COURT FILE NO.: CV-20-00647465

DATE: 20210920

SUPERIOR COURT OF JUSTICE - ONTARIO

RE: THE MANUFACTURERS LIFE INSURANCE COMPANY Applicant

AND

THE ESTATE OF TERRY THOMAS ALCOTT Respondent

BEFORE: Mr. Justice Chalmers

COUNSEL: S. Zaidi, for the Applicant

HEARD: September 19, 2021, in writing

ENDORSEMENT

Overview

[1] The Applicant, the Manufacturers Life Insurance Company (Manulife) brings this Application, without notice, for an order pursuant to ss. 214, 218 and 219 of the Insurance Act, R.S.O., c. I.8, permitting the Applicant to pay into Court the life insurance monies payable pursuant to a Group Life Insurance Policy; Policy No.: G0901777 (the Group Policy).

[2] Manulife issued the Group Policy to the Trustees of the Drywall Acoustic Lathing and Insulation Local 675 Life & Health Fund. The Group Policy provided life insurance coverage for its eligible employees, one of whom was Terry Thomas Alcott, deceased.

[3] The named beneficiary pursuant to the life insurance policy is Donna Alcott. An adverse claim has been made for the proceeds of the life insurance policy by Joshua Campbell. Due to the fact there was an adverse claim advanced, Manulife brought an application to pay into Court, the proceeds of the life insurance benefit to Mr. Alcott.

[4] On October 26, 2020, Morgan, J. granted leave to Manulife to pay into Court the life insurance proceeds in the amount of $50,000 plus non-contractual interest from the date of Mr. Alcott’s death to the date of judgment.

[5] On November 24, 2020, Manulife paid $50,000 plus non-contractual accrued interest to the Ministry of the Attorney General.

[6] On December 21, 2020, Manulife was advised that before his death, Mr. Alcott had returned to work and as a result, he was entitled to an increase in his life insurance effective August 1, 2018 in the amount of $125,000. Manulife determined that there was an additional $25,000 owing on the Policy after the CAP loan of $50,000 is deducted from the total amount.

[7] Manulife admits liability to pay an additional sum of $25,000 and seeks an order to pay this sum plus non-contractual accrued interest into Court to the credit of the Estate of Terry Thomas Alcott.

Analysis

[8] Section 214(1) of the Insurance Act provides that where an insurer admits liability for the payment of insurance monies and it appears there are adverse claimants, the insurer may apply to the Court, without notice, for an order for payment of the money into court. Section 214(3) of the Insurance Act provides that upon payment being made, the insurer is discharged to the extent of the payment.

[9] Since the order of Morgan, J. dated October 26, 2020, Manulife determined that an additional $25,000 is owing on the Group Policy. There are adverse claims advanced with respect to the proceeds of the insurance.

[10] I am satisfied that leave ought to be granted for Manulife to pay into Court the additional sum of $25,000 plus non-contractual interest from the date of death to the date of Judgment with respect to the Group Policy issued to Terry Thomas Alcott.

Disposition

[11] I grant the relief sought. Order to go in accordance with the draft Judgment filed and signed by me.

DATE: September 20, 2021