The Motor Vehicle Accident Claims Fund (Fund) appealed an arbitrator's decision that allowed it to withdraw its acceptance of priority for accident benefits.
Echelon General Insurance Company (Echelon) had initially notified the Fund that a snowmobile involved in an accident was uninsured, leading the Fund to accept priority.
The Fund later discovered Echelon's policy actually covered the snowmobile and sought restitution.
The arbitrator found Echelon failed to conduct a reasonable investigation as required by O. Reg. 283/95, s. 3.1, making its notice to the Fund improper.
The court upheld the arbitrator's decision, finding that the Fund was not an "insurer" under the regulation and had specific, different treatment, including an exemption from the strict rules preventing withdrawal of priority acceptance.
The court affirmed that Echelon's failure to conduct a reasonable investigation meant no proper priority dispute was raised, and Echelon remained the priority insurer.