The Court held that the insured’s failure, on an application for life and disability benefits, to disclose a history of high blood pressure, constituted a misrepresentation of a material fact. The contract of insurance was thus voidable by the insurer under s. 41 of the Insurance Act, R.S.B.C. 1996, c. 266.

Fischer v. Clarica Life Insurance Co., [2005] B.C.J. No. 1763,  British Columbia Supreme Court

On April 17, 2002, the insured applied for a line of credit with the defendant CIBC and at the same time applied for life insurance and disability benefits offered by the defendant insurer. On the insurance application form, the insured was asked the following health question: “Have you in the past 12 months, received any treatment for or consulted a doctor or other health practitioner for: heart disorders including failure, attack, angina, high blood pressure?” The response was “no”.

On May 25, 2002, the insured was seriously injured in a motor vehicle accident and became totally disabled from performing his customary employment.

On August 22, 2003, counsel for the insured provided the defendant insurer with the insured’s clinical records for the period April 17, 2001 to April 17, 2002. Those clinical records disclosed that the insured had been diagnosed and treated for high blood pressure within the 12 months before April 17, 2002.

Section 41 of the Insurance Act, R.S.B.C. 1996, c. 266 provides that an applicant for insurance must disclose to the insurer every fact in his knowledge that is material to the insurance. A failure to disclose a material fact or a misrepresentation of such a fact renders the contract of insurance voidable by the insurer.

The Court found that the plaintiff knew that he suffered from long-standing high blood pressure. The Court noted that the insured did not, in his affidavit evidence, deny such knowledge.

The insured’s failure to disclose his history of high blood pressure constituted a misrepresentation of a material fact. The contract of insurance was thus voidable by the insurer under s. 41 of the Insurance Act.

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