The deceased applied for life insurance, paid a premium, and received a conditional insurance agreement.
He died before a policy was issued or his insurability was determined.
The insurer denied the widow's claim, arguing insurability was a condition precedent to coverage.
The Supreme Court of Canada held that the agreement provided interim insurance subject to defeasance, applying the contra proferentem rule to the contract of adhesion.
The Court also found the insurer failed to meet the onus of proving the deceased was uninsurable at the time of application.
The appeal was dismissed.
