Lenders Mortgage Insurance and Credit Insurance

Hicksons has vast experience and expertise in lenders mortgage insurance (LMI) and credit insurance. Our lawyers have acted for the major LMI and credit insurers in Australia since 1980.

Partner Rod Cameron, who has been advising lenders mortgage insurers since 1987, leads this practice group.

By always considering our clients’ commercial objectives, we have earned a reputation for delivering responsive and cost-efficient service.

Our expertise includes:

• drafting and reviewing LMI and credit insurance policies
• advising on the operation and interpretation of LMI policies, export credit insurance policies, trade
  credit insurance policies and consumer credit insurance policies
• advising and representing clients in disputes arising under LMI policies and credit insurance policies
• investigating fraudulent borrowing schemes
• advising and assisting lenders mortgage insurers on their compliance and regulatory obligations
• pursuing recovery from valuers and other third party suppliers on the basis of negligence, contract
  or statutory liability
• assisting with the preparation of submissions to Federal Government regulators regarding the
  LMI industry
• enforcing insurers’ subrogated rights, and
• developing risk management strategies.

Significant matters we have worked on include:

• drafting the standard LMI Master Policies for major Australian insurers
• acting in Kenny and Good Pty Ltd v MGICA (1992) Limited – a High Court of Australia appeal on
  causation in professional indemnity issues in which the High Court clarified the extent of a valuer's
  liability to a lenders mortgage insurer for a negligently produced valuation, and
• investigating a string of claims on credit insurance policies arising out of commercial contracts for
  the export of goods to Greece.

We work closely with the firm’s Commercial Litigation team in acting for lenders mortgage insurers and mortgage lenders in disputes involving allegations of fraud, including:

• pursuing claims of unjust enrichment
• advising on and pursuing damages and contribution claims against mortgage originators, mortgage
  brokers and registered valuers, and
• tracing fraudulently obtained loan monies through bank accounts and other financial and investment
  vehicles.

Recently, our work in this area has included:

• acting for a lenders mortgage insurer in pursuing a claim in the ACT for negligence against a
  property valuer, arising from his failure to consider land tax in connection with a crown lease
• acting for a lenders mortgage insurer against a building society in a dispute involving non-disclosure
  in a policy renewal, which was litigated in the Victorian Supreme Court, and
• acting for a lenders mortgage insurer in pursuing multiple professional negligence claims against
  valuers.