The Court held that the bank and insurer did not have an agency relationship with respect to line of credit life insurance. Accordingly, no contract of insurance was created by the mere submission of an insurance application to the bank. Nominal damages were awarded for the bank’s breach of contract and breach of duty of care.
True Blue Cattle Co. v. Toronto-Dominion Bank, [2004] A.J. No. 267, Alberta Court of Queen’s Bench