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The Insurance Amendment Act

S.M. 1989-90, c. 57

Bill 75, 2nd Session, 34th Legislature

The Insurance Amendment Act

(Assented to March 15, 1990)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. I40 amended

1           The Insurance Act is amended by this Act.

Section 1 amended

2           Section 1 is amended by adding the following definitions in their appropriate alphabetical positions within the section:

"guarantee plan" means a plan to guarantee, in whole or in part, the fulfilment of certain insurers' obligations;

"licence" means a licence issued under this Act;.

Subsection 5(1) repealed and substituted

3           Subsection 5(1) is repealed and the following subsection is substituted:

Agreement for guarantee of insurers

5(1)        The Lieutenant Governor in Council may authorize the minister on behalf of the government to enter into an agreement with any corporation organized for the purpose of establishing and administering a guarantee plan, to guarantee, in accordance with the provisions of the guarantee plan, the fulfilment of certain obligations of insurers that become members of the plan under section 30.

Subsection 10(1) repealed and substituted

4           Subsection 10(1) is repealed and the following subsection is substituted:

Notice of licence in Manitoba Gazette

10(1)       The superintendent shall cause to be published in The Manitoba Gazette notice of every issue of a licence to an insurer not theretofore licensed, and of every suspension, cancellation, revocation or revivor of a licence.

Section 14 repealed and substituted

5           Section 14 is repealed and the following section is substituted:

Appeal

14          An applicant for an insurer's licence may appeal to the Lieutenant Governor in Council from any refusal of the superintendent to issue the licence.

Subsection 19(5) amended

6           Subsection 19(5) is amended by striking out "an annual fee of $5." and substituting "an annual fee prescribed by the regulations.".

Subsection 30(1) amended

7           The English version of subsection 30(1) is amended by striking out "by" and "dollars" in clause (a).

Subsection 30(4) repealed and substituted

8           Subsection 30(4) is repealed and the following subsection is substituted:

Mutual insurance company

30(4)       A licence shall not be granted to a mutual insurance company, except upon proof

(a) that the total amount insured under the contracts of the company, not being a company that undertakes hail insurance, in force at the expiration of one year from the date of the issue of the initial licence equals at least $2,000,000;

(b) that thereafter the total amount insured under contracts at all times equals at least $2,000,000; and

(c) in the case of a mutual company undertaking hail insurance, that the total amount insured under contracts equals in the aggregate at least $2,000,000.

Subsections 30(8), (9) and (10) repealed and substituted

9           Subsections 30(8), (9) and (10) are repealed and the following subsections are substituted:

Regulations designating members of guarantee plan

30(8)       Where an agreement respecting a guarantee plan is entered into under section 5, the Lieutenant Governor in Council may by regulation designate insurers or classes of insurers, or both, that shall be deemed to be members of the guarantee plan.

Obligations of membership

30(9)       Any insurer deemed to be a member of a guarantee plan under subsection (8) is subject to the provisions of the guarantee plan and shall observe any conditions or obligations of membership required to be observed by those

provisions.

Failure to observe obligations

30(10)      The Lieutenant Governor in Council may cancel the licence of any insurer deemed to be a member of a guarantee plan under subsection (8) that fails to observe a condition or obligation of membership required to be observed under subsection (9).

Exemptions from membership

30(11)      The Lieutenant Governor in Council may, by regulation and with the agreement of the administrator of a guarantee plan, exempt any insurer or class of insurers from membership in the guarantee plan.

Subsection 38(5) added

10          Section 38 is amended by adding the following subsection:

Failure to meet financial criteria

38(5)       Where an insurer fails to meet any applicable financial standard or solvency test prescribed by the regulations, its assets shall be deemed to be insufficient for the purposes of subsection (1).

Subsection 114(3) amended

11          Subsection 114(3) is amended by striking out clause (g) and substituting the following clause:

(g) prescribing financial standards and solvency tests that every insurer or a specified class or classes of insurers must meet.

Section 396.1 added

12          The following section is added to Part XV:

Definitions

396.1(1)    In this section,

"agent" means a life insurance agent, a non-life insurance agent and an insurance adjuster; («agent»)

"insurance council" means an insurance council established under this section. («conseil d'assurance»)

Establishment of insurance councils

396.1(2)    The Lieutenant Governor in Council may, by regulation, provide for the establishement and, subject to subsection (3), the appointment or election of the members of an insurance council or a number of insurance councils to regulate the operations of life insurance agents, non-life insurance agents and insurance adjusters.

Membership

396.1(3)    An insurance council shall consist of six members at least three of whom shall be licensed in the class of agents to be regulated by that insurance council.

Powers and functions

396.1(4)    The Lieutenant Governor in Council may make regulations prescribing the powers, functions and duties of insurance councils and governing the exercise of those powers and the carrying out of those functions and duties.

Delegation of powers

396.1(5)    The Lieutenant Governor in Council may, by regulation, authorize the superintendent to delegate to any insurance council or insurance councils certain powers, functions and duties that the superintendent has under this Act and the regulations and specify the powers, functions and duties that may be so delegated.

Fees

396.1(6)    The Lieutenant Governor in Council may, by regulation, fix the licence, registration or other annual and special fees to be paid by agents or applicants for agents' licences and specify the portion of such fees that shall be paid to the government and the portion of such fees that shall be retained by each insurance council to finance its operations under this section.

Specific powers and functions

396.1(7)    Without limiting the generality of subsections (4) and (5), the Lieutenant Governor in Council may make regulations empowering insurance councils, on any terms and conditions the Lieutenant Governor in Council deems appropriate, to

(a) collect any fees fixed under subsection (6);

(b) exercise and perform such powers, functions and duties as are conferred or imposed upon or delegated to the insurance councils under this section;

(c) establish the educational, training and other standards and qualifications required for the licensing or registration of agents;

(d) establish and enforce ethical, operational and trade practices for agents;

(e) investigate complaints and adjudicate or mediate disputes respecting services provided by any agent;

(f) initiate and engage in programs of consumer protection;

(g) make recommendations to the minister;

(h) make rules for its own procedure;

and may make regulations respecting any other matter or thing relating to insurance councils that the Lieutenant Governor in Council deems necessary.

Regulations Act not applicable

396.1(8)    The Regulations Act does not apply to any rules of an insurance council made pursuant to this section.

Rules require approval

396.1(9)    All rules made by an insurance council pursuant to this section are subject to the superintendent's approval and are of no force or effect unless and until they are approved by the superintendent.

Appeals from licence refusal

396.1(10)   Every refusal, suspension or cancellation of a licence by an insurance council is subject to appeal in accordance with section 389 with necessary modifications.

Review of decisions

396.1(11)   The superintendent may review

(a) any decision of an insurance council, other than a decision under subsection (10); and

(b) any existing or proposed activity or program of an insurance council;

and may prohibit, or order the insurance council to revoke or cancel or amend, the decision, activity or program, and the insurance council may appeal from any such prohibition or order in accordance with section 389 with necessary modifications.

Coming into force of Act

13          This Act comes into force on a day fixed by proclamation.