CLHIA announces withdrawal of Guideline G19

TORONTO, May 31, 2019 /CNW/ – The Canadian Life and Health Insurance Association (CLHIA) is announcing the withdrawal of Guideline G19 on advisor compensation for group benefits and group retirement services.

“Following extensive discussions with market players, including advisors and their associations, and careful consideration of what we heard, we have decided to withdraw this industry guideline,” Stephen Frank, CLHIA’s President and CEO said. “Our industry is still strongly in favour of market transparency and plans to work closely with regulators and other stakeholders on these matters going forward.”

The guideline’s withdrawal is effective today.

As a result, measures related to group retirement services sales that were to begin for new contracts on July 1, 2019, and annual disclosure for existing contracts on January 1, 2020 will not proceed.

Similarly, disclosure measures for group benefits sales, which were to begin on January 1, 2020 for new contracts and January 1, 2021 for existing contracts, will not proceed.

The CLHIA and our member companies remain committed to disclosure. We value the role advisors play in the life and health insurance marketplace. The participation of advisors and their associations is key to the successful development and implementation of conflict of interest management practices for group products and services.

About the CLHIA 

Celebrating its 125th year in 2019, the CLHIA is a voluntary association whose member companies account for 99 per cent of Canada’s life and health insurance business. The industry provides a wide range of financial security products such as life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance to more than 29 million Canadians. It also holds over $860 billion in assets in Canada and employs more than 155,000 Canadians. 

SOURCE Canadian Life and Health Insurance Association Inc.

For further information: Kevin Dorse, Assistant Vice President, Strategic Communications and Public Affairs, (613) 691-6001 / kdorse@clhia.ca

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RCMP were not called about the spill until 4 hours after it was detected and couldn’t find acid spots

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The Cultivation Of Cannabis Can Lead To The Forfeiture Of The Right To An Indemnity Under A Home Insurance Policy

Article by Charles A. Foucreault

Despite the legalization of cannabis by the federal government on October 17, 2018, not all cannabis-related activities have become legal. In an insurance context, illegal acts can lead to the cancellation of a policy or to the forfeiture of the right to an insurance indemnity, as seen in the decision rendered by the Superior Court of Quebec on April 15, 2019, in Vo v. Compagnie d’assurances Desjardins (Desjardins, Groupe d’assurances générales).1

In this case, the Superior Court rejected the insured’s claim, who were seeking an indemnity under a home insurance policy following a fire in their building. The tribunal held that the insurer satisfied the burden of proving the general exclusion clause against illegal or criminal activities applied. Indeed, because of their possession of cannabis plants, an illegal activity, the plaintiffs could not benefit from the indemnity payable under the insurance policy

The facts

The plaintiffs were the owners of a quadruplex that was insured under a home insurance policy. In 2013, a high intensity discharge lamp used in the plaintiffs’ at-home cannabis operation started a fire in the building.

The insurer refused to cover the loss because the policy excluded any loss resulting from illegal or criminal activities, which included (and still includes) cultivating and manufacturing cannabis. The plaintiffs sued the insurer for the amount of the loss under the policy.

The Superior Court decision

The burden rested with the insurer to establish that the plaintiffs were engaging in illegal or criminal activities and, accordingly, the exclusion clause applied. However, the insurer did not need to prove in this case that illegal activities caused the damage because the plaintiffs admitted that their cannabis cultivation in apartment #4 caused the fire.3 The plaintiffs lived in apartment #3 of the building, whereas apartments #1, #2, and #4 were vacant, uninhabitable, and used exclusively for cultivating cannabis.

According to the plaintiffs, apartments #1, #2, and #4 were occupied by three different tenants. However, the evidence demonstrated that there were no personal belongings in those apartments and the apartments were uninhabitable.4 Additionally, the evidence showed that the existence of the alleged tenants was highly doubtful, since none of the tenants who had allegedly lived in the apartments could be traced.5 Moreover, the plaintiffs were paying the costly electricity bills of the three other apartments and at the very least, knew that there were cannabis plants in the building.

The court found that the insurer satisfied the burden of proving that the exclusion clause pertaining to illegal and criminal activities applied in this case.6 In addition to the evidence put forward by the insurer, the judge also considered the serious gaps in the plaintiffs’ evidence and their unconvincing testimonies.7 As a result, the plaintiffs’ claim was rejected by the court.

