John F. Graham

The insured drove a snowmobile after consuming alcohol to rescue a friend who was lost on a frozen lake.

The insured held a valid driver's licence but was in breach of a probation order prohibiting him from driving with alcohol in his blood.

Following an accident that seriously injured the friend, the insured's automobile insurer denied coverage, arguing he was not 'authorized by law to drive' under statutory condition 4.

The court held that 'authorized by law' refers to the possession of and compliance with a valid driver's licence, not court orders or legislative prohibitions.

The insurer was ordered to provide full coverage.

Following a motor vehicle accident involving an uninsured driver who struck a pedestrian, the driver and her spouse sought a declaration that the spouse’s automobile insurer was required to indemnify them after the spouse added the vehicle to his existing policy the day after the accident.

The insurer alleged the addition was obtained through intentional misrepresentation, including false statements about ownership and the failure to disclose the prior accident.

The court found the spouse had no insurable interest in the vehicle and that both individuals engaged in a scheme to deceive the insurer by backdating coverage and concealing material facts.

Under s. 233 of the Insurance Act, their right to recover indemnity was forfeited due to fraud and false statements.

The action was dismissed and the uninsured motorist insurer was required to respond to the personal injury claim.