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C.C.S.M. c. I40
The Insurance Act
| Table of Contents | Schedule | Regulations |
| Sections: 1 - 208(2) | 208(3) - 409 | |
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
1 In this Act, except where inconsistent with the interpretation section of any Part,
"accident insurance" means the class of accident insurance prescribed in the regulations; (« assurance-accidents corporels »)
"accidental death insurance" means insurance undertaken by an insurer as part of a contract of life insurance whereby the insurer undertakes to pay an additional amount of insurance money in the event of the death by accident of the person whose life is insured; (« assurance en cas de décès accidentel »)
"adjuster" means a person who
(a) for or on behalf of an insurer or an insured, for compensation or reward or the hope or expectation thereof, solicits the right to negotiate the settlement of, or investigate, a loss or claim under a contract, or under a fidelity, surety, or guaranty bond issued by an insurer, or directly or indirectly negotiates, investigates, adjusts, or settles, any such loss or claim, or
(b) holds himself out as an adjuster, investigator, consultant, or adviser, with respect to the adjustment, negotiation, or settlement, of such losses or claims,
but does not include a member of The Law Society of Manitoba entitled to practise as a solicitor in the province acting for or on behalf of a client in the course of, and as part of, his practice as a solicitor; (« expert »)
"agent" means a person who, for compensation solicits insurance on behalf of any insurer or transmits for a person other than himself, an application for or a policy of insurance to or from such insurer or offers or acts or assumes to act in the negotiation of such insurance or in negotiating the continuance or renewal of other than life insurance contracts; (« agent »)
"automobile" includes a trolley bus and a self-propelled vehicle, and the trailers, accessories and equipment of automobiles, but does not include railway rolling stock that runs on rails, watercraft or aircraft; (« automobile »)
"automobile insurance" means the class of automobile insurance prescribed in the regulations; (« assurance-automobile »)
"chief agency" means the head office of the insurer, or the registered office in the province, of a licensed insurer having its head office out of the province; (« agence principale »)
"class", in relation to insurance, means a class of insurance prescribed in the regulations; (« classe »)
"common-law partner" of a person means
(a) another person who, with the person, registered a common-law relationship under section 13.1 of The Vital Statistics Act, or
(b) another person who, not being married to the person, cohabited with him or her in a conjugal relationship
(i) for a period of at least three years, or
(ii) for a period of at least one year and they are together the parents of a child,
except where either
(c) the dissolution of the common-law relationship has been registered under section 13.2 of The Vital Statistics Act, or
(d) the person has lived separate and apart from the other person for at least three years; (« conjoint de fait »)
"common-law relationship" means the relationship between two persons who are common-law partners of each other; (« union de fait »)
"contract" and "contract of insurance" mean a contract the subject matter of which is insurance, and includes any writing evidencing the contract, but where such words are used in a Part of this Act relating to a specific class of insurance they shall, when so used, mean a contract of the class of insurance to which the Part relates; (« contrat » et "contrat d'assurance »)
"court" means the Court of Queen's Bench, except
(a) in subsections 410(3), (6) and (7), and
(b) where the context requires a different meaning; (« tribunal »)
"credit insurance" means the class of credit insurance prescribed in the regulations; (« assurance-crédit »)
"disability insurance" means insurance undertaken by an insurer as part of a contract of life insurance whereby the insurer undertakes to pay insurance money or to provide other benefits in the event that the person whose life is insured becomes disabled as a result of bodily injury or disease; (« assurance-invalidité »)
"employees' mutual benefit society" means a society incorporated or formed and carried on by the officers or officers and employees of an employer for the purpose of providing support and pensions for such of the officers or employees as become incapacitated or as cease to be employed by the employer, or for the purpose of paying pensions, annuities or gratuities to, or for dependants of, such officers or employees, or funeral benefits upon the death of such officers or employees, and membership in which is restricted exclusively to bona fide employees of one employer; (« société mutuelle de salariés »)
"endowment insurance" means the class of endowment insurance prescribed in the regulations; (« assurance mixte »)
"exchange" or "reciprocal or inter-insurance exchange" means a group of persons exchanging reciprocal contracts of indemnity or inter-insurance with each other through the same attorney; (« bourse » ou « bourse d'assurance réciproque ou d'interassurance »)
"family" includes a common-law partner; (« famille »)
"fire insurance" means the class of fire insurance prescribed in the regulations; (« assurance-incendie »)
"foreign jurisdiction" includes any jurisdiction other than Manitoba; (« territoire étranger »)
"fraternal society" means a society, order, or association incorporated for the purpose of making with its members only and not for profit, contracts of life, accident, or sickness insurance in accordance with its constitution, by-laws, and rules and this Act; but does not include a mutual benefit society, a friendly society, an employees' mutual benefit society, or a trade union benefit society; (« société de secours mutuels »)
"friendly society" means a society, order, association or corporation formed or incorporated, and carried on for the purpose of making with its members only, and not for profit, contracts under which
(a) sickness, accident and disability benefits, or any one or more of them, not exceeding $5. per week, or
(b) funeral benefits not exceeding $150.,
for all of such benefits, may be paid only to its members or their beneficiaries, in accordance with its constitution and laws and the provisions of this Act; (« société de collecte »)
"guarantee insurance" means the class of guarantee insurance prescribed in the regulations; (« assurance de cautionnement »)
"guarantee plan" means a plan to guarantee, in whole or in part, the fulfilment of certain insurers' obligations; (« plan de garantie »)
"hail insurance" means the class of hail insurance prescribed in the regulations; (« assurance contre la grêle »)
"industrial contract" means a contract of life insurance for an amount not exceeding $2,000., exclusive of any benefit, surplus, profit, dividend or bonus also payable under the contract, and which provides for payment of premiums at fortnightly or shorter intervals, or if the premiums are usually collected at the home of the insured, at monthly intervals; (« contrat populaire »)
"insurance" means the undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed, or to pay a sum of money or other thing of value upon the happening of a certain event and, without limiting the generality of the foregoing, includes life insurance; but does not include an agreement of the nature commonly described as an investment contract made by a person not licensed under this Act to undertake contracts of insurance; (« assurance »)
"insurance fund," as applied to a fraternal society or as applied to any corporation not incorporated exclusively for the transaction of insurance, includes all money, securities for money and assets appropriated by the rules of the society or corporation to the payment of insurance liabilities or appropriated for the management of the insurance branch, department or division of the society, or otherwise legally available for insurance liabilities, but does not include funds of a trade union appropriated to or applicable for the voluntary assistance of wage earners unemployed or upon strike; (« fonds d'assurance »)
"insurance on the cash plan" means any insurance that is not mutual insurance; (« assurance au comptant »)
"insured" means a person insured by a contract whether named or not; (« assuré »)
"insurer" means the person who undertakes or agrees or offers to undertake a contract; (« assureur »)
"licence" means a licence issued under this Act; (« licence »)
"life insurance" means the class of life insurance prescribed in the regulations; (« assurance-vie »)
"livestock insurance" means the class of livestock insurance prescribed in the regulations; (« assurance-bétail »)
"marine insurance" means the class of marine insurance prescribed in the regulations; (« assurance maritime »)
"minister" means that member of the Executive Council charged with the administration of this Act; (« ministre »)
"motor vehicle" has the same meaning as "automobile"; (« véhicule automobile »)
"motor vehicle liability policy" means a policy or part of a policy evidencing a contract insuring
(a) the owner or driver of an automobile, or
(b) a person who is not the owner or driver thereof where the automobile is being used or operated by his employee or agent or any other person on his behalf, against liability arising out of bodily injury to or the death of a person or loss or damage to property caused by an automobile or the use or operation thereof; (« police de responsabilité automobile »)
"mutual benefit society" means a society, order or association incorporated, and carried on, for the purpose of making with its members only, and not for profit, contracts under which
(a) sickness, accident and disability benefits or any one or more of them, not exceeding $10. per week, or
(b) funeral benefits not exceeding $300.,
or all such benefits, may be paid only to its members or their beneficiaries, in accordance with its constitution and laws and the provisions of this Act; but does not include a friendly society, or an employees' mutual benefit society, or a trade union benefit society; (« société mutuelle »)
"mutual insurance" means a contract of insurance, other than life, accident and sickness insurance, in which the consideration is not fixed or certain at the time the contract is made and is to be determined at the termination of the contract or at fixed periods during the term of the contract according to the experience of the insurer in respect of all similar contracts whether or not the maximum amount of such consideration is predetermined; (« assurance mutuelle »)
"mutual insurance company" means an insurer incorporated under the laws of the province without share capital that is not a fraternal society, a friendly society, an employees' mutual benefit society, a mutual benefit society or a trade union benefit society; (« compagnie d'assurance mutuelle »)
"non-owner's policy" means a motor vehicle liability policy insuring a person solely in respect of the use or operation by him or on his behalf of an automobile that is not owned by him; (« police de conducteur »)
"officer" includes any trustee, director, manager, treasurer, secretary, or member of the board or committee of management of an insurer, or any person appointed by the insurer to sue and be sued in its behalf; (« dirigeant »)
"owner's policy" means a motor vehicle liability policy insuring a person in respect of the ownership, use or operation of an automobile owned by him and within the description or definition thereof in the policy and, if the contract so provides, in respect of the use or operation of any other automobile; (« police de propriétaire »)
"policy" means the instrument evidencing a contract; (« police »)
"premium" means the single or periodical payment to be made for the insurance, and includes dues and assessments; (« prime »)
"premium note" means an instrument given as consideration for insurance whereby the maker undertakes to pay such sum or sums as are legally demanded by the insurer, the aggregate of such sums not to exceed an amount specified in the instrument and includes any undertaking to pay such sums regardless of the form thereof and whether or not accompanied by a deposit of money or security; (« billet de souscription »)
"prescribed" means prescribed in the regulations or otherwise under the authority of this Act; (« prescrit »)
"property" includes profits, earnings, and other pecuniary interests, and expenditure for rents, interest, taxes, and other outgoings and charges and in respect of inability to occupy the insured premises, but only to the extent of express provision in the contract; (« biens »)
"public liability insurance" means the class of public liability insurance prescribed in the regulations; (« assurance responsabilité civile »)
"sick and funeral benefits" includes insurance against sickness, disability or death; (« prestations d'assurance-maladie et indemnités funéraires »)
"sickness insurance" means the class of sickness insurance prescribed in the regulations; (« assurance-maladie »)
"superintendent" means the Superintendent of Insurance and includes the deputy; (« surintendant »)
"trade union" means an organization of wage-earners of a particular trade or industrial calling constituted primarily and operated bona fide for regulation of wages and hours of labour as between employers and employed; but does not include a co-operative association or corporation; (« syndicat ouvrier »)
"trade union benefit society" means a society, association or corporation, membership in which is restricted exclusively to bona fide members of one trade union and which under the authority of its charter has an assurance or benefit fund for the benefit of its own members exclusively; (« société mutuelle syndicale »)
"weather insurance" means the class of weather insurance prescribed in the regulations; (« assurance-intempéries »)
S.M. 1989-90, c. 57, s. 2; S.M. 2002, c. 48, s. 12; S.M. 2007, c. 10, s. 2.
PART I
SUPERINTENDENT AND HIS DUTIES
Appointment of superintendent, deputy, and staff
2(1) An officer to be called: "Superintendent of Insurance" and an officer to be called: "Deputy Superintendent of Insurance" and such other officers and employees under the superintendent as are necessary for the purposes of this Act may be appointed as provided in The Civil Service Act.
2(2) The superintendent shall act under the instructions of the minister, have general supervision of the business of insurance within the province, see that the laws relating thereto are enforced and obeyed, and examine and report to the minister from time to time upon all matters connected therewith.
Applications under section 280 of The Corporations Act
2(3) The superintendent may consider any application, his approval to which is required under section 280 of The Corporations Act.
3 The Deputy Superintendent of Insurance shall act as superintendent during the absence or inability of the superintendent, and shall perform such other duties as are assigned to him by this Act, by the Lieutenant Governor in Council, the minister, or the superintendent.
Agreement with Canada for inspection of insurers
4(1) Notwithstanding anything in this Act or any other Act of the Legislature, the Lieutenant Governor in Council may enter into an agreement or agreements with the Government of Canada under which, upon the terms and conditions therein contained, the Superintendent of Insurance (Canada) shall perform the duties imposed upon the superintendent under the sections of this Act dealing with the financial inspection and supervision of insurers.
Provision for payment to Canada
4(2) Without restricting the generality of subsection (1), an agreement made under subsection (1) may provide for payment to the Government of Canada for the performance of the duties under the agreement by the Superintendent of Insurance (Canada).
Regulations for carrying agreement into effect
4(3) The Lieutenant Governor in Council may make regulations deemed necessary for carrying any agreement into effect, and may authorize the Superintendent of Insurance (Canada) to exercise and perform any or all of the powers granted to and the duties imposed on the superintendent under the sections referred to in subsection (1) and under subsections (4) and (5).
Superintendent to ascertain inspection expenditure during last preceding year
4(4) Where an agreement is entered into under this section, the Superintendent of Insurance (Canada) shall annually, as soon as may be after the close of each fiscal year, by such inquiry or investigation as he may deem necessary, ascertain and certify the total amount of the expenditure incurred for or in connection with the administration of the sections of this Act dealing with the financial inspection and supervision of insurers during the last preceding fiscal year; and the amount of the expenditure so ascertained and certified by the superintendent shall be final and conclusive for all purposes of this section.
4(5) In each year that an agreement made under subsection (1) is in force, the Superintendent of Insurance (Canada) shall assess each insurer for the expenses incurred by the Superintendent of Insurance (Canada) for or in connection with the performance by him of duties under the agreement in respect of that insurer and shall notify the superintendent of the amount of each such assessment.
4(6) Upon being notified of an assessment made against an insurer under subsection (5), the superintendent shall notify the insurer in writing of the amount of the assessment and that amount is a debt due by the insurer to the Crown, payable to the minister and due on the 30th day after the day the insurer receives the notice of assessment.
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.
5(2) The Lieutenant Governor in Council may make such regulations as the Lieutenant Governor in Council deems necessary
(a) to carry out any agreement referred to in subsection (1); and
(b) to enforce the rights of the Government of Manitoba under an agreement referred to in subsection (1).
S.M. 1989-90, c. 57, s. 3.
6(1) In carrying out his duties and in exercising his powers under this Act or under any other Act relating to insurance, the superintendent may require and may take and receive affidavits, statutory declarations, and depositions, and may examine witnesses upon oath; and he has the same power to summon persons to attend as witnesses, to enforce their attendance, to compel them to produce books, documents and things, and to give evidence as any court has in civil cases.
6(2) An oath required by this Act to be taken, may be administered by the superintendent or by any person authorized to administer oaths in the province.
Superintendent not to be shareholder
7 Neither the superintendent nor any officer under him shall be interested as a shareholder, directly or indirectly, in any insurance company doing business in the province.
Immunity of superintendent and insurance council
8(1) No action or other proceeding may be brought against the superintendent, or against an insurance council established under section 396.1 or a member or employee of an insurance council,
(a) for anything done in good faith in the exercise or intended exercise of a power or in the performance or intended performance of a duty under this Act; or
(b) for any neglect or default in the exercise of a power or the performance of a duty in good faith under this Act.
8(2) The superintendent may bring actions and institute proceedings in his name of office for the enforcement of any provision of this Act or for the recovery of fees and penalties payable hereunder.
8(3) No action or proceeding for the recovery of fees and penalties payable hereunder shall be commenced without the leave of the superintendent.
BOOKS AND RECORDS
9(1) The superintendent shall keep the following books and records:
(a) a register of all licences issued pursuant to this Act, in which shall appear the name of the insurer, the address of its head office, the address of its principal office in Canada, the name and address of its principal general agent in the province, the number of the licence, particulars of the classes of insurance for which the insurer is licensed, and such other information as the superintendent deems necessary;
(b) repealed, S.M. 2000, c. 40, s. 3; and
(c) a record of agents, brokers, adjusters and assistant adjusters licensed or authorized under this Act.
9(2) The books and records required by this section to be kept shall be open to inspection at such time and upon payment of such fees as are prescribed.
R.S.M. 1987 Supp., c. 18, s. 1; S.M. 2000, c. 40, s. 3.
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.
Annual publication in Manitoba Gazette
10(2) A certificate, under the hand and seal of office of the superintendent, that on a stated day an insurer mentioned therein was or was not licensed under this Act, or that any insurer was originally admitted to licence or that the licence of any insurer was renewed, suspended, revived, revoked, or cancelled on a stated day, is evidence of the facts stated in the certificate, without proof of the signature of the superintendent or official signing it.
Certificate of filing evidence
10(3) A certificate of the filing of any document by this or any former Insurance Act required to be filed in the office of the inspector of insurance or of the superintendent is evidence of the filing if signed or purporting to be signed by the superintendent.
S.M. 1989-90, c. 57, s. 4.
DUTIES RESPECTING LICENCES
Superintendent to determine right to licence
11 The superintendent shall determine the right of any insurer to be licensed under this Act, subject to appeal, and to the right of the Lieutenant Governor in Council or of the minister to suspend or cancel any licence as hereinafter provided.
Applications for approval by superintendent
12(1) Where an application is made to the superintendent for his approval of any matter requiring his approval under section 280 of The Corporations Act, he may, subject to appeal, give or withhold his approval, and if he gives his approval he shall state therein to what class of insurance, as defined herein, the applicant belongs, and the kinds of insurance which an insurer of that class may transact; and the applicant shall file with the superintendent such evidence as he may require.
12(2) Where the superintendent withholds his approval of an application made under subsection (1), the applicant may appeal from the decision of the superintendent to the Lieutenant Governor in Council whose decision thereon is final.
13(1) Every decision of the superintendent upon an application for a licence shall be in writing and notice thereof shall be forthwith given to the insurer.
13(2) The insurer, or any person interested shall be entitled, upon payment of the prescribed fee, to a certified copy of the decision.
Stenographic report of evidence
13(3) The evidence and proceedings in any matter before the superintendent may be reported by a stenographer sworn before the superintendent faithfully to report it.
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.
S.M. 1989-90, c. 57, s. 5.
INVESTIGATION OF INSURERS
Consequences of failure to answer inquiries
15 The superintendent may direct to an insurer any inquiry touching its contracts or financial affairs, and the insurer shall make prompt and explicit answer to any such inquiry, and, in case of refusal or neglect to answer, is guilty of an offence.
16 The superintendent, or any person authorized under his hand, shall, at all reasonable times, have access to all the books, securities, and documents of an insurer, agent, or adjuster, that relate to contracts of insurance; and any officer or person in charge, possession, custody or control of such books, securities, or documents who refuses or neglects to afford such access is guilty of an offence.
Duty to furnish information on request
17 The officers, adjusters, and agents of every licensed insurer, every other licensed person, and every insurer, shall furnish the superintendent on his request with full information relative to any contract issued by the insurer or to the insured, as the case may be, and made or deemed to be made within the province, or relative to any settlement or adjustment under any such contract.
