Hard pressed or not, and regardless of the definition used, residency is a definite legal status. The policy states: "Classification of Eligible Persons: All dues-paying Members of DAN who are residents of Canada." The policy does not define "resident" as far as I can tell, so one would look to other guidance such as what reasonable people would understand "resident" to mean or how resident is defined elsewhere in insurance law or in other situations such as for taxation purposes.
Insurance companies like to "pick fly poop out of the pepper" because that's how they avoid paying claims and thereby save money. If the OP obviously resides in Cozumel now and some discrepancy raises a red flag to a claims processor, it would be easy to deny a claim based on her ineligibility. To me, it doesn't make sense to bother procuring insurance, then risk that the insurance company might notice certain falsified information that would invalidate the coverage, since insurance is all about minimizing risk in the first place. Of course the OP might very well never get caught, but one could use that rationale to justify tax evasion, lying on a resume, and all sorts of other frauds.
