Affecting both individual and group insurance, the changes are aimed at modernizing key provisions dealing with: policy issuance; disclosure and related matters; providing greater consumer flexibility and protection; and harmonizing the law with other Canadian jurisdictions.
- requiring the provision of a copy of the policy and application to the insured upon the policy’s issuance
- changing misrepresentation and incontestability provisions
- changing the reinstatements provisions for life insurance policies
- providing for the continuation of coverage where a group contract is terminated
- broadening the list of particulars that must be disclosed in a group certificate
- allowing the court to terminate or adjust a contract if the insured believes their well-being may be endangered by the contract
Insurance companies in Ontario are being informed about these amendments six months in advance, so that they have sufficient time to revise their insurance contracts, and inform their staff and insurance agents about these changes.
For more information on these changes, insurance companies are encouraged to:
Chief Executive and
Superintendent of Financial Services
December 31, 2015