Insurance broker's errors blamed for lost benefits

A Winnipeg woman wants compensation for what she says are mistakes made by her life insurance broker that cost her thousands of dollars in lost benefits.

"It's been a terrible, terrible experience to have gone through this blunder," said Vivianne Stoneham in an interview with the CBC News I-Team.

"I want other people to be very careful when they take out life insurance."

For decades, Stoneham dutifully paid her Canada Life insurance premiums for life insurance she bought for herself, her husband and her two children back in 1990.

When she became disabled and could no longer work in 2003, she saidshe ought to have qualified for an automatic cash payment of $5,376 as provided under her Canada Life policy.

But she saidher insurance broker never advised her of that provision before it expired in November 2008.

Stonehamsaidher 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,'" shesaid.

'It was devastating'

TheStonehamswere paying $220.38 per month for the insurance policy.

Part of that amount $21.95 monthly was a provision specifically to provide benefits in the event VivianneStoneham shouldbecome disabled and unable to work.

When that occurred in 2003,Stonehamsaid the broker, whom she had trusted to advise on her life insurance,said there was no coverage.

In 2012, the Stonehams located their original copy of the policy and realized they were paying for disability coverage.

Vivianne Stoneham said she and her husband met with the broker and confronted him about it.

"And his comment was,'Oops, I guess I missed it,'" she said.

"We were, of course, visibly shaken. Because he knew already for three or four years that we had been struggling financially," she added.

"Very, very disappointed in him,of course. And let down. It's very hurtful to find out you know,we trusted this man so much," she said."It was devastating."

The Stonehams moved their Canada Life policy to a different insurance adviser.

They also sought a new financial adviser for their other investments, asWeston was also their investment adviser.

Disciplined in 2013

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.

• View ICM's disciplinary decision note regarding Gary Weston

The Stonehams have been unable to convince Canada Life to pay the one-time disability benefit payout of $5,376,and the insurer also said in a letter that it would not refund the monthly premiums Stoneham argues she shouldn't have had to pay once she became disabled.

Stoneham said when she asked the broker for help, he replied, "I guess you will just have to sue me."

But Stoneham said she can't afford to hire a lawyer to pursue it both she and her husband are disabled and have modest income.

Vivianne Stoneham filed a complaint with the OmbudService for Life and Health Insurance, a national non-profit body that offers to mediate disputes between insurance companies and their clients. She's one of more than 2,000 Canadians who filed complaints with OLHI last year.

At first, OLHI refused to investigate because the case was already being investigated by the ICM.

After the ICM wrapped up its investigation, Stoneham requested that theOLHI reopen the file, which it did.

Then in July of this year,the OLHI sent Stoneham a letter saying it was closing the file because there were no grounds to pursue the complaint further with Canada Life.

The OLHI wrote, "There is no evidence to suggest that Canada Life was aware of your disability prior to Mr. Weston asking on May 8, 2012, for a reinstatement of the Automatic Payment Benefit which had expired on November 2, 2008."

But Stoneham countered that Weston was well aware of her disability status because he had been preparing her tax returns,which included paperwork for the disability tax credit.

The OLHI also suggested the Stonehams consult a lawyer.

Stoneham said as she and her husband struggled financially, the broker recommended they cash in their RRSPs to access some extra money rather than check into the benefits on their life insurance policy.

'We've got nothing now'

Ultimately, the Stonehams ended up cancelling the policy.Faced with increasing premium costs, they decided to cancel it in 2013 and cash in the remaining value in it of about $8,000.

"We've got nothing nowexcept a lot of headaches and a lot of grief out of this whole thing," said Vivianne's husband, Harold Stoneham.

Canada Life wrote to the Stonehams on Jan. 3, 2014,informing them of the outcome of its review of the file and saying itwould not provide any financial help.

The investigation manager wrote, "It is the policy owner's responsibility to review the statement and if there are inconsistencies with your own records or if you have an inquiry about the information supplied on the statement, you are requested to contact Canada Life or your adviser."

In an email, Canada Life told CBC News it could not comment on the details of Stoneham's file, other than to say, "We are reviewing Mrs. Stoneham's request carefully."

Since CBC News inquired about the case, a manager at Canada Life sent a letter to Stoneham saying the company is willing to reconsider the decision to deny the disability benefit due to the missed deadline.

"In light of the Insurance Council of Manitoba's finding against your former adviser, Canada Life is prepared to waive the late submission of the claim and will adjudicate it based upon the medical evidence and the provisions of your policy," the letter states in part.

"Please note that our willingness to consider your claim does not guarantee that it will be approved."

Stoneham said she's speaking out in the hopes that other consumers can avoid the mistakes in their life insurance file.

"Maybe I won't be helped but if I can help 10people, that's all I want to accomplish," she said.

"Just buyer beware' do your research about insurance policies."

Weston is still a licensed insurance agent in Manitoba and his licence is still sponsored by Canada Life.

When contacted by CBC News, Weston said by email thathe declined to comment while Canada Life is reviewing the file.

Last year,OLHI concluded 37 investigations,of which 11 were resolved in favour of the consumer.

Have you had a problem with an insurance company or broker recently? Please let the CBC News I-Team know viaour confidential tip line. Email us atiteam@cbc.ca or call204-788-3744.