Quinn v. The Canada Life Assurance Company [2006] B.C.C.A 585

Client

Successfully acted for the appellant Canada Life Assurance Company in Quinn v. The Canada Life Assurance Company, [2006] B.C.C.A. 585. This case clarified the law regarding misrepresentation in life insurance cases.

This appeal was of an order of the Supreme Court directing Canada Life to pay $150,000 to Mr. Quinn, the named beneficiary under a contract of life insurance wherein his late wife was the life insured. Canada Life argued the deceased failed to disclose material facts in her application which would have resulted in it refusing to issue the policy had they been known. Mr. Quinn argued at trial that questions in the application form were ambiguous. On the appeal he abandoned the alleged ambiguities, but alleged a new one, that being that the questions asked on the application form were ambiguous due to the phrase "other than above", thus causing his late wife to answer as she did. She failed to disclose the following material facts: (1) two chest x-rays which she'd had that showed cardiomegaly; (2) that she had a known indication of an enlarged heart; (3) that she was being treated for her enlarged heart by having chest x-rays conducted every six months to check the progress of the condition.

HELD: Appeal allowed. In contracts uberrimae fidei the fact that a question is asked makes the answer material. There is also a duty on the applicant to use reasonable diligence to see that the answers are correctly written, and whether s/he read the form or not the law treats him as having adopted it. The law will view the non-disclosure of material facts in the same way whether the non-disclosure was intentional or inadvertent. There was no ambiguity in the questions and the application was inadequately completed. The order of the Court below is set aside and judgment for Canada Life dismissing the action is entered.