18(1) The superintendent shall visit personally, or cause to be visited, at least annually, the head office or chief agency in the province of every licensed insurer, other than a mutual benefit society having less than 300 members, or any insurer as to which he adopts the inspection of some other government, and he shall verify the statement of the condition and affairs of each such insurer filed under this Act, and make such inquiries as are necessary to ascertain its ability to provide for the payment of its contracts as they mature and whether or not it has complied with all the provisions of this Act applicable to its transactions; and the superintendent shall report thereon to the minister as to all matters requiring his attention and decision.
Examination of affairs of insurer
18(2) Where the head office of any such insurer is not in the province the minister may, in his discretion, instruct the superintendent to visit the head office to inspect and examine its affairs and to make such inquiries as the minister requires.
Duty of officers and agents to facilitate examination
18(3) The officers or agents of the insurer shall produce its books and records for the inspection of the superintendent or other person making the inspection, and shall otherwise facilitate the examination so far as is in their power.
Production of books at head office
18(4) In order to facilitate the inspection the superintendent, with the approval of the minister, may require the insurer to produce the books and records at the head office or chief agency of the insurer in the province or at such other place as the superintendent directs; and any officer of the insurer who has custody of the books and records so attending shall be entitled to be paid by the insurer the actual expenses of his attendance.
Examination of affairs of an insurer
18(5) The superintendent, with the approval of the minister, may cause abstracts to be prepared of the books and vouchers and a valuation to be made of the assets and liabilities of any such insurer, and the cost thereof, upon the certificate of the superintendent approved by the minister, shall be paid by the insurer.
18(6) An insurer examined or inspected under this section outside the province shall forthwith pay to the superintendent his expenses in connection therewith upon the delivery to the insurer of the certificate of the superintendent approved by the minister, certifying as to his travelling and living expenses.
18(7) Any amount payable under subsection (6) may be recovered by the superintendent as a debt due to the Crown.
Assistants and their remuneration
18(8) The superintendent may, with the approval of the minister, employ persons to make on his behalf, or to assist him in making, any examination or inspection under this section; and the travelling and living expenses of those persons so employed constitute expenses of the superintendent within the meaning of subsection (6).
Disposal of moneys paid for expenses
18(9) Any moneys paid to the superintendent under this section do not form part of the Consolidated Fund but may be disbursed by the superintendent in payment of his expenses.
18(10) With the consent of the minister, the superintendent may, with respect to any insurer, accept the inspection and report, in whole or in part, of, or made under the authority of, any other government in Canada.
SERVICE OF PROCESS
Service of process on superintendent
19(1) Where the head office of a licensed insurer is situated outside the province, notice or process in any action or proceeding in the province may be effectually served upon the insurer by leaving three copies of the notice or process with the superintendent, or with an employee in the office of the superintendent designated for that purpose by him.
Contracts on cessation of licence
19(2) Where a licensed insurer ceases to be licensed, while any contract made in the province by the insurer is in force, the insurer shall, for the purposes of this section, be deemed to be a licensed insurer.
19(3) Every licensed insurer shall file in the office of the superintendent notice of a post office address to which the notice or process may be forwarded by the superintendent and shall notify the superintendent of any change in the address.
Superintendent to forward process
19(4) The superintendent shall forthwith after the receipt of the notice or process in triplicate forward one copy thereof to the insurer by registered mail, postage prepaid, addressed in the manner last notified to him for this purpose by the insurer.
19(5) The superintendent shall keep a record of all such proceedings, showing the day and hour of the service of process on him; and for that service each insurer shall pay to the superintendent, in the name of the Minister of Finance, for the use of Her Majesty, an annual fee prescribed by the regulations.
No judgment by default unless service is proved
19(6) No judgment against the insurer shall be entered for default of appearance or defence in the action or proceeding unless an affidavit is filed in the court out of, or by, which the process is issued, showing that the superintendent has duly forwarded a copy thereof to the insurer.
S.M. 1989-90, c. 57, s. 6.
ANNUAL REPORT
20(1) The superintendent shall prepare for the minister from the statements filed by the insurers and from any inspection or inquiries made, an annual report, showing particulars of the business of each insurer as ascertained from the statements, inspection, and inquiries; and the report shall be printed and published forthwith after completion.
20(2) In his report the superintendent shall allow as assets only such of the investments of any insurer as are authorized by this Act, its charter or any other Act applicable to such investments.
Superintendent's correction of annual statements
20(3) In his report the superintendent shall make the necessary corrections in the annual statement of any insurer, and may increase or diminish the liabilities of the insurer to the true and correct amounts thereof as ascertained from any examination of its affairs.
Appraisement of real estate of insurer
20(4) Where it appears to the superintendent, or where he has reason to suppose, from the annual statement, that the value placed by an insurer incorporated and licensed under the laws of the province upon any of its real estate is too great, he may either require the insurer to secure an appraisement of the real estate by one or more competent valuators, or may himself procure such appraisement at the expense of the insurer; and the appraised value, if it varies materially from the statement made by the insurer, may be substituted in the annual report of the superintendent.
20(5) In like manner the superintendent may procure an appraisement of any parcel of land that constitutes the security for any loan; and if from the appraisal it appears that the parcel is not adequate security for the loan and accrued interest, he may reduce the value to such an amount as is fairly realizable from the security, in no case to exceed the appraised value, and may insert the reduced value in his report.
Appraisement of other investments
20(6) In like manner the superintendent may make, or cause to be made, an appraisal of the security taken for any investments of the insurer; and if it appears that the value of the securities as shown on the books of the insurer is greater than its true value as shown by the appraisal he may reduce the book value thereof to such amount as is fairly realizable therefrom, and in no case to exceed the appraised value, and may insert the reduced amount in his annual report.
20(7) The superintendent may require any insurer incorporated and licensed under the laws of the province to dispose of and realize any of its investments acquired after the passing of this Act and not allowed in his report; and the insurer shall, within 60 days after receiving the requisition, absolutely dispose thereof; and subject to subsection (8), if the amount realized therefrom falls below the amount paid by the insurer therefor, the directors of the insurer are jointly and severally liable for the payment to the insurer of the amount of the deficiency.
20(8) If any director present when an investment to which subsection (7) applies was authorized did forthwith, or if any director then absent, did, within eight days after he becomes aware of such an investment, protest and give notice thereof by registered letter to the superintendent, that director may thereby, and not otherwise, exonerate himself from the liability.
20(9) An insurer affected thereby may appeal to the Lieutenant Governor in Council from the ruling of the superintendent as to the allowance in his report of any asset not allowed by him, or as to any item or amount added to liabilities, or as to any correction or alteration made in its statement.
APPEAL FROM SUPERINTENDENT'S DECISION
21(1) Where, by this Act, an appeal to the Lieutenant Governor in Council is given to any person, the superintendent shall, at the request of the person, give a certificate in writing, setting forth the ruling complained of and his reasons therefor; and the ruling is binding upon the person, unless within ten days after the giving thereof the person serves upon the superintendent notice of his intention to appeal therefrom, setting forth the grounds of appeal, and within ten days thereafter files his appeal with the Lieutenant Governor in Council and with due diligence prosecutes it, in which case action on the ruling shall be suspended until the Lieutenant Governor in Council renders judgment thereon.
21(2) The superintendent shall certify and file with the Clerk of the Executive Council the decision appealed from and his reasons therefor, and the documents, statements, inspection reports, certificates, declarations, and other papers relating to the matter, and any evidence taken, and such other information as he had before him in making his decision.
PART II
GENERAL PROVISIONS APPLICABLE TO INSURERS IN MANITOBA CARRYING ON BUSINESS
22(1) Any insurer undertaking a contract of insurance that, under this Act, is deemed to be made in the province, whether the contract is original or a renewal, except the renewal from time to time of life insurance policies, shall be deemed to be undertaking insurance in the province within the meaning of this Part.
22(2) Any insurer that
(a) undertakes or offers to undertake insurance within the province; or
(b) sets up or causes to be set up within the province any sign containing the name of the insurer; or
(c) maintains or operates within the province either in its own name or in the name of an agent or other representative an office for the transaction of a business of insurance either within or without the province; or
(d) distributes or publishes within the province, or causes to be distributed or published within the province, any proposal, circular, card advertisement, printed form, or like document; or
(e) inserts, prints, or publishes, its name, or permits or causes its name to be inserted, imprinted, or published, in any telephone directory or in any other directory or list of names, with or without addresses, of the residents or occupants of premises in any municipality, locality, area, or district within the province, or in any building within the province; or
(f) makes or causes to be made within the province any written or oral solicitation for insurance; or
(g) issues or delivers within the province any policy of insurance or interim receipt; or
(h) collects or receives within the province or negotiates within the province for, or causes to be collected or received within the province, or negotiated within the province for, any premium for a contract of insurance; or
(i) inspects any risk or adjusts any loss within the province under a contract of insurance; or
(j) prosecutes or maintains within the province any action or proceeding in respect of a contract of insurance; or
(k) represents or holds itself out within the province to the public as being engaged in the insurance business; or
(l) has in force contracts of insurance on property situated in the province, or insuring persons resident in the province
shall be deemed to be an insurer carrying on business in the province within the meaning of this Act.
Certain organizations deemed insurers
23(1) Every society, order, association or corporation that under its constitution and laws is empowered
(a) to pay to its members or their beneficiaries, as a benefit payable by the society, order, association or corporation, the proceeds of a contingency levy; or
(b) to pay sickness, accident, disability, unemployment, funeral, hospital, medical, or dental benefits, or benefits payable on death or on the happening of any contingency dependent on human life, in an amount that is fixed at the discretion of the directors or of an executive or management committee of the society, order, association or corporation;
shall, subject to subsection 24(4) be deemed to be an insurer within the meaning of this Act.
Definition of "contingency levy"
23(2) For the purposes of this section the expression "contingency levy" means an assessment or levy made on members of a society, order, association, or corporation on the occasion of the happening to any member thereof of any one or more of certain contingencies upon the happening of which that member or his beneficiaries become entitled to receive the proceeds of that assessment or levy.
LICENCES
24(1) Every insurer carrying on business in the province shall obtain from the superintendent and hold a licence under this Act.
Prohibition of unlicensed insurance
24(2) Every insurer carrying on business in the province without having obtained a licence as required by this section, is guilty of an offence.
Prohibition against person acting on behalf of unlicensed insurer
24(3) Any person who, within the province, does or causes to be done any act or thing mentioned in section 22 on behalf of, or as agent of, an insurer not licensed under this act, or who receives, directly or indirectly, any remuneration for so doing, is guilty of an offence.
24(4) The following shall not be deemed insurers within the meaning of this Act or required or entitled to be licensed as such:
(a) employees' mutual benefit societies;
(b) friendly societies;
(c) trade union benefit societies;
(d) mutual benefit societies whose memberships are confined to railway employees and which do not grant mortuary or funeral benefits; and
(e) such other organizations as the Lieutenant Governor in Council determines.
Carrying on business in foreign jurisdiction without authority
24(5) Where the superintendent is satisfied that an insurer licensed under this Act is carrying on or soliciting business in a foreign jurisdiction without being first authorized so to do under the laws of that foreign jurisdiction, the Lieutenant Governor in Council may, upon the report of the superintendent, suspend or cancel the licence of the insurer.
24(6) Repealed, S.M. 2007, c. 10, s. 3.
Reinsurance with unlicensed insurer
25 Nothing in this Act prevents a licensed insurer that has lawfully effected a contract of insurance in the province from reinsuring the risk or any portion thereof with any insurer transacting business out of the province and not licensed under this Act.
26(1) Upon due application and proof of compliance with this Act and upon payment of the prescribed fee, the superintendent may issue a licence to undertake contracts of insurance and carry on business in the province to any insurer coming within one of the following classes:
(a) joint stock insurance companies;
(b) mutual insurance companies;
(c) fraternal societies;
(d) mutual benefit societies;
(e) companies duly incorporated to undertake insurance contracts and not within any of the foregoing classes;
(f) underwriters or syndicates of underwriters operating on the plan known as Lloyd's;
(g) repealed, S.M. 2007, c. 10, s. 4.
26(2) A licence issued pursuant to this Act authorizes the insurer named therein to exercise within the province all rights and powers reasonably incidental to the carrying on of the business of insurance named therein, that are not inconsistent with this Act or with the terms of its charter.
R.S.M. 1987 Supp., c. 18, s. 2.; S.M. 1993, c. 9, s. 2; S.M. 2007, c. 10, s. 4.
27(1) Subject to provisions of Parts of this Act particularly relating to classes of insurers mentioned in section 26, a licence may be granted to an insurer to carry on one or more classes of insurance.
Limited or conditional licence
27(2) A licence may be issued subject to such limitations and conditions as the minister prescribes.
27(3) Notwithstanding subsection (2) and section 34, the Minister may, at any time, in respect of any licence of an insurer,
(a) reduce the term for which the licence was issued or renewed; or
(b) impose any condition or limitation relating to the carrying on of the insurer's business that he considers appropriate; or
(c) vary, amend or revoke any condition or limitation to which the licence is then subject;
or do any or all of those things; but the Minister may not exercise any power granted under this subsection unless he has given the insurer notice of his intention to exercise the power and has afforded the insurer a reasonable opportunity to be heard with respect thereto.
Determination of classes of insurance by superintendent
27(4) Where a question arises as to the class of insurance into which any specific contract of insurance or form of policy falls, the superintendent may determine the question; and his determination is effective and final for the purposes of this Act.
Conditions of automobile insurance licence
27(5) A licence to carry an automobile insurance in Manitoba is subject to the following conditions:
(a) In any action in Manitoba against the licensed insurer, or its insured, arising out of an automobile accident in Manitoba, the insurer shall appear and shall not set up any defence to a claim under a contract made outside Manitoba, including any defence as to the limit or limits of liability under the contract, that might not be set up if the contract were evidenced by a motor vehicle liability policy issued in Manitoba.
(b) In any action in another province or territory of Canada against the licensed insurer, or its insured, arising out of an automobile accident in that province or territory, the insurer shall appear and shall not set up any defence to a claim under a contract evidenced by a motor vehicle liability policy issued in Manitoba, including any defence as to the limit or limits of liability under the contract, that might not be set up if the contract were evidenced by a motor vehicle liability policy issued in that other province or territory.
27(6) A licence may be cancelled when the holder commits a breach of condition as set out in subsection (5).
28 Every insurer licensed for the transaction of life insurance may, under the authority of its licence, unless the licence expressly provides otherwise, issue annuities and endowments of all kinds and also include in any policy of life insurance, in respect of the same life or lives insured thereby, disability insurance and accidental death insurance.
Scope of fire insurance licence
29(1) Every insurer licensed to carry on fire insurance may, subject to its act of incorporation, and subject to the restrictions prescribed by the licence, insure or reinsure any property in which the insured has an insurable interest against loss or damage by fire, lightning or explosion and may insure or reinsure the same property against loss or damage from falling aircraft, earthquake, windstorm, tornado, hail, sprinkler leakage, riot, malicious damage, weather, water damage, smoke damage, civil commotion and impact by vehicles and any one or more perils falling within such other classes of insurance as are prescribed by the regulations.
Insurance of automobiles against fire
29(2) An insurer licensed to carry on fire insurance may insure an automobile against loss or damage under a policy falling within Part IV of this Act; but in the case of a purely mutual fire insurance corporation, incorporated or licensed in Manitoba and carrying on business on the premium note plan, the automobile shall be specifically insured under a policy separate from that insuring other property.
Restrictions on granting licence
30(1) A licence shall not be granted to a joint stock insurance company that is not licensed as at October 1, 1997 unless the company furnishes evidence satisfactory to the superintendent that the company meets any financial standards for an insurer of its class that may be prescribed by regulation.
30(2) Repealed R.S.M. 1987 Supp., c. 18, s. 4.
Further restrictions on granting licences
30(3) A licence shall not be granted an insurance company mentioned in clause 26(1)(e), or to an underwriter or syndicate of underwriters operating on the plan known as Lloyd's, except upon proof that
(a) its net surplus of assets over all liabilities exceeds the paid-up capital stock required under subsection (l) in respect of a joint stock company carrying on the same class of insurance; and
(b) its net surplus together with the contingent liability of members, if any, exceeds the subscribed and allotted capital stock required in the case of such a joint stock insurance company.
30(4) A licence shall not be granted to a mutual insurance company that is not licensed as at October 1, 1997 unless the company furnishes evidence satisfactory to the superintendent that the company meets any financial standards for an insurer of its class that may be prescribed by regulation.
30(5) A licence shall not be granted to any insurer except upon proof that the insurer has complied with the provisions of the Part of this Act and regulations applicable thereto.
Evidence by insurer whose head office outside of province
30(6) Where the head office of an applicant for a licence under this Act is situated outside the province, a licence shall not be granted except upon proof of the applicant's ability to provide for the payment at maturity of all its contracts; but the superintendent may accept as sufficient the fact that the insurer is licensed by any government in Canada.
Certain types of agreements requiring superintendent's approval
30(7) Where an insurer that under its constitution and laws is empowered
(a) to pay to its members or their beneficiaries, as a benefit payable by such insurer, the proceeds of a contingency levy; or
(b) to pay sickness, accident, disability, unemployment, funeral, hospital, medical, or dental benefits, or benefits payable on death or on the happening of any contingency dependent on human life, in an amount which is fixed at the discretion of the directors or of an executive or management committee of the insurer;
applies for a licence, and the insurer has not, prior to the date of the application, been licensed, if the insurer, after April 6, 1944, and before making the application, has made with any of its shareholders, members or policyholders an agreement whereby the terms of any former contract between the insurer and any shareholder, member or policyholder has been altered or modified, or if any change has been made with respect to any reserve fund or surplus moneys or assets, a licence shall not be granted to the insurer until the agreement or change has been submitted to, and approved by, the minister.
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.
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).
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.
R.S.M. 1987 Supp., c. 18, s. 3 to 5; S.M. 1989-90, c. 57, s. 7 to 9; S.M. 1997, c. 14, s. 2; S.M. 2007, c. 10, s. 6.
Information preliminary to licence
31 The superintendent may require such notice of the application for a licence to be given by publication in The Manitoba Gazette and elsewhere as he deems necessary.
Documents to be filed by applicants for licence
32(1) Before the issue of a licence to an insurer, the insurer shall file in the office of the superintendent
(a) in the case of an insurer undertaking life insurance and that was not licensed on March 17, 1943, a certified copy of an order made under section 53 of the Insurance Companies Act (Canada);
(b) a certified copy of its Act or charter of incorporation, which shall include its constitution, by-laws, and regulations verified in manner satisfactory to the superintendent;
(c) a certified copy of its last balance sheet and auditor's report thereon;
(d) notice of the place where the chief agency or head office of the insurer in the province is to be situated;
(e) a statement showing the amount of the capital of the insurer and the number of shares into which it is divided, the number of shares subscribed and the amount paid up thereon;
(f) notice of appointment of chief agent or resident manager for the province;
(g) such other evidence as the superintendent requires.
