Dispute clause allowing insurer to defer its indemnity obligations where dispute exists may be enforceable even where insurer is subrogated to the dispute rights

A dispute clause allowing an insurer to defer its indemnity obligations in cases where a dispute exists between an insured and a third party, may be enforceable, even where the insurer is subrogated to the disputed rights and has effective control over the resolution of that dispute. Bassett & Walker International Inc. v. Export Development ...

BCSC finds innocent insured is entitled to coverage following fire damage to leased truck – Judge cautions insurers to avoid obscure legal terms or concepts beyond the understanding of the ordinary insured

Vehicle damage arising from a lessee’s arson does not fall within the conversion exclusion clause in Division 5 of the ICBC Autoplan Optional Policy, and an innocent lessor may accordingly be entitled to coverage. CIT Financial Ltd. v. Insurance Corporation of British Columbia, 2017 BCJ No 753, 2017 BCSC 641, British Columbia Supreme Court, April 20, 2017, N. Kent ...

Ontario judge dismisses liability insurance claim determining that possessory rights to chattels do not constitute property

10. February 2017 0
Possessory rights to chattels do not constitute property within the meaning of section 132(1), R.S.O. 1990, c. I.8. Benedict v. Continental Casualty Co., [2016] O.J. No. 6016, 2016 ONSC 7205, Ontario Superior Court of Justice, November 23, 2016, F. Kristjanson J. This action arose out of a coverage dispute triggered by an underlying action for ...

Automobile insurer who assumes liability under contract of insurance for storage fees is subrogated to the rights of its insured

10. February 2017 0
An automobile insurer that provides coverage for vehicle storage fees is a “person lawfully entitled” to apply for relief under section 24 of the Ontario Repair and Storage Liens Act, R.S.O. 1990, c. R.25. 2237466 Ontario Inc. (c.o.b. 409 Collision Centre (2011)) v. Intact Insurance, [2016] O.J. No. 6336, 2016 ONSC 7711, Ontario Superior Court ...

Court allowed adding plaintiff’s insurer as a party where tortfeasor’s insurance limits were likely insufficient

18. August 2016 0
A plaintiff’s insurer may be added as a party to a tort action where the tortfeasor’s insurance limits will likely be insufficient, and the plaintiff intends to seek compensation under its insurer’s underinsured liability coverage. MacPherson v. White, [2016] B.C.J. No 1332, 2016 BCSC 1151, British Columbia Supreme Court, June 22, 2016, P.J. Pearlman J. This action arose out of ...

Taking renters constituted a material change in risk voiding coverage

18. August 2016 0
Where an insurance application specifically asks whether an insured property will have renters or tenants, and the insured answers ‘no,’ an insured who subsequently rents out that property may void their insurance coverage if they do not declare this change upon renewal. Zheng v. John Galon Insurance Services Ltd., [2016] S.J. No. 352, 2016 SKPC 90, Saskatchewan Provincial ...

Water seeping through foundation walls was excluded under insured’s “water escape” coverage

Water damage caused by water seeping through the foundational walls of an insured’s property was outside the scope of the insured’s “water escape” coverage, as being “ground water” or “surface water”. It did not matter whether this water seepage happened slowly or suddenly. Hojjatian v. Intact Insurance Co., [2016] O.J. No. 1834, 2016 ONSC 2318, Ontario Superior ...