The appeal concerned whether an insured who rescinded an accident benefits settlement under s. 9.1(4) of the Automobile Insurance Regulation had to first repay settlement funds before the rescission became effective.
The court held that the statutory rescission right was consumer protection legislation and operated upon delivery of written notice where the insurer had failed to provide the notice required by s. 9.1(2).
Repayment of funds was not a condition precedent to rescission, but the funds became immediately due and owing once rescission was effected.
The insured could therefore pursue a statutory accident benefits claim, while the insurer was entitled to an order declaring its right to repayment.
The appeal was allowed in part, with no order as to costs.
