Protecting survivors of domestic violence within the insurance regime : Opportunities to seek termination or variation of insurance contracts
Date
2014
Authors
Adjin-Tettey, Elizabeth
Journal Title
Journal ISSN
Volume Title
Publisher
Canadian Journal of Family Law
Abstract
A person whose life is insured under a life insurance
contract for the benefit of another person does not have a
contractual or common law right to terminate or otherwise
affect the terms of the contract. As well, such contracts remain
valid even after termination of the relationship that provided
an insurable interest at the commencement of the contract. The
existence of a life insurance contract might provide an
incentive for the policy owner/beneficiary to cause harm to the
insured person in order to collect the insurance money.
Recovery of the insurance money is precluded on grounds of
public policy if the beneficiary is found liable for the death of
the insured person. However, this is no comfort for the victim;
indeed, this situation has the potential to create or exacerbate
the vulnerability of victims of domestic violence, who are
mostly women and children. Manitoba, British Columbia and
Alberta have enacted provisions entitling persons whose lives
are insured to seek judicial remedies aimed at alleviating the
safety concerns in specified circumstances, notwithstanding the
applicant’s lack of privity of contract. This paper examines the
bases and nature of the remedial options and explores how
they can effectively protect persons whose lives are insured for
the benefit of the policy owner and the appropriate threshold
for granting remedies. Applicants may seek remedies under the
insurance legislation in conjunction with protection orders in the family or criminal context. Courts are likely to assess
similar factors when considering appropriate remedies under
the insurance and family law regimes. Although these remedies
are not a panacea for domestic violence, they may be
significant in preventing violence against women and children
whose lives are insured by other family members and where the
latter’s motivation for violence may include recovery of
insurance money.
Description
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Citation
Adjin-Tettey, E. (2014) Protecting survivors of domestic violence within the insurance regime. Canadian Journal of Family Law 29(1) p.211-238