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www.lawtimesnews.com 25 accident," he says. "Based on the decision, this change occurred when s. 233 and 258 were enacted in 1932 and it means that every contract of automobile insurance rescinded since that date remains valid and subsisting notwithstanding that no premiums have been paid. Since s. 233 and 258 or their equivalents exist in almost all provinces, the decision applies across the country." Due the decision, Wallace says the court has "essentially taken every contract that has been rescinded by an automobile insurer . . . and said those policies all remain valid and subsisting." "So, any contract that has been rescinded since 1932 in Ontario continues in force today notwithstanding that premiums haven't been paid for those," he says. Donald Leschied, a partner at Shibley Righton LLP in Windsor, is one of the lawyers acting for the appellants. He says that, if the decision stands, "auto insurers, at least in Ontario, can no longer rescind an auto policy for a material misrepresentation in an application." He says that, as a result of the decision, auto insurers now have to give advance notice to terminate coverage. "It is one of the more important appellate court decisions in Ontario on auto insurance in years," he says. Leschied says that, prior to the decision, insurers could rescind an auto insurance policy without prior notice, based on alleged misrepresentation by those applying. "As a result of this ruling, auto insurers have to comply with giving advance notice, because the regulations in the [Insurance Act] require termination of an auto policy with advance notice and not a rescinded policy," he says. Leschied says notice must now be given with a minimum of 15 days if it's personally delivered or 30 days by registered mail. Bevin Shores, an associate with Agro Zaffiro LLP in Hamilton, Ont., says the decision in Merino has led to a lot of uncertainty for auto insurers. "From an insurer's perspective, I think IT'S YOUR CALL 1 866 685 3311 When your client suffers a serious injury and needs a referral, make the call. We will safeguard your reputation and get them the compensation they need. Refer r al fees paid in accordance with LSO guidelines. Proud member of the PIA Toronto I 1-866-685-3311 I www.mcleishorlando.com Consultation Offices in: Barrie I Hamilton I Kitchener I St. Catharines what is particularly jarring is that the insurer in this case likely felt they had handled everything properly, and the evidence from both insurer and insured was that they believed the vehicle in question was not insured at the time," says Shores.