2nd Session, 43rd Legislature

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Bill 14

THE INSURANCE AMENDMENT ACT

(Assented to                                         )

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

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

1   The Insurance Act is amended by this Act.

2   Subsection 8(1) is replaced with the following:

Immunity of superintendent and others

8(1)   No action or proceeding may be brought against the superintendent or a person employed in the office of the superintendent or acting under the superintendent's instructions for anything done, or omitted to be done, in good faith, in the exercise or intended exercise of a power or duty under this Act or the regulations.

3   The following is added after section 166.1 and before the centred heading "BENEFICIARIES".

LIMIT ON FUNDS HELD

Definitions

166.2(1)   The following definitions apply in this section.

"actuarial basis" means the assumptions and methods generally accepted and used by actuaries to establish the cost of life insurance in relation to the contingencies of human life. (« base actuarielle »)

"exempt contract" means a contract that is exempt from accrual taxation under the Income Tax Act (Canada). (« contrat exonéré »)

"side account" means an account associated with or that is a part of a contract that may hold funds in excess of the maximum amount permitted to be held in an exempt contract. (« compte accessoire »)

Limit on funds held under exempt contract

166.2(2)   With respect to an exempt contract, and subject to any lesser limit provided under the terms of the contract, the amount that may be held in a side account must not exceed the sum of

(a) the amount required to pay future costs of insurance, related premium taxes and administrative fees or charges; and

(b) the additional amount, if any, that could in the future be held under the contract on an accrual tax exempt basis under the Income Tax Act (Canada).

Limit on funds held under non-exempt contract

166.2(3)   With respect to a contract that is not an exempt contract, and subject to any lesser limit provided under the terms of the contract, the amount that may be held under the contract together with any associated side account must not exceed the amount required to pay future costs of insurance, related premium taxes and administrative fees or charges.

Actuarial determination

166.2(4)   The amount referred to in subsection (2) or (3) is to be determined from time to time by the insurer on an actuarial basis using the expected remaining lifetime of the person then insured under the contract.

Amount exceeding limit not a premium

166.2(5)   Any amount that exceeds the limit set out in subsection (2) or (3), as the case may be,

(a) is not and has never been a premium; and

(b) must not be held under a contract or in its associated side account regardless of the date of issue of the contract.

Non-application

166.2(6)   This section does not apply to an annuity contract.

4   Subsection 389.1(5) is replaced with the following:

Method of notification to appellant

389.1(5)   Notification to the appellant under subclause (4)(d)(iii) must be in writing and be sent to the appellant by

(a) personal delivery;

(b) a delivery service that provides guaranteed delivery and evidence of receipt; or

(c) e-mail if the appellant has agreed in writing that notification may be sent by e-mail.

Deemed receipt — e-mail

389.1(6)   A notification under subclause (4)(d)(iii) that is sent by e-mail is deemed to be received on the day that it is sent.

5   Subsection 389.3(12) is amended by striking out "conferred upon, and the protection afforded to, commissioners appointed" and substituting "of commissioners".

6   The following is added as section 396.1.1:

Immunity of Insurance Agents' and Adjusters' Licensing Appeal Board and insurance councils

396.1.1   No action or proceeding may be brought against The Insurance Agents' and Adjusters' Licensing Appeal Board established under section 389.2 or a member of the appeal board, an insurance council established under section 396.1 or a member or employee of an insurance council, or the co-ordinator of appeals designated under section 389.1 or their delegate, for anything done, or omitted to be done, in good faith, in the exercise or intended exercise of a power or duty under this Act or the regulations.

Coming into force

7   This Act comes into force on the day it receives royal assent.