The Policyholder's Life Insurance Positive Reporting Obligation

This article appeared in the Winter 2023 issue of the Montréal Association of Insurance Women (MAIW) newsletter.

The authors comment on the decision in Croteau (succession De Roy) v. TD Compagnie d'assurance-vie, and the recent Superior Court decision in Kabeya v. Compagnie d'assurance-vie RBC, both of which addressed the principles of misrepresentation analysis in life insurance.

1. Croteau (succession De Roy) v. TD Compagnie d'assurance-vie¹

On October 21, 2020, the Superior Court ruled in favour of the defendant, TD-Compagnie d'assurance-vie (the "Insurer"), declared the life insurance policy of Mr. Stéphane Roy (the "Insured") null and void ab initio and refused to pay the insurance benefit to the liquidator and former spouse of the Insured, the plaintiff, Ms. Nancy Croteau [the "Plaintiff"), on the grounds that the Insured had made false declarations at the time the policy was taken out.