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The Crop Insurance Act
This is an unofficial archived version of The Crop Insurance Act
as enacted by SM 1987-88, c. 9 on July 17, 1987.

R.S.M. 1987, c. C310

The Crop Insurance Act

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

Definitions.

1

In this Act

"accepted area" means the area of land that, as provided in his contract, is to be sown by an insured person to the insurable crop to which his application for insurance relates, in a crop year stated in the contract; ("superficie acceptée")

"actual yield" means the yield of a crop insured under a contract as determined by the agency under subsection 3(2); ("rendement réel")

"agency" means The Manitoba Crop Insurance Corporation continued under section 11; ("Société")

"agency representative" means a person appointed under this Act as a representative of the agency to receive applications for insurance; ("représentant de la Société")

"appeal tribunal" means a tribunal constituted under section 21; ("tribunal d'appel")

"average grade" means the average grade of grain that is an insurable crop determined as provided in section 8; ("qualité moyenne")

"contract" means a contract of insurance made under this Act; ("contrat")

"crop year" means the period beginning on April 1 in any year and ending on March 31 in the next succeeding year; ("année-récolte")

"designated perils" means, subject to subsection 17(4) hail, drought, excessive rain, flood, frost, wind including tornado, disease, including rust, and pests; ("risques désignés")

"established cost of preparing land for crop" means the cost as established by the regulations; ("coût établi de préparation des terres pour la récolte")

"established percentage" means the percentage of the long term average yield in any risk area for any insurable crop as established under the regulations; ("pourcentage déterminé")

"established price" means the price on the basis of which any loss is to be fixed and paid as established under the regulations; ("prix établi")

"fund" means The Crop Insurance Fund continued under section 13; ("Fonds")

"insurance" means insurance provided under a contract; ("assurance")

"insurable crop" means any crop or combination of crops that is designated in the regulations as an insurable crop; ("culture assurable" ou "récolte assurable")

"insured person" means a person who has entered into a contract; ("assuré")

"long term average yield" as applied to a crop in a risk area means the weighted average yield for that crop, in that risk area as determined on the basis of available records during a period of not more than twenty-five continuous years next preceding the crop year in which any such determination is made; ("rendement moyen à long terme")

"minister" means the Minister of Agriculture; ("ministre")

"prescribed" means prescribed in the regulations; ("prescrit")

"qualified person" means a person who is actually engaged in farming in Manitoba, including the production of an insurable crop; and where the owner of the accepted area on which an insurable crop is grown has an interest in the crop, includes the owner of that accepted area; ("personne qualifiée")

"reinsurance agreement" means an agreement entered into under section 27; ("accord de réassurance")

"risk area" means an area established under section 17; ("région à risques")

"test area" means an area established under section 18; ("région-pilote")

"unseeded land insurance" means insurance provided pursuant to section 4. ("assurance de terres non ensemencées")

PART I

GENERAL CROP INSURANCE

Provision of crop insurance.

2

The government, through the agency, shall, as herein provided and subject to the limitations and conditions herein set out, provide to qualified persons who make application therefor, insurance of their insurable crops grown in a test area against the designated perils.

Contract and terms thereof.

3(1)

Where in any year, an application for insurance by a qualified person is approved, the agency may, on payment of the prescribed premium, enter into a contract of insurance with him in the prescribed form whereby

(a) if the actual yield of the insurable crop sown in that year on the accepted area of the applicant in a risk area, by reason of any one or more of the designated perils, falls below the long term average yield for that crop in the risk area in which his accepted area is situated, the agency will pay to him the established price for each kilogram or other specified quantity, by which the actual yield is less than the established percentage of the long term average yield; and

(b) if the quality of the actual yield of the insurable crop sown in that year on the accepted area of the applicant in a risk area, by reason of any one or more of the designated perils, falls below the average grade for that crop in the risk area in which his accepted area is situated, the agency will pay to him an amount equal to the amount he would have received if his insurable crop had been equal to established percentage of the long term average yield for that crop in the risk area in which his accepted area is situated, had been of average grade, and had been sold at the established price, less the amount he could receive by selling his actual yield of the insurable crop at the current price for an insurable crop of the quality of his insurable crop;

but in no case shall the agency pay to the insured person more than the larger of the amount payable under clause (a) or the amount payable under clause (b).

