Under casualty insurance policies, where the named insured is a nominee for undisclosed beneficial owners, current case law indicates the importance of advising the insurer of the relationship and possibly the identity of the beneficial owners. A failure to disclose the information to your insurer may result in the insurer denying coverage when a claim arises. This topic is now being considered in the area of title insurance pursuant to the June, 2006 decision in Nadvornianski v. Stewart Title Guaranty Co., where the Ontario Superior Court of Justice held that a "genuine issue for trial" existed with respect to whether a nominee property owner with no beneficial interest had an "insurable interest" under a title insurance policy and was entitled to claim under the policy.
Read More