Insurance (General Matters) Regulation

Insurance (General Matters) Regulation, M.R. 220/2014 The Insurance Act , C.C.S.M. c. I40 Regulation 220/2014 Registered August 25, 2014 bilingual version (HTML) Table of Contents Section 1 Definition 2 Permitted inducements to prospective insureds 3 When statutory conditions under Part III of the Act do not apply 4 Innocent co-insured 5 Definitions re prescribed exclusions 6 Prescribed exclusions for fire and other perils 7 Prescribed information re group and creditor group insurance 8 Definitions re rescission of certain insurance contracts 9 Right to rescind certain insurance contracts 10 Coming into force Definition 1 In this Regulation, "Act" means The Insurance Act . Permitted inducements to prospective insureds 2 For the purpose of clause (f) of the definition "unfair or deceptive acts or practices in the business of insurance" in subsection 113(1) of the Act, a person is permitted to make a direct or indirect payment, allowance or gift of, or an offer to directly or indirectly pay, allow or give, money or another thing of value to induce a prospective insured to transact insurance with an insurer as long as the fair market value of the payment, allowance, gift or offer to the prospective insured does not exceed $25 per year. When statutory conditions under Part III of the Act do not apply 3 For the purpose of subsection 136.4(4) of the Act, the statutory conditions set out in Schedule B of the Act do not apply to insurance contracts that are within any of the following classes: (a) mortgage insurance; (b) title insurance; (c) credit insurance; (d) credit protection insurance. Innocent co-insured 4(1) Persons who are not individuals are prescribed as a class of persons for the purpose of clause 136.5(1)⁠(d) of the Act. 4(2) For the purpose of subsection 136.5(3) of the Act, a person described in that subsection must (a) cooperate with the insurer in respect of the investigation of the loss, including by submitting to an examination under oath if requested by the insurer; and (b) in addition to producing any documents required by the contract, produce for examination, at a reasonable place and time specified by the insurer, all documents in the person's possession or control that relate to the loss. Definitions re prescribed exclusions 5 The following definitions apply in section 6. "biological hazard" means a process or phenomenon of organic origin or conveyed by biological vectors, including exposure to pathogenic micro-organisms, toxins and bioactive substances that may cause loss of life, injury, illness or other health impacts, property damage, social and economic disruption or environmental damage in the absence of its control. (« danger biologique ») "chemical hazard" means a physical agent that may cause loss of life, injury, illness or other health impacts, property damage, social and economic disruption or environmental damage in the absence of its control. (« danger chimique ») "commercial property" means property that is not residential property. (« propriété commerciale ») "nuclear energy hazard" means the radioactive, toxic, explosive or other hazardous properties of nuclear substances as defined in the Nuclear Safety and Control Act (Canada). (« danger découlant de l'énergie nucléaire ») "pressure vessel" means a boiler, vessel or apparatus and their connected pipes while under pressure or while in use or operation, but does not include a tank with an internal diameter of 610 mm or less used for storage of hot water or any vessel if the maximum internal working pressure of the vessel does not exceed 103 kPa above atmospheric pressure. (« contenant sous pression ») "radioactive material" includes (a) spent nuclear fuel rods that have been exposed to radiation in a nuclear reactor; (b) radioactive waste material; and (c) unused enriched nuclear fuel rods. (« matières radioactives ») "residential property" means property that is used primarily for residential purposes, including the units and common property of a residential condominium building. (« propriété résidentielle ») "terrorism" means an unlawful act, including the use of violence or force or threat of violence or force committed by one or more persons acting on behalf of any group, organization or government for the purposes of influencing a government or instilling fear in the public, but does not include vandalism. (« terrorisme ») "vandalism" means the wilful or malicious destruction or defacement of public or private property, including religious and cultural property, but does not include the wilful or malicious destruction or defacement of public or private property intended to cause (a) a risk to the health or safety of the public or any segment of the public; (b) endangerment to a person's life; or (c) death or bodily harm to a person. (« vandalisme ») Prescribed exclusions for fire and other perils 6(1) For the purpose of subsection 136.8(3) of the Act, the following perils are prescribed as other perils to which that subsection applies: (a) lightning; and (b) explosion. 