or (d) has failed or refused to comply with any limitation or conditions placed on him or her in relation to the licence; the superintendent may take one or more of the actions set out in subsection 375(1.1). Application of subsections 375(1.2) to (1.8) 386(9.1) Subsections 375(1.2) to (1.8) apply, with necessary modifications, to a decision of the superintendent under subsection (9) and subsection 375(1.1) in relation to the holder or former holder of an assistant insurance adjuster licence. S.M. 2000, c. 40, s. 23 ; S.M. 2007, c. 10, s. 33 . Solicitation for adjustment prohibited 387(1) Subject to subsection (2), no person shall, on behalf of himself or any other person, directly or indirectly, (a) solicit the right to negotiate, or negotiate or attempt to negotiate, for or in expectation of any fee, gain or reward, the settlement of a claim for loss or damage arising out of a motor vehicle accident resulting in bodily injury to or death of any person or damage to property, on behalf of a claimant; or (b) hold himself out as an adjuster, investigator, consultant or otherwise as an adviser, on behalf of any person having a claim against an insured for which indemnity is provided by a motor vehicle liability policy. Exception 387(2) Except as to soliciting the right to negotiate, this section does not apply to a barrister or solicitor acting in the usual course of his profession. Disclosure of name of insurer 388 Where an adjuster, on behalf of an insurer, enters into negotiations with a person having a claim against an insured for which indemnity is provided by a motor vehicle liability policy, or a policy of public liability insurance, issued by the insurer, the adjuster shall, on request by the claimant, disclose to him the name and address of the insurer. LICENSING APPEALS AND THE INSURANCE AGENTS' AND ADJUSTERS' LICENSING APPEAL BOARD Definitions 389 The following definitions apply in sections 389.0.1 to 389.5. "appeal board" means The Insurance Agents' and Adjusters' Licensing Appeal Board established under subsection 389.2(1). (« Commission d'appel ») "co-ordinator of appeals" means the co-ordinator of appeals designated under section 389.1. (« coordonnateur des appels ») R.S.M. 1987 Supp., c. 18, s. 13 ; S.M. 2000, c. 40, s. 24 ; S.M. 2012, c. 29, s. 74 . Appeal from decision of superintendent 389.0.1(1) When the superintendent does one or more of the following: (a) refuses to grant a licence to an applicant to act as an agent, broker, adjuster or assistant adjuster; (b) reprimands a licence holder or places conditions on the licence of an agent, broker, adjuster or assistant adjuster; (c) suspends or cancels any of the licences mentioned in clause (a); (d) imposes a fine on the holder or former licence holder of an insurance agent licence, insurance adjuster licence or assistant insurance adjuster licence; (e) requires that the holder or former holder of any of the licences mentioned in clause (d) pay costs in relation to an investigation by the superintendent; (f) issues a prohibition under subsection 91(2); the person in respect of whom the decision of the superintendent is made may appeal the decision to the appeal board by filing a notice of appeal with the co-ordinator of appeals within 21 days after the superintendent provides the decision to the person. Notice of appeal form to be given with superintendent's decision 389.0.1(2) When the superintendent takes any of the actions described in subsection (1) in respect of a person, the superintendent must provide the person with a notice of appeal form at the same time at which the superintendent provides the decision to the person. Contents of notice of appeal 389.0.1(3) A notice of appeal under subsection (1) must (a) be in writing and in the form approved by the superintendent; (b) set out the particulars of the decision of the superintendent that is being appealed; and (c) briefly state the reasons for the appeal. How appeals are dealt with 389.0.1(4) An appeal under subsection (1) is to be dealt with in accordance with sections 389.1 to 389.3. Reinstatement of suspended or cancelled licence 389.0.1(5) By filing an application with the co-ordinator of appeals in the form approved by the superintendent, a person who has appealed the suspension or cancellation of the person's licence may apply to the appeal board to reinstate the licence until the final disposition of the appeal. How reinstatement applications are dealt with 389.0.1(6) A reinstatement application under subsection (5) is to be dealt with in accordance with section 389.4. Forms to be approved by superintendent 389.0.1(7) The superintendent may approve the form of the (a) notice of appeal; (b) application for reinstatement of licence; and (c) application to extend a deadline under subsection 389.4(1). S.M. 2012, c. 29, s. 75 . Late filing of notice of appeal 389.0.2(1) If the co-ordinator