October 2015 | Article

Insurers Have to Explain the Basis for Denial of Coverage; But What About Privilege?

Ontario Bar Association Insurance Section

In the July 29, 2015 decision in Lica v. Dhaliwal, Price J ordered that State Farm, the insurer of the Defendants provide the reasons and basis for the denial of coverage. State Farm insured the Defendants in this action. However, State Farm denied coverage and added itself as a statutory third party in the action. State Farm did not provide detailed reasons for the denial of coverage.

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