What is the effect of the exclusion of a mortgage broker from LPIC’s Policy?

As already noted, the mortgage broker exclusion was added to the Policy in 1995. The reason for this was two-fold: (1) claims against lawyers acting as mortgage brokers were increasing and LPIC could no longer afford to insure this activity; and (2) Sutherland J. had held in Karpel v. Rumack (1994), 1994 CanLII 7296 (ON SC), 19 O.R. (3d) 555 that an express exclusion was needed in the Policy “if it were intended to exclude from coverage liability arising from [mortgage brokerage] activities.”