Margaret was an insured person, under a group policy, originally with Canada Life now with Great-West Life.  Margaret worked continuously until she became ill in 2001, and even then continued to work until she was forced to quit her job at AIG Life of Canada.  Great West Life ceased providing long-term disability benefits to Margaret on January 3, 2006.

Great-West says that it ceased to provide benefits under the policy when it concluded that Margaret was no longer totally disabled within the meaning of the policy. As with most disability policies, there is a change in the definition of "totally disabled" after a specified time.

Great-West gave Margaret a letter in August of 2005 advising her that they would be closing her file on January 3, 2006.  That was around the same time Margaret volunteered to see a company appointed rehab doctor that might help her recovery.  When I contacted the writer of the letter (before Margaret started rehab treatments) she told me that Margaret's file would only be closed if the rehab was successful.  Margaret's psychiatrist at the time told Margaret that the rehab does not always work and in Margaret's case he had his doubts.  He also promised to be there for Margaret should the rehab treatments not work out. 

On March 22, 2006 Margaret supplied Great-West Life with a detailed letter as to why she cannot work by her current psychiatrist.  We received a letter back from Great West Life on the 24 March 2006 stating that they had referred Margaret's file to a Disability Benefit Specialist.

If, Great-West Life "fail, refuse or neglect" to pay Margaret her disability benefit arrears and reinstate Margaret based on the certified psychiatrist's letter by April 7th, 2006, I will consider their actions more than a breach of contract. Or in the alternative, that Great-West Life committed an act of fraud by denying Margaret long-term disability benefits that she is entitled to, based on the policy requirements. We will file a formal request for a police investigation into this matter. In addition, I will use my contacts in the mainstream media to bring attention to Margaret's story, in hopes of giving insight into what I believe are more than just bad faith insurance practices by Great-West Life.

I am hard-pressed to accept that the issues involve anything more than an evaluation of those circumstances related to cancellation of her disability benefits.  In other words, were the actions of Great-West Life a result of a mistake or error having been made in good faith based upon information available to them at the time, or do their actions evidence bad faith or lack of good faith tantamount to fraud.  Certainly, after requesting a detailed letter of Margaret's mental health condition (which was provided by a certified psychiatrist) that she is not fit to work and then not pay, would be fraudulent in nature.

Important note to Margaret's friends and former co-workers:
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Great West Life did reinstate Margaret's policy in April 2006 without further action on our part and paid all monies owing.