The insured was involved in a motor vehicle accident after his automobile insurance policy had expired.
Prior to the expiry, the insurer mailed an offer to renew along with a 'pink card' valid for the renewal period.
The insured did not pay the renewal premium.
The Court of Appeal held that the pink card constituted an insurance policy, binding the insurer.
The Supreme Court of Canada allowed the appeal, holding that an offer to renew accompanied by a pink card does not constitute a binding insurance policy under the Insurance Act.
The pink card is merely an administrative requirement and does not bind the insurer in the absence of an underlying policy.
