In insurance, the insurance policy is a contract (usually a standard form contract) between the insurer and the policyholder, which determines the fees that the insurer must pay legally. In exchange for a first payment, called a premium, the insurer promises to pay for losses caused by watery hazards that fall within the language of insurance. The Trisura Guarantee Insurance Company (“Trisura”) has issued Master Policy insurance to the Appraisal Institute of Canada (“AIC”). The master`s policy involved claims against AIC members, their personal businesses, employers and the AIC for negligence in providing professional assessment services. 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. [1] Section 1 of the Insurance Act defines the “contract” as an “insurance contract” and includes a policy, a certificate, … treaty under the 1992 agreement. and “political” as “the instrument that makes a contract.” An insurance contract is the part of an insurance contract in which the insurance company specifically determines the risks for which it offers insurance coverage in exchange for premium payments at a specified value and interval. The insurance agreement generally lists exclusions for insurance coverage, so the policyholder knows the exact extent of their insurance coverage.

Conditions – The provisions of a policy that require the insured to do something or to do nothing, either before or after a loss. The insurer`s obligation to pay losses or provide services is based on the insured`s obligation to fulfill certain obligations or to prevent certain things. One of the obligations of the insured before a loss is to have applied for insurance coverage in truth. Concealment or fraud by the insured invalidates the policy. One of the insured`s obligations is, after a loss, to protect the property from further losses. Otherwise, the insurer could be exempt from the obligation to pay the debt. Above is an example of conditions included in auto insurance. The insurer talked about the insured`s obligations in the event of an accident or loss. 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.

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.