Determination of actual yield or quality.

3(2)

On receipt of a notice of loss as required under section 7, the agency shall determine

(a) what will be or is the actual yield of the crop in respect of which the claim of loss is made; or

(b) what will be or is the quality of the crop in respect of which the claim of loss is made;

and in so determining the actual yield or quality, the agency shall take into account the stage of maturity of the crop.

Insurance on entire insurable crop.

3(3)

A contract shall insure the entire insurable crop of the applicant in respect of which his application is made.

Contract for unseeded land insurance.

4(1)

Where an application for unseeded land insurance in any crop year is made before the beginning of any crop year by a person insured under a contract of insurance made under section 3 and is approved by the agency, the agency may, on payment of the prescribed premium, enter into a contract of insurance with the insured person whereby, if in that crop year he is unable by reason of excessive rainfall, flood or excessive moisture to seed crop on any accepted area that has been designated by the insured as land to be seeded in that crop year to crop, the agency will pay to him such portion of the established cost of preparing the land for crop, as may be specified in his application on so much of the accepted area as the insured cannot seed by reason of those causes.

Insurance on all unseeded land.

4(2)

A contract for unseeded land insurance shall insure the whole of the accepted area of the applicant that is to be seeded in that crop year.

Application for insurance.

5(1)

A qualified person desiring to obtain insurance under this Act shall apply therefor in the prescribed form to the agency representative for the risk area in which his land is situated; and the application shall contain such information and details as may be prescribed in the regulations.

Insurance crop and land to be seeded to be specified in application.

5(2)

An application for insurance under section 3 shall specify the insurable crop in respect of which the insurance is desired and an application for insurance under section 4 shall describe and specify the land and area in respect of which the insurance is desired and specify the portion of the established cost of preparing the land for crop in respect of which the insurance is desired.

Guarantee of minor's obligations.

5(3)

Where a qualified person under the age of 18 years applies for insurance under this Act, the agency shall not insure the crops of the applicant unless a person over the age of 18 years guarantees the payment of premium and the performance of any covenants by the applicant.

Promissory note for premium.

5(4)

The agency may accept from an insured, a promissory note for the amount of the prescribed premium of the insurance, bearing such rate of interest and subject to such terms and conditions as may be prescribed in the regulations and payable on such date as may be fixed by the agency.

Deduction of amount of note from moneys payable under contract

5(5)

Where a promissory note is given as provided in subsection (4), if a loss occurs in respect of which the person giving the note is insured under a contract, the agency may deduct from any moneys payable under the contract any amount that is payable under the promissory note.

Voidability of insurance for negligence, etc.

6(1)

Every contract for insurance under section 3 shall contain a provision that the insurance thereby provided is void, subject as herein provided, in respect of any part of the deficiency in yield or of any loss caused by poor quality that is due to the negligence, neglect, misconduct, or poor farming practices of the insured person; but the avoidance of insurance under this subsection does not entitle the insured person to the return of any moneys paid as premium or part thereof, or relieve him from liability under any promissory note given under section 5.

Notice of avoidance.

6(2)

Where an insured person makes a claim under a contract for insurance under section 3 if the agency alleges that part or all of the deficiency in yield or of any loss caused by poor quality is due to his negligence, neglect, misconduct, or poor farming practices, unless the insured has agreed in writing that that part or all of the deficiency in yield or of any loss caused by poor quality is due to those causes, the agency shall forthwith notify him by registered mail that it declines to pay all or part of the claim stating the reason therefor; and the insured person may, within seven days of receipt of the notice, appeal by written notice of appeal to the appeal tribunal against the decision of the agency, and shall serve a copy of the notice of appeal on the agency by registered mail.

Voidability of unseeded land insurance for negligence, etc.