Exemption from certain filings
32(2) Where the insurer is not a corporation or certain of the provisions of subsection (1) are otherwise inapplicable to the insurer, the superintendent may dispense with the filing of those documents that do not apply to the insurer.
32(3) Where a change at any time is made in the charter of the insurer or its head office or chief agency or in its chief agent, the insurer shall forthwith notify the superintendent thereof and file with him such further certified copies, notices or powers of attorney as are necessary to evidence the change.
S.M. 1992, c. 58, s. 12; S.M. 2007, c. 10, s. 7.
Statement of expenses of organization
33(1) Upon application being made for a licence by an insurer incorporated under the laws of the province after September 1, 1932, there shall be submitted to the superintendent a sworn statement setting forth the several sums of money paid in connection with its incorporation and organization, and therein a list of all unpaid liabilities, if any, arising out of its incorporation and organization.
33(2) Until the licence is granted, no payments on account of such expenses, shall be made out of the moneys paid in by shareholders except reasonable sums for the payment of clerical assistance, legal services, office rental, advertising, stationery, postage and expense of travel, if any.
Conditions precedent to issue of licence
33(3) The superintendent shall not issue the licence until he is satisfied that all requirements of this Act and of The Corporations Act, as to subscriptions of stock, payment of money by shareholders on account thereof, election of directors and other preliminaries have been complied with, and that the expenses of incorporation and organization, including the commission payable for the sale of the stock are reasonable.
34 The licence shall be in such form as is determined by the superintendent, shall specify the business to be carried on by the insurer and shall expire on December 31 in the year of its issue, but may be renewed from year to year.
35 The superintendent may issue a licence to an insurer that has complied with this Act and The Corporations Act.
CANCELLATION OF LICENCE
Withdrawal of licence for non-payment of claims
36(1) Upon written notice to the superintendent and upon proof of an undisputed claim arising from loss insured against in the province remaining unpaid for the space of 60 days after becoming due, or of a disputed claim, after final judgment and tender of a valid discharge, being unpaid, the superintendent shall cancel the licence of the insurer.
36(2) The superintendent may revive the licence and the insurer may again carry on business if, within six months after notice to the superintendent of the failure of the insurer to pay such an undisputed claim or the amount of such a final judgment, the undisputed claim or final judgment is paid and satisfied.
37 Repealed.
Suspending or cancelling a licence
37.1 The Lieutenant Governor in Council may, with or without conditions, suspend or cancel the licence of an insurer if the insurer is found guilty of an offence referred to in section 410.
Insufficiency of assets to be reported by superintendent
38(1) Where the superintendent, upon examination, or from annual statements, or upon other evidence, finds that the assets of any insurer are insufficient to justify the continuance of the insurer in business or to provide proper security to persons effecting insurance with the insurer in the province or that the insurer has failed to comply with any provision of law, or its charter, he shall so report to the minister.
38(2) Where the minister, after consideration of the report and after hearing or giving notice of a hearing to the insurer, and upon any further investigation he thinks proper, reports to the Lieutenant Governor in Council that he concurs in the report of the superintendent, the Lieutenant Governor in Council may suspend or cancel the licence of the insurer.
38(3) Upon the publication of notice of the suspension or cancellation of licence in The Manitoba Gazette, any person who transacts business on behalf of the insurer, except for winding-up purposes, is guilty of an offence.
38(4) Where the superintendent has so reported, the minister or the Lieutenant Governor in Council may direct the issue of such modified, limited, or conditional licence as is deemed necessary for the protection of persons in the province who have effected or effect contracts of insurance with the insurer.
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).
S.M. 1989-90, c. 57, s. 10.
39 Upon the suspension or cancellation of the licence of an insurer by any government in Canada, the superintendent may suspend or cancel the licence of that insurer under this Act.
40 Where the licence of an insurer is suspended or cancelled, it may be revived if the insurer makes good the deficiency, or remedies its default, as the case may be, to the satisfaction of the minister.
41 The superintendent shall report to the minister any violation of any provision of this Act by a licensed insurer; and thereupon the minister may, in his discretion, suspend or cancel or refuse to renew the insurer's licence.
SUPPLEMENTARY PROVISIONS RESPECTING CORPORATE GOVERNANCE OF INSURERS INCORPORATED IN MANITOBA
41.1(1) The following definitions apply in this section and in sections 41.2 to 41.25.
"affiliate" means an entity that is affiliated with an insurer within the meaning of subsection (2). (« groupe »)
"entity" means
(a) a body corporate;
(b) a trust;
(c) a partnership;
(d) a fund;
(e) an unincorporated association or organization;
(f) Her Majesty in right of Canada or a province;
(g) an agency of Her Majesty in right of Canada or a province; or
(h) the government of, or of a political subdivision of, a foreign country or an agency of such a government. (« entité »)
"indebtedness" includes indebtedness in respect of
(a) commercial paper;
(b) acceptances;
(c) lines of credit to the extent drawn on; and
(d) margin loans made to a director or officer of an insurer. (« dette »)
"insurer" means an insurer incorporated under The Corporations Act. (« assureur »)
"not in good standing", in relation to a loan, means a loan in respect of which
(a) a payment of principal or interest is 90 days or more overdue;
(b) interest is not being accrued on the books of the lender because it is doubtful whether the principal or interest will be paid or recovered; or
(c) the rate of interest is reduced by the lender because the borrower is financially weak. (« en souffrance »)
"significant borrower", in relation to an insurer, means
(a) an individual who has indebtedness for money borrowed from the insurer or from an affiliate of the insurer, other than a loan secured by a mortgage on the individual's principal residence, the total principal of which exceeds the greater of
(i) $200,000., and
(ii) 0.02% of the insurer's regulatory capital; or
(b) an entity that has indebtedness for money borrowed from the insurer or from an affiliate of the insurer the total principal of which exceeds the greatest of
(i) $500,000.,
(ii) 0.05% of the insurer's regulatory capital, and
(iii) 25% of the value of the entity's assets. (« emprunteur important »)
"subsidiary", in relation to an insurer, means an entity that is controlled by the insurer. (« filiale »)
41.1(2) An entity is affiliated with an insurer if one of them is controlled by the other or both are controlled by the same person.
Sections 41.1 to 41.25 supplementary to Corporations Act
41.2(1) Sections 41.1 to 41.25 are supplementary to the provisions of The Corporations Act that apply to insurers.
Precedence over Corporations Act
41.2(2) If there is a conflict between a provision of sections 41.1 to 41.25 and The Corporations Act, this Act takes precedence.
Unanimous shareholder agreements not allowed
41.3(1) The shareholders of an insurer shall not enter into a unanimous shareholder agreement, as defined in The Corporations Act. Such an agreement is of no force and effect.
Shareholders must appoint auditor
41.3(2) Despite section 157 of The Corporations Act, the shareholders of an insurer shall not resolve not to appoint an auditor.
Control of a body corporate or other entity
41.4(1) For the purposes of sections 41.1 to 41.25,
(a) a person controls a body corporate if
(i) securities of the body corporate to which are attached more than 50% of the votes that may be cast to elect directors of the body corporate are beneficially owned by the person, and
(ii) the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate;
(b) a person controls an unincorporated entity other than a limited partnership if
(i) more than 50% of the ownership interests, however designated, into which the entity is divided are beneficially owned by that person, and
(ii) the person is able to direct the business and affairs of the entity;
(c) the general partner of a limited partnership controls the limited partnership; and
(d) a person controls an entity if the person has any direct or indirect influence that, if exercised, would result in control in fact of the entity.
41.4(2) A person who controls an entity is deemed to control any entity that is controlled, or deemed to be controlled, by the entity.
Deemed control — common ownership of securities
41.4(3) A person is deemed to control an entity if the aggregate of
(a) any securities of the entity that are beneficially owned by the person; and
(b) any securities of the entity that are beneficially owned by any entity controlled by the person;
is such that, if the person and all of the entities referred to in clause (b) that beneficially own securities of the entity were one person, that person would control the entity.
Significant interest in insurer's shares
41.5(1) For the purposes of sections 41.1 to 41.25, a person has a significant interest in a class of an insurer's shares if the aggregate of
(a) any shares of that class beneficially owned by the person; and
(b) any shares of that class beneficially owned by entities controlled by the person;
exceeds 10% of all of the outstanding shares of that class of the insurer's shares.
Substantial investment in a body corporate
41.5(2) For the purposes of sections 41.1 to 41.25, a person has a substantial investment in a body corporate where
(a) the voting rights attached to the aggregate of any voting shares of the body corporate beneficially owned by the person and by any entities controlled by the person exceed 10% of the voting rights attached to all of the outstanding voting shares of the body corporate; or
(b) the aggregate of any shares of the body corporate beneficially owned by the person and by any entities controlled by the person represents ownership of greater than 25% of the shareholders' equity of the body corporate.
Substantial investment in an unincorporated entity
41.5(3) For the purposes of sections 41.1 to 41.25, a person has a substantial investment in an unincorporated entity where the aggregate of any ownership interests, however designated, into which the entity is divided, beneficially owned by the person and by any entities controlled by the person exceeds 25% of all of the ownership interests into which the entity is divided.
41.6(1) An insurer shall have at least five directors.
41.6(2) A majority of the directors of an insurer shall be residents of Canada.
41.6(3) An insurer's directors shall not transact business at a meeting of directors unless a majority of the directors present are residents of Canada.
41.6(4) Despite subsection (3), directors may transact business at a directors' meeting when a majority of the directors present are not residents of Canada, if
(a) a director who is a resident of Canada and who is unable to be present approves in writing, or by telephone or other communication facility, the business transacted at the meeting; and
(b) the required majority would have been present at the meeting had that director been present.
41.7(1) The directors of an insurer shall manage, or supervise the management of, its business and affairs.
41.7(2) Without limiting the generality of subsection (1), the directors of an insurer shall
(a) establish an audit committee and a conduct review committee;
(b) establish procedures to resolve conflicts of interest, including techniques for identifying potential conflict situations and for restricting the use of confidential information; and
(c) establish policies and procedures to ensure that the insurer applies prudent investment standards.
41.7(3) At the organizational meeting of an insurer required by subsection 99(1) of The Corporations Act, the directors shall appoint a qualified person to be the insurer's actuary.
Filling vacancy in actuary's position
41.7(4) If the position of actuary becomes vacant, the directors shall appoint another qualified person to fill it. They may not delegate that power to a managing director or a committee of directors.
Superintendent may exempt certain insurers
41.7(5) At the request of an insurer, the superintendent may exempt the insurer from the requirements of subsection (3), if
(a) the insurer satisfies the superintendent that its insurance business
(i) is limited in scope,
(ii) is seasonal, or
(iii) involves minimal policy liabilities; and
(b) the superintendent believes that the exemption will not prejudice the insurer's policyholders or shareholders.
41.7(6) The actuary of an insurer who resigns or whose appointment is revoked shall submit to the insurer's directors and the superintendent a written statement of
(a) the circumstances of the resignation or revocation; and
(b) the reasons why the actuary resigned or why, in the actuary's opinion, the appointment was revoked.
41.7(7) When an insurer's actuary resigns or the actuary's appointment is revoked, no person shall accept an appointment or consent to be appointed as the insurer's actuary before requesting and receiving from the former actuary the written statement referred to in subsection (6).
41.7(8) A person may accept an appointment or consent to be appointed as the insurer's actuary if no reply is received from the former actuary within 15 days after the request under subsection (7) is made.
41.7(9) Unless subsection (8) applies, the appointment of a person as an insurer's actuary is void if the person does not comply with subsection (7).
41.8 The following persons are disqualified from being a director of an insurer:
(a) a person who is not an individual;
(b) a person who is less than 18 years of age;
(c) a person who has the status of a bankrupt;
(d) a person who has been found to be of unsound mind by a court in Canada or elsewhere;
(e) a person who is suffering from a mental disorder, as defined in The Mental Health Act, or a person for whom a substitute decision maker for property has been appointed under The Vulnerable Persons Living with a Mental Disability Act;
(f) a member of the civil service of Manitoba whose official duties are concerned with the business or affairs of insurers, insurance agents or adjusters;
(g) an employee of an insurance council;
(h) a person who fails to meet any other qualification requirements of the insurer's by-laws;
(i) a person who, within the preceding five years,
(i) has been convicted of an indictable offence of a kind that is related to the qualifications, functions or duties of a corporate director, or
(ii) has been convicted of an offence under this Act,
if the time for making an appeal has expired without an appeal having been made or the appeal has been finally disposed of by the courts or abandoned.
Limit on directors who are employees
41.9 No more than 20% of an insurer's directors may be employees of the insurer or its subsidiaries, except as the result of the resignation, removal or death of a director.
41.10(1) No more than 2/3 of an insurer's directors may be affiliated directors, except as the result of the resignation, removal or death of a director.
When a person is an affiliated director
41.10(2) A director is an affiliated director of an insurer if he or she
(a) is an officer or employee of the insurer or any of its affiliates;
(b) has a significant interest in a class of the insurer's shares;
(c) has a substantial investment in an affiliate of the insurer;
(d) is a significant borrower of the insurer;
(e) is a director, officer or employee of an entity that is a significant borrower of the insurer;
(f) controls one or more entities whose total indebtedness to the insurer or its affiliates would cause the entities, if treated as a single entity, to be a significant borrower of the insurer;
(g) provides goods or services to the insurer for which the total annual billings to the insurer exceeds 10% of his or her total annual billings;
(h) is
(i) a partner in or an employee of a partnership, or
(ii) an officer or employee of, or a person who has a substantial investment in, a body corporate,
that provides goods or services to the insurer for which the total annual billings to the insurer exceeds 10% of the partnership's or body corporate's total annual billings;
(i) has a loan from the insurer, or from an affiliate of the insurer, that is not in good standing;
(j) is a director, officer or employee of, or an individual who controls, an entity that has a loan from the insurer, or from an affiliate of the insurer, that is not in good standing;
(k) is a professional adviser to the insurer;
(l) is an insurance agent, broker or adjuster of the insurer;
(m) is the spouse or common-law partner of an individual described in any of clauses (a) to (l); or
(n) is a relative of an individual described in any of clauses (a) to (l) who resides in the same home as the individual.
41.10(3) Whether or not a person is affiliated with an insurer within the meaning of subsection (2) shall be determined as of the day the notice of the annual meeting is sent to shareholders. The determination becomes effective on the day of that meeting and continues to be in effect until the next annual meeting of shareholders.
Determination by superintendent re affiliation
41.11(1) Despite subsections 41.10(2) and (3), the superintendent may determine that a particular director is affiliated with an insurer for the purposes of this Act if the superintendent believes that the director has a relationship with the insurer or with any of its affiliates that can reasonably be expected to affect the exercise of the director's best judgment.
Effective period of determination
41.11(2) A determination under subsection (1)
(a) becomes effective on the day of the next annual meeting of the insurer's shareholders unless a written notice from the superintendent revoking the determination is received by the insurer before that day; and
(b) ceases to be in effect on the day of the next annual meeting of the insurer's shareholders after a written notice from the superintendent revoking the determination is received by the insurer.
Statement of dissenting director
41.12(1) A director of an insurer who
(a) resigns;
(b) receives a notice or otherwise learns of a meeting of the insurer's shareholders called to remove him or her from office; or
(c) receives a notice or otherwise learns of a meeting of insurer's directors or shareholders at which another person is to be appointed or elected to fill his or her office as director, whether because of his or her resignation or removal or because his or her term of office has expired or is about to expire;
is entitled to submit to the insurer a written statement giving the reasons for the resignation or the reasons why he or she opposes any proposed action or resolution.
Resignation of director due to disagreement
41.12(2) If a director of an insurer resigns as a result of a disagreement with the other directors or the officers of the insurer, the director shall submit to the insurer a written statement of the nature of the disagreement.
41.12(3) Without delay after receiving a director's statement under subsection (2) or about a matter referred to in clause (1)(b) or (c), the insurer shall send a copy of the statement
(a) to the other directors and the superintendent; and
(b) to the shareholders entitled to receive notice of meetings under clause 129(1)(a) of The Corporations Act, unless
(i) the statement is attached to a notice of a shareholders' meeting, or
(ii) the directors believe on reasonable grounds that sending the statement will materially and adversely affect the insurer's financial viability.
Refraining from sending statement
41.12(4) If the insurer's directors decide under subclause (3)(b)(ii) not to send the statement to the shareholders, the insurer shall promptly notify the superintendent in writing and state the grounds for the directors' belief. After receiving the insurer's notification, the superintendent may
(a) allow the insurer to not send the statement; or
(b) order the insurer to send the statement to the shareholders.
41.12(5) No insurer or person acting on behalf of an insurer incurs any liability by reason only of circulating a director's statement in compliance with subsection (3).
When composition of board fails
41.13(1) Despite subsection 41.6(3) of this Act and subsection 106(4) of The Corporations Act, if — because of a vacancy — the number of directors or the composition of the board of directors fails to meet a requirement of section 41.6 or 41.9 or subsection 41.10(1) of this Act, the directors who, in the absence of any provision in the articles, are empowered to fill the vacancy shall promptly fill it.
Determining affiliation — vacancy
41.13(2) Despite subsection 41.10(3), the affiliation of a person to be elected or appointed to fill a vacancy shall be determined as at the date of the person's election or appointment. The determination continues to be in effect until the next annual meeting of the shareholders.
At least four directors' meetings per year
41.14 An insurer's directors shall meet at least four times during each financial year.
Quorum at meeting of directors' committee
41.15 A quorum for a meeting of a committee of the directors is a majority of the directors comprising the committee.
At least one unaffiliated director at meeting
41.16(1) An insurer's directors shall not transact business at a directors' meeting unless at least one unaffiliated director is present.
41.16(2) Despite subsection (1), an insurer's directors may transact business at a directors' meeting if an unaffiliated director who is unable to be present approves in writing, or by telephone or other communication facility, the business transacted at the meeting.
Record of attendance at directors' meetings
41.17(1) An insurer shall keep a record of the attendance at each meeting of directors and each committee meeting of directors.
41.17(2) An insurer shall attach a statement to the notice of each annual meeting it sends to its shareholders showing
(a) the total number of directors' meetings and directors' committee meetings held during the financial year immediately preceding the meeting; and
(b) the number of those meetings attended by each director.
Meeting required by superintendent
41.18(1) If the superintendent considers it to be necessary, the superintendent may, by a notice in writing, require an insurer to hold a meeting of its directors to consider the matters set out in the notice.
Superintendent may attend and address meeting
41.18(2) The superintendent may attend and address a meeting referred to in subsection (1).
41.19 The audit committee of an insurer shall consist of at least three members,
(a) all of whom are directors of the insurer;
(b) a majority of whom are unaffiliated directors; and
(c) none of whom are officers or employees of the insurer or a subsidiary of the insurer.
