Zurich Life Insurance Co. of Canada v. Davies

Zurich Life Insurance Co. of Canada v. Davies

The Conditional Insurance Agreement, construed against the insurer as a contract of adhesion and in the absence of an express condition making coverage contingent on prior proof of insurability, created interim insurance upon payment and issuance; the insurer bore the onus to prove the deceased was uninsurable at the application date and failed to meet that onus, so the appeal was dismissed and the respondent's claim allowed.

Citation
[1981] 2 SCR 670
Parties
Appellant / Plaintiff: Zurich Life Insurance Co. of Canada; Respondent / Defendant: Barbara Wallace Davies
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
17 December 1981
Procedural Posture
Contract Insurance / Appeal to the Supreme Court of Canada From the Ontario Court of Appeal
Outcome
Appeal dismissed with costs; Court of Appeal judgment allowing the respondent's claim affirmed.
Legal Topics
Conditional Insurance Agreement, Condition Precedent Vs Condition Subsequent, Onus of Proof on Insurer, Contra Proferentem, Interim Insurance, Adhesion Contract
Source Language
English
Contracts Insurance Law Contract Interpretation Conditional Insurance Agreement Condition Precedent Vs Condition Subsequent Onus of Proof on Insurer Contra Proferentem Interim Insurance +1 more

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Parties

Zurich Life Insurance Co. of Canada

Appellant / Plaintiff

Barbara Wallace Davies

Respondent / Defendant

Procedural Posture

Contract Insurance / Appeal to the Supreme Court of Canada From the Ontario Court of Appeal

Legal Issues

  1. 1 Whether the Conditional Insurance Agreement created coverage only upon prior proof of insurability (condition precedent) or provided immediate interim coverage defeasible upon later proof of uninsurability (condition subsequent)
  2. 2 Whether the insurer bore the onus to prove that the applicant was uninsurable at the date of application

Ratio Decidendi

The Conditional Insurance Agreement, construed against the insurer as a contract of adhesion and in the absence of an express condition making coverage contingent on prior proof of insurability, created interim insurance upon payment and issuance; the insurer bore the onus to prove the deceased was uninsurable at the application date and failed to meet that onus, so the appeal was dismissed and the respondent's claim allowed.

Court Disposition

Appeal dismissed with costs; Court of Appeal judgment allowing the respondent's claim affirmed.

Orders

  • Appeal dismissed with costs.
  • Respondent's claim for the insurance proceeds allowed (insurer to pay).