The non-government auto insurance schemes agree with all extend cover to insureds in respect of car accidents that occur within Canada, america, or on a vessel plying between the ports of these countries. However this must be read subject to conflict of law rules applicable to contract disputes. Although there is absolutely nothing to prevent a non-resident from obtaining insurance in a single of those provinces, the insurance will be governed by the “proper law” from the contract. This might have the effect of imposing around the contract the terms prescribed by the law of some jurisdiction apart from that in which the contract was made. Since the terms of no-fault insurance are invariably prescribed by law, the facts of coverage, including benefit levels, might be different from those appearing within the policy. In most provinces the option of law rule applicable during these circumstances is provided by statute. In Ontario the appropriate section states: Where the subject-matter of a contract of insurance coverage is property in Ontario or an insurable interest of the person resident in Ontario, anything of insurance, if signed, countersigned, issued or delivered in Ontario or committed to the mailbox in order to any carrier, messenger or agent to be delivered or handed over towards the insured, his assign or agent in Ontario will be deemed to evidence a contract made therein, and the contract will be construed based on the law thereof, and all sorts of moneys payable under the contract shall be paid in the office from the chief officer or agent in Ontario from the insurer in lawful money of Canada. Car insurance quotes in Californiaautoinsurancerates.org.
Thus, within an Ontario court, Ontario law is going to be applied if a person of the criteria, like the insured being resident within the province, is met and also the policy is signed or delivered there.
When the requirements of the section are not met, common law conflict of law rules may, in theory, still affect bring an insurance policy under the law of a particular jurisdiction. Quite simply, the correct law of the contract can always be those of Ontario, for example, even when neither the subject matter is situated in Ontario nor the insured resident there. However, this really is unlikely to be the situation frequently because it appears that the connection from the contract to the jurisdiction should be a lot more than the truth that the contract was prepared there. nKutzimerv. Allstate Insurance Co. , the insured would be a resident of New Brunswick, the insurance policy was delivered in New Brunswick and the vehicle was registered there. The insurer s office was located in Ontario and the application for insurance was received and approval succumbed that province. The insured sought to recover no-fault death benefits in the level payable under the Ontario scheme. The court held that New Brunswick law was the correct law from the contract. In the result, the claimant was denied Ontario benefits by the Ontario court more here.