41.20(1) The audit committee shall
(a) review the annual financial statements of the insurer before the directors approve them;
(b) review any returns of the insurer that the superintendent requires it to review;
(c) require the insurer's management to implement and maintain appropriate internal control procedures;
(d) review, evaluate and approve the procedures referred to in clause (c);
(e) review any investments and transactions that the insurer's auditor or any of its officers may bring to the attention of the committee as potentially affecting adversely the insurer's well-being;
(f) meet with the insurer's auditor to discuss the annual financial statements, and the returns and transactions referred to in this subsection;
(g) meet with the insurer's actuary to discuss the parts of the annual financial statements and the annual return prepared by the actuary; and
(h) meet with the insurer's chief internal auditor, or the officer or employee of the insurer acting in a similar capacity, and with the insurer's management, to discuss the effectiveness of the internal control procedures established for the insurer.
41.20(2) In the case of the annual financial statements of an insurer that must be approved by the insurer's directors under subsection 152(1) of The Corporations Act, before the approval is given the insurer's audit committee shall report to the directors about any matter that the committee considers relevant to the directors' decision.
Audit committee may call a meeting of directors
41.20(3) An insurer's audit committee may call a meeting of the insurer's directors to consider any matter of concern to the committee.
Auditor's statement re s. 162(5) of C225
41.21(1) Despite subsection 162(5) of The Corporations Act, an auditor described in clause (a), (b) or (c) of that subsection must submit to the insurer a written statement giving the reasons for his or her resignation or the reasons why he or she opposes any proposed action or resolution.
41.21(2) Without delay after receiving a statement under subsection (1), the insurer shall send a copy of the statement
(a) to the superintendent; and
(b) unless the statement is included in or attached to a management proxy circular required by section 143 of The Corporations Act, to every shareholder entitled, under that Act, to receive notice of shareholders' meetings.
Application of Division VIII of Part XXIV of C225
41.22 Division VIII of Part XXIV of The Corporations Act applies to an insurer, with necessary changes. A reference in that Division to a "corporation" must be read as a reference to an "insurer".
41.23 The conduct review committee of an insurer shall consist of at least three members
(a) all of whom are directors of the insurer;
(b) a majority of whom are unaffiliated directors; and
(c) none of whom are officers or employees of the insurer or a subsidiary of the insurer.
Duties of the conduct review committee
41.24(1) The conduct review committee shall
(a) require the insurer's management to establish procedures for complying with Division VIII of Part XXIV of The Corporations Act;
(b) review those procedures and their effectiveness in ensuring that the insurer is complying with that Division; and
(c) review the insurer's practices to ensure that any transactions with related parties of the insurer that may have a material effect on the stability or solvency of the insurer are identified.
Insurer report to superintendent
41.24(2) An insurer shall report to the superintendent on the mandate and responsibilities of the conduct review committee and the procedures referred to in clause (1)(a).
Conduct committee to report to directors
41.25 After each meeting of an insurer's conduct review committee, the committee shall report to the directors of the insurer on matters reviewed by the committee.
42 Repealed.
43 Repealed.
R.S.M. 1987 Supp., c. 18, s. 6; S.M. 1993, c. 9, s. 3; S.M. 2000, c. 40, s. 7.
44 to 48 Repealed.
49 to 50 Repealed.
S.M. 1992, c. 58, s. 12; S.M. 2000, c. 40, s. 7.
51 Repealed.
HEAD OFFICE
52 An insurer whose head office is situated in Manitoba shall not change the situation of the head office to another province without the consent of the minister.
53 to 75 Repealed.
INVESTMENTS
76(1) An insurer, incorporated and licensed under the laws of the province, may invest its surplus funds and reserve in any investments in which an insurer who has obtained an order under section 53 of the Insurance Companies Act (Canada) is permitted under that Act to invest its funds.
Deposit in bank, trust company, credit union or caisse populaire
76(2) Uninvested funds of the insurer shall be kept on deposit in the name of the insurer in a bank, trust company, credit union or caisse populaire.
S.M. 1992, c. 58, s. 12; S.M. 1994, c. 16, s. 2.
BOOKS OF INSURERS
77(1) Each insurer shall keep such a classification of its contracts and such registers and books of account as are directed or authorized by the superintendent; and, if it appears at any time to the superintendent that the classification, registers, or books are not kept in such a business-like way as to make, at any time, a proper showing of the affairs and standing of the insurer, he shall thereupon nominate an accountant, under his directions, to audit them and to give such instructions as will enable the insurer to keep them correctly thereafter.
Amount of accountant's expenses
77(2) The fees and expenses of the accountant shall be paid forthwith by the insurer on receipt from the superintendent of notification in writing of the amount thereof; and those fees and expenses shall not exceed such amount as the superintendent certifies to be reasonable and recommends for payment, and as is thereafter approved by the Minister of Finance.
78 Where the insurer has a share or stock capital, the stock register or register of members shall at all reasonable times be open to the examination of the minister or superintendent.
RECORDS AND RETURNS
79(1) Every licensed insurer which carries on the business of fire insurance shall keep a record of its premium income derived from risks located in the province and of claims paid in respect of such risks, so as to show at any time its experience according to the classification of occupancy hazards of the National Board of Fire Underwriters, with such modifications as the superintendent prescribes.
79(2) When, at any time, it appears to the minister, on the report of the superintendent, that such a record is not kept in such a manner as to show correctly the experience of the insurer, the minister may nominate an accountant to proceed under his direction to audit the books and records of the insurer and to give such instructions as will enable the insurer to keep the records correctly thereafter.
79(3) The expense of such an audit shall not exceed $15. per day and necessary travelling expenses; and the account shall, when certified and approved by the superintendent, be paid forthwith by the insurer.
Statement of premium income and losses
79(4) Every licensed insurer undertaking the business of fire insurance shall, if required by the superintendent, prepare and file annually with the superintendent, on or before the first day of May in each year, on a printed form to be supplied by the superintendent, a sworn statement of the premium income and losses experienced within the province for the year last preceding the date of the return according to the record required to be kept under this section.
79(5) Any insurer, and the principal officer within the province of any insurer, that contravenes this section is guilty of an offence.
Return by insurer of automobiles
80(1) Every licensed insurer that carries on the business of automobile insurance shall prepare, and file when required with the superintendent or with such statistical agency as he designates, a record of its automobile insurance premiums, and of its loss and expense costs in the province, in such form and manner, and according to such system of classification, as he approves.
80(2) The superintendent may require any agency so designated to compile the data so filed in such form as he approves, and the expense of making the compilation shall be apportioned by the superintendent among the insurers whose data are compiled by the agency; and the superintendent shall certify in writing the amount due from each insurer, and that amount shall be payable by the insurer to the agency forthwith.
80(3) Subsections 79(2), (3) and (5) apply, with appropriate changes, to this section.
81 Every insurer shall deliver to the superintendent, within one month after the passing thereof, a certified copy of its by-laws and of every repeal, amendment, or consolidation thereof or addition thereto.
82 A copy of every balance sheet or other statement published or circulated by an insurer purporting to show its financial condition, together with any auditor's report thereon, shall be mailed or delivered to the superintendent concurrently with its issue to its shareholders of policyholders, or to the general public.
83 Each auditor of an insurer, in the report required to be made to shareholders under The Corporations Act, shall state
(a) that he has audited the books of the insurer and verified the cash, bank balance and securities;
(b) in the case of insurers transacting other than life insurance, that he has checked the reserve of unearned premiums and that it is calculated as required by The Insurance Act;
(c) that he has examined the reserve for unpaid claims and that in his opinion it is adequate;
(d) that he has verified the balances owing by agents and other insurers;
(e) that the balance sheet does not include as assets, items prohibited by The Insurance Act from being shown in the annual statements required to be filed thereunder;
(f) that, after due consideration, he has formed an independent opinion as to the position of the company and that, with his independent opinion so formed, and according to the best of his information, and the explanations given him, the balance sheet sets forth fairly and truly the state of affairs of the insurer; and
(g) that all transactions of the insurer that have come within his notice have been within its powers.
84(1) Every licensed insurer shall prepare annually, and deliver to the superintendent on or before the last day of February of each year, a statement of the condition of affairs of the insurer as at December 31 last preceding; and the statement shall be in such form, and verified in such manner, as is prescribed by the superintendent, and shall exhibit the assets, liabilities, receipts, and expenditures of the insurer for the year ended on that date, and shall also exhibit particulars of the business done in the province during that year and such other information as is deemed necessary by the minister or superintendent.
84(1.1) Where the superintendent is satisfied that the business of an insurer is that of reinsurance, the superintendent may allow the insurer in any year to deliver the statement required under subsection (1) on or before March 31 instead of the last day of February.
84(1.2) In subsection (1.1), "reinsurance" means reinsurance of individual risks and does not mean reinsurance as defined in Part XVI.
84(2) In the case of a corporation the statement shall be verified by the president, vice-president or managing director, or other director appointed for the purpose by the board of directors, and by the secretary or manager of the corporation.
84(3) Every insurer shall, when required by the superintendent, make prompt and explicit answer in reply to any inquiry directed to the insurer by him in relation to the statement or in relation to the transactions of the insurer in the province.
84(4) In the case of all classes of insurance other than life insurance, and insurance on the premium note plan, the statement shall show, as a liability of the insurer, 80% of the actual portions of unearned premiums on all business in force on December 31 then last past, or 80% of 50% of the premiums written in its policies and received in respect of contracts having one year or less to run, and pro rata on those for longer periods.
84(5) In the case of insurers transacting life insurance the statement shall show, as a liability, the valuation of outstanding contracts of insurance according to the standard for valuation of policies of life insurance prescribed by this Act, or such higher standard as the insurer, with the approval of the superintendent, adopts.
84(6) The statement shall not show as assets the unpaid balances owing by agents or other insurers in respect of business written prior to October 1 in the last preceding year, or bills receivable on account thereof, or unpaid capital or premium on subscribed shares of capital stock, or investment in office furnishings or equipment, nor shall the statement include as assets any investments not authorized by any Act to which the insurer is subject.
84(7) Every licensed insurer may, in its annual statement or in any valuation of its securities, value all of its securities, having a fixed term and rate and not in default as to principal or interest, according to the following rule: If purchased at par at the par value; if purchased above or below par on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield meantime the effective rate of interest at which the purchase was made; but the purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase.
84(8) The superintendent has full discretion in determining the method of calculating values according to the foregoing rule.
85 An insurer shall not publish or circulate a statement purporting to show the financial condition of an insurer differing from that shown by the statement filed with the superintendent, or a balance sheet or other statement in form differing from that prescribed by the regulations, and if it does, it is guilty of an offence.
Misrepresentation as to statement, report, etc.
86 Every person, who represents orally or in writing that the issue of a licence to an insurer or the printing or publication of an annual statement in the report or any other publication of the superintendent or any other circumstance of the supervision or regulation of the business of the insurer by law, is a warranty or guarantee of the financial standing of the insurer or of its ability to provide for the payment of its contracts at maturity, is guilty of an offence.
Misleading statement prohibited
87 Every insurer, and every officer, director, agent, and employee of an insurer, who, for the purpose of inducing any person to insure with the insurer, makes or uses any misleading statement purporting to show the dividends, profits, or surplus which have been paid or may be paid by the insurer in respect of any policy issued or to be issued by it, as the case may be, is guilty of an offence.
LIFE INSURANCE RESERVES
88(1) The valuation of contracts of life insurance issued by insurers incorporated and licensed under the law of the province, except contracts of fraternal societies licensed under this Act, shall be based on the British Offices' Life Tables, 1893, Om (5), and on a rate of interest of 3 1/2% per annum but any such insurer may, with the approval of the superintendent, adopt the American Men Ultimate Table of Mortality Am (5), with interest at 3 1/2% per annum, for the valuation of contracts issued on and after January 1, 1929.
Deductions in first year policy
88(2) In computing such a valuation a deduction may be allowed from the value of a policy in the first policy year of an amount ascertained in the following manner, namely: In the case of a 20 payment life policy or any other form of policy, except a term policy, the net annual premium upon which is less than the corresponding net annual premium of a 20 payment life policy, the difference between the net annual premium for such a policy and the corresponding net premium for a one year term insurance, and in the case of a policy with a net annual premium greater than that of a 20 payment life policy, an amount equal to the deduction allowed in respect of a 20 payment life policy.
Deductions in subsequent years
88(3) After the first policy year the deduction allowed by subsection (2) shall be diminished each year by an amount not less than 1/9 of the deduction in the first policy year so that in the tenth year from the date of issue, the value of the policy shall not be less than that ascertained in accordance with subsection (1).
Deductions where less than 10 premiums
88(4) In the case of policies subject to less than 10 annual premiums the deduction ascertained as provided in subsection (2) shall, in each year after the first policy year, be reduced by an amount not less than the equal parts thereof required to provide that the value of the policy at the end of the premium paying period shall be not less than that ascertained in accordance with subsection (1).
88(5) No insurer shall issue any contract of life insurance that does not appear to be self-supporting upon reasonable assumption as to interest, mortality, and expenses.
Accident and sickness benefits
88(6) Where a contract of life insurance provides for accident or sickness insurance benefits the superintendent may prescribe by regulations the basis for valuing those benefits, but no deduction shall be allowed from the basis so fixed under subsection (2); and in the valuation of the life insurance benefits under such contracts, the amount of the net annual premium upon which the deduction provided for in the preceding subsections is to be based, shall be the net annual premium exclusive of the premium for those accident or sickness benefits.
88(7) In the case of annuity contracts, whether immediate or deferred, the valuation shall be the British Offices' Select Life Annuity Tables, 1893 (male or female according to the sex of the nominee), with interest at 3 1/2% per annum.
88(8) Where an insurer has obtained an order under section 53 of the Insurance Companies Act (Canada), the requirements of this section with reference to that insurer in respect of valuations, deductions and rates of interest may be modified or altered as may be necessary to permit the insurer to comply with the requirements of the Superintendent of Financial Institutions appointed pursuant to the Office of the Superintendent of Financial Institutions Act (Canada).
INSURANCE WITH UNLICENSED INSURERS
Insurance with unlicensed insurers
89 No person in the province shall enter into a contract of insurance with an insurer not licensed under this Act, except through a licensed special insurance broker.
DEALINGS IN LIFE INSURANCE POLICIES
Traffic in life insurance policies prohibited
90 No person other than an insurer or its duly authorized agent shall advertise or hold himself out as a purchaser of life insurance policies or benefits thereunder, nor shall he traffic or trade in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge, or hypothecation thereof, to himself or any other person; and if he does so he is guilty of an offence.
Prohibition of certain policies
91(1) The superintendent may require an insurer to file with him a copy of any form of policy, or of the form of application for any policy, issued or used by the insurer.
Unfair forms of policy or application
91(2) Where an insurer issues a policy or uses a form of application, or where an insurer or agent uses an advertisement, illustration, circular, memorandum or statement that, in the opinion of the superintendent, is unfair, fraudulent, or not in the public interest, the superintendent shall, after hearing the insurer or agent, prohibit
(a) the insurer or agent from issuing or using the form of policy or application; or
(b) the insurer or agent from issuing or using the advertisement, illustration, circular, memorandum or statement.
91(3) An insurer that issues a policy or uses an application form, after being prohibited from doing so under subsection (2), is guilty of an offence.
Insurer and agent guilty of offence
91(4) An insurer or agent that uses an advertisement, illustration, circular, memorandum or statement, after being prohibited from doing so under subsection (2), is guilty of an offence.
91(5) Where an insurer or agent feels aggrieved by a decision of the superintendent under subsection (2) the insurer or agent may appeal the decision in accordance with section 395.
R.S.M. 1987 Supp., c. 18, s. 7.
Effect of violation of law on enforcement of policy
92 Unless the contract otherwise provides, a violation of any criminal or other law in force in the province or elsewhere shall not, ipso facto, render unenforceable a claim for indemnity under a contract of insurance except where the violation is committed by the insured, or by another person with the consent of the insured, with intent to bring about loss or damage: Provided that in the case of a contract of life insurance this section shall apply only to disability insurance undertaken as part of the contract.
93 Repealed.
FORFEITURE FOR NON-USER OR DISCONTINUANCE
94(1) Where an insurer incorporated under the laws of the province does not go into actual operation within two years after incorporation, or where, after an insurer has undertaken contracts, it discontinues business for one year, or where its licence remains suspended for one year, or is terminated otherwise than by effluxion of time and is not renewed within the period of 60 days, the insurer's corporate powers shall thereupon cease and determine, except for the sole purpose of winding-up its affairs; and the court, upon the application of the Attorney-General or of any person interested, may limit the time within which the insurer shall settle and close its accounts, and may, for that purpose or for the purpose of liquidation generally, appoint a receiver.
94(2) No such forfeiture affects prejudicially the rights of creditors as they exist at the date of the forfeiture.
94(3) In any action or proceeding where such non-user is alleged, proof of user shall be upon the insurer.
APPOINTMENT OF SUPERVISOR
When supervisor may be appointed
95(1) Where the superintendent is satisfied that an insurer that is subject to this Act is not complying with any provision of this Act or with the by-laws of the insurer approved by him, or is for any reason not entitled to have its licence renewed, the minister may appoint a supervisor for the affairs of the insurer.
Effect of appointment of supervisor
95(2) From and after the appointment of the supervisor the insurer, its officers or servants shall not make any contract for, incur any liability on behalf of, or expend any moneys of, the insurer without the approval of the supervisor.
95(3) The supervisor at all times is subject to the directions of the minister; and the minister may remove the supervisor upon being satisfied that the insurer is complying with its approved by-laws and with this Act and is entitled to have its licence renewed.
Removal of supervisor by court
95(4) A judge of the Court of Queen's Bench, on application by the insurer, may make an order removing the supervisor on being satisfied that it is in the public interest so to do.
LIQUIDATION AND WINDING-UP
Application of Corporations Act to provincial insurance cos.
96 An insurance company that is incorporated under The Corporations Act or under any other Act of the Legislature or that was incorporated by a special Act of the Legislature, is subject to the winding-up provisions of The Corporations Act, except in so far as they may be varied by the provisions of this Act or of any special Act incorporating it.
Winding-up on application of superintendent
97(1) An insurer incorporated in Manitoba may also be wound up by order of the court on the application of the superintendent if the court is satisfied that
(a) the insurer has failed to exercise its corporate powers during any continuous period of four years; or
(b) the insurer has not commenced business or gone into actual operation within four years after it was incorporated; or
(c) the insurer has discontinued business for one year after it has undertaken insurance contracts within the meaning of this Act; or
(d) the insurer's licence has been suspended for one year or more; or
(e) the insurer has carried on business or entered into a contract or used its funds in a manner or for a purpose prohibited or not authorized by this Act or by its Act of incorporation or by The Corporations Act or by any special Act applicable thereto; or
(f) other sufficient cause has been shown.
Approval of Lieutenant Governor in Council
97(2) No such application shall be made by the superintendent without the approval of the Lieutenant Governor in Council.
Application of The Corporations Act to winding-up
97(3) Upon the making of an order under this section the provisions of The Corporations Act relating to the winding-up of a company, in so far as they are not inconsistent with this Act, apply.