6(3)

Every contract for insurance under section 4 shall contain a provision that the insurance thereby provided is void, subject as herein provided, in respect to that portion of the accepted area in respect to which the inability to seed a crop in that crop year was due in whole or in part to the negligence, neglect, misconduct or poor farming practices of the insured person, but the avoidance of insurance under this subsection does not entitle the insured person to the return of moneys paid as premium or any part thereof, or relieve him from any liability of any promissory note given under section 5.

Notice of avoidance.

6(4)

Where an insured person makes a claim under a contract for insurance under section 4, if the agency alleges that all or part of the insurance thereby provided is void for any of the reasons set out in subsection (3), unless the insured person has agreed in writing that all or that part of the insurance is void for those reasons, the agency shall forthwith notify him by registered mail that it declines to pay all or part of the claim stating the reason therefor; and the insured person may, within seven days of receipt of the notice, appeal, by written notice of appeal, to the appeal tribunal against the decision of the agency, and shall serve a copy of the notice of appeal on the agency by registered mail.

Fixing of hearing.

6(5)

On receipt of the notice of appeal the appeal tribunal shall fix a day on which, and the time and place at which, it will consider the appeal and hear the parties.

Hearing and judgment

6(6)

On the day, and at the time and place, so fixed or on any subsequent day and at any time and place of which the parties have had due notice, the appeal tribunal shall hear the evidence given by or on behalf of the parties respecting the matter in dispute, and shall render its decision thereon, which is final and not subject to appeal; and the agency and the insured person shall comply therewith.

Notice of loss.

7(1)

If an insured person suffers a loss against which he is insured under a contract, he shall notify the agency of the occurrence of the loss within the time and in the manner specified in the contract.

Forwarding of forms of proof of loss.

7(2)

On receipt of a notice of loss under subsection (1), the agency shall send forms of proof of loss in the prescribed form to the insured person, who shall complete and return them to the agency within seven days after receipt thereof by him.

Further information.

7(3)

On demand by the agency, the insured person shall furnish to it such further or other proof of loss, or such information, as the agency may require.

Date of loss in certain cases.

7(4)

Where loss occurs by reason of drought or flood, or if for any other reason the exact date of the loss is uncertain, the date thereof shall be ascertained as prescribed in the regulations.

Establishment of amount payable.

7(5)

On proof by an insured person to the satisfaction of the agency of the occurrence of a loss in any crop year, the agency shall, in accordance with this Act and the contract made with the insured person, pay to him the amount of the loss in respect of which he is insured, calculated as provided herein and in the contract.

Appeals against amount of insurance allowed.

7(6)

If an insured person is not satisfied with the decision of the agency as to the amount of the loss, he may apply to the appeal tribunal to fix a greater amount.

Determination of average grade.

8

The average grade of any grain that is an insurable crop grown in a risk area is the average grade for the grain of that kind that has been marketed in that risk area during an immediate preceding period stated in the regulations, and that is not longer than 10 years.

Current price of insurable crops.

9

The current price for any insurable crop or any grade or quality of an insurable crop in any crop year is the current price for that insurable crop or that grade or quality of the insurable crop in that crop year as established under the regulations.

Agency to administer Act.

10(1)

There is hereby continued an agency to carry out and administer this Act under the direction, supervision, and control of the minister; and the agency shall consist of five persons appointed by the Lieutenant Governor in Council.

Terms of office.

10(2)

Each of the persons appointed a member of the agency shall, unless he sooner dies, resigns, or is removed from office, hold office for a term of three years from the date of his appointment, or for such shorter term as may be fixed in the order appointing him, and thereafter until his successor is appointed.

Filling of vacancies.

10(3)

Where a member of the agency ceases to be a member prior to the expiration of his term of office, any person appointed to fill the vacancy so created, unless he sooner dies, resigns, or is removed from office, shall hold office for the remainder of the term of office of the person in whose place he is appointed, and thereafter until his successor is appointed.

Re-appointment.

10(4)

A member of the agency whose term of office has expired is eligible for re-appointment.

Appointment as director.

10(5)

An order appointing a member of the agency shall state that he is appointed a director of the agency.

