Melisa P. Gust

The appellant insurer appealed an arbitrator's order requiring it to produce its complete adjusting notes, including reserves, to the date the respondent filed for mediation.

The Director's Delegate allowed the appeal and rescinded the order to produce reserves.

The Delegate held that reserve information is generally irrelevant to an insurer's conduct in assessing a claim and is protected by a zone of privacy.

Furthermore, the respondent had not even requested the production of reserves.

The order was varied to exclude reserves from the production of the adjusting records.

The applicant, injured in a motor vehicle accident, sought production of the insurer's adjusting records, including reserves, to support a claim for a special award under s. 282(10) of the Insurance Act.

The insurer claimed litigation privilege over the records and opposed disclosure of reserve information.

The arbitrator ordered the insurer to produce its complete adjusting notes, including reserves, up to the date the applicant filed for mediation, finding that litigation privilege did not apply before that date and that the reserve information was potentially relevant to the special award claim.