Appointment of provisional liquidator by minister
98(1) In the case of an insurer incorporated in Manitoba,
(a) if its licence expires and
(i) the insurer fails to renew within the period limited by this Act; or
(ii) a renewal is refused; or
(b) if its licence is cancelled;
the minister may appoint a provisional liquidator, who shall take charge of the affairs of the company and may direct that it be wound up forthwith under The Corporations Act.
Powers of provisional liquidator
98(2) Until a permanent liquidator is appointed the provisional liquidator shall exercise all the powers of the insurer; and none of the officers or servants of the insurer shall make any contract for, incur any liability on behalf of, or expend any moneys of, the insurer without the approval of the provisional liquidator.
Petition by provisional liquidator for winding-up order
98(3) The provisional liquidator shall petition the court for a winding-up order; and if the court is of the opinion that it is just and equitable so to do, it may make an order winding-up the company and thereupon the provisions of The Corporations Act relating to the winding-up of a company, in so far as they are not inconsistent with this Act, apply.
Sale of business by liquidator or provisional liquidator
98(4) The provisional liquidator or the liquidator, notwithstanding the provisions of The Corporations Act, but subject to the approval of the court, may sell the business and undertaking of the company as a going concern.
Remuneration of provisional liquidator
99(1) The remuneration to be paid to a provisional liquidator appointed under subsection 98(1) shall be fixed by the minister.
Payment of cost of provisional liquidator
99(2) The remuneration and all expenses and outlay in connection with the appointment of the provisional liquidator, together with all expenses and outlay of the provisional liquidator while he acts in that capacity, shall be borne and paid by the insurer, and form a first lien or charge upon the assets of the insurer.
99(3) Repealed.
Notice of ceasing business or meeting to consider winding-up to be given
100(1) When an insurer incorporated under, or subject to, the laws of the province proposes to cease writing insurance, or to call a general meeting to consider a resolution for the voluntary liquidation of the insurer under The Corporations Act, it shall give at least one month's notice in writing thereof to the Superintendent of Insurance of each other province in which the insurer is licensed.
Notice to superintendent of voluntary winding-up
100(2) When an insurer has passed a resolution for voluntary winding-up the insurer shall notify the superintendent thereof, and of the date at which contracts of insurance will cease to be entered into by the insurer, and of the name and address of its liquidator.
100(3) The notice under subsection (2) shall also be published by the insurer in two consecutive issues of The Manitoba Gazette and of the official gazette of each other province in which the insurer is licensed and in such newspapers and other publications as the superintendent may require.
Consent to winding-up of fraternals and mutuals
100(4) A fraternal society or mutual insurance company to which this Act applies shall not go into voluntary liquidation or otherwise arrange for the winding-up of its affairs without the written consent of the superintendent.
100.1 In sections 101, 103, 105 and 106,
"insured person" means
(a) a person who enters into a subsisting contract of insurance with an insurer,
(b) a person insured by a contract of insurance, whether named or not,
(c) a person to whom, or for whose benefit, all or part of the proceeds of a contract of insurance are payable, and
(d) a person entitled to have insurance money applied toward satisfaction of his or her judgment in accordance with section 258; (« personne assurée »)
"loss" includes the happening of an event or contingency by reason of which a person becomes entitled to a payment under a contract of insurance of money other than a refund of unearned premiums; (« sinistre »)
"Manitoba contract" means a subsisting contract of insurance that
(a) has for its subject
(i) property that, at the time of the making of the contract, is in the province or is in transit to or from the province, or
(ii) the life, safety, fidelity or insurable interest of a person who, at the time of the making of the contract, is resident in, or has its head office in, the province, or
(b) makes provision for payment primarily to a resident of the province or to an incorporated company that has its head office in the province. (« contrat du Manitoba )
Reinsurance arranged by liquidator or provisional liquidator
101(1) The provisional liquidator or the liquidator may arrange for the reinsurance of the subsisting contracts of insurance of the insurer with some other insurer licensed in the province.
Funds available for reinsurance
101(2) For the purpose of securing the reinsurance the following funds are available:
(a) the entire assets of the insurer in the province, except the amount reasonably estimated by the liquidator or the provisional liquidator as being required to pay
(i) the costs of the liquidation or winding-up,
(ii) all claims for losses covered by the insurer's contracts of insurance of which notice has been received by the insurer or liquidator or provisional liquidator before the date on which the reinsurance is effected,
(iii) the claims of the preferred creditors who are the persons paid in priority to other creditors under the winding-up provisions of The Corporations Act;
all of which shall be a first charge on the assets of the insurer;
(b) repealed, S.M. 2000, c. 40, s. 12.
101(3) Repealed, S.M. 2000, c. 40, s. 12.
Payments to creditors other than preferred
101(4) Creditors of the insurer, other than the insured persons and the said preferred creditors, shall be entitled to receive a payment on their claims only if provision has been made for the payments mentioned in subsection (2) and for the reinsurance.
Reinsurance of part of contracts only
101(5) Where, after providing for the payments mentioned in subsection (2), the balance of the assets of the insurer is insufficient to secure the reinsurance of the contracts of the insured persons in full, the reinsurance may be effected for such portion of the full amount of the contracts as may be possible.
Approval of reinsurance by court
101(6) No contract of reinsurance shall be entered into pursuant to this section until it is approved by the court.
101(7) Nothing in this section prejudices or affects the priority of any mortgage, lien, or charge, upon the property of the insurer.
Payment of costs of liquidator or provisional liquidator
102 The amount payable to the liquidator or the provisional liquidator for the winding-up of the insurer, and all costs and expenses incurred by him or her in the winding-up, shall be paid from, and shall be a first charge on, the assets of the insurer, except as provided in subsection 97(3).
Termination date fixed where reinsurance not arranged
103(1) If he fails to secure reinsurance, or if, in his opinion, it is impracticable or inexpedient to arrange for reinsurance, the provisional liquidator or the liquidator,
(a) with the approval of the court and subject to such terms as may be prescribed by the court; and
(b) for the purpose of securing the payment of existing claims and avoiding further losses;
may publish a notice fixing a termination date for the subsisting contracts of insurance of that insurer; and on and after that date coverage and protection under the Manitoba contracts shall cease; and the insurer is not liable under any such contract for a loss that occurs after that date.
Termination of Manitoba contracts where termination date fixed in another province
103(2) Where a provisional liquidator or a liquidator has been appointed in another province to wind up an insurer incorporated in that province, if the provisional liquidator or the liquidator fixes a termination date for the contracts of insurance of that insurer, on and after that date coverage and protection under the Manitoba contracts ceases and determines; and the insurer is not liable under any such contract for a loss that occurs after that date.
103(3) Repealed, S.M. 2000, c. 40, s. 14.
Publication of notice of termination date
104 The provisional liquidator or the liquidator shall cause the notice
(a) to be published in The Manitoba Gazette and in the official gazette of each other province in which the insurer is licensed, and in such newspapers as the court may direct in order to give reasonable notice of the termination date so fixed; and
(b) to be mailed to each policyholder at his address as shown on the books and records of the company.
Provision for payment of claims for losses and preferred claims
105(1) The liquidator shall pay or set aside from the assets of the insurer sums in his opinion sufficient to pay
(a) the costs of the liquidation or winding-up;
(b) all claims for losses covered by the insurer's contracts of insurance that occurred before the termination date fixed pursuant to section 61 or section 103 and that have not been paid or provided for in the administration of the deposit and of which notice has been received by the insurer or the liquidator;
(c) the full amount of the legal reserve in respect of each unmatured life insurance contract;
(d) the claims of preferred creditors who are the persons paid in priority to other creditors under the winding-up provisions of The Corporations Act.
Provision for payment of unearned premiums
105(2) Except in the case of life insurance, the assets remaining after payment, or making provision for payment, of the amounts mentioned in subsection (1) shall be used to pay the claims of the insured persons for refunds of unearned premiums on a pro rata basis in proportion to the periods of their contracts respectively unexpired on the termination dates.
Calculation of unearned premium claims
105(3) The claims of the insured persons for refunds of unearned premiums shall be calculated
(a) as at the termination date fixed pursuant to section 61 or section 101; or
(b) as at the date the insured person cancelled the contract;
whichever date is the earlier.
Effect of refund of unearned premium
105(4) The refund of all or a portion of the premium does not destroy or defeat any other remedy the insured person may have against the insurer in respect thereof or for any other cause.
105(5) Nothing in this section prejudices or affects the priority of any mortgage, lien, or charge, upon the property of the insurer.
Payment of government fees, taxes, etc.
106 The fees, taxes, and costs, payable by the insurer to each province shall be paid out of the assets of the insurer remaining after the reinsurance of the subsisting contracts of insurance of the insurer or after the payment of the claims of policyholders for refund of unearned premiums, as the case may be; and the balance shall be distributed amongst the creditors of the insurer other than the insured persons, preferred creditors and the several provinces.
Filing with court of quarterly statements by receiver
107(1) Unless otherwise ordered by the court, within seven days after the close of each period of three months and until the affairs of the insurer are wound up and the accounts are finally closed, the liquidator shall file with the court or other authority appointing him and also with the superintendent detailed schedules showing, in such forms as may be required,
(a) receipts and expenditures; and
(b) assets and liabilities.
Production of books, etc., by liquidator
107(2) The liquidator, whenever he is required to do so by the authority appointing him or by the minister, shall exhibit the office books and vouchers and furnish such other information respecting the affairs of the insurer as may be required.
Failing to provide information
107(3) The authority that appointed the liquidator may, without notice, dismiss the liquidator if the liquidator neglects or refuses to provide any information required by this section.
Endowment and life funds distributed
108(1) Where a fraternal society transacts endowment or expectancy insurance and has an endowment fund separate and distinct from its life insurance fund, the society may, by resolution passed at a general meeting after at least one month's notice of the intended resolution, determine that the endowment or expectancy be discontinued, and that the endowment or expectancy fund be distributed pro rata among the members then in good standing who are contributing to the fund, to each member according to his total contribution.
108(2) After the resolution is assented to by the superintendent and filed with the Provincial Secretary, the executive officers may proceed to ascertain the persons entitled to rank upon the fund, and may distribute the fund among those entitled; and the distribution discharges the society and all executive officers thereof from all liability in respect of the fund and of the endowment or expectancy contracts undertaken by the society.
108(3) If all the members interested in the endowment or expectancy fund are also interested as holders of life insurance contracts, the general meeting, instead of determining that the endowment or expectancy fund be distributed, may determine that the fund be converted into, or merged in, a life insurance fund; and after the resolution is so assented to and filed, the endowment or expectancy fund becomes and is a life insurance fund.
109 For the purpose of a voluntary winding-up the superintendent may renew or extend the licence of the insurer.
FEE FOR LATE OR INCOMPLETE REPORTS, RETURNS OR STATEMENTS
110 Repealed.
Meaning of "default" re reports and returns
111(1) In this section, "default", in relation to making or filing a report, return or statement to the superintendent, means
(a) that the report, return or statement is not made or filed on or before the day on which it is required to be made or filed; or
(b) that, despite being made or filed when required, the report, return or statement is incomplete or inaccurate.
Fee for default in filing of returns and reports
111(1.1) If an insurer or other person defaults in making or filing a report, return or statement that the insurer or person is required to make to or file with the superintendent under this Act, the insurer or person shall pay a fee of $200. for each day that the default continues, beginning with the eighth day after the day on which the report, return or statement was required to be made or filed.
Superintendent must give notice of default
111(2) As soon as practicable after becoming aware of the default, the superintendent shall send the insurer or other person a notice of default. The notice must state the nature of the default, and may be sent by any means that the superintendent reasonably believes will result in its reaching the insurer or person in a timely manner.
When liability to pay the fee arises
111(3) The liability of the insurer or other person to pay the fee under subsection (1.1) arises when the superintendent sends the notice under subsection (2).
Fee is a debt to the government
111(4) A fee payable under this section is a debt owing by the insurer or other person to the government.
111(5) The amount for which any insurer or other person is liable as a debt under this section is in addition to any fine or other penalty that may be imposed on the insurer or person under this Act in respect of the same failure to make or file the report, return, or statement, or for any other cause.
112 Repealed.
113(1) In this section
"person" means a person engaged in the business of insurance and includes any individual, corporation, association, partnership, reciprocal or inter-insurance exchange, member of the society known as Lloyds, fraternal society, agent, broker and adjuster; (« personne »)
"unfair or deceptive acts or practices in the business of insurance" includes
(a) any unfair discrimination between individuals of the same class and of the same expectation of life, in the amount or payment or the return of premiums, or rates charged by it for contracts of life insurance or annuity contracts, or in the dividends or other benefits payable thereon or in the terms and conditions thereof,
(b) any unfair discrimination in any rate or schedule of rates between risks in Manitoba of essentially the same physical hazards in the same territorial classification,
(c) any illustration, circular, memorandum or statement that misrepresents, or by omission is so incomplete that it misrepresents, the terms, benefits or advantages of any policy or contract of insurance issued or to be issued,
(d) any false or misleading statement as to the terms, benefits or advantages of any contract or policy of insurance issued or to be issued,
(e) any incomplete comparison of any policy or contract of insurance with that of any other insurer for the purpose of inducing, or intending to induce, an insured to lapse, forfeit or surrender a policy or contract,
(f) any payment, allowance or gift, or any offer to pay, allow or give, directly or indirectly, any money or thing of value as an inducement to any prospective insured to insure,
(g) any charge by a person for a premium allowance or fee other than as stipulated in a contract of insurance upon which a sales commission is payable to such person,
(h) any consistent practice or conduct that results in unreasonable delay or resistance to the fair adjustment and settlement of claims, and
(i) the commission of any act prohibited under this Act or the regulations. (« actes ou pratiques injustes ou trompeurs dans le commerce d'assurance »)
113(2) No person shall engage in any unfair or deceptive act or practice in the business of insurance.
Investigation by superintendent
113(3) The superintendent may examine and investigate the business practices of every person engaged in the business of insurance in Manitoba in order to determine whether the person has been, or is, engaged in any unfair or deceptive act or practice.
113(4) Where it appears to the superintendent that any person is engaged in any unfair or deceptive act or practice in the business of insurance, the superintendent may order that the person cease engaging in his business or any part thereof named in the order, and an order under this subsection may be subject to such terms and conditions as the superintendent may specify in the order and the order may be revoked when the superintendent is satisfied that the unfair or deceptive acts or practices are corrected and not likely to recur.
113(5) In an order made under subsection (4), the superintendent may order any insurer that has engaged in unfair or deceptive acts or practices to send to each insured who has a contract of insurance with the insurer
(a) that, in the opinion of the superintendent, was entered into during the time the insurer engaged in the unfair or deceptive acts or practices; and
(b) in respect of which the insured, in the opinion of the superintendent, might have been misled or under a misapprehension by reason of the unfair or deceptive acts or practices;
a notice indicating
(c) such facts and matters relating to the contract, and in respect of which the insured might have been misled or under a misapprehension by reason of the unfair or deceptive acts or practices, as the superintendent may specify; and
(d) that the insured may, at his option, terminate the contract and receive a refund of any unearned premium paid by him.
113(6) No order shall be made under subsection (4) without a hearing unless, in the opinion of the superintendent, the length of time required for a hearing could be prejudicial to the public interest, in which event a temporary order may be made which shall expire 15 days from the making thereof or such longer time as is consented to by the person entitled to the hearing.
113(7) A notice of every order made under this section shall be served upon every person named therein and upon such other persons as the superintendent considers appropriate and thereupon any person ordered thereby to cease engaging in his business or any part thereof named in the order shall not thereafter engage in that business or that part thereof until the order is rescinded.
113(8) Any person affected by an order made by the superintendent under this section may appeal the order to the minister who may confirm, vary, or quash the order of the superintendent.
113(9) Any person affected by an order made by the minister under subsection (8) may appeal the order to the court by way of originating notice of motion and the court may after hearing the matter de novo confirm, vary or quash the order of the minister.
113(10) Repealed, S.M. 2007, c. 10, s. 17.
Effect of termination of contract
113(11) Where an insurer is required by an order of the superintendent made under this section to send a notice to an insured indicating that the insured may, at his option, terminate a contract of insurance and receive a refund of any unearned premium paid by him, if the insured notifies the insurer in writing of his desire to terminate the contract, the insurer shall terminate the contract and refund to the insured any unearned premium paid by the insured in respect of the contract of insurance.
113(12) Where an insurer is ordered to send a notice to an insured as provided under subsection (5), if the insurer, within six months after the notice was sent to the insured,
(a) enters into a new contract of insurance with the insured in respect of a similar kind of insurance as that covered in the contract in respect of which the notice was sent; or
(b) amends the contract of insurance in respect of which the notice was sent;
the insured is entitled to, and the insurer shall give to the insured, the same treatment in respect of rates of premium and insurability as the insured would have been entitled at the time when, and under the circumstances, including age and condition of health of the insured, under which the contract of insurance in respect of which the notice was sent was made.
FEES AND REGULATIONS
114(1) The Lieutenant Governor in Council may make regulations prescribing the fees payable to the minister by an insurer or other person for services performed under this Act.
114(2) The insurer shall pay any such fees payable by it before a licence or the renewal of a licence is issued.
114(3) The Lieutenant Governor in Council may make regulations
(a) extending the provisions of this Act or any of them to a system or class of insurance not particularly mentioned herein;
(b) providing for, and for the making of, reciprocal or other arrangements with any government in Canada in connection with the licensing, regulation, and inspection of insurers;
(c) generally for the better administration of this Act;
(d) prohibiting certain acts in the business of insurance;
(e) regulating advertising by persons engaged in insurance or prescribing standards for advertising by persons engaged in insurance or both;
(e.1) respecting the classes and subclasses of insurance, and governing insurers that undertake a class or subclass of insurance;
(f) prescribing standards for policies of insurance of specific classes or types;
(g) prescribing financial standards and solvency tests that every insurer or a specified class or classes of insurers must meet;
(g.1) prescribing financial standards for the purposes of subsections 30(1) and (4) that an applicant for a licence as a specified class of insurer must meet, which standards may be based on one or more criteria, including, without limitation, any of the following:
(i) the value of its corporate capital,
(ii) the nature of its corporate capital,
(iii) the amount of its unimpaired corporate surplus,
(iv) the value of its insurance contracts in force at any particular time;
(g.2) prescribing classes of insurers for the purposes of clause (g.1) and subsections 30(1) and (4) by reference to one or more criteria, including, without limitation, either or both of the following:
(i) the type of capital structure of the members of the class,
(ii) the type of insurance undertaken by the members of the class;
(h) requiring the preparation and delivery to the superintendent, more frequently than specified in this Act, of any financial statement and related material required to be prepared and so delivered under this Act, and specifying the portion of the year to be dealt with in the statement and material.
114(4) A copy of every order in council made pursuant to this section, certified by the Clerk of the Executive Council to be a true copy, shall be laid before the Legislature forthwith, if it is then in session, and if not, then within 15 days of the opening of the next session.
