The Saskatchewan Court of Appeal held that the life insurance policy was not in effect at the time of the deceased’s death due to a change in the deceased’s insurability between the time the application was completed and the time the policy was delivered. The Court of Appeal held that the trial judge did not err in finding that there was no conflict between subsection 142(1)(c) of the Saskatchewan Insurance Act and the proviso in the policy.

Anderson v. Sun Life Assurance Co. of Canada, [2005] S.J. No. 708, Saskatchewan Court of Appeal

The insurer declined to pay the death benefit under a life insurance policy on the basis that the contract never took effect due to a change in the deceased’s health between the time the application was completed and the time the policy was delivered. The trial judge held that s. 142(1)(c) of the Saskatchewan Insurance Act was applicable and that there was nothing in the proviso that was inconsistent or in conflict with that subsection. As such, the contract never took effect.

The Saskatchewan Court of Appeal dismissed the appeal. The trial judge properly concluded that there was no ambiguity in the proviso in the policy. The trial judge also did not err in finding that there was no conflict between s. 142(1)(c) of the Saskatchewan Insurance Act and the proviso in the policy. The subsection dealt with changes in insurability, a subject not addressed in the proviso in the policy.

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