Canadian Heritage Committee on July 27th, 2022

[The Chair, Liberal, Hedy Fry]

Thank you very much, Karen.

Now I go to James Maloney for the Liberals.

You have five minutes, please.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

Thanks, Madam Chair.

Thank you, Mr. Lorenzetti, for being here today.

You are an insurance broker, right?

[Barry F. Lorenzetti]

Yes.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

As an insurance broker, Hockey Canada or any other client would come to you with their insurance needs. They would explain what their needs are. You would evaluate them. Then you would point them in the direction of an insurance company who could provide an insurance policy that would provide those coverages. Is that fair?

[Barry F. Lorenzetti]

Yes.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

You don't write policies. You have, I assume, a stable of insurance companies that you deal with.

[Barry F. Lorenzetti]

Yes.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

AIG is one of them, obviously.

[Barry F. Lorenzetti]

Yes.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

Is AIG the CGL policy issuer for Hockey Canada, as well as the policy that we're talking about here?

[Barry F. Lorenzetti]

AIG is the primary insurance company for general liability. We have some excess carriers above the general liability policy, but they are the sole insurer with respect to sexual misconduct.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

Okay. Thank you.

In the ordinary course, what would happen is that a policy would be issued.... Well, let's talk about this case. A policy would be issued, in this case by AIG, and when a claim arises, the insured, in this case Hockey Canada, has an obligation or responsibility to report that claim to its insurer. That can be done through you. Is that accurate?

[Barry F. Lorenzetti]

Yes.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

Then you report it on to AIG, because AIG is actually the organization or the entity that handles the claim and addresses the claim, including such things as whether or not particular items are covered. Is that fair?

[Barry F. Lorenzetti]

That's very fair.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

Okay. Thank you.

When we're putting questions to you about whether something is or is not covered, it's not being fair to you, is it, sir? I don't know what your training or background is, but in my experience, you're not the one who usually answers those questions. It would be the insurance company, usually with the assistance of their lawyers.

[Barry F. Lorenzetti]

That is accurate.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

All right. Thank you.

All of that leads me to say that I'm not sure why you're here, sir—

[Voices]

Oh, oh!

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

—other than the fact that we can get an interesting education on the insurance claims process, perhaps.

In that vein, then, if a claim is made, the statement of claim.... In this case, for example, the contents or the wording of that claim would trigger a certain response from the insurance company on, for example, whether or not there is a duty to defend. Is that accurate?

[Barry F. Lorenzetti]

That's very accurate.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

That's entirely different from whether or not there is a duty to indemnify. Is that accurate?

[Barry F. Lorenzetti]

That is also accurate.

[James Maloney, Liberal, Etobicoke—Lakeshore, ON]

The duty to indemnify is not something that's determined until a lawsuit or a claim has advanced through all the stages, possibly to its conclusion. Is that fair?

[Barry F. Lorenzetti]

In the event that AIG in this case was presented with a claim, they have every right to reserve their rights, conduct an investigation, and at times...and this is not a question pointed in the direction of AIG but is typical in the industry, which you seem to know something about—