R.S.M. 1987 Supp., c. 18, s. 8; S.M. 1989-90, c. 57, s. 11; S.M. 1993, c. 9, s. 5; S.M. 1997, c. 14, s. 3; S.M. 2007, c. 10, s. 18.
PART III
INSURANCE CONTRACTS IN MANITOBA
115 Where not inconsistent with other provisions of this Act, this Part applies to every contract of insurance made in the province other than contracts of
(a) accident insurance and sickness insurance;
(b) life insurance; and
(c) marine insurance.
Contracts made in the province
116 Where the subject matter of a contract of insurance is property in the province, or an insurable interest of a person resident within the province, the contract, if signed, countersigned, issued or delivered in the province or committed to the post office or to any person to be delivered to the insured, his assign or agent in the province, shall be deemed to evidence a contract made therein, and be construed according to the law thereof, and all moneys payable thereunder shall be paid at the head office or chief agency of the insurer in the province, in lawful money of Canada.
POLICY OF INSURANCE
Terms invalid unless set out in full
117(1) All the terms and conditions of the contract of insurance shall be set out in full in the policy or by writing securely attached to it when issued, or subsequently attached thereto; and unless so set out no term of the contract or condition, stipulation, warranty or proviso modifying or impairing its effect, shall be valid or admissible in evidence to the prejudice of the insured or beneficiary.
117(2) Where the contract, whether or not it provides for its renewal, is renewed by a renewal receipt, it shall be a sufficient compliance with subsection (1) if the terms and conditions of the contract are set out in the contract and the renewal receipt refers to it by its number or date.
117(3) The application of the insured shall not, as against him, be deemed a part of, or be considered with, the contract of insurance, except in so far as the court determines that it contains a material misrepresentation by which the insurer was induced to enter into the contract.
Error in statement must be material to affect contract
117(4) No contract of insurance shall contain or have endorsed upon it, or be made subject to, any term, condition, stipulation, warranty or proviso to the effect that the contract is to be avoided by reason of any statement in the application therefor, or inducing the insurer to enter into the contract, unless the term, condition, stipulation, warranty or proviso is, and is expressed to be, limited to cases in which the statement is material to the contract; and no contract shall be avoided by reason of the inaccuracy of any such statement unless it is material to the contract.
117(5) The question of materiality in any contract shall be a question of fact; and no admission, term, condition, stipulation, warranty or proviso to the contrary, contained in the application for insurance, or in the policy, or in any agreement or document relating thereto, shall have any force or validity.
117(6) This section does not apply to contracts of fire or automobile insurance.
118 Every insurer shall, upon request, furnish to the insured a true copy of his application for insurance.
119(1) No insurer shall make a contract of insurance inconsistent with this Act.
Non-compliance not to invalidate
119(2) Any act or omission of the insurer resulting in non-compliance or imperfect compliance with any provision of this Act shall not render a contract invalid as against the insured.
120(1) Every policy shall contain the name of the insurer, the name of the insured, the name of the person or persons to whom the insurance money is payable, the amount, or the method of determining the amount, of the premium for the insurance, the subject matter of the insurance, the indemnity for which the insurer may become liable, the event on the happening of which the liability is to accrue, the date upon which the insurance takes effect and the date it terminates or the method by which the latter is fixed or to be fixed.
120(2) This section does not apply to contracts of guarantee insurance.
121(1) This section applies to a contract, other than a contract of hail insurance, containing a condition, statutory or otherwise, providing for an appraisal to determine specified matters in the event of a disagreement between the insured and the insurer.
121(2) The insured and the insurer shall each appoint a disinterested appraiser, and the two appraisers so appointed shall appoint a disinterested umpire.
121(3) The appraisers shall determine the matters in disagreement and, if they fail to agree, they shall submit their differences to the umpire, and the finding in writing of any two determines the matters.
121(4) Each party to the appraisal shall pay the appraiser appointed by him and shall bear equally the expense of the appraisal and the umpire.
121(5) Where,
(a) a party fails to appoint an appraiser within seven clear days after being served with written notice to do so; or
(b) the appraisers fail to agree upon an umpire within 15 days after their appointment; or
(c) an appraiser or umpire refuses to act or is incapable of acting or dies;
a judge of the Court of Queen's Bench may appoint an appraiser or umpire, as the case may be, upon the application of the insured or the insurer.
Policy payable in Canadian money
122 Insurance money is payable in Manitoba in lawful money of Canada.
123(1) No term or condition of a contract shall be deemed to be waived by the insurer in whole or in part unless the waiver is stated in writing and signed by a person authorized for that purpose by the insurer.
123(2) Neither the insurer nor the insured shall be deemed to have waived any term or condition of a contract by any act relating to the appraisal of the amount of loss or to the delivery and completion of proofs or to the investigation or adjustment of any claim under contract.
Court may proceed where no appraisal made, etc.
123(3) Notwithstanding any other provision of this Act, and notwithstanding any provision or condition of a contract, statutory or otherwise, the failure to have an appraisal made, or the fact that an appraisal is being made or has been made, does not preclude a court in an action brought for that purpose from determining any issues arising under a policy including the determination of the value of the property insured or the value of any loss or damage to such property.
124(1) No red ink shall be used on a policy except for the name, address and emblem of the insurer, and the policy number, and for the purposes mentioned in this Act.
124(2) Subsection (1) does not apply to a contract to which Part IV applies.
125(1) Where the policy has been delivered the contract shall be as binding on the insurer as if the premium had been paid, although it has not in fact been paid, and although delivered by an officer or agent of the insurer who had not authority to deliver it.
125(2) The insurer may sue for the unpaid premium and may deduct the amount thereof from the amount for which he is liable under the contract of insurance.
125(3) Where a cheque, bill of exchange or promissory note is given, whether originally or by way of renewal, for the whole or part of any premium and the cheque, bill of exchange or promissory note, is not honoured according to its tenor, the insurer may terminate the contract forthwith by giving written notice by registered mail.
LOSS UNDER POLICY
126(1) Every insurer, immediately upon receipt of a request, and in any event not later than 60 days after receipt of notice of loss, shall furnish to the insured or to any person who indicates to the insurer that he wishes to make a claim under the contract forms upon which to make the proof of loss required under the contract.
Failure to provide proof of loss forms
126(2) Every insurer who neglects or refuses to comply with subsection (1) is guilty of an offence, and, in addition, section 131 is not available to the insurer as a defence to an action brought, after such neglect or refusal, for the recovery of money payable under the contract of insurance.
126(3) It shall be optional with the insurer to pay or allow claims, wholly or in part, which are void under any statutory condition.
126(4) The insurer by furnishing forms to make proof of loss shall not be taken to have admitted that a valid contract is in force or that the loss in question falls within the insurance provided by the contract.
Right of injured third party against insurer
127(1) Where a person incurs a liability for injury or damage to the person or property of another, and is insured against such liability, and fails to satisfy a judgment awarding damages against him in respect of his liability, and an execution against him in respect thereof is returned unsatisfied, the person entitled to the damages may recover by action against the insurer the amount of the judgment up to the face value of the policy, but subject to the same equities as the insurer would have if the judgment had been satisfied.
Where subsection (1) not applicable
127(2) This section does not apply to motor vehicle liability policies.
128(1) Where several actions are brought for the recovery of money payable under a contract of insurance in respect of the happening of any event giving rise to the claims, the court may consolidate or otherwise deal therewith, so that the actions be tried and disposed of as one action.
128(2) Where an action is brought to recover, the share of one or more infants, all other infants entitled, or the trustees or guardians entitled to receive payment of the shares of such infants, shall be made parties, and the rights of all the infants shall be determined in one action.
Apportionment of insurance money
128(3) In all actions where several persons are interested in the insurance money, the court may apportion among the persons entitled the sum ordered to be paid, and may give all necessary directions therefor.
128(4) Where the person entitled to receive money payable under a contract of insurance, not being insurance of the person, is domiciled or resides in a foreign jurisdiction and payment, valid according to the law of that jurisdiction, is made to the person, payment so made is valid.
129(1) Where the insurer does not within one month after the insurance money is payable, pay it to some person competent to receive it or into court, the court may, upon application of any person, order that the insurance money, or any part thereof, be paid into court, or make such other order as to the distribution of the money as the court sees fit, and payment made in accordance with the order is a sufficient discharge to the insurer.
129(2) The court may order the costs incurred upon or in connection with any such application or order to be paid out of the insurance money or by the insurer or the applicant or otherwise as seems just.
130 Where there has been imperfect compliance with a statutory condition as to proof of loss to be given by the insured or other matter or thing required to be done or omitted by the insured with respect to the loss insured against, and a consequent forfeiture or avoidance of the insurance in whole or in part, and the court deems it inequitable that the insurance be forfeited or avoided on that ground, the court may relieve against the forfeiture or avoidance on such terms as it deems just.
131 No action shall be brought for the recovery of money payable under a contract of insurance until the expiration of 60 days after proof, in accordance with the provisions of the contract,
(a) of the loss; or
(b) of the happening of the event upon which the insurance money is to become payable;
or of such shorter period as may be fixed by the contract of insurance.
NOTICES
132(1) Subject to any statutory condition, any notice given by an insurer, when the mode thereof is not otherwise expressly provided, may be given in the case of a member or person insured by mailing it to his post office address given in his original application for insurance or otherwise notified in writing to the insurer.
132(2) Subject to any statutory condition, delivery of any written notice to an insurer, where the mode thereof is not otherwise expressly provided, may be by letter delivered at its head office or chief office in the province, or sent by registered post addressed to the insurer, its manager or agent at that head office or chief office or to an authorized agent of the insurer.
INSURANCE AS COLLATERAL SECURITY
Insurance clauses in mortgages, etc.
133(1) Where a contract of insurance is given as collateral security to a mortgage or vendor's lien on property, or where any such contract so given is about to expire, whether or not a specific insurer is named in the mortgage or agreement for sale, a term requiring the mortgagor or purchaser to insure is sufficiently satisfied, save as to the amount, by the production by the mortgagor or purchaser of a subsisting policy of insurance issued by an insurer licensed to carry on its business in the province.
Mortgagee not to receive commission from insurer
133(2) A mortgagee shall not accept or be entitled to receive, either directly or through his agent or employee, and no officer or employee of the mortgagee shall accept or receive, any commission or other remuneration or benefit in consideration of effecting a contract of insurance or renewal thereof under which contract loss, if any, is payable to him as mortgagee.
Payment of commission prohibited
133(3) No insurer or agent or broker shall pay, allow or give any commission or other remuneration or benefit to a mortgagee or to any person in his employ or on his behalf, in consideration of effecting a contract of insurance or renewal thereof, under which contract loss, if any, is payable to him as mortgagee.
Specifying of insurer prohibited
133(4) No person by himself or by his agent shall require
(a) as a condition precedent to financing, as vendor under an agreement for sale or otherwise, purchase of property or to lending money upon the security of a mortgage on property; or
(b) as a condition prerequisite for the renewal or extension of any loan or mortgage or for the performance of any other Act in connection therewith;
that the person
(c) for whom the purchase is to be financed or to whom the money is to be lent; or
(d) for whom the extension, renewal or other Act is to be granted or performed;
negotiate, take-out or pay the premium for any policy of insurance or renewal thereof covering the property with a specified insurer or with any one or more of a designated group of insurers licensed to carry on business in the province.
133(5) In a policy produced under subsection (1), the mortgagee or vendor shall be named as payee by assignment, endorsement or otherwise, but the mortgagee or vendor has the right to require, in addition, that an endorsement be attached to the policy by the insurer evidencing that
(a) no act or default of the insured before or after the production of the policy in violation of the law or of the terms of the policy shall prejudice the right of the mortgagee or vendor to recover his interest under the policy or be available to the insurer as a defence to any action by the mortgagee or vendor; and
(b) where the insurer pays to the mortgagee or vendor any sum for loss under the policy and claims that, as to the insured, no liability therefor existed, the insurer is at once legally subrogated to all rights of the mortgagee or vendor under all securities held as collateral to the mortgage debt or balance of purchase money owing to the extent of the payment; or at its option the insurer may pay to the mortgagee or vendor the whole amount owing him secured by his mortgage or agreement of sale, and shall thereupon receive a full assignment and transfer of the mortgage or agreement of sale, and all other securities held as collateral thereto, but no such subrogation shall impair the rights of the mortgagee or vendor to recover in priority the full amount of his claim.
Right of mortgagee or vendor to insurer
133(6) If the mortgagor or purchaser has not placed the insurance agreed upon on the property, whether farm or otherwise, and has not lodged the policy with the mortgagee or vendor within the time agreed upon, or, where there is a subsisting policy, has not renewed the policy or has not substituted another policy with the mortgagee or vendor at least ten days before the expiry date of the subsisting policy in accordance with this section, the mortgagee or vendor may insure the property to the amount agreed upon with any insurer licensed to carry on business in the province.
Duty to give description of property and amount of insurance
133(7) Where the contract of insurance has been placed by the mortgagee or vendor in accordance with this section, a copy of the description of the property insured given in the contract together with the amount of insurance placed upon each item shall forthwith be given to the mortgagor or purchaser.
133(8) This section has effect notwithstanding any agreement, condition or stipulation to the contrary.
133(9) An insurer or other person who contravenes this section is guilty of an offence.
Effect of assignment of right to refund
134(1) Where an insured assigns the right to refund of premium that may accrue by reason of the cancellation or termination of a contract of insurance under the terms thereof, and notice of the assignment is given by the assignee to the insurer, the insurer shall pay any such refund to the assignee notwithstanding any condition in the contract, whether prescribed under this Act or not, requiring the refund to be paid to the insured or to accompany any notice of cancellation or termination to the insured.
134(2) Where the condition in the contract dealing with cancellation or termination by the insurer provides that the refund shall accompany the notice of cancellation or termination, the insurer shall include in the notice a statement that, in lieu of payment of the refund in accordance with the condition, the refund is being paid to the assignee under this section.
135 and 136 Repealed.
PART IV
FIRE INSURANCE
137(1) This Part applies to insurance against loss of or damage to property arising from the peril of fire in any contract made in the province except
(a) insurance falling within the classes of aircraft, automobile, boiler and machinery, inland transportation, marine, plate glass, sprinkler leakage and theft insurance;
(b) where the subject matter of the insurance is rents, charges or loss of profits;
(c) where the peril of fire is an incidental peril to the coverage provided; or
(d) where the subject matter of the insurance is property that is insured by an insurer or group of insurers primarily as a nuclear risk under a policy covering against loss of, or damage to, the property resulting from nuclear reaction or nuclear radiation and from other perils.
137(2) Notwithstanding subsection (1) this Part applies to insurance of an automobile as provided in subsection 29(2).
138(1) Subject to subsection (4) of this section and to clause 145(a), in any contract to which this Part applies the contract shall be deemed to cover the insured property
(a) against fire (whether resulting from explosion or otherwise) not occasioned by or happening through
(i) in the case of goods, their undergoing any process involving the application of heat;
(ii) riot, civil commotion, war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection or military power;
(b) against lightning, but excluding destruction or loss to electrical devices or appliances caused by lightning or other electrical currents unless fire originates outside the article itself and only for such destruction or damage as occurs from such fire;
(c) against explosion (not occasioned by or happening through any of the perils specified in sub-clause (a)(ii)) of natural, coal, or manufactured gas in a building not forming part of a gas works, whether fire ensues therefrom or not.
138(2) Unless a contract to which this Part applies otherwise specifically provides, it does not cover the insured property against loss or damage caused by contamination by radio-active material directly or indirectly resulting from fire, lightning, or explosion, within the meaning of subsection (1).
138(3) Where property insured under a contract covering at a specified location is necessarily removed to prevent loss or damage or further loss or damage thereto, that part of the insurance under the contract that exceeds the amount of the insurer's liability for any loss incurred shall, for seven days only or for the unexpired term of the contract, if less than seven days, cover the property removed and any property remaining in the original location in the proportions which the value of the property in each of the respective locations bears to the value of the property in them all.
138(4) Nothing in subsection (1) precludes an insurer giving more extended insurance against the perils mentioned therein, but in that case this Part does not apply to the extended insurance.
138(5) An insurer licensed to carry on fire insurance may include in its insurance contracts a clause or endorsement providing that, in the case of livestock insured against death or injury caused by fire or lightning, the words "lightning" is deemed to include other electrical currents.
139 A contract may be renewed by delivery of a renewal receipt identifying the policy by number, date or otherwise, or a new premium note.
140 After an application for insurance is made, if it is in writing, any policy sent to the insured shall be deemed to be intended to be in accordance with the terms of the application, unless the insurer points out in writing the particulars wherein it differs from the application, in which case the insured may, within two weeks from the receipt of the notification, reject the policy.
141(1) Where the loss, if any, under a contract has, with the consent of the insurer, been made payable to a person other than the insured, the insurer shall not cancel or alter the policy to the prejudice of that person without notice to him.
141(2) The length of and manner of giving the notice under subsection (1) shall be the same as notice of cancellation to the insured under the statutory conditions in the contract.
Effect of Statutory Conditions
142(1) The conditions set forth in this section shall be deemed to be part of every contract in force in Manitoba and shall be printed on every policy with the heading "Statutory Conditions" and no variation or omission of or addition to any statutory condition shall be binding on the insured.
142(2) In this section "policy" does not include interim receipts or binders.
STATUTORY CONDITIONS
1 If any person applying for insurance falsely describes the property to the prejudice of the insurer, or misrepresents or fraudulently omits to communicate any circumstance which is material to be made known to the insurer in order to enable it to judge of the risk to be undertaken, the contract shall be void as to any property in relation to which the misrepresentation or omission is material.
2 Unless otherwise specifically stated in the contract, the insurer is not liable for loss or damage to property owned by any person other than the insured, unless the interest of the insured therein is stated in the contract.
3 The insurer shall be liable for loss or damage occurring after an authorized assignment under the Bankruptcy Act or change of title by succession, by operation of law, or by death.
4 Any change material to the risk and within the control and knowledge of the insured shall avoid the contract as to the part affected thereby, unless the change is promptly notified in writing to the insurer or its local agent; and the insurer when so notified may return the unearned portion, if any, of the premium paid and cancel the contract, or may notify the insured in writing that, if he desires the contract to continue in force, he must, within 15 days of the receipt of the notice, pay to the insurer an additional premium; and in default of such payment the contract shall no longer be in force and the insurer shall return the unearned portion, if any, of the premium paid.
5(1) This contract may be terminated,
(a) by the insurer giving to the insured 15 days notice of termination by registered mail, or five days written notice of termination personally delivered;
(b) by the insured at any time on request.
5(2) Where this contract is terminated by the insurer
(a) the insurer shall refund the excess of premium actually paid by the insured over the pro rata premium for the expired time, but, in no event, shall the pro rata premium for the expired time be deemed to be less than any minimum retained premium specified; and
(b) the refund shall accompany the notice unless the premium is subject to adjustment or determination as to amount, in which case the refund shall be made as soon as practicable.
