
aware of the damage19   or reduction in the purchase price by such amount as is 
just and equitable in the circumstances.20  

It is important to note that the right to rescind is only available where the land 
(which includes buildings and other fixtures21  ) is "substantially damaged" after 
the making of the contract22  . Land is substantially damaged if the damage 
renders the land materially different from that which the purchaser contracted to 
buy23  . However the right of rescission must be exercised within 28 days of the 
purchaser first becoming aware of the damage to the property or such longer 
times as may be agreed between vendor and purchaser24  .The right of the 
purchaser to a reduction in price applies whether or not the land concerned is 
substantially damaged25  . If the purchase price is not reduced on completion as 
required by s. 66M of the Act the amount by which the purchase price should 
have been reduced may be recovered by the purchaser from the vendor as a 
debt26  .

These provisions cannot be excluded by agreement between the parties in the 
case of the sale of a dwelling house, "Dwelling-house" is defined to mean 
premises (including a strata lot) used or designed for use principally as a place 
of residence, and includes outbuildings and other appurtenances to a dwelling-
house, and a dwelling-house in the course of construction27  .

In relation to the Conveyancing (Passing of Risk) Amendment Act it should be 
noted that the risk does not pass until (a) completion or (b) a time after the 
purchaser has taken or been taken or been entitled to take possession (being a 
time "stipulated by the parties") whichever is the earlier28  . Possession of land is 
defined to include the occupation of the land pending completion or the receipt 
of income from the land29  .

It is important to appreciate that s. 66K(1) does not render the purchaser 
automatically liable for risks from the time of entering into possession, but only 
if the contact stipulates the time when the risk should pass in that event. If the 
purchaser is entitled to possession and the contract does not contain an express 
provision dealing with the passing of risk, the risk remains with the vendor until 
completion of the sale. Professor Lang30   was of the view that condition 18 of 
the 1988 edition of the standard contract imposed on the purchaser, if given the 
benefit of possession, the obligation to keep the property fully insured in the 
joint names of the vendor and the purchaser. Condition 18.3 of the 1992 edition 
of the standard contract contains a clearer provision regarding the passing of risk 
which provides that "the risk in respect of damage to the property passes to the 
purchaser immediately after the purchaser enters into possession".

There is not as yet a lot of case law on the new legislation. From one case 
Shadlow v. Skiadopoulos31   the following propositions emerge:-

*	The term "dwelling-house" includes a dwelling-house on land used for 
purposes other than purely as the curtilage of a dwelling-house (as in 
the case of a house on an area of land intended for use as a farm).

*	A purchaser's claim for a reduction in price under s. 66M is not a claim 
for compensation under condition 7 of the contract for sale; rather, it is 
a statutory right. Hence, a vendor is not entitled to rescind under 
condition 8(a) of the contract in respect of such a claim.

*	In determining what reduction in price is "just and equitable"32   and 
whether it would be "just and equitable" to require the vendor to 
complete the sale33  , the amount of any insurance proceeds paid to the 
vendor in respect of the damage is a relevant matter. On the facts, the 
amount paid to the vendor in respect of the damage was held to be the 
amount by which the purchase price should be reduced.

*	It is doubtful whether a purchaser who takes out insurance before the 
risk has passed has any claim under his policy.

It is suggested that the legislation concerning the passing of risk does not alter 
the general law principle that the vendor becomes a trustee for the purchaser 
upon entry into a valid and binding contract for sale. This is because the 
vendor's duty as trustee arises out of his obligation to convey what he has 
agreed to sell and this obligation has not been altered by the passing of risk 
legislation.34  

(c)	Passing of Title to and Insurance of Personal Property.

Where the items listed under F(b) of the Particulars in the standard form of 
Agreement for Sale of Land are in fact fixtures the rules as to the passing of title 
to real estate apply. Where the items are personal property s. 25 of the Sale of 
Goods Act, 1923, provides that unless otherwise agreed goods remain at the 
seller's risk until the property in them is transferred to the buyer. The provisions 
of the Sale of Goods Act could result in the property passing on making of the 
contract but the purpose of condition 4(a) of the standard form of Agreement for 
Sale of Land is that the legal property in the furnishings and chattels is not to 
pass to the purchaser until completion.

Special problems concerning the passing of property to personalty arise where 
the contract entitles the purchaser to possession before completion. Also it is to 
be noted that the Conveyancing (Passing of Risk) Amendment, 1986 only 
applies to "land" which includes "buildings and other fixtures".

1	Lennie Lower Here's Luck, 1930.
2	(1925) A.C. 619.
3	Section 18 Insurance Contracts Act, 1984.
4	Section 18(1) Insurance Contracts Act, 1984.
5	Harse v. Pearl Life Assurance Co. [1904] 1 K.B. 558.
6	(1976) 11 A.G.R. 167.
7	[1922] 2 A.C. 413.
8	Section 26(1) Insurance Contracts Act, 1984 
9	Section 26(2) Insurance Contracts Act, 1984 
10	Section 27 Insurance Contracts Act, 1984 
11	Section 28 Insurance Contracts Act, 1984 
12	Section 29 Insurance Contracts Act, 1984 
13	Sections 29 & 30 Insurance Contracts Act, 1984. A similar provision existed 
	in section 84 of the Life Insurance Act, 1945.
14	Section 31 Insurance Contracts Act, 1984 
15	Section 44 Insurance Contracts Act, 1984 
16	Section 10 Marine Insurance Act, 1909.
17	A similar provision does not appear in the 1992 edition of the standard contract in 
	view of the Conveyancing (Passing of Risk) Amendment Act, 1986. Condition 
	A1.5 of the 1992 edition also provides that "clause 18.3 (passing of risk) does not 
	apply to anything which the body corporate must insure."
18	1989 Supplement to the The Standard Contract for Sale of Land in N.S.W. by 
	Butt, Law Book Co., 1985 at p.119 and A.A. Tarr "Insurable Interest" (1986) 
	60 A.L.J. 613.
19	Section 66L Conveyancing (Passing of Risk) Amendment Act, 1986.
20	Ibid section 66M.
21	Ibid section 66J(1).
22	Ibid section 66L.
23	Ibid section 66J(2).
24	Ibid section 66L.
25	Ibid section 66M(2).
26	Ibid section 66M(4).
27	Ibid section 66O.
28	Ibid section 66K.
29	Ibid section 66K(2).
30	New South Wales Conveyancing Law & Practice, CCH [8-348]
31	(1987) C.C.H. N.S.W. Conv. R. 55-383.
32	Section 66M Conveyancing (Passing of Risk) Amendment Act, 1986.
33	Ibid section 66N.
34	1989 Supplement to the The Standard Contract for Sale of Land in N.S.W. by Butt, 
	Law Book Co., 1985 at p.119

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