The appellant obtained a hypothecary loan guaranteed by her husband, accompanied by a disability insurance policy.
After an injury, the insurer paid benefits but later ceased payments when the appellant refused to provide a medical certificate.
The lender sued for default, and the appellant brought an action in warranty against the insurer.
The Supreme Court of Canada held that while the insured has a contractual obligation to provide evidence of continuing disability, the legal burden of proof rests on the insurer to establish that the disability has ceased once the obligation to pay has arisen.
However, the insurer may interrupt payments if the insured fails to provide satisfactory evidence.
The appeal was dismissed because the trial judge's factual finding that the disability had ceased was supported by overwhelming medical evidence, rendering the error on the burden of proof immaterial.
