Appeal from summary judgment in a life insurance coverage dispute arising after the insurer denied a beneficiary's claim based on an alleged change in insurability between the insured's application and delivery of the policy.
The Court of Appeal held that s. 180(1)(c) of the Insurance Act creates a condition precedent to contract formation and is not subject to the two-year contestability limitation in s. 184(2).
The court rejected both the argument that s. 180(1)(c) operates only prospectively and the argument that the policy's incontestability clause ousted the statutory requirement.
The appeal was allowed, the summary judgment set aside, and the parties were left to determine how to litigate the insurability issue.
