Disclosure Requirements For Statutory Third Parties

Two cases decided within the last year have confirmed that an insurer which adds itself as a Third Party pursuant to Section 258 (14) of the Insurance Act (the off-coverage insurer) is required to answer questions and disclose information in relation to the insurer's off-coverage position.  No longer can the insurer wait until the final determination of the main action prior to dealing with the insurance coverage issue.

In the case of Lica v. Dhaliwal, 2015 ONSC 3888, the off-coverage insurer was required to answer questions posed by the Plaintiff by way of written interrogatories and subject to the potential need for further input from the Court with respect to issues of relevance, prejudice and privilege.  In the case of Prentzas v. Rivera, 2015 ONSC 5867, the insurer was required to produce documentation, including portions of the broker's file, the insurance application, the insurer's notes on issuing and cancelling the policy, correspondence regarding the policy