Continuation.

11(1)

The persons who at the day this Act comes into force are members of the agency continued under section 10 are continued as a body corporate under the name: "The Manitoba Crop Insurance Corporation".

Directors.

11(2)

The persons to whom reference is made in subsection (1) are the directors of the agency.

Chairman and vice-chairman.

11(3)

The Lieutenant Governor in Council shall appoint one of the directors to be chairman of the board of directors and one of them to be vice-chairman of the board of directors; and, in the absence, or at the request, of the chairman or in the event of his inability to act, or at the request of the minister, the vice-chairman shall act as, and shall have all the powers and authority of, the chairman.

Manager.

11(4)

The Lieutenant Governor in Council shall appoint a manager of the Agency.

Quorum.

11(5)

Three directors, of whom one shall be either the chairman or the vice-chairman of the board of directors, constitute a quorum.

Payment of expenses and remuneration.

11(6)

Each director shall be repaid from the fund the amount of any reasonable travelling and out-of-pocket expenses necessarily incurred by him in discharging his duties; and, in addition, any or all of the directors including, notwithstanding section 12 of The Civil Service Act, any person who is a member of the civil service of the government, may be paid and accept, as remuneration for his or their services, such daily or periodical amounts as are fixed by order of the Lieutenant Governor in Council.

Procedure.

11(7)

The directors may adopt rules governing their own procedure.

Meeting of directors.

11(8)

Meetings of the directors shall be held at the call of the chairman or, in his absence or at his request, at the call of the vice-chairman; and each meeting shall be held at such place and time as the person calling the meeting shall clearly designate; but reasonable notice of the time of each meeting shall be given, and the meetings shall be held not less frequently than once in each month.

Duties of board.

11(9)

Subject as herein otherwise provided, the board of directors shall administer in all respects the business and affairs of the agency and exercise, on behalf of the agency all the powers and authority vested in the agency; including the power to employ officers and employees as provided in section 20 and to dismiss or terminate the employment of, any person so employed.

Manager.

12(1)

The manager is the chief executive officer of the agency and, subject as herein provided and to the authority of the directors, is responsible for the management and direction of the operation of the agency and the day to day administration of its affairs; and he has general supervision and authority over its employees.

Further duties.

12(2)

Without restricting the generality of subsection (1), the manager shall

(a) when he deems it necessary, interview applicants for insurance and examine their applications and obtain such reports and information with respect thereto as he deems necessary;

(b) approve applications;

(c) interview applicants for employment under the agency and report thereon to the directors with his recommendation;

(d) where he deems it advisable, suspend any employee for any period not exceeding one month;

(e) prescribe the information, in addition to that prescribed in the regulations or by the directors, that must be furnished by applicants for insurance, either generally or in any specific case;

(f) discharge such other duties as may be prescribed by the directors.

Report respecting suspension.

12(3)

Where the manager suspends an employee he shall forthwith report the matter to the board of directors, and the board shall take such action thereon as it sees fit.

Salary of manager.

12(4)

The Lieutenant Governor in Council shall, by order in council, fix the salary or other remuneration to be paid to the manager.

Continuation of fund.

13(1)

"The Crop Insurance Fund", which shall be in the custody and control of the agency on behalf of Her Majesty in right of the province, is continued.

Working capital.

13(2)

The Minister of Finance, with the approval of the Lieutenant Governor in Council, and on the written requisition of the minister, may advance, without legislative authority or appropriation other than this Act, to the agency from time to time, for use as working capital, from the Consolidated Fund with moneys not otherwise required for any purpose, such sums as may be stated in the requisition to a total amount not exceeding $2,000,000.

Payment of half administration costs.

13(3)

Out of the Consolidated Fund with moneys authorized by an Act of the Legislature to be so paid and applied, the Minister of Finance, on the written requisition of the minister, shall pay to the agency in each year an amount determined to be the cost of administering this Act during the year, less that portion thereof that is contributed by the Government of Canada under an agreement made under section 28.

Credits to fund.

