Is Your Insurance Company Acting in Bad Faith?

Did they send multiple "Response Required" pressure emails while you were disabled?

Recognized in Wawanesa litigation as a coercive tactic. Insurers have a duty not to exploit a claimant's vulnerability during periods of documented disability.

Did they deny benefits despite documented diagnoses from your treating physicians?

In Baker v. Blue Cross (2023 ONCA 842), the Court of Appeal upheld $1.5M in punitive damages where the insurer denied benefits despite clear medical evidence from treating physicians.

Did they apply the "any occupation" test during the "own occupation" period of your policy?

Most LTD policies define disability as inability to perform your "own occupation" for the first 24 months. Applying a stricter test prematurely is a contractual breach.

Did they ignore or dismiss medical evidence from your doctors?

The "closed loop" pattern from Baker: insurers who reject treating physician evidence without adequate basis demonstrate systemic bad faith in claims handling.

Did they hire an independent medical examiner who contradicted your treating doctors?

Courts have found that relying on a single IME over multiple treating physicians is evidence of cherry-picking designed to manufacture a basis for denial.

Did they terminate benefits without offering reasons tied to specific policy terms?

An insurer must provide clear, policy-based reasons for denial. Vague or shifting justifications are a hallmark of bad faith denial recognized across Canadian jurisdictions.

Did they delay processing your claim unreasonably?

Unreasonable delay in processing claims is itself a form of bad faith. Courts assess whether the insurer acted promptly given the claimant's circumstances and documented need.

Did their conduct cause you mental distress, anxiety, or depression?

Fidler v. Sun Life (2006 SCC 30) established that mental distress damages are available when an insurer's breach was foreseeable as likely to cause psychological harm. The peace of mind purpose of the contract is central.

Did you face eviction, inability to pay for medication, or financial crisis due to the denial?

Consequential harm from wrongful denial strengthens both compensatory and punitive damages claims. Courts consider whether the insurer knew or should have known the claimant would suffer financial devastation.

Did they fail to investigate your claim properly before denying it?

Insurers owe a duty of good faith to investigate claims thoroughly. A denial without adequate investigation demonstrates the insurer prioritized cost savings over contractual obligations.

Did opposing counsel engage in aggressive or inappropriate tactics?

Litigation misconduct by insurer counsel, including aggressive examination tactics and failure to produce relevant documents, can compound bad faith findings and increase damages awards.

Were you on approved benefits that were later reversed or terminated?

Terminating previously approved benefits creates a reliance interest. The claimant structured their life around the insurer's commitment, and reversal without new evidence is a recognized breach pattern.