The appellants, a rental car company and its commercial umbrella insurer, funded a $3 million settlement for a passenger severely injured in an accident involving one of their rental vans.
They sought contribution from the respondent, the personal automobile insurer of the driver who rented the van.
The Court of Appeal held that the commercial umbrella policy constituted an 'owner's policy' under the Insurance Act because the foreign insurer had filed an undertaking in Ontario.
Consequently, the umbrella policy was first loss insurance under s. 277(1) of the Act, and the respondent, as an excess insurer, was not required to contribute to the settlement or indemnify the driver against the rental company's claims.