13(4)

The agency shall credit to the fund

(a) the moneys advanced under subsection (2);

(b) the moneys paid under subsection (3);

(c) the amount of all premiums received;

(d) any amount received from the Government of Canada for the purposes of this Act; and

(e) all other amounts received by the agency for the purposes of this Act.

Deposit of funds.

13(5)

The agency shall deposit and keep all amounts credited to the fund either

(a) in a bank; or

(b) with the Minister of Finance, who shall credit them to the agency in the trust and special division of the Consolidated Fund.

Payment by Minister of Finance.

13(6)

Where moneys are deposited with the Minister of Finance as provided in subsection (5), he shall pay them out to the agency, or as it may direct, on the written requisition of the manager.

Payments from fund.

13(7)

The agency shall administer the fund and pay therefrom all amounts required by this Act to be paid therefrom, together with the costs of administering this Act including, notwithstanding any other Act, the salaries of the manager and of all other employees engaged in the administration of this Act.

Superannuation contributions.

13(8)

If any employees of the agency are or become employees within the meaning of The Civil Service Superannuation Act, the agency shall pay from the fund in respect of those employees the contributions required from the government under The Civil Service Superannuation Act; and the agency shall also make, in respect of those employees, the deductions from the salaries required under section 17 of that Act and remit the amount thereof to The Civil Service Superannuation Board.

Investment of moneys in fund.

13(9)

The agency shall pay to the Minister of Finance for investment for the agency any moneys in the fund not immediately required for expenditure; and the Minister of Finance may invest the moneys but such moneys may be invested only in stocks, bonds, debentures, or securities in which, under The Financial Administration Act, moneys in the Consolidated Fund may be invested.

Disposal of invested moneys.

13(10)

Moneys paid to the Minister of Finance for investment pursuant to subsection (9) form part of the trust and special division of the Consolidated Fund and the interest earnings thereon shall be credited to the account of the agency in the trust and special division of the Consolidated Fund; and such earnings, either alone or with the principal sum invested for the agency by the Minister of Finance hereunder, or any part thereof, shall be paid over to the agency by the Minister of Finance on the request of the board of directors.

Reinsurance Account established.

14(1)

There shall be established in the trust and special division of the Consolidated Fund a special account to be known as: "The Manitoba Crop Reinsurance Account", (in this section referred to as "the account")

(a) to which shall be credited all moneys paid by the agency to the Minister of Finance under a reinsurance agreement as premiums for reinsurance; and

(b) to which shall be charged all amounts required to be paid to the agency under a reinsurance agreement.

Payments from the account.

14(2)

The Minister of Finance may, subject to this Act and the terms of a reinsurance agreement, on the requisition of the minister, pay out of the account any amount required to be paid to the agency under the terms of a reinsurance agreement.

Deficits in account.

14(3)

If at any time the amount standing to the credit of the account is insufficient to make any payment to the agency required under the terms of a reinsurance agreement, the Minister of Finance may, with the approval of the Lieutenant Governor in Council, advance from and out of the revenue division of the Consolidated Fund, and credit to the account, the amount required to meet the deficit.

Advances to be repaid.

14(4)

An advance made under subsection (3) is repayable out of the account without interest in accordance with the reinsurance agreement.

Fiscal year.

15

The fiscal year of the agency begins on April 1 in each year and ends on March 31 in the next succeeding year.

Audit

16

The books and accounts of the agency shall be audited from time to time, and at least annually, by the Provincial Auditor; and the cost of the audit shall be paid by the agency from the fund.

Establishment of risk areas.

17(1)

Subject to approval by the Lieutenant Governor in Council, the agency may, by its written order, establish in the province risk areas and define the boundaries of each.

Publication.

17(2)

On the establishment of a risk area being approved by the Lieutenant Governor in Council, the agency shall cause a description thereof to be published in at least one issue of The Manitoba Gazette.

Survey respecting proposed risk area.

