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Insuring Agreement Policy Contract

An insurer may change the language or coverage of a policy when the policy is renewed. Endorsements and Riders are written provisions that complement, erase or amend the provisions of the original insurance contract. In most countries, the insurer is required to send you a copy of the changes to your policy. It is important that you read all the endorements or riders so that you understand how your policy has changed and whether the policy is still sufficient to meet your needs. The Court`s decision dealt with the differences between insurance policies and insurance contracts that are recognized in the legal definitions of “contract” and “policy” in the Insurance Act, RSO 1990, c.i.8. [1] The Court found that insurance policies are instruments that, by their very existence, do not create legal obligations. In the absence of an additional contract, a policy is merely a recitation of commercial terms that are not attached to a particular person or object. Most of the guidelines have a section of definitions that defines certain terms used in the directive. It can extend to a separate section or part of another section. To understand the terms used in the directive, it is important to read this section.

On the other hand, an insurance contract creates contractual obligations between the parties. As with any contract, there must be an offer, acceptance and agreement on all essential conditions. Premiums, the nature and duration of risk and the extent of liability are essential conditions in an insurance contract. The Ontario Court of Appeal decision in Van Huizen/Trisura Guarantee Insurance Company, 2020 ONCA 222 highlights the distinction between an insurance policy and an insurance contract; in particular, the importance of this difference in determining whether an insurer`s defence obligation is being called into question for individuals participating in a group insurance program. In this context, the individual certificate issued to Mr. Van Huizen should have been used to determine whether Trisura was required to defend himself. To the extent that the appelson judge made another failure by finding a duty of defence solely on the basis of the control policy, the Court re-examined the issue on the basis of an interpretation of the effective contractual relationship between the parties. The appeal decision in the Van Huizen/. Trisura recalls the important distinction between the insurance contract and the insurance policy, especially when coverage is offered as part of a group insurance program.

In determining the liability of an insurer, the insurance contract is taken into account and not the insurance policy.