6(2) For the purpose of clause 136.8(3)⁠(a) of the Act, the following exclusions are prescribed as permitted exclusions in a contract: (a) in the case of a contract in respect of residential property, (i) fire involving goods occasioned by or happening through their undergoing any process involving the application of heat, (ii) fire occasioned by or happening through riot, civil commotion, war, invasion, an act of a foreign enemy, hostilities, whether war is declared or not, civil war, rebellion, revolution, insurrection or military power; (iii) lightning causing destruction or loss to electric devices or appliances, (iv) an explosion of natural, coal or manufactured gas in a building that is not part of a gas works occasioned by or happening through one or more perils specified in subclause (ii), (v) loss or damage to property caused by contamination by radioactive material directly or indirectly resulting from fire, lightning or explosion, (vi) biological hazard, chemical hazard or nuclear energy hazard, including contamination by radioactive material directly or indirectly resulting from fire or explosion caused by terrorism, (vii) explosion of any pressure vessel, gas turbine or any moving or rotating machinery or its parts, and (viii) loss or damage to property directly or indirectly resulting from fire or explosion caused by a criminal or intentional act or omission of an insured; (b) in the case of a contract in respect of commercial property, (i) an exclusion described in clause (a), or (ii) fire or explosion caused by terrorism. (c) in the case of property insured under a contract of boiler and machinery insurance, explosion of gas or unconsumed fuel within a furnace or within the passage from a furnace or pressure vessel to the atmosphere. 6(3) For the purpose of clause 136.8(3)⁠(b) of the Act, an insurer may not in a contract exclude coverage for damage by fire that occurs in an insured property that is vacant (a) if the fire occurs within 30 days after the property became vacant; or (b) if the fire occurs after the insurer issues a vacancy permit in respect of the insured property. Prescribed information re group and creditor group insurance 7 Information is prescribed for the purpose of clauses 151(8)⁠(b) and 206(8)⁠(b) of the Act if it is information in a policy of group insurance or creditor group insurance that, if disclosed, would reveal (a) confidential commercial information that a reasonable person would think could harm the competitive position of the insurer or insured, or (b) plan design and benefits information relating to different classes of debtor insured, group life insured or group persons insured covered in the same policy. Definitions re rescission of certain insurance contracts 8 The following definitions apply in section 9: "annuity contract" means a contract of insurance that is within the class of life insurance and that provides for payment of an income for a specified period or for life and under which the only benefit stated to be payable by reason of death does not exceed the sum of the amounts paid as consideration for the contract together with interest. (« contrat de rente viagère ») "variable life insurance contract" means a contract of insurance that is within the class of life insurance for which all or part of the insurer's liability under the contract, and the reserves for the liability, vary in amount depending on the market value of a specific group of assets. (« contrat d'assurance-vie à prestations variables ») Right to rescind certain insurance contracts 9(1) Subject to subsection (2), a person who buys a contract of life insurance or accident and sickness insurance may rescind the contract within 10 days after receiving the policy or within any longer period specified in the contract. 9(2) Subsection (1) does not apply to (a) a contract of insurance that is within the class of life insurance or accident and sickness insurance and is personal travel insurance, within the meaning of Part 2 of the Insurance Agents and Adjusters Regulation , Manitoba Regulation, 389/87 R, if the term of the contract is less than 190 days; (b) an annuity contract; or (c) a variable life insurance contract. 9(3) A person who rescinds a contract under subsection (1) is entitled to receive from the insurer a refund of the whole premium that has been paid. Coming into force 10 This regulation comes into force on the same day that the following provisions of The Insurance Amendment Act , S.M. 2012, c. 29, come into force: (a) sections 1 to 43; (b) section 45 insofar as it enacts subsection 151(8) of The Insurance Act ; (c) section 56 insofar as it enacts subsection 206(8) of The Insurance Act . M.R. 235/2014