Similarly, lloyd`s of London scalera, 2000 SCC 24 (CanLII),  1 S.C.R. 551 in paragraph 50, the court stated that in an obligation to defend the analysis, “a court must look beyond the choice of labels and verify the content of the allegations contained in the briefs.” The purpose of the agreement is obvious. There is a lawsuit against the administrator that will be defended. The action may involve liability of the insured against whom the policy promises damages, and there may be, whether or not they do so, circumstances already known or discovered that allow the insurer to free itself from the insured`s responsibility in the policy. With respect to food matters in this state, the insurer and the insured believe that instead of fighting immediately, this is the wisest way to defend the complainant`s complaint and first to know if there was really something for them to fight with each other. [Added highlight] So far, I have only proceeded by referring to the very text of the policy. However, the general principles of the constitution of insurance contracts argue that the duty of defence arises only if the briefs assert rights to be paid into the insurance contract under the compensation agreement. Courts have often found that “[d] the briefs settle the duty of defence”: Bacon v. McBride (1984), 6 D.L.R. (4.) Q.
If it is appropriate or necessary to guarantee a non-waiver agreement? The effectiveness of a reserve letter depends on the clarity of the statement of the situation, the amount of information provided, the reasons for refusal of coverage and the timing of the letter`s writing. It is important to note that the courts were more willing to accept a reservation if a non-waiver agreement had been sought, but the insured did not enforce it. A non-waiver agreement is similar to a reserve letter, but it must be signed by the policyholder to recognize that the coverage may not apply due to certain circumstances. The non-waiver agreement is usually issued when the insurer suspects that one or all of the insurance coverage may not apply. The non-waiver agreement should explain the reasons for the directive that coverage may not be applicable. An insurance taker is not required to sign a non-waiver agreement. As a general rule, when a waiver is submitted and a policyholder does not sign it, the insurance company issues a legal reservation.