The parties divorced in 1990 and the appellant was ordered to pay spousal support.
The appellant later purchased two joint-survivor annuity contracts designating the respondent as the beneficiary, moved to Mexico, and stopped paying support.
The respondent applied to enforce the support order against the annuity payments.
The appellant argued that sections 196(1) and 196(2) of the Insurance Act barred the claims.
The Court of Appeal held that section 196(1) exempts all annuity payments from creditors' claims where a beneficiary is designated, allowing the appeal in part.
However, the Court upheld the finding that a former spouse is not a 'spouse' under section 196(2), meaning that section did not protect the appellant's interest in the contracts.
