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.” 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. Do you know anything about life insurance? If you buy your own cover, the answer is probably “no.” 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.  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. Not everyone can acquire coverage under the master directive.
Most insurance companies and even employers themselves set the eligibility criteria for the plan. If the principal insured abandons the masterpolicy, the members of the group will have the opportunity to continue the life insurance until the end of the insurance period. Most people never have to worry about a master-police because they buy life insurance on their own. Even if they do it through an employer, it will not happen. Master-Police refers to an insurance policy that provides coverage for eligible staff or members on a group basis. A master`s policy usually covers several people as part of a group insurance policy. A member of a group of a master directive receives certificates attesting to membership which brings together the benefits granted under the directive. It is also a group policy. It is also called the Master Service Agreement (MSA).
Master policyholders may issue insurance certificates for other policyholders as part of the policy, which they can use as proof of coverage. As a general rule, the main contract is usually awarded only to the employer. Those insured under the policy receive coverage certificates instead. Master policies combine multiple policies into a uniform insurance policy to simplify management for individuals and businesses. Those who are insured by the master-police are not considered contractors, although they benefit from them. The policyholder can establish insurance certificates for beneficiaries that can be used as proof of insurance. 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. Master contracts contain important details about the cover, such as . B conditions and exclusions. Directors and employers need to familiarize themselves with the directive and its details so that they can design coverage that will benefit all members of the organization.
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. In the case of a contractor or employer, they can acquire a master`s policy that provides insurance coverage to other people (usually their employees). This is a common practice for general business liability policies that extend coverage to employees.