The deceased had a line of credit with the appellant bank, insured by the appellant insurer.
The insurance policy explicitly terminated when the insured reached age 70.
Due to an administrative oversight, the bank's automated system continued to debit monthly premiums from the deceased's account for 16 months after she turned 70, until her death.
The estate applied for the insurance proceeds, arguing the bank's conduct extended the contract.
The application judge agreed, but the Court of Appeal allowed the appeal, holding that the mistaken debiting of premiums did not constitute a knowing offer to extend the contract, nor was there acceptance or detrimental reliance by the deceased.
No new contract of insurance was formed.
