The Rural Voice, 1993-04, Page 20•
XG!ALLGHE
11►- Fencing
Installation
;aa►;',.
•Sales
E'
• Free Estimates
EXTRA HEAVY
Spring Special
DUTY ROUND Reg. $675.00
BALE FEEDER Sale $600.00.
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pin
i I
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111WIPP
J.l�•� .til
_
• Holds bales from 4' x 4' -5' x 6'
CHICK DAY - May 20
Book chicks by April 26
Turkeys,
pullets, mixed available
Contact Cec Horton at
CARSON'S FEED
AND FARM SUPPLY
Hwy. 86 E, Listowel
519-291-1094
MARQUARDT
FARM DRAINAGE LTD.
(ESTABUSHED 1968)
SPECIAIJ7_ING IN:
• Farm Drainage
• Municipal Drainage
• Excavator Work
• Dozer Work
• Erosion Control
• Milk House Waste Handling
(Qualified Contractor For Land Sttweed:hip 11)
WE OFFER:
• Personal evaluation of your project
• Detailed plans and design work
• State -of -the -an equipment
• FREE ESTIMATES
• Qualified and experienced personnel
• Guaranteed workmanship & customer service
For that personal touch, pride in workmanship,
experience and FREE ESTIMATES call
MARQUARDT
FARM DRAINAGE LTD.
(ESTABLISHED 1968)
A.A. d, STEVECRQNSBERRY
Palmerston, Ontarl• , (owner)
tit
"We install
OFFICE
343-3233
drainage tubing„
HOME
338-2373
16 THE RURAL VOICE
Agrilaw
Insurance company bound by agent's error
Every application for insurance
coverage requires the applicant to
acknowledge that all of the information
contained on the application is true and
accurate. Most insurance contracts
contain a clause
which allows the
insurer to retro-
actively reject an
application for
insurance where
there has been a
material misrep-
resentation in the
information
supplied by the
applicant. The
insurer is permit-
ted to rescind the
contract; that is,
to proceed as if
the contract had
never been entered into. This means
that the applicant would receive only a
refund of the premiums he or she has
paid and not the big payoff contempla-
ted under the policy.
A material misrepresentation is one
which would likely have affected the
insurer's decision to accept the
application and enter into the insurance
contract. Each case must be decided
on its own fact. The Court looks to the
insurer to prove that had it been aware
of this information, it would not have
accepted the application. Minor
mistakes or omissions are insufficient.
However, in a very recent decision
of the Ontario Divisional Court, an in-
surance company was held liable under
an insurance policy where material
medical information was omitted from
the application form which was
completed by an agent of the insurance
company. In Vrbancic v. London Life
Insurance Company, the Divisional
Court held that if it is the agent's duty
to fill in the application form, he is the
agent of the insurer and unless the
erroneous answer originated with the
applicant, the insurer cannot escape
liability on the policy as a result of
material misrepresentations in the
application form.
In 1982, Mr. Vrbancic applied for
life insurance for himself. Two years
later, he died of liver disease. At the
time of his application, Mr. Vrbancic
had already been treated on at least
three prior occasions for internal
bleeding caused by the same liver
disease that eventually took his life. It
was conceded that the treatment he
received prior to the application was
material to the risk that the insurer
assumed under the policy. Moreover,
it was conceded that London Life
would have declined the application for
insurance if that medical condition had
been disclosed on the application.
The Court found that Mrs. Vrbancic
was an honest and truthful witness. It
was concluded that if the questions had
been posed to her about her husband's
condition at the time the application
was filled in, she would have disclosed
his condition and past treatment.
Instead, the agent took it upon himself
to fill in the application as part of his
usual routine. The agent believed that
it was a requirement of his duties and
functions as a salesman for London
Life to do so; however, in this case, he
made unwarranted assumptions about
the applicant's health without asking
the appropriate questions.
In applying for insurance coverage,
an applicant must be careful to ensure
that each question is answered truthful-
ly and completely. If that information
is conveyed to an agent by telephone, a
confirming letter should be sent, or at a
minimum, a note of that conversation
should be made immediately after the
conversation and kept with the insur-
ance records. In addition, if you
become aware that an application you
are signing contains false or incom-
plete information, you should draw this
to the attention of the agent before
signing the application; otherwise, you
run the risk that you will not be able to
collect on the policy.0
Agrilaw is a syndicated column produced
by Cohen Highley Vogel & Dawson, a full
service London law firm. Russell Raikes, a
ariner in the firm, practises in the area of
commercial litigation, including land
disputes.. Agrilaw is intended to provide
information to farmers on subjects of
interest and importance. The opinions
expressed are not intended as legal advice.
Before acting on any information contained
in Agrilaw, readers should obtain legal
advice with respect to their own particular
circumstances.