Does an insurer’s investigation of a claim for benefits under an insurance policy under that policy attract litigation privilege?

Canada (Federal), Canada

The following excerpt is from Rousseau v. Wyndowe, 2006 FC 1312 (CanLII):

The Commissioner refers to even stricter case law which holds that an insurer’s investigation of a claim for benefits under an insurance policy does not attract litigation privilege until litigation is anticipated and therefore reports from an insurance adjuster to the insurer, prior to counsel bring retained, are not subject to litigation privilege (Breau v. Naddy, [1995] P.E.I.J. No. 108 (T.D.)).

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