In a priority dispute, an out-of-province insurer was required to respond pursuant to legislative priority scheme

Coseco v Liberty, [2019] ONSC 4918 involved an appeal arising from an arbitrator’s decision concerning the priority provisions found in s. 268 of the Ontario Insurance Act, R.S.O. 1990, c. I-8 (Insurance Act), and whether it applied to an out-of-province insurer for an accident that took place in Ontario.

Justice Nakatsuru upheld the arbitrator’s decision and dismissed the Appeal, finding that the out-of-province insurer whose policy covered the claimant, and who was a signatory to the Power of Attorney and Undertaking (PAU), was bound by section 268 of the Insurance Act in its entirety.  

Background

The claimant was a resident of the State of New York; insured under New York motor vehicle insurance policy, GMAC Insurance Company (GMAC).

Read more

ONTARIO COURT OF APPEAL PROVIDES CLARIFICATION ON OVERLAPPING INSURANCE POLICIES CONTAINING “OTHER INSURANCE CLAUSES”

In the recent Ontario Court of Appeal case, TD General Insurance Co. v. Intact Insurance Co., [2019] ONCA 5, the passenger of a boat sustained injuries when the boat struck the shoreline. 

The passenger sued both the driver and the owner of the boat.  Two insurance policies were triggered by the loss. The owner of the boat held a TD insurance policy that covered the driver, who was driving the boat with the owner’s permission. The driver was also covered by his own homeowner’s policy, issued by Intact.

The two policies had identical “other insurance clauses”. The clauses provided as follows:

If you have other insurance which applies to a loss or claim, or would have applied if this policy did not exist, this policy will be considered excess insurance and we will not pay any loss or claim until the amount of such other insurance is used up.

Read more