Knowledge Centre

Duty of Utmost Good Faith Owed to Insured

December 2014 Cox & Palmer, Nova Scotia

Industrial Alliance Insurance and Financial Services Inc. v Brine, 2014 NSSC 219

Brine suffered from depression. He was approved for LTD benefits in 1995. In October 1998, Industrial ceased payments to Brine, alleging that he had received undisclosed CPP and Superannuation disability benefits resulting in an overpayment. Industrial set-off the overpayment by reducing Brine’s monthly disability payments to $0. It withheld monthly disability payments until the alleged overpayment was extinguished in 2003. Industrial also subrogated against Brine for a $300,000 human rights settlement which he received in 2004.

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