Insurer's application for Security for Costs against Insured

Abstract

Relationship and utmost good faith relevant butnot conclusive.

General principles.

Article

The relationship of insurer and insured doesnot preclude the insurer from applying successfully for an order for security for costs, but the relationship will be taken into account in the court’s exercise of its discretion; and the insurer is bound to act with utmost good faith at least to the extent of commercial dcency.  The general rules of such an application discussed: All Class Insce Brokers Pty Ltd (in liq) v Chubb Insce Aust Ltd {2020] FCA 840.