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An insurer cannot rely on an undisclosed change in insurability to void a life insurance policy beyond the two-year incontestability period.
The court considered whether an insurer could deny a life insurance claim based on a change in insurability between application and policy delivery, even if the change was unknown to both parties, and whether such a denial could occur beyond the two-year incontestability period in the Insurance Act.
The court held that section 180(1)(c) of the Insurance Act does not permit an insurer to void a policy for an undisclosed change in insurability beyond the two-year period set by section 184(2).
The court granted summary judgment in favour of the plaintiff, finding the insurance was in effect at the time of death.
