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Barzo v. Chrysler Financial Services Canada Inc., 2011 ONSC 7604: Insurer Can Rely on Improperly Completed Application

April 27, 2012

Mitch Kitagawa successfully brought a summary judgment motion on behalf of an insurer to dismiss an action brought by Chrysler Financial Services seeking coverage under a motor vehicle policy.  Chrysler was the lessor of a vehicle owned by the insured.  The insured stated on the application that he owned the vehicle.  When the policy was cancelled for non-payment, notice was only sent to the insured and not Chrysler as the insurer did not know that Chrysler owned the vehicle at the time.  The insured got into an accident after the policy was cancelled and both the insured and Chrysler were sued.  The court found that Chrysler was not entitled to notice of the cancellation as the insurer did not know that Chrysler owned the vehicle and as such the cancellation was found to be effective.

To read the full decision, please click here.

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