Two applications sought interpretation of an insurance policy issued to a Children’s Aid Society concerning legal expense coverage for foster parents charged with Criminal Code offences.
The applicants argued that the $500,000 aggregate limit applied per policy year, allowing stacking across successive policy periods in which defence costs were incurred.
The insurer argued that the legal expense rider was a claims‑made policy triggered only in the policy period when the criminal proceedings commenced and that coverage was limited to a single $500,000 aggregate limit.
The court held that the wording of the rider allowed aggregate limits to accumulate across policy periods but concluded that the foster parents ceased to qualify as “insureds” after their termination.
As a result, recovery remained limited to the $500,000 aggregate available under the 2008–2009 policy.
