Regulation Round Up:

A view from the provinces on 2009 regulatory reform

Alex Vizer | December 11, 2009

• Legal Review/Preview 09/10: Richard Bickford, partner at Blouin, Dunn LLP.
• Top Ten Issues 2009/2010: Brenda French, The French Group
• Top Ten Issues 2009/2010: Dominique Labelle, vice president Corporate Solutions, BFL Canada
• Top Ten Issues 2009/2010: Chris Duffield, Swiss Reinsurance Company Limited
• Regulation Round Up: A view from the provinces on 2009 regulatory reform
• Talking Regulation with OSFI

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Prince Edward Island:

A proposed amendment to the Insurance Act would result in agents who are refused a certificate of authority and brokers/adjusters who are refused a license or whose license is suspended or revoked no longer being able to appeal the refusal, suspension or revocation to the Lieutenant Governor in Council. Instead, the appeal will have to be made to the Supreme Court.

New Brunswick:

No change.

Saskatchewan:

No change.

Manitoba:

The following amendments have been made:

• Clause (d) of the definition for comprehensive coverage in subsection 127 (1) has been replaced with the following: “Nil deductible, where loss or damage to an insured vehicle or its equipment occurs by reason of collision with an animal or bird”
• Additionally, Item 6 of Schedule B is amended by striking out “10,891 kg” and substituting “10,890 kg.”

Newfoundland:

No change.

Yukon:

No change.

Nova Scotia:

No change.

NWT:

No change.

Nunavut:

No change.

British Columbia:

In October, amendments to both The Insurance Act and The Financial Institutions Act passed Third Reading in the Provincial Legislature. The amendments are the same as the ones adopted by Alberta in 2008, as the two provinces are planning to harmonize their insurance legislation.

Amendments to The Insurance Act:

• The language of the Act has been strengthened to ensure that fire coverage includes fires resulting from any cause, except for those specifically excluded by regulation. This will improve consumer protection and provide them with consistency between different insurers.
• Insurance companies will be required to implement internal complaint resolution procedures and offer consumer access to ombudsman type services if disputes cannot be solved internally.
• Limitation period in which consumers can make legal claims against insurance companies increased from two years to one.
• Extending protection to “innocent co-insureds” who may otherwise be denied coverage due to the wrongdoings of another person.
• Reducing red tape and improving efficiency by removing unnecessary requirements and clarifying legislation.

The regulations accompanying the bill have yet to be worded, meaning that the list of permissible exclusions from fire damage coverage is still unknown.

Amendments to the Financial Institutions Act

• Amendments have made insurance company licensing requirements consistent with the Trade, Investment, and Labour Mobility Agreement (TILMA) between B.C. and Alberta.
• With the amendments, insurance companies located outside of B.C. will also be required to have a license if they insure property or persons based in B.C., unless an exemption applies. According to the Minister of Finance, an example of an exemption is if an insurance policy is sold through a licensed agent.

Alberta:

Public consultation took place regarding the Insurance Act amendments that were passed in 2008. The amendments are similar to the ones passed in BC in 2009 and as with BC, the regulations accompanying the bills have not been drafted yet.

With files from: IBABC, IBAA, IBANS, IBAPEI, IBAS, IBC