Stewart McKelvey

incontestable and, with the exception of fraud, a company cannot deny a claim because the informa- tion provided was inaccurate or incomplete. For disability insurance, rules surrounding the duty to disclose are much the same as those for life insurance. All material information must be disclosed. In the case of group insurance, failure to disclose or misrepresentation renders a con- tract voidable only where evidence of insurability is specifi cally requested by the insurer. The two year contestability period is also applicable. The statutory conditions of all four Atlantic provinces require that any statements used to avoid the policy or deny a claim be contained in the application or other written statements or answers furnished as evidence of insurability. A WORD ON LIFE INSURANCE BENEFICIARY DESIGNATIONS The designation of life insurance benefi ciaries requires consideration of several factors. There are several types of benefi ciaries and means of desig- nating them. Care must be taken to ensure that one's life insurance goes to the intended recipient. Life insurance proceeds which are left to one's estate are subject to probate fees. By designat- ing a specifi c benefi ciary, no probate fees apply to those proceeds. In addition, where a spouse, child, grandchild or parent is named benefi ciary, proceeds Stephen Hutchison Saint John, N.B. 506.632.2784 shutchison@stewartmckelvey.com of life insurance are exempt from seizure by any of the policyholder's creditors. It is possible to name an irrevocable benefi ciary, in which case the policyholder cannot later change or revoke the benefi ciary without his or her con- sent to do so. In order to appoint an irrevocable benefi ciary, one must comply with the applicable provincial legislation. An irrevocable benefi ciary cannot be named via will. Further, an irrevocable benefi ciary designation must be fi led with the in- surer, otherwise, the legislation provides that the designation will be treated as being revocable. Nova Scotia has specifi c wording, prescribed by the Insurance Act, R.S.N.S. 1989, c. 231, that must be present on the designation form. Both the agent and the insured must sign the form indicating that the consequences of an irrevocable designation have been explained by the agent and are under- stood by the insured. This requirement, which is unique to the Nova Scotia legislation, must be ful- fi lled in order to effect a valid designation of an irrevocable benefi ciary - see Re McMasters Estate, 2010 NSSC 414. In summary, there are several considerations to bear in mind with respect to applications for and uses of life and disability insurance in Atlantic Can- ada. While the law in this area is similar to that in the rest of Canada, there are some signifi cant distinctions of which one must be mindful. Vanessa Paton Saint John, N.B. 506.632.8332 vpaton@stewartmckelvey.com Stewart McKelvey proudly celebrates over twenty years of innovative leadership as Atlantic Canada's fi rst and largest regional law fi rm. With a distinguished heritage reaching back to Canada's confederation, our law fi rm has established an international reputation for generating results. More than 220 lawyers and 350 staff in our six locations have a single objective: the best results for our clients. Charlottetown, Prince Edward Island 65 Grafton Street, P.O. Box 2140 Charlottetown, P.E.I., C1A 8B9 Telephone: 902.892.2485 Fax: 902.566.5283 charlottetown@stewartmckelvey.com Fredericton, New Brunswick Suite 600, Frederick Square, 77 Westmorland Street P.O. Box 730, Fredericton, N.B., E3B 5B4 Telephone: 506.458.1970 Fax: 506.444.8974 fredericton@stewartmckelvey.com Halifax, Nova Scotia Suite 900, Purdy's Wharf Tower One 1959 Upper Water Street, P.O. Box 997, Halifax, N.S. B3J 2X2 Telephone: 902.420.3200 Fax: 902.420.1417 halifax@stewartmckelvey.com Moncton, New Brunswick Suite 601, Blue Cross Centre, 644 Main Street P.O. Box 28051, Moncton, N.B., E1C 9N4 Telephone: 506.853.1970 Fax: 506.858.8454 moncton@stewartmckelvey.com Saint John, New Brunswick Suite 1000, Brunswick House, 44 Chipman Hill P.O. Box 7289, Postal Station A, Saint John, N.B., E2L 4S6 Telephone: 506.632.1970 Fax: 506.652.1989 saint-john@stewartmckelvey.com St. John's, Newfoundland and Labrador Suite 1100, Cabot Place, 100 New Gower Street P.O. Box 5038, St. John's, N.L., A1C 5V3 Telephone: 709.722.4270 Fax: 709.722.4565 st-johns@stewartmckelvey.com

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