17(3)

Before establishing a risk area the agency shall conduct a survey of the proposed risk area, and shall not establish the risk area unless the directors are satisfied that at least 25% of the qualified persons in the proposed risk area, or persons operating at least 25% of the land in the proposed risk area upon which, in the opinion of the directors, insurable crop is likely to be sown in the then next succeeding crop year, are willing to enter into contracts with the agency.

Limitation of designated perils insured against.

17(4)

On the establishment of a risk area or at any subsequent time the agency may determine against which of the designated perils insurance will be provided under this Act in respect of insurable crops grown

(a) in the risk area or any part thereof; or

(b) on any or all of the lands in the risk area of any particular qualified person;

and may also determine whether, in any risk area or part thereof, conditions of excessive rainfall exist or have existed during the relevant crop year.

Continuing risk areas.

17(5)

After a risk area has been established, the agency shall not continue to provide insurance in the risk area unless the directors are satisfied that

(a) the percentage of qualified persons therein who are willing to enter into contracts with the agency is above the minimum percentage fixed in the regulations for the purposes of this subsection; or

(b) the percentage of the land therein upon which, in the opinion of the directors, insurable crops are likely to be sown in the next succeeding crop year, the persons operating which are willing to enter into contracts with the agency, is above the minimum percentage fixed in the regulations for the purposes of this subsection.

Establishment of test areas.

18(1)

Subject to the approval of the Lieutenant Governor in Council, the agency may, by its written order, establish in the province test areas and define the boundaries of each.

Publication.

18(2)

On the establishment of a test area being approved by the Lieutenant Governor in Council, the agency shall cause a description thereof to be published in at least one issue of the Manitoba Gazette.

Purposes of test areas.

18(3)

The test area as established in subsection (1) shall be for the purpose of testing innovations to the crop insurance programs.

Fixing premiums.

19(1)

Subject to the approval of the Lieutenant Governor in Council, the agency may, by its written order, prescribe premium rates or premiums or both premium rates and premiums, and bonuses, discounts, and surcharges thereon, to be paid by or allowed to insured persons in respect of contracts and may establish the insurance coverage to be provided under contracts.

Publication not required.

19(2)

An order made under subsection (1) shall be filed with the Registrar of Regulations but notwithstanding The Regulations Act publication thereof in the Manitoba Gazette is not required.

Appointment of officers and employees.

20(1)

Subject as herein otherwise provided, the agency may employ a manager, a secretarytreasurer, an actuary, and such other officers, agency representatives and other employees as the directors may deem to be necessary in order that the agency may discharge its duties and responsibilities under this Act.

Services of professional persons.

20(2)

The agency may obtain and pay for the services, advice, and assistance, of such actuaries, accountants, solicitors, engineers, surveyors, valuators, and other professional or expert personnel as it may deem necessary.

Constitution of appeal tribunal.

21(1)

The Lieutenant Governor in Council may, by order in council, constitute an appeal tribunal to hear and decide appeals made under section 6 and under subsection 7(6).

Period.

21(2)

An appeal tribunal may be constituted either for a period stated and for all cases or for the hearing of a particular case.

Membership.

21(3)

An appeal tribunal shall consist of three persons of whom at least one is a person actually engaged in farming operations and one of whom shall be appointed chairman of the appeal tribunal.

Procedure.

21(4)

An appeal tribunal may, subject as herein provided, determine its own procedure.

Powers.

21(5)

The members of an appeal tribunal shall have the powers conferred by The Manitoba Evidence Act on commissioners appointed under Part V of that Act.

Costs of appeal.

21(6)

An appeal tribunal shall fix the costs of each case heard by it in an amount not less than $25. which shall be paid by the government.

Deposit for costs.

21(7)

Where an insured person appeals to an appeal tribunal under this Act, he shall deposit with the appeal tribunal at the time of filing his notice of appeal, the sum of $25. payable to the Minister of Finance as security for the costs of the appeal and

(a) if the insured person is successful in his appeal, the deposit shall be repaid to him by the Minister of Finance on the requisition of the minister; and

(b) if the insured person is unsuccessful in his appeal, the deposit is forfeited to the government and on the requisition of the minister shall be applied in paying the costs of the appeal as fixed under subsection (6).

