Winnipegger reaches $62K settlement in lost insurance benefits case
A Winnipeg woman who blamed errors by her life insurance broker for a loss of benefits has reached a settlement of more than $62,000 with the life insurance company.
The CBC I-Team reported in September that Vivianne Stoneham lost out on thousands of dollars in disability benefits on her life insurance policy.
The broker who sold her the policy was disciplined by the Insurance Council of Manitoba in 2013 but the insurance company, Canada Life, refused to compensate Stoneham.
Then, after CBC News inquired about the case this past summer, the company sent a letter to Stoneham saying it was willing to reconsider.
Stoneham now says Canada Life has agreed to write her a cheque for $62,343.92.
"I certainly didn't expect that kind of an outcome," Stoneham told the I-Team. "I'm overjoyed."
When the I-Team first interviewed Stoneham for the story, she said it was a "terrible experience to have gone through this blunder."
Pleased with company's handling of case
Since September, Stoneham said she is pleased with how Canada Life has handled the file.
"Really, they were very honest with me," she said.
"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."
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.
Canada Life declined to comment on the settlement, citing privacy and confidentiality considerations.
However, a company spokesperson said in an email, "Serving clients well is at the heart of our business. From time to time, concerns arise and when they do, we take them seriously. Our goal is to address any client concern about our financial products and services promptly and fairly."
The spokesperson added that Canada Life has a client satisfaction process in place for dealing with clients' concerns about their financial products and services.
Took out coverage in 1990
Stoneham had taken out the life insurance coverage in 1990 for herself, her husband, and her two children.
When she became disabled and could no longer work in 2003, she said she ought to have qualified for an automatic cash payment of $5,376 as provided under her Canada Life policy.
But she said her insurance broker never advised her of that provision before it expired in November 2008.
Stoneham also argued that the monthly premiums should have been covered once she became disabled.
Stoneham said her husband asked the broker, Gary Weston, on several occasions about the possibility of having disability benefits in the policy.
"He kept saying, 'No, there wasn't,'" she said.
When the Stonehams found their original copy of the policy in 2012, they realized they had indeed been paying for disability coverage.
Broker calls settlement 'good news'
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.
"I hope somebody learns from the mistakes that we were burdened with," she said, reminding clients to make sure they read their policy carefully.
"Buyer beware. Make sure you check all the facts."
For two years, Stoneham tried to resolve her complaint with the broker, the insurance company, and the national OmbudService for Life and Health Insurance (OLHI), which can mediate disputes between insurance companies and their clients.
Stoneham said she wonders why it couldn't have been resolved more expeditiously.
