Which statement best describes the role of the common law in Canadian insurance law?

• A. It provides statutes
• B. It is unwritten
• C. It is created by the courts through decisions
• D. It has no role

Answer: (C)

Common law in Canadian insurance law comes from decisions made by judges. These rulings build a body of principles over time that interpret policy language, determine when misrepresentation or non-disclosure justifies denying a claim, and set remedies when contracts are breached or interpreted differently. This evolving set of rules fills gaps left by statutes and helps apply them to real-world cases, so insurance disputes are resolved consistently as new facts emerge. Statutes are created by legislatures, not by courts, and the common law isn’t simply “unwritten” today—it's written into the reported decisions that form precedents. Dismissing the role of common law would ignore how courts shape how policy terms are understood and enforced.