Three insurance companies disputed the funding of a $1,995,000 settlement arising from a motor vehicle accident.
The primary insurer's liability was capped at the $200,000 statutory minimum due to the insured's material misrepresentation regarding the vehicle's use as a taxi.
The two underinsured motorist insurers were ordered to contribute the balance on a pro rata basis in proportion to their policy limits.
On appeal, the Court of Appeal upheld these findings but reversed the motion judge's decision that the primary insurer should bear all costs, ordering instead that the three insurers share the $155,000 costs component equally.
