See
Aviation Law Blog for a 2011 Appeal court decision in Canada which confirmed that without a valid, in-date medical certificate the pilot does not have a valid license, and the insurer was not liable for the hull value of the aircraft.
2006 crash, pilot deceased, insurer refused to pay out, estate of the deceased sued for C$60,000.
Full case
http://www.canlii.org/en/ab/abqb/doc...011abqb283.pdf