ONTARIO (CANADA)
Insurance Business Magazine
March 7, 2018
By Lyle Adriano
Experts believe that the result of a legal battle between a major insurer and an Ontario Catholic diocese could have further consequences and implications for similar cases in the near future.
In 2008, the Catholic Diocese of London filed a lawsuit against AXA Insurance Canada claiming a breach of policy when the company refused to pay for claims related to settlements between the religious organization and the sexual abuse victims of two priests associated with the church.
The church maintained that it had liability insurance in the 1960s and early 1970s, when the alleged abuse took place, which meant it was entitled to coverage from AXA.
In its statement of defense, AXA said that the diocese’s policy is void because church officials not only knew of the sexual abuse accusations against one of their priests before the insurance policy was enacted, but also failed to disclose such information to the insurer. The insurer is additionally demanding the church return the $10 million it had paid out under the insurance policy.
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