5(3) Where this contract is terminated by the insured, the insurer shall refund, as soon as practicable, the excess of premium actually paid by the insured over the short rate premium for the expired time, but, in no event, shall the short rate premium for the expired time be deemed to be less than any minimum retained premium specified.
5(4) The refund may be made by money, postal or express company money order, or by cheque payable at par.
5(5) The 15 days mentioned in clause (1)(a) of this condition commences to run on the day following the receipt of the registered letter at the post office to which it is addressed.
6(1) Upon the occurrence of any loss of or damage to the insured property, the insured shall, if such loss or damage is covered by the contract, in addition to observing the requirements of Conditions 9, 10 and 11,
(a) forthwith give notice thereof in writing to the insurer;
(b) deliver as soon as practicable to the insurer a proof of loss verified by a statutory declaration
(i) giving a complete inventory of the destroyed and damaged property and showing in detail quantities, costs, actual cash value and particulars of amount of loss claimed,
(ii) stating when and how the loss occurred, and if caused by fire or explosion due to ignition, how the fire or explosion originated, so far as the insured knows or believes,
(iii) stating that the loss did not occur through any wilful act or neglect or the procurement, means or connivance of the insured,
(iv) showing the amount of other insurances and the names of other insurers,
(v) showing the interest of the insured and of all others in the property with particulars of all liens, encumbrances and other charges upon the property,
(vi) showing any changes in title, use, occupation, location, possession or exposures of the property since the issue of the contract,
(vii) showing the place where the property insured, was at the time of loss;
(c) if required give a complete inventory of undamaged property and showing in detail quantities, cost, actual cash value;
(d) if required and if practicable, produce books of account, warehouse receipts and stock lists, and furnish invoices and other vouchers verified by statutory declaration, and furnish a copy of the written portion of any other contract.
6(2) The evidence furnished under clauses (1)(c) and (d) of this condition shall not be considered proofs of loss within the meaning of conditions 12 and 13.
7 Any fraud or wilfully false statement in a statutory declaration in relation to any of the above particulars, shall vitiate the claim of the person making the declaration.
8 Notice of loss may be given, and proof of loss may be made, by the agent of the insured named in the contract in case of absence or inability of the insured to give the notice or make the proof, and absence or inability being satisfactorily accounted for, or in the like case, or if the insured refuses to do so, by a person to whom any part of the insurance money is payable.
9(1) The insured, in the event of any loss or damage to any property insured under the contract, shall take all reasonable steps to prevent further damage to any such property so damaged and to prevent damage to other property insured hereunder including, if necessary, its removal to prevent damage or further damage thereto.
9(2) The insurer shall contribute pro rata towards any reasonable and proper expenses in connection with steps taken by the insured and required under sub-paragraph (1) of this condition according to the respective interests of the parties.
10 After any loss or damage to insured property, the insurer shall have an immediate right of access and entry by accredited agents sufficient to enable them to survey and examine the property, and to make an estimate of the loss or damage, and, after the insured has secured the property, a further right of access and entry sufficient to enable them to make appraisement or particular estimate of the loss or damage, but the insurer shall not be entitled to the control or possession of the insured property, and without the consent of the insurer there can be no abandonment to it of insured property.
11 In the event of disagreement as to the value of the property insured, the property saved or the amount of the loss, those questions shall be determined by appraisal as provided under The Insurance Act before there can be any recovery under this contract whether the right to recover on the contract is disputed or not, and independent of all other questions. There shall be no right to an appraisal until a specific demand therefor made in writing and until after proof of loss has been delivered.
12 The loss shall be payable within 60 days after completion of the proof of loss, unless the contract provides for a shorter period.
13(1) The insurer, instead of making payment, may repair, rebuild, or replace the property damaged or lost, giving written notice of its intention so to do within 30 days after receipt of the proofs of loss.
13(2) In that event the insurer shall commence to so repair, rebuild, or replace the property within 45 days after receipt of the proofs of loss, and shall thereafter proceed with all due diligence to the completion thereof.
14 Every action or proceeding against the insurer for the recovery of any claim under or by virtue of this contract shall be absolutely barred unless commenced within two years next after the loss or damage occurs.
15 Any written notice to the insurer may be delivered at, or sent by registered mail to, the chief agency or head office of the insurer in the province. Written notice may be given to the insured named in this contract by letter personally delivered to him, or by registered mail addressed to him at his latest post office address as notified to the insurer. In this condition, the expression "registered" means registered in or outside Canada.
143 A contract containing
(a) a deductible clause; or
(b) a co-insurance, average, or similar clause; or
(c) a clause limiting recovery by the insured to a specified percentage of the value of any property insured at the time of loss, whether or not that clause is conditional or unconditional;
shall have printed or stamped upon its face in lettering of at least 12 point size the words: "This policy contains a clause which may limit the amount payable"; and unless those words are so printed or stamped the clause shall not be binding upon the insured.
144(1) Where, on the happening of any loss or damage to property insured, there is in force more than one contract covering the same interest, the insurers under the respective contracts shall each be liable to the insured for its rateable proportion of the loss unless it is otherwise expressly agreed in writing between the insurers.
144(2) For the purpose of subsection (1), a contract shall be deemed to be in force notwithstanding any term thereof that the policy shall not cover, come into force, attach, or become insurance with respect to the property until after full or partial payment of any loss under any other policy.
144(3) Nothing in subsection (1) affects the validity of any divisions of the sum insured into separate items, or any limits of insurance on specified property, or any clause referred to in section 143 or any contract condition limiting or prohibiting the having or placing of other insurance.
144(4) Nothing in subsection (1) affects the operation of any deductible clause and
(a) where one contract contains a deductible the pro rata proportion of the insurer under that contract shall be first ascertained without regard to the clause and then the clause shall be applied only to affect the amount of recovery under that contract; and
(b) where more than one contract contains a deductible the pro rata proportion of the insurers under those contracts shall be first ascertained without regard to the deductible clauses and then the highest deductible shall be pro rated among the insurers with deductibles and these pro rated amounts shall affect the amount of recovery under those contracts.
144(5) Nothing in subsection (4) shall be construed to have the effect of increasing the pro rata contribution of an insurer under a contract that is not subject to a deductible clause.
144(6) Notwithstanding subsection (1), insurance on identified articles shall be a first loss insurance as against all other insurance.
145 Where a contract
(a) excludes any loss that would otherwise fall within the coverage prescribed by section 138; or
(b) contains any stipulation, condition or warranty that is or may be material to the risk including, but not restricted to, a provision in respect to the use, condition, location or maintenance of the insured property,
the exclusion, stipulation, condition or warranty shall not be binding upon the insured if it is held to be unjust or unreasonable by the court before which a question relating thereto is tried.
146(1) The insurer, upon making any payment or assuming liability therefor under a contract of fire insurance, shall be subrogated to all rights of recovery of the insured against any person, and may bring action in the name of the insured to enforce such rights.
146(2) Where the net amount recovered, after deducting the costs of recovery is not sufficient to provide a complete indemnity for the loss or damage suffered that amount shall be divided between the insurer and the insured in the proportions in which the loss or damage has been borne by them respectively.
Return of premium paid on insurance in excess of appraised value of property
147(1) Subject to subsection (2), in the event of the total destruction of any insured property with respect to which the total amount of insurance money payable is less than the total amount of insurance thereon, the insurer or insurers shall return to the insured person the total amount of insurance premium paid for the excess of the insurance over the appraised value of the property at the time of the loss, and that amount shall be paid to the insured at the same time and in the same manner as the loss shall be paid.
147(2) This section does not apply where an insured person has knowingly placed insurance in excess of the insurable value of any building or property, or interest therein, or to insurance on stocks or merchandise.
PART V
LIFE INSURANCE
148(1) In this Part,
"application" means an application for insurance or for the reinstatement of insurance; (« proposition »)
"beneficiary" means a person, other than the insured or his personal representative, to whom or for whose benefit insurance money is payable in a contract or by a declaration; (« bénéficiaire »)
"contract" means a contract of life insurance; (« contrat »)
"creditor's group insurance" means insurance effected by a creditor in respect of the lives of his debtors whereby the lives of the debtors are insured severally under a single contract; (« assurance-prêt »)
"declaration" means an instrument signed by the insured
(a) with respect to which an endorsement is made on the policy, or
(b) that identifies the contract, or
(c) that describes the insurance or insurance fund or a part thereof,
in which he designates, or alters or revokes the designation of, his personal representative or a beneficiary as one to whom or for whose benefit insurance money is to be payable; (« déclaration »)
"family insurance" means insurance whereby the lives of the insured and one or more persons related to him by blood, marriage, common-law relationship or adoption are insured under a single contract between an insurer and the insured; (« assurance familiale »)
"group insurance" means insurance, other than creditor's group insurance and family insurance, whereby the lives of a number of persons are insured severally under a single contract between an insurer and an employer or other person; (« assurance collective »)
"group life insured" means a person whose life is insured by a contract of group insurance but does not include a person whose life is insured under the contract as a person dependent upon, or related to, him; (« personne couverte par une assurance-vie collective »)
"instrument" includes a will; (« instrument »)
"insurance" means life insurance; (« assurance »)
"insurance money", means the amount payable by an insurer under a contract, and includes all benefits, surplus, profits, dividends, bonuses, and annuities payable under the contract; (« sommes assurées »)
"insured"
(a) in the case of group insurance means, in the provisions of the Part relating to the designation of beneficiaries and the rights and status of beneficiaries, the group life insured, and
(b) in all other cases means the person who makes a contract with an insurer. (« assuré »)
Annuities as insurance for Part V
148(2) For the purposes of this Part, an undertaking entered into by an insurer to provide an annuity, or what would be an annuity except that the periodic payments may be unequal in amount, shall be conclusively deemed to be and always to have been life insurance whether the annuity is for a term certain, for a term dependent either solely or partly on a human life or for a term dependent solely or partly on the happening of an event not related to a human life.
S.M. 2002, c. 48, s. 12; S.M. 2007, c. 10, s. 19.
APPLICATION OF PART
149(1) Notwithstanding any agreement, condition, or stipulation to the contrary, this Part applies to a contract made in the province on or after the day on which this section comes into force, and, subject to subsections (2) and (3), applies to a contract made in the province before that day.
149(2) The rights and interests of a beneficiary for value under a contract that was in force immediately prior to the day on which this section comes into force are those provided in Part V of The Insurance Act then in force.
149(3) Where the person who would have been entitled to the payment of insurance money if the money had become payable immediately prior to the day on which this section comes into force was a preferred beneficiary within the meaning of Part V of The Insurance Act then in force, the insured may not, except in accordance with that Part,
(a) alter or revoke the designation of a beneficiary; or
(b) assign, exercise rights under or in respect of, surrender or otherwise deal with, the contract;
but this subsection does not apply after a time at which the insurance money, if it were then payable, would be payable wholly to a person other than a preferred beneficiary within the meaning of that Part.
150 In the case of a contract of group insurance made with an insurer authorized to transact insurance in the province at the time the contract was made, this Part applies in determining
(a) the rights and status of beneficiaries if the group life insured was resident in the province at the time he became insured; and
(b) the rights and obligations of the group life insured if he was resident in the province at the time he became insured.
ISSUANCE OF POLICY AND CONTENTS THEREOF
151(1) An insurer entering into a contract shall issue a policy.
151(2) Subject to subsection (3), the provisions in
(a) the application; and
(b) the policy; and
(c) any document attached to the policy when issued; and
(d) any amendment to the contract agreed upon in writing after the policy is issued;
constitute the entire contract.
151(3) In the case of a contract made by a fraternal society, the policy, the Act or instrument of incorporation of the society, its constitution, by-laws and rules, and the amendments made from time to time to any of them, the application for the contract and the medical statement of the applicant constitute the entire contract.
151(4) An insurer shall, upon request, furnish to the insured or to a claimant under the contract a copy of the application.
152(1) This section does not apply to a contract
(a) of group insurance; or
(b) of creditor's group insurance; or
(c) made by a fraternal society.
152(2) An insurer shall set forth the following particulars in the policy:
(a) the name or a sufficient description of the insured and of the person whose life is insured;
(b) the amount, or the method of determining the amount, of the insurance money payable, and the conditions under which it becomes payable;
(c) the amount, or the method of determining the amount, of the premium and the period of grace, if any, within which it may be paid;
(d) whether the contract provides for participation in a distribution of surplus or profits that may be declared by the insurer;
(e) the conditions upon which the contract may be reinstated if it lapses;
(f) the options, if any,
(i) of surrendering the contract for cash;
(ii) of obtaining a loan or an advance payment of the insurance money; and
(iii) of obtaining paid-up or extended insurance.
153 In the case of a contract of group insurance or of creditor's group insurance, an insurer shall set forth the following particulars in the policy:
(a) the name or a sufficient description of the insured;
(b) the method of determining the persons whose lives are insured;
(c) the amount, or the method of determining the amount, of the insurance money payable, and the conditions under which it becomes payable;
(d) the period of grace, if any, within which the premium may be paid;
(e) whether the contract provides for participation in a distribution of surplus or profits that may be declared by the insurer.
154 In the case of a contract of group insurance, an insurer shall issue, for delivery by the insured to each group life insured, a certificate or other document in which are set forth the following particulars:
(a) the name of the insurer and an identification of the contract;
(b) the amount, or the method of determining the amount, of insurance on the group life insured and on any person whose life is insured under the contract as a person dependent upon, or related to, him;
(c) the circumstances in which the insurance terminates and the rights, if any, upon such termination, of the group life insured or of any person whose life is insured under the contract as a person dependent upon, or related to, him.
CONDITIONS GOVERNING FORMATION OF CONTRACT
155(1) Subject to subsection (2), where at the time a contract would otherwise take effect the insured has no insurable interest, the contract is void.
155(2) A contract is not void for lack of insurable interest
(a) if it is a contract of group insurance; or
(b) if the person whose life is insured has consented in writing to the insurance being placed on his life.
155(3) Where the person whose life is insured is under the age of 16 years, consent to insurance being placed on his life may be given by one of his parents or by a person standing in loco parentis to him.
Where court may order termination
155(4) A person whose life is insured may, where insurable interest no longer exists, apply to the court for an order requiring the insurer to immediately terminate the policy and pay over to the policy owner any value that exists in the policy.
156 Without restricting the meaning of the expression "insurable interest", a person has an insurable interest in his own life and in the life of
(a) his child or grandchild;
(b) his spouse or common-law partner;
(c) any person upon whom he is wholly or in part dependent for, or from whom he is receiving, support or education;
(d) his employee; and
(e) any person in the duration of whose life he has a pecuniary interest.
157(1) Subject to any provision to the contrary in the application or the policy, a contract does not take effect unless
(a) the policy is delivered to an insured, his assign or agent, or to a beneficiary;
(b) payment of the first premium is made to the insurer or its authorized agent; and
(c) no change has taken place in the insurability of the life to be insured between the time the application was completed and the time the policy was delivered.
157(2) Where a policy is issued on the terms applied for and is delivered to an agent of the insurer for unconditional delivery to a person referred to in clause (1)(a), it shall be deemed, but not to the prejudice of the insured, to have been delivered to the insured.
158(1) Where a cheque or other bill of exchange, or a promissory note or other written promise to pay, is given for the whole or part of a premium and payment is not made according to its tenor, the premium or part thereof shall be deemed not to have been paid.
158(2) Where a remittance for or on account of a premium is sent in a registered letter to an insurer and is received by it, the remittance shall be deemed to have been received at the time of the registration of the letter.
159(1) Except in the case of group insurance, an assignee of a contract, a beneficiary or a person acting on behalf of one of them or of the insured may pay any premium that the insured is entitled to pay.
159(2) Where a premium, other than the initial premium, is not paid at the time it is due, the premium may be paid within a period of grace of
(a) 30 days, or in the case of an industrial contract 28 days, from and excluding the day on which the premium is due; or
(b) the number of days, if any, specified in the contract for payment of an overdue premium;
whichever is the longer period.
Contract in force during grace period
159(3) Where the happening of the event upon which the insurance money becomes payable occurs during the period of grace and before the overdue premium is paid, the contract shall be deemed to be in effect as if the premium had been paid at the time it was due, but the amount of the premium, together with interest at the rate specified in the contract, but not exceeding 6% per annum, and the balance, if any, of the current year's premium may be deducted from the insurance money.
160(1) An applicant for insurance and a person whose life is to be insured shall each disclose to the insurer in the application, on a medical examination, if any, and in any written statements or answers furnished as evidence of insurability, every fact within his knowledge that is material to the insurance and is not so disclosed by the other.
160(2) Subject to section 161, a failure to disclose, or a misrepresentation of, such a fact renders the contract voidable by the insurer.
161(1) This section does not apply to a misstatement of age or to disability insurance.
161(2) Subject to subsection (3), where a contract has been in effect for two years during the lifetime of the person whose life is insured, a failure to disclose, or a misrepresentation of, a fact required to be disclosed by section 160 does not, in the absence of fraud, render the contract voidable.
Incontestability in group insurance
161(3) In the case of a contract of group insurance a failure to disclose or a misrepresentation of, such a fact in respect of a person whose life is insured under the contract does not render the contract voidable; but if evidence of insurability is specifically requested by the insurer the insurance in respect of that person is voidable by the insurer unless it has been in effect for two years during the lifetime of that person, in which event it is not, in the absence of fraud, voidable.
162 Where an insurer fails to disclose, or misrepresents, a fact material to the insurance, the contract is voidable by the insured; but in the absence of fraud the contract is not, by reason of such a failure or misrepresentation, voidable after the contract has been in effect for two years.
163(1) This section does not apply to a contract of group insurance or of creditor's group insurance.
163(2) Subject to subsection (3), where the age of a person whose life is insured is misstated to the insurer, the insurance money provided by the contract shall be increased or decreased to the amount that would have been provided for the same premium at the correct age.
163(3) Where a contract limits the insurable age, and the correct age of the person whose life is insured at the date of the application exceeds the age so limited, the contract is, during the lifetime of that person but not later than five years from the date the contract takes effect, voidable by the insurer within 60 days after it discovers the error.
Misstatement of age in group insurance
164 In the case of a contract of group insurance or of creditor's group insurance, a misstatement to the insurer of the age of a person whose life is insured does not of itself render the contract voidable, and the provisions, if any, of the contract, with respect to age or misstatement of age apply.
165(1) Where a contract contains an undertaking, express or implied, that insurance money will be paid if a person whose life is insured commits suicide, the undertaking is lawful and enforceable.
165(2) Where a contract provides that in case a person whose life is insured commits suicide within a certain period of time the contract is void or the amount payable under it is reduced, if the contract lapses and is subsequently reinstated on one or more occasions, the period of time commences to run from the date of the latest reinstatement.
166(1) This section does not apply to a contract of group insurance or to a contract made by a fraternal society.
166(2) Where a contract lapses and the insured within two years applies for reinstatement of the contract, if within that time he
(a) pays the overdue premiums and other indebtedness under the contract to the insurer, together with interest at the rate specified in the contract, but not exceeding 6% per annum, compounded annually; and
(b) produces
(i) evidence satisfactory to the insurer of the good health, and
(ii) other evidence satisfactory to the insurer of the insurability,
of the person whose life was insured,
the insurer shall reinstate the contract.
