Quasi-Testamentary Dispositions: A Lesson From The Insurance Act

Few would be surprised to hear that Canada's aging population has created challenges for many professionals, particularly those who do estate planning.

Recent changes to Ontario's Insurance Act respond to some of those challenges and will be of interest to insurers, financial planners and insurance agents in Ontario. On July 1, 2016, amendments to sections 221 and 322 of the Insurance Act took effect. These amendments provide that where it appears to an insurer that a representative of a beneficiary who is a minor may accept payments on behalf of the beneficiary under the law of the jurisdiction in which the beneficiary resides, the insurer may make payment to the representative and the payment discharges the insurer to the extent of the amount paid. Previously, these sections only applied to representatives of beneficiaries under legal incapacity. You can read a more in-depth review of the amendments here.