In insurancelaw, a KC clause (or, during the reign of a female monarch, a QC clause) is a clause in an insurance policy (usually but not exclusively a professional indemnity insurance policy) that provides that an action against the insured is not to be contested unless a King's Counsel (or KC) advises that the defence has a reasonable prospect of success.[1]
The principal reason for such clauses is to minimise conflict between the insured and the insurer. The insurer will often wish to settle claims as quickly and cheaply as possible, but the insured may be concerned that paying on a claim implies negligence which will damage their professional reputation, and want to contest the claim regardless. Professional indemnity policies commonly provide that the insurer will pay the legal costs of the defence. It is sometimes suggested that the clause is also designed to protect the public from the unjustified contesting of claims which have no real defence, but this may represent a charitable view of the way insurance companies conduct claims.
Challebgesedit
Conflicts between the insurer and insured can put a solicitor who represents both in an invidious position, particularly where the solicitor has received confidential information from one party, and may result in multiplicity of legal representation. In practice however, there is an enormous reluctance to invoke such clauses, partly because of the expense of instructing King's Counsel to advise, and partly because of the insurer's need to maintain good relations with the insured.
Although still called KC clauses, such clauses often provide that the advice of a junior barrister of a certain seniority may be taken. Some general liability policies contain a converse version the traditional KC clause; viz., that the insurer does not need to pay out on a claim against the insured unless a King's Counsel advises that there is no reasonable prospect of successfully defending the claim. KC clauses were considered judicially by Lord Devlin (in relation to another issue) in West Wake Price & Co v Ching [1956] 3 All ER 821.[2][3]
^Nabarro, Jonathan Corman & Toby (2021-09-20). "The Good, the Bad & the Ugly: 100 cases every policyholder needs to know. #15 (The Good & Bad). West Wake Price & Co v Ching". Fenchurch Law. Retrieved 2023-01-11.
^Digest of Volumes 1-10 of Lloyd's List Law Reports. Lloyd's of London Press. 1956. p. 269.
External linksedit
Liability Insurance
January 01, 1970
clause, insurance, during, reign, female, monarch, clause, clause, insurance, policy, usually, exclusively, professional, indemnity, insurance, policy, that, provides, that, action, against, insured, contested, unless, king, counsel, advises, that, defence, re. In insurance law a KC clause or during the reign of a female monarch a QC clause is a clause in an insurance policy usually but not exclusively a professional indemnity insurance policy that provides that an action against the insured is not to be contested unless a King s Counsel or KC advises that the defence has a reasonable prospect of success 1 Contents 1 Overview 2 Challebges 3 References 4 External linksOverview editThe principal reason for such clauses is to minimise conflict between the insured and the insurer The insurer will often wish to settle claims as quickly and cheaply as possible but the insured may be concerned that paying on a claim implies negligence which will damage their professional reputation and want to contest the claim regardless Professional indemnity policies commonly provide that the insurer will pay the legal costs of the defence It is sometimes suggested that the clause is also designed to protect the public from the unjustified contesting of claims which have no real defence but this may represent a charitable view of the way insurance companies conduct claims Challebges editConflicts between the insurer and insured can put a solicitor who represents both in an invidious position particularly where the solicitor has received confidential information from one party and may result in multiplicity of legal representation In practice however there is an enormous reluctance to invoke such clauses partly because of the expense of instructing King s Counsel to advise and partly because of the insurer s need to maintain good relations with the insured Although still called KC clauses such clauses often provide that the advice of a junior barrister of a certain seniority may be taken Some general liability policies contain a converse version the traditional KC clause viz that the insurer does not need to pay out on a claim against the insured unless a King s Counsel advises that there is no reasonable prospect of successfully defending the claim KC clauses were considered judicially by Lord Devlin in relation to another issue in West Wake Price amp Co v Ching 1956 3 All ER 821 2 3 References edit Construction Law Handbook Thomas Telford 2007 pp 363 364 ISBN 978 0 7277 3485 3 Nabarro Jonathan Corman amp Toby 2021 09 20 The Good the Bad amp the Ugly 100 cases every policyholder needs to know 15 The Good amp Bad West Wake Price amp Co v Ching Fenchurch Law Retrieved 2023 01 11 Digest of Volumes 1 10 of Lloyd s List Law Reports Lloyd s of London Press 1956 p 269 External links editLiability Insurance Retrieved from https en wikipedia org w index php title KC clause amp oldid 1184244038, wikipedia, wiki, book, books, library,