166(3) Subsection (2) does not apply where the cash surrender value has been paid or an option of taking paid-up or extended insurance has been exercised.
166(4) Section 160 and 161 apply, with such modifications as the circumstances require, to reinstatement of a contract.
DESIGNATION OF BENEFICIARIES
167(1) An insured may in a contract or by a declaration designate his personal representative or a beneficiary to receive insurance money.
167(2) Subject to section 168, the insured may alter or revoke the designation by a declaration.
167(3) A designation in favour of the "heirs", "next of kin" or "estate" of the insured, or the use of words of like import in a designation shall be deemed to be a designation of the personal representative of the insured.
Designation of beneficiary irrevocably
168(1) An insured may, in a contract or by a declaration, other than a declaration that is part of a will, filed with the insurer at its head or principal office in Canada during the lifetime of the person whose life is insured, designate a beneficiary irrevocably; and in that event the insured, while the beneficiary is living, may not alter or revoke the designation without the consent of the beneficiary and the insurance money is not subject to the control of the insured or of his creditors and does not form part of his estate.
168(2) Where the insured purports to designate a beneficiary irrevocably in a will or in a declaration that is not filed as provided in subsection (1), the designation has the same effect as if the insured had not purported to make it irrevocable.
169(1) A designation in an instrument purporting to be a will is not ineffective by reason only of the fact that the instrument is invalid as a will, or that the designation is invalid as a bequest under the will.
169(2) Notwithstanding The Wills Act, a designation in a will is of no effect against a designation made later than the making of the will.
169(3) Where a designation is contained in a will, if subsequently the will is revoked by operation of law or otherwise, the designation is thereby revoked.
169(4) Where a designation is contained in an instrument that purports to be a will, if subsequently the instrument if valid as a will would be revoked by operation of law or otherwise, the designation is thereby revoked.
170(1) An insured may, in a contract or by a declaration, appoint a trustee for a beneficiary and may alter or revoke the appointment by a declaration.
170(2) A payment made by an insurer to a trustee for a beneficiary discharges the insurer to the extent of the payment.
Beneficiary predeceasing life insured
171(1) Where a beneficiary predeceases the person whose life is insured, and no disposition of the share of the deceased beneficiary in the insurance money is provided in the contract or by a declaration, the share is payable
(a) to the surviving beneficiary; or
(b) if there is more than one surviving beneficiary, to the surviving beneficiaries, in equal shares; or
(c) if there is no surviving beneficiary, to the insured or his personal representative.
171(2) Where two or more beneficiaries are designated otherwise than alternatively, but no division of the insurance money is made, the insurance money is payable to them in equal shares.
172 A beneficiary may enforce for his own benefit, and a trustee appointed pursuant to section 170 may enforce as trustee, the payment of insurance money made payable to him in the contract or by a declaration and in accordance with the provisions thereof; but the insurer may set up any defence that it could have set up against the insured or his personal representative.
Insurance money free from creditors
173(1) Where a beneficiary is designated, the insurance money, from the time of the happening of the event upon which the insurance money becomes payable, is not part of the estate of the insured and is not subject to the claims of the creditors of the insured.
173(2) While a designation in favour of a spouse or common-law partner, child, grandchild or parent of a person whose life is insured, or any of them, is in effect, the insurance money and the rights and interests of the insured therein and in the contract are exempt from execution or seizure.
DEALINGS WITH CONTRACT DURING LIFETIME OF INSURED
174 Where a beneficiary
(a) is not designated irrevocably; or
(b) is designated irrevocably but has attained the age of 18 years and consents;
the insured may assign, exercise rights under or in respect of, surrender, or otherwise deal with, the contract as provided therein or in this Part or as may be agreed upon with the insurer.
175(1) Notwithstanding the designation of a beneficiary irrevocably, the insured is entitled while living to the dividends or bonuses declared on a contract, unless the contract otherwise provides.
175(2) Unless the insured otherwise directs, the insurer may apply the dividends or bonuses declared on the contract for the purpose of keeping the contract in force.
176(1) Notwithstanding The Wills Act, where in a contract or in an agreement in writing between an insurer and an insured it is provided that a person named in the contract or in the agreement has, upon the death of the insured, the rights and interests of the insured in the contract,
(a) the rights and interests of the insured in the contract do not, upon the death of the insured, form part of his estate; and
(b) upon the death of the insured, the person named in the contract or in the agreement has the rights and interests given to the insured by the contract and by this Part and shall be deemed to be the insured.
176(2) Where the contract or agreement provides that two or more persons named in the contract or in the agreement shall, upon the death of the insured, have successively on the death of each of them, the rights and interests of the insured in the contract, this section applies successively, with such modifications as the circumstances require, to each of such persons and to his rights and interests in the contract.
176(3) Notwithstanding any nomination made pursuant to this section, the insured may, prior to his death, assign, exercise rights under or in respect of, surrender, or otherwise deal with, the contract as if the nomination had not been made, and may alter or revoke the nomination by agreement in writing with the insurer.
177(1) Where an assignee of a contract gives notice in writing of the assignment to the insurer at its head or principal office in Canada, he has priority of interest as against
(a) an assignee other than one who gave notice earlier in like manner; and
(b) a beneficiary other than one designated irrevocably as provided in section 168 prior to the time the assignee gave notice to the insurer of the assignment in the manner prescribed in this subsection.
Effect on beneficiary's rights
177(2) Where a contract is assigned as security, the rights of a beneficiary under the contract are affected only to the extent necessary to give effect to the rights and interests of the assignee.
177(3) Where a contract is assigned unconditionally and otherwise than as security, the assignee has all the rights and interests given to the insured by the contract and by this Part and shall be deemed to be the insured.
Prohibition against assignment
177(4) A provision in a contract to the effect that the rights or interests of the insured, or in the case of group insurance the group life insured, are not assignable is valid.
Group life insured enforcing rights
178 A group life insured may in his own name enforce a right given to him under a contract, subject to any defence available to the insurer against him or against the insured.
MINORS
179 Except in respect of his rights as beneficiary, a minor who has attained the age of 16 years has the capacity of a person of the age of 18 years
(a) to make an enforceable contract; and
(b) in respect of a contract.
PROCEEDINGS UNDER CONTRACT
180 Where an insurer receives sufficient evidence of
(a) the happening of the event upon which insurance money becomes payable;
(b) the age of the person whose life is insured;
(c) the right of the claimant to receive payment; and
(d) the name and age of the beneficiary, if there is a beneficiary;
it shall, within 30 days after receiving the evidence, pay the insurance money to the person entitled thereto.
181(1) Subject to subsection 182(2), insurance money is payable in the province.
181(2) Unless a contract otherwise provides, a reference therein to dollars means Canadian dollars.
182(1) Where a person entitled to receive insurance money is not domiciled in the province, the insurer may pay the insurance money to that person or to any other person who is entitled to receive it on his behalf by the law of the domicile of the payee.
182(2) In the case of a contract of group insurance, insurance money is payable in the province or territory of Canada in which the group life insured was resident at the time he became insured.
183 Notwithstanding where a contract was made, an action on it may be brought in a court by a resident of the province if the insurer was authorized to transact insurance in the province at the time the contract was made or at the time the action is brought.
184(1) Subject to subsection (2), an action or proceeding against an insurer for the recovery of insurance money shall not be commenced more than one year after the furnishing of the evidence required by section 180, or more than six years after the happening of the event upon which the insurance money becomes payable, whichever period first expires.
184(2) Where a declaration has been made under section 187, an action or proceeding to which reference is made in subsection (1) shall not be commenced more than one year after the date of the declaration.
185(1) Until an insurer receives at its head or principal office in Canada an instrument or an order of a court affecting the right to receive insurance money, or a notarial copy, or a copy verified by statutory declaration, of any such instrument or order, it may make payment of the insurance money and shall be as fully discharged to the extent of the amount paid as if there were no such instrument or order.
185(2) Subsection (1) does not affect the rights or interests of any person other than the insurer.
Declaration as to sufficiency of proof
186 Where an insurer admits the validity of the insurance but does not admit the sufficiency of the evidence required by section 180 and there is no other question in issue except a question under section 187, the insurer or the claimant may, before or after action is brought and upon at least 30 days' notice, apply to the court for a declaration as to the sufficiency of the evidence furnished, and the court may make the declaration or may direct what further evidence shall be furnished and on the furnishing thereof may make the declaration or, in special circumstances, may dispense with further evidence.
Declaration as to presumption of death
187 Where a claimant alleges that the person whose life is insured should be presumed to be dead by reason of his not having been heard of for seven years, and there is no other question in issue except a question under section 186, the insurer or the claimant may, before or after action is brought and upon at least 30 days' notice, apply to the court for a declaration as to presumption of the death and the court may make the declaration.
188(1) Upon making a declaration under section 186 or section 187, the court may make such order respecting the payment of the insurance money and respecting costs as it deems just and, subject to section 190, a declaration or direction or order made under this subsection is binding upon the applicant and upon all persons to whom notice of the application has been given.
188(2) A payment made under an order made under subsection (1) discharges the insurer to the extent of the amount paid.
189 Unless the court otherwise orders, an application made under section 186 or section 187 operates as a stay of any pending action with respect to the insurance money.
190 An appeal lies to The Court of Appeal from any declaration, direction or order made under section 186, section 187, or subsection 188(1).
191 Where the court finds that the evidence furnished under section 180 is not sufficient or that a presumption of death is not established, it may order that the matters in issue be decided in an action brought or to be brought, or may make such other order as it deems just respecting further evidence to be furnished by the claimant, publication of advertisements, further inquiry or any other matter or respecting costs.
192 Where an insurer admits liability for insurance money and it appears to the insurer that
(a) there are adverse claimants; or
(b) the whereabouts of a person entitled is unknown; or
(c) there is no person capable of giving and authorized to give a valid discharge therefor, who is willing to do so;
the insurer may, at any time after 30 days from the date of the happening of the event upon which the insurance money becomes payable, apply to the court ex parte for an order for payment of the money into court, and the court may upon such notice, if any, as it thinks necessary make an order accordingly.
193 Unless a contract or a declaration otherwise provides, where the person whose life is insured and a beneficiary die at the same time or in circumstances rendering it uncertain which of them survived the other, the insurance money is payable in accordance with subsection 171(1) as if the beneficiary had predeceased the person whose life is insured.
Insurance money payable in instalments
194(1) Subject to subsections (2) and (3), where insurance money is payable in instalments and a contract, or an instrument signed by the insured, and delivered to the insurer, provides that a beneficiary has not the right to commute the instalments or to alienate or assign his interest therein, the insurer shall not, unless the insured subsequently directs otherwise in writing, commute the instalments or pay them to any person other than the beneficiary; and the instalments are not, in the hands of the insurer, subject to any legal process except an action to recover the value of necessaries supplied to the beneficiary or his infant children.
194(2) A court may, upon the application of a beneficiary and upon at least 10 days' notice, declare that in view of special circumstances
(a) the insurer may, with the consent of the beneficiary, commute instalments of insurance money; or
(b) the beneficiary may alienate or assign his interest in the insurance money.
Commutation after death of beneficiary
194(3) After the death of the beneficiary, his personal representative may, with the consent of the insurer, commute any instalments of insurance money payable to the beneficiary.
194(4) In this section "instalments" includes insurance money held by the insurer under section 195.
Insurer holding insurance money
195(1) An insurer may hold insurance money
(a) subject to the order of an insured or a beneficiary; or
(b) upon trusts or other agreements for the benefit of the insured or the beneficiary;
as provided in the contract, by an agreement in writing to which it is a party, or by a declaration, with interest at a rate agreed upon therein or, where no rate is agreed upon, at the rate declared from time to time by the insurer in respect of insurance money so held by it.
195(2) The insurer is not bound to hold insurance money as provided in subsection (1) under the terms of a declaration to which it has not agreed in writing.
196 Where an insurer does not, within 30 days after receipt of the evidence required by section 180, pay the insurance money to some person competent to receive it or into court, the court may, upon application of any person, order that the insurance money or any part thereof be paid into court, or may make such other order as to the distribution of the money as it deems just, and payment made in accordance with the order discharges the insurer to the extent of the amount paid.
197 The court may fix, without taxation, the costs incurred in connection with an application or order made under section 192 or section 196, and may order them to be paid out of the insurance money or by the insurer or the applicant or otherwise as it deems just.
198 Where an insurer admits liability for insurance money payable to a minor and there is no person capable of giving, and authorized to give a discharge therefor, who is willing to do so, the insurer may, at any time after 30 days from the date of the happening of the event upon which the insurance money becomes payable, pay the money to the Public Trustee for the benefit of the minor and notify the Public Trustee of the name, date of birth and residence of the minor.
199 Where it appears that a representative of a beneficiary who is under disability may, under the law of the domicile of the beneficiary, accept payments on behalf of the beneficiary, the insurer may make payment to the representative; and any such payment discharges the insurer to the extent of the amount paid.
MISCELLANEOUS PROVISIONS
200 No officer, agent or employee of an insurer and no person soliciting insurance, whether or not he is an agent of the insurer shall, to the prejudice of the insured, be deemed to be the agent of the insured in respect of any question arising out of a contract.
201 An insurer does not incur any liability for any default, error, or omission in giving or withholding information as to any notice or instrument that it has received and that affects the insurance money.
202 This Part shall be so interpreted and construed as to effect its general purpose of making uniform the law of the provinces the legislatures of which enact it.
PART VI
ACCIDENT AND SICKNESS INSURANCE
203 In this Part,
"application" means a written application for insurance or for the reinstatement of insurance; (« proposition »)
"beneficiary" means a person — other than the insured or the insured's personal representative — who is designated or appointed in a contract or by a declaration, and to whom or for whose benefit insurance money payable under the contract is to be paid; (« bénéficiaire »)
"blanket insurance" means that class of group insurance which covers loss arising from specific hazards incident to or defined by reference to a particular activity or activities; (« assurance globale »)
"contract" means a contract of insurance; (« contrat »)
"creditor's group insurance" means insurance effected by a creditor whereby the lives or well-being, or the lives and well-being, of a number of his debtors are insured severally under a single contract; (« assurance-prêt »)
"declaration" means an instrument, signed by the insured,
(a) with respect to which an endorsement is made on the policy,
(b) that identifies the contract, or
(c) that describes the insurance, the insurance fund or a part of either of them,
in which the insured designates his or her personal representative or a beneficiary as a person to whom or for whose benefit the insurance money payable under the contract is to be paid, or in which the insured changes or revokes a previous designation; (« déclaration »)
"family insurance" means insurance whereby the lives or well-being, or the lives and well-being, of the insured and one or more persons related to him by blood, marriage, common-law relationship or adoption are insured under a single contract between an insurer and the insured; (« assurance familiale »)
"group insurance" means insurance other than creditor's group insurance and family insurance, whereby the lives or well-being, or the lives and well-being, of a number of persons are insured severally under a single contract between an insurer and an employer or other person; (« assurance collective »)
"group person insured" means a person who is insured under a contract of group insurance and upon whom a right is conferred by the contract, but does not include a person who is insured thereunder as a person dependent upon or related to him; (« personne couverte par une assurance collective »)
"instrument" includes a will; (« instrument »)
"insurance" means accident insurance, sickness insurance, or accident insurance and sickness insurance; (« assurance »)
"insured"
(a) in the case of group insurance means, in the provisions of this Part relating to the designation of beneficiaries or of personal representatives as recipients of insurance money and their rights and status, the group person insured, and
(b) in all other cases means the person who makes a contract with an insurer; (« assuré »)
"person insured" means a person in respect of an accident to whom, or in respect of whose sickness, insurance money is payable under a contract, but does not include a group person insured; (« personne assurée »)
"will" includes a codicil. (« testament »)
S.M. 2002, c. 48, s. 12; S.M. 2007, c. 10, s. 20.
204(1) Notwithstanding any agreement, condition or stipulation to the contrary, this Part applies to a contract made in the province on and after October 1, 1970, and sections 203 to 206, 213, 216, 217, 218, 222, and 224 to 230(18) inclusive, apply also to a contract made in the province before that day.
Application of sections of prior Act
204(2) Sections 206, 207, 208, 209, 211, 218 and 221 of Part VI of The Insurance Act in force immediately prior to October 1, 1970, apply to a contract made in the province before that day.
204(3) This Part does not apply to
(a) accidental death insurance; or
(b) creditor's group insurance; or
(c) disability insurance; or
(d) insurance provided under section 263, 264 or 265.
205 In the case of a contract of group insurance made with an insurer authorized to transact insurance in the province at the time the contract was made, this Part applies in determining,
(a) the rights and status of beneficiaries and personal representatives as recipients of insurance money, if the group person insured was resident in the province at the time he became insured; and
(b) the rights and obligations of the group person insured if he was resident in the province at the time he became insured.
206 An insurer entering into a contract shall issue a policy.
207(1) Subsection (2) does not apply to
(a) a contract of group insurance; or
(b) a contract made by a fraternal society.
207(2) An insurer shall set forth the following particulars in the policy:
1.
the name or a sufficient description of the insured and of the person insured;
2.
the amount or the method of determining the amount of the insurance money payable and the conditions under which it becomes payable;
3.
the amount or the method of determining the amount of the premium and the period of grace, if any, within which it may be paid;
4.
the conditions upon which the contract may be reinstated if it lapses;
5.
the term of the insurance or the method of determining the day upon which the insurance commences and terminates.
207(3) In the case of a contract of group insurance, an insurer shall set forth the following particulars in the policy:
1.
the name or a sufficient description of the insured;
2.
the method of determining the group persons insured and persons insured;
3.
the amount or the method of determining the amount of the insurance money payable and the conditions under which it becomes payable;
4.
the period of grace, if any, within which the premium may be paid;
5.
the term of the insurance or the method of determining the day upon which the insurance commences and terminates.
208(1) In this section
"original maximum benefit period" means, in relation to a contract of group insurance, the maximum period provided under that contract for the payment of any benefit payable thereunder in respect of loss of income; (« période initiale d'indemnité maximale »)
"prescribed time period" means, in relation to a contract of group insurance, a continuous period of six months following the termination of the contract or a benefit provision therein or such longer continuous period as may be provided in that contract instead of that six month period. (« délai prévu »)
Liability of group insurer on termination
208(2) Where a contract of group insurance or a benefit provision therein is terminated, the insurer continues, as though the contract or benefit provision had remained in full force and effect, to be liable, to or in respect of any group person insured under the contract, to pay benefits thereunder relating to
(a) loss of income because of disability; or
(b) death; or
(c) dismemberment; or
(d) accidental damage to natural teeth;
arising from an accident or sickness that occurred before the termination of the contract or benefit provision, if the disability, death, dismemberment or accidental damage to natural teeth is reported to the insurer within the prescribed time period.
| Sections: 1 - 208(2) | 208(3) - 409 | |
