Jeffrey Leon comments in Law Times on why insurance companies may want to rethink the wording of their consumer-facing policies after the Court of Appeal for Ontario restored a class action by life insurance policy holders against their insurers, in Fehr v. Sun Life Assurance Company of Canada. Jeff says:
“The Court of Appeal’s reasons reflect the consideration given to the differences between the companies who draft these complicated agreements, and the consumers who are bound by them. Regardless of how the case ultimately turns out, and the bar is set fairly low for certification, one of the lessons to be taken from it is that it’s increasingly important to draft insurance policies in a way that avoids ambiguities by using defined terms wherever possible. It may also no longer be sufficient to rely on terms that are based on industry practice or custom if they’re not able to be understood by someone who is actually acquiring the life insurance coverage.”