Conclusion

The legalization of cannabis has certainly had an impact on some exclusion clauses pertaining to illegal or criminal activities, particularly in matters of insurance of persons. Nevertheless, some cannabis-related activities remain illegal, such as the possession of cannabis plants in Quebec.8 Therefore, policyholders who engage in prohibited activities may forfeit their right to an insurance indemnity.

Footnotes

1. Vo v. Compagnie d’assurances Desjardins (Desjardins, Groupe d’assurances générales), 2019 QCCS 1382 [Vo v. Desjardins].

2. Ibid at para 24; 2803 CCQ; See also Levesque c. Compagnie d’Assurance Desjardins, 2013 QCCS 1552, at paras 59—60.

3. Vo v. Desjardins, supra note 1 at para 10.

4. Ibid at paras 23—24.

5. Ibid at para 41.

6. Ibid at para 62.

7. Ibid at paras 57 and 61.

8. An Act to constitute the Société québécoise du cannabis, to enact the Cannabis Regulation Act and to amend various highway safety related provisions, LQ 2018, c 19, adopted on June 12th, 2018, art. 5.


About Norton Rose Fulbright Canada LLP

Norton Rose Fulbright is a global law firm. We provide the world’s preeminent corporations and financial institutions with a full business law service. We have 3800 lawyers and other legal staff based in more than 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.

Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.

Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.

For more information about Norton Rose Fulbright, see nortonrosefulbright.com/legal-notices.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Source: Mondaq

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Canada Protection Plan Launches Express Elite Life Insurance Plan to Simplify Application Process

TORONTO — Canada Protection Plan, a leading provider of No Medical and Simplified life insurance, today announced the launch of Express Elite Term, a no-medical life insurance product. In 15 minutes or less, Canadians and newcomers with a work permit who are in excellent health and between the ages of 18-60 years can apply either by phone or online. Within a few days, they can receive coverage for up to $500,000 with no medical exams required.

“Our clients deserve to be rewarded for maintaining a well-balanced lifestyle,” said Michael Aziz, Chief Distribution Officer, Canada Protection Plan. “We developed Express Elite because we recognize that while life insurance is an important part of financial planning, time is in short supply for many Canadians. As consumer tastes change, we’re developing innovative insurance solutions that fit with the desire for a simple, fast, and convenient experience.”

Payments begin in the second month on a monthly payment system. In addition to offering $100,000 to $500,000 in coverage, Express Elite offers 20-year and 30-year terms as well as complimentary benefits including emergency financial assistance programs and scholarships. The policy is also renewable up to age 80 and convertible to age 70.

Express Elite is available through more than 23,000 licensed advisors across the country, or with Canada Protection Plan (www.cpp.ca) at 1-877-447-6060.

About Canada Protection Plan
Canada Protection Plan, one of Canada’s leading providers of No Medical and Simplified Issue life insurance, is a Canadian owned and operated corporation that designs, markets and sells life insurance and related products with simplified underwriting processes that require no medical exams on many of their plans. The company is dedicated to providing life insurance protection against unexpected events at a competitive price by offering numerous product choices and purchase options, making insurance coverage easily obtainable.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190529005072/en/

Newfoundland & Labrador – Glen L.C. Noel, Q.C., in insurance law is now a judge

Cox & Palmer is proud to share that Glen L.C. Noel, Q.C., has been appointed a Judge of the Supreme Court of Newfoundland and Labrador and a Judge ex officio of the Court of Appeal of Newfoundland and Labrador.

Since 1990, Glen has worked exclusively with Cox & Palmer (and its predecessor firms), building an extensive practice for almost 30 years in insurance law, commercial insurance litigation, and personal injury law. Consistently recognized as a leading practitioner, Glen’s dedication to the legal profession, commitment to his clients and professional integrity have been paramount to the success of Cox & Palmer.

Albeit managing a demanding practice, Glen has an innate ability to approach every situation with sound judgement and definitive resolve. Steadily encouraging fairness, inclusion and comradery, Glen’s positive influence inspires all those around him. A true leader, Glen always makes time for his colleagues and has been an exceptional mentor and friend to the entire team at Cox & Palmer.

We are honoured to have him serve the Province of Newfoundland and Labrador as Justice Noel, and we are tremendously proud to congratulate him on this well-deserved achievement.

Read the media release from the Government of Canada.

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