Volume 36, No 1
In this article, the author reviews how Common Law jurisdictions approach the topic of mandatory disclosure in insurance transactions. The article is divided into four parts, one for each question that must be addressed whena failure to disclose is alleged by an insurer. The first part deals with duty: did the insured owe a duty to disclose the information that wasallegedly withheld from the insurer? The second part deals with breach: did the insured breach his or her duty to disclose? The third part deals with inducement: was the insurer induced into signing the insurance contract, because of this breach? Part four addresses the consequences of a failure to disclose: what are rights of each party following a breach of the duty to disclose? The main case law is reviewed, as well as the relevant provisions of the Ontario Insurance Act. The Ontario statute was chosen because it is representative of the legislation in place in all Common Law provinces.