It's a good news/bad news story for the industry, with a major insurer being praised for its honesty while an advisor gets blamed for a $62,000 settlement.
It's a good news/bad news story for the industry, with a major insurer being praised for its honesty while an advisor gets blamed for a $62,000 settlement.
The broker who sold Vivianne Stoneham the policy was disciplined by the Insurance Council of Manitoba in 2013 but Canada Life refused to compensate her at the time.
However, after a CBC investigation the insurer sent a letter to Stoneham saying they were willing to reconsider.
Now Stoneham says Canada Life has agreed to cut her a cheque for $62,343.92.
In 2013, a decade after she became disabled, Stoneham cancelled her life insurance policy, saying her family was struggling financially and could no longer afford the premiums.
She claimed she should have qualified for an automatic cash payment of $5,376 as provided under her policy.
But she said her broker never advised her of that provision before it expired in November 2008. She also claimed the monthly premiums should have been covered once she became disabled.
Stoneham said her husband asked the advisor on several occasions about the possibility of having disability benefits in the policy. The advisor insisted there wasn’t.
When the Stonehams found their original copy of the policy in 2012, they realized they had indeed been paying for disability coverage.
Despite the mix-up Stoneham is pleased with how Canada Life has handled the file.
"Really, they were very honest with me," she told the CBC. "Not only they're refunding every penny, plus the interest that I invested into that insurance policy, but they've also extended the disability waiver right up until May of 2013 — which was more than generous, I think, for Canada Life to do that."
The advisor at the centre of the allegations, Gary Weston, was disciplined by the Insurance Council of Manitoba (ICM) in 2013 for misrepresentation on Stoneham's file and assessed fines and costs of $1,000.
Contacted by CBC News, Weston called Stoneham's settlement with Canada Life "good news" but declined further comment.
In going public with her story, Stoneham said she hopes she can help other life insurance customers.
The broker who sold Vivianne Stoneham the policy was disciplined by the Insurance Council of Manitoba in 2013 but Canada Life refused to compensate her at the time.
However, after a CBC investigation the insurer sent a letter to Stoneham saying they were willing to reconsider.
Now Stoneham says Canada Life has agreed to cut her a cheque for $62,343.92.
In 2013, a decade after she became disabled, Stoneham cancelled her life insurance policy, saying her family was struggling financially and could no longer afford the premiums.
She claimed she should have qualified for an automatic cash payment of $5,376 as provided under her policy.
But she said her broker never advised her of that provision before it expired in November 2008. She also claimed the monthly premiums should have been covered once she became disabled.
Stoneham said her husband asked the advisor on several occasions about the possibility of having disability benefits in the policy. The advisor insisted there wasn’t.
When the Stonehams found their original copy of the policy in 2012, they realized they had indeed been paying for disability coverage.
Despite the mix-up Stoneham is pleased with how Canada Life has handled the file.
"Really, they were very honest with me," she told the CBC. "Not only they're refunding every penny, plus the interest that I invested into that insurance policy, but they've also extended the disability waiver right up until May of 2013 — which was more than generous, I think, for Canada Life to do that."
The advisor at the centre of the allegations, Gary Weston, was disciplined by the Insurance Council of Manitoba (ICM) in 2013 for misrepresentation on Stoneham's file and assessed fines and costs of $1,000.
Contacted by CBC News, Weston called Stoneham's settlement with Canada Life "good news" but declined further comment.
In going public with her story, Stoneham said she hopes she can help other life insurance customers.
