Clarity In Claims Against Adjusters In Their Personal Capacity

A recent decision of Justice Perell (Burns v. RBC Life Insurance Co., 2019 ONSC 6977) provides some welcome clarity on the issues of whether insurance adjusters owe a duty of good faith to an insured independent of any duty owed by the insurer and the personal liability of insurance adjusters. Although claims of this nature have diminished markedly in recent times, they remain a concern and a vexing issue for claims adjusters (and the insurers who employ them).

In Burns, the plaintiff sued RBC Life ("RBC") and two of its employees (the "adjusters"), who administered the disability claim, for a declaration of entitlement under the policy, payment of long-term disability benefits, special damages of $100,000.00 and punitive damages of $1 million. The Statement of Claim pleaded RBC was vicariously liable for the acts or omissions of its employees. One adjuster advised Burns his benefits were terminated after five years of payment, the other denied his internal appeal of