Annual report.

22(1)

Not later than June 30 in each year the manager shall make a report to the directors on the operation of the agency during the fiscal year ending on March 31 in that year; and the directors shall forthwith forward the report to the minister who shall lay it before the Legislative Assembly if it is then in session, and if it is not then in session, at the next ensuing session thereof within 15 days of the opening thereof.

Further reports.

22(2)

The Lieutenant Governor in Council may, at such times and as often as he deems it necessary, require the directors to furnish to him such reports or information respecting the business and operations of the agency, or of any designated part of that business or those operations, as he may direct; and the directors shall comply with the requisition.

Application of Corporations Act.

23

The agency is bound by, and shall comply with, all relevant provisions of The Corporations Act.

Insurance Act not applicable.

24

The contracts made with insured persons are not contracts of insurance within the meaning of The Insurance Act; and that Act does not apply to the administration of this Act.

Regulations.

25

Subject to the approval of the Lieutenant Governor in Council, the directors, for the purpose of carrying out the provisions of this Act according to their intent, may make such regulations and orders as are ancillary thereto and are not inconsistent therewith; and every regulation or order made under, and in accordance with the authority granted by, this section has the force of law; and, without restricting the generality of the foregoing, the directors, subject to the same approval, may make regulations and orders

(a) prescribing the forms and terms of contracts;

(b) prescribing the form of application for a contract;

(c) prescribing the information and details to be set out in an application for a contract;

(d) prescribing the form in which proof of loss shall be given and the information and details to be furnished therewith;

(e) prescribing the method of fixing the date of a loss where the exact date thereof is uncertain;

(f) establishing the percentage of the long term average yield in any risk area for any grain that is an insurable crop that is to be the basis for determining whether an insured person has suffered a loss against which he is insured under a contract;

(g) subject to section 8, stating the period with respect to which the average grade of any grain that is an insurable crop is to be determined;

(h) designating crops as insurable crops;

(i) fixing the rate of interest payable on, and prescribing the terms and conditions of, promissory notes given for payment of premiums;

(j) fixing the minimum percentage of qualified persons in a test area and the minimum percentage of the land in a test area upon which, in the opinion of the directors, insurable crops are likely to be sown in the next succeeding crop year, the persons operating which are willing to enter into contracts with the agency, required for the agency to continue to provide insurance in the test area;

(k) establishing the established cost of seed-bed preparation;

(l) establishing the established price for any specified quantity of an insurable crop on the basis of which the amount of any loss in respect of the insurable crop shall be fixed and paid in any crop year;

(m) establishing the current price for any specified quantity of an insurable crop or of any grade or quality of an insurable crop for a crop year.

Limitation of liability.

26

Neither the manager or any director, nor any one acting under the instructions of any of them, or under the authority of this Act, is personally liable for any loss or damage suffered by any person by reason of anything in good faith done or omitted to be done by him or them or any of them pursuant to, or in the exercise or supposed exercise of, the powers conferred by this Act.

Reinsurance agreement.

27(1)

The Government of Manitoba represented therein by the minister, may, with the approval of the Lieutenant Governor in Council, enter into an agreement with the Government of Canada and the agency for the purpose of the Government of Canada and the Government of Manitoba providing, in consideration of premiums to be paid by the agency to the Government of Canada and the Government of Manitoba, reinsurance of a portion of the liability of the agency for the payment of indemnities under contracts.

Agency may enter reinsurance contracts.

27(2)

The agency may enter into a reinsurance contract with the Government of Canada and the Government of Manitoba.

Agreement with Government of Canada.

28(1)

The Government of Manitoba, represented therein by the minister, may, if so authorized by order of the Lieutenant Governor in Council, enter into an agreement with the Government of Canada, pursuant to this Act and an Act of the Parliament of Canada enacted for the purpose, whereby the Government of Canada agrees to make contributions to the fund for the purpose of

(a) defraying such part of the cost of administering this Act as is stated in the agreement;

(b) reimbursing the fund for such part of the amounts paid from the fund in satisfaction of claims of insured persons, as is stated in the agreement; and

(c) the agency refunding to insured persons such part of the premiums paid by them under contracts as is stated in the agreement;

or for any of those purposes, and for any other purpose that may be stated in the Act of Parliament or in the agreement.

