The plaintiff sought payment of $97,500 under a credit line life insurance policy following the death of her common‑law partner.
The insurers denied coverage on the basis that the insurance application contained material misrepresentations regarding the insured’s medical history and a prior life insurance application within the two‑year contestability period.
The court found the application contained inaccurate answers to clear health and underwriting questions and accepted expert underwriting evidence that the insurance would have been declined had accurate information been disclosed.
Applying s. 184(3) of the Insurance Act and established principles requiring full disclosure and utmost good faith in insurance contracts, the court concluded the insurer was entitled to void the coverage.
The claim was therefore dismissed.
