Rebecca Grima

The court considered whether an insurer could deny a life insurance claim based on a change in insurability between application and policy delivery, even if the change was unknown to both parties, and whether such a denial could occur beyond the two-year incontestability period in the Insurance Act.

The court held that section 180(1)(c) of the Insurance Act does not permit an insurer to void a policy for an undisclosed change in insurability beyond the two-year period set by section 184(2).

The court granted summary judgment in favour of the plaintiff, finding the insurance was in effect at the time of death.

The plaintiff, Istvan Hirosik, brought a summary judgment motion seeking long-term disability benefits from Canada Life Assurance Company, along with aggravated, exemplary, and punitive damages.

The central issue was whether Hirosik's current lumbar spine disability qualified as a new claim or a recurrent disability under the policy, given his complex medical history.

The defendant argued the motion was inappropriate due to insufficient medical evidence to assess disability, causation, and credibility.

The court dismissed the motion, finding the medical issues too complex for summary judgment without a complete medical record and expert evidence, and directed the matter to proceed to trial.