Provision respecting termination of agreement

28(2)

An agreement made under subsection (1) shall contain a provision that, unless sooner terminated, it will continue while this Act as it may be amended from time to time, or any consolidation or revision thereof, remains in force; and that the Government of Canada will not terminate it except on five years notice in writing given to the minister.

Offence and penalty.

29

A person who furnishes any false information or who makes a false statement in any application, declaration or return made or given under this Act or the regulations, or who, by failing to complete or omitting information from any such application, declaration or return makes the application, declaration or return misleading, is guilty of an offence and is liable, on summary conviction, to a fine of not less than $50. and not more than $500. or to imprisonment for a term of not more than six months or to both.

PART II

HAIL INSURANCE

Provision of hail insurance.

30(1)

The government, through the agency, may subject to the provisions of this Act and the regulations, provide to qualified persons who make application therefor, insurance on their insurable crops in designated areas against damage caused to those crops by hail or fire, or both.

Limitation on hail insurance.

30(2)

The agency shall not enter into a hail insurance contract in respect of a crop year with a person who has not entered into an all risk contract under Part I in respect of the same crop year.

Calculation of premiums.

31

The experience period for calculating premiums for hail insurance contracts shall be not longer than the 25 year period immediately preceding the year for which the premiums are being calculated.

No payment of hail claims from all-risk premiums.

32(1)

No claims for losses incurred to insurable crops under this Part may be paid from or out of the premiums received by the agency with respect to contracts issued pursuant to Part I of this Act.

Payment of administration costs and claims from premiums.

32(2)

Payment for costs of administration, costs of and expenses of issuing contracts and settling claims for losses may be paid out of premiums received respecting contracts issued under this Part but no payment of the costs of administration or of expenses of issuing contracts or settling claims for a contract under this Part may be paid out of premiums received with respect to contracts issued pursuant to Part I of this Act.

Reserves.

32(3)

Where in any crop year after the payment of claims, the payment of the costs and expenses of issuing contracts and settling claims for losses under this Part, there remains a surplus of moneys, the surplus shall be set aside by the agency as a reserve fund for claims payable with respect to contracts under this part.

Loan to agency.

32(4)

Where in any crop year the amount of the premiums received under this Part, together with the accumulated reserve under this Part, is insufficient to pay claims pursuant to contracts issued under this Part for losses to insurable crops, the Government of Manitoba shall, from and out of the Consolidated Fund, make interest free loans to the agency, to enable the agency to meet the deficiency.

Issuing of contracts.

33

A contract under this Part may be entered into by the agency at any time during the crop year.

Frost damage.

34

No indemnities shall be paid under a contract issued under this Part, for loss or damage caused by frost.

Regulations

35

For the purpose of carrying out the provisions of this Part according to their intent, the Lieutenant Governor in Council may make such regulations and orders as are ancillary thereto and are not inconsistent therewith; and every regulation or order made under, and in accordance with the authority granted by this section has the force of law; and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make regulations and orders,

(a) designating hail insurance areas within the province;

(b) designating the crops that are insurable under a hail insurance contract;

(c) respecting the calculation of premiums under this Part;

(d) prescribing the terms and conditions of the contract under this Part;

(e) prescribing the forms and kinds of policies to be issued under this Part;

(f) prescribing the maximum amount of insurance coverage that is to be provided under this Part;

(g) establishing the amounts of refunds to be made upon the cancellation of a hail insurance contract;

(h) establishing the amount of discounts, if any, or reductions in premiums, to be allowed under this Part;

(i) prescribing the procedure to be followed in adjusting losses under this Part;

(j) respecting cancellation of contracts for failure to observe the terms and conditions thereof.

Application of Part I.

36

Notwithstanding anything contained in this Act, the provisions of Part I apply with such modifications as the circumstances require to this Part.