Vrbancic v. London Life Insurance Co., (1995) 83 O.A.C. 321 (CA)

• Judge: Morden, A.C.J.O., Catzman and Osborne, JJ.A.
• Court: Court of Appeal (Ontario)
• Case Date: September 20, 1995
• Jurisdiction: Ontario
• Citations: (1995), 83 O.A.C. 321 (CA)

Vrbancic v. London Life (1995), 83 O.A.C. 321 (CA)

MLB headnote and full text

Carmen Vrbancic (plaintiff/respondent) v. London Life Insurance Company (defendant/appellant)

(C8935)

Indexed As: Vrbancic v. London Life Insurance Co.

Ontario Court of Appeal

Morden, A.C.J.O., Catzman and Osborne, JJ.A.

September 20, 1995.

Summary:

A husband died of cirrhosis of the liver. His wife claimed under a life insurance policy issued by London Life. London Life refused to pay, arguing that it should be entitled to void the policy because of nondisclosure of the husband's many health related problems in the application form filled out by the London Life representative. The wife sued to collect on the policy.

The trial judge allowed the action, holding that the wife was entitled to full payment under the policy. London Life appealed.

The Ontario Divisional Court, in a decision reported 42 O.A.C. 376, dismissed the appeal. London Life appealed.

The Ontario Court of Appeal allowed the appeal, set aside the judgments below and ordered a new trial.

Insurance - Topic 1506

The insurance contract - Nullity - Nullity ab initio - Failure to disclose - A life insurance application form was filled out by a London Life agent and failed to disclose the applicant's many health prob­lems - London Life refused to pay the widow, arguing that the policy was void for misrepresentations and nondisclosure - The trial judge allowed the widow's action - The Ontario Court of Appeal allowed London Life's appeal and ordered a new trial - The court stated that "it is not dispositive of the case, in favour of the insured, ... to find, simply, that it was the agent's duty to fill in the application form and that the erroneous answers did not originate with the applicant for the insur­ance" - The court stated that "it is neces­sary to determine whether the insurer can rely upon the misrepresentations in the form signed by the applicant" - See para­graphs 37 to 42.

Insurance - Topic 2480

Applicant's duty of disclosure - Default in duty to disclose - [See Insurance - Topic 1506 ].

Insurance - Topic 2548

Applicant's duty of disclosure - Complet­ing the application - Completion by agent of insurer - [See Insurance - Topic 1506 ].

Insurance - Topic 7223

Life insurance - Defences and exclusions - Preexisting illness - Nondisclosure of - [See Insurance - Topic 1506 ].

Cases Noticed:

Stone v. Reliance Mutual Insurance Society Ltd., [1972] 1 Lloyd's Rep. 469 (C.A.), refd to. [para. 29].

Newsholme Brothers v. Road Transport and General Insurance Co., [1929] 2 K.B. 356 (C.A.), refd to. [para. 37].

Blanchette v. C.I.S. Ltd., [1973] S.C.R. 833, refd to. [para. 39].

Reid v. Traders General Insurance Co. et al. (1963), 41 D.L.R.(2d) 148 (N.S.S.C.), refd to. [para. 53].

Mutual Life Insurance Co. v. Ontario Metal Products Co., [1925] A.C. 344 (P.C.), refd to. [para. 60].

Henwood v. Prudential Insurance Co., [1967] S.C.R. 720, refd to. [para. 60].

Statutes Noticed:

Insurance Act, R.S.O. 1980, c. 218, sect. 160 [paras. 31, 59].

Authors and Works Noticed:

Halsbury's Laws of England (4th Ed. 1978), vol. 25, p. 219 [para. 27].

MacGillivray and Parkington, Insurance Law (8th Ed. 1988), pp. 259 [para. 61]; 260 [para. 62].

Norood and Weir, Life Insurance Law in Canada (2nd Ed. 1993), p. 307 [para. 61].

Counsel:

H. Lorne Morphy and Kent E. Thomson, for the appellant;

Robert E. Somerleigh, for the respondent.

This appeal was heard on January 25 and 26, 1995, by Morden, A.C.J.O., Catzman and Osborne, JJ.A., of the Ontario Court of Appeal. The decision of the court was delivered by Morden, A.C.J.O., and released on September 20, 1995.