The court dismissed Zenith’s appeal of an arbitrator’s decision finding it the priority insurer for accident benefits under Ontario’s Insurance Act.
The decision clarifies that an insurer licensed in Ontario is subject to Ontario’s priority rules for accidents occurring in Ontario, even if the policy was issued elsewhere, due to reciprocal legislative provisions.
The court distinguished Travelers v. CAA and similar cases, emphasizing that territorial overreach does not occur where the accident is in Ontario and the insurer is licensed in Ontario.
The court also addressed the interplay between Ontario and Alberta insurance legislation and the effect of reciprocal undertakings and licensing conditions.
