Is an insurer's obligation to pay insurance monies to an insured a debt that can be garnished?

Ontario, Canada

The following excerpt is from 1770650 Ontario Inc. v. McEnery, 2022 ONSC 1230 (CanLII):

A creditor that has an order for payment or recovery of money may, pursuant to r. 60.08 of the Rules, enforce it by garnishment of debts. The law is clear that an insurer’s obligation to pay insurance monies to its insured is a debt that can be garnished: see Abuzour v. Heydary, 2014 ONSC 6229 at paras. 18 to 29.

It is mandatory for lawyers in Ontario who practice in a firm to carry innocent party coverage. Mandatory insurance policies should be interpreted in a way that compliments their public policy and remedial nature: see Abuzour v. Heydary, at paras. 26 and 27.

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