A 2014 ruling by the Court of Appeal for Ontario, which considers the province’s “pay first, dispute later” regime for insurance, demonstrates the importance of substance over convenience in determining what contracts fall within the ambit of this regime.
The Court of Appeal for Ontario’s recent decision, Zurich Insurance Company v. Chubb Insurance Company of Canada, addresses important questions of insurance law that will have implications beyond the specific facts of the case. Most notably, the case considered the breadth of Ontario’s “pay first, dispute later” regime for insurance.