In the event of a claim, what is the key difference between implied duty and express duty?

The correct answer highlights that implied duty is fundamentally rooted in the expectations and obligations that arise inherently from the nature of the contract or relationship, rather than being laid out explicitly in written terms. In contrast, express duty is specifically articulated in the contract, which makes it a formal and clear stipulation that parties are legally bound to uphold.

This distinction is significant in the insurance context: implied duties can sometimes arise from the conduct or understanding of the parties involved, even if not explicitly stated, whereas express duties are obligations directly described in the policy documents or agreements. This means that stakeholders in the insurance process must be aware that while express duties provide clarity on what is expected, implied duties also play a crucial role in interpreting obligations and responsibilities that may not be overtly documented.

Understanding this difference can significantly influence how claims are processed and resolved, as it underscores the concept that obligations can exist beyond the written word based on norms and practices within the insurance industry.