of appeals considers that an appellant's notice of appeal has been filed after the time limit set out in subsection 389.0.1(1), the co-ordinator must notify the appellant and the superintendent that the notice of appeal was filed late. Extension of time limit by consent 389.0.2(2) If the superintendent consents to the late filing of the notice of appeal, the co-ordinator of appeals must accept it as though it had been filed in time. Extension of time limit when superintendent does not consent 389.0.2(3) If the superintendent does not consent to the late filing of the notice of appeal, the co-ordinator of appeals may accept it as though it had been filed in time if the co-ordinator is satisfied (a) that the person made a reasonable effort to file it before the end of the time limit; and (b) that hardship or injustice will result if the notice of appeal is not accepted. S.M. 2012, c. 29, s. 75 . Co-ordinator of appeals 389.1(1) The minister may designate an employee of the government as the co-ordinator of appeals for the purposes of this Part. Delegation by co-ordinator of appeals 389.1(1.1) The co-ordinator of appeals may in writing delegate any of the co-ordinator's powers or duties for a fixed period of time to another employee of the government. 389.1(2) and (3) [Repealed] S.M. 2012, c. 29, s. 76 . Duties of co-ordinator of appeals 389.1(4) When the co-ordinator of appeals receives a notice of appeal under subsection 389.0.1(1) within the time limit set out in that subsection or receives an application for reinstatement under subsection 389.0.1(5), the co-ordinator must (a) notify the chairperson of the appeal board and the superintendent about the appeal or application; (b) in consultation with the chairperson of the appeal board, the appellant and the superintendent, determine the date and time for the hearing of the appeal or application; (c) arrange for facilities for the hearing; and (d) notify (i) the members of the panel of the appeal board assigned to hear the appeal or application, (ii) the superintendent, and (iii) the appellant, of the date, time and location of the hearing. Application of subsection (4) — late filings 389.1(4.1) Subsection (4) applies, with necessary changes, when a notice of appeal is accepted for late filing under subsection 389.0.2(2) or (3). 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. S.M. 2000, c. 40, s. 24 ; S.M. 2012, c. 29, s. 76 ; S.M. 2021, c. 11, s. 97 ; S.M. 2025, c. 12, s. 4 . Establishment of appeal board 389.2(1) There is hereby established an appeal board which shall be known as: "The Insurance Agents' and Adjusters' Licensing Appeal Board". Membership of the board 389.2(2) The appeal board shall be composed of suitably qualified persons appointed by the Lieutenant Governor in Council, and each member shall hold office until the term set out in the order appointing him or her expires, or until a successor is appointed for him or her, whichever occurs later. Composition of the board 389.2(3) In determining the composition of the appeal board, the Lieutenant Governor in Council shall appoint a sufficient number of (a) persons with suitable legal qualifications; (b) lay persons; and (c) persons representative of various sectors of the insurance industry; to enable the appeal board to carry out its functions and duties fairly and efficiently. Chairperson 389.2(4) The Lieutenant Governor in Council shall designate one of the members of the appeal board as chairperson of the appeal board. Vice-chairperson 389.2(5) The Lieutenant Governor in Council may designate one of the members of the appeal board as vice-chairperson of the appeal board, to act as chairperson on the request of the chairperson or the minister during the illness or absence of the chairperson or during the chairperson's inability to perform his or her duties. Hearings by panels of the appeal board 389.2(6) A licensing appeal shall be heard by a panel of three or five members of the appeal board, constituted as set out in subsection (7). Constitution of panels 389.2(7) The chairperson (a) shall constitute from among the members of the appeal board a sufficient number of panels of the board to hear the number of appeals outstanding from time to time; (b) shall designate one member of each panel, who shall have suitable legal qualifications, to be the panel chairperson; (c) shall assign a panel to an appeal hearing having regard to the experience and qualifications of the panel members, the type of licence involved in the appeal and the matters to be decided in relation to the appeal; and (d) may be a member or the panel chairperson of a panel. Substitution of panel members 389.2(8) The chairperson may assign additional appeal board members to a panel of the appeal board, or substitute one member of the appeal board for another on the panel, where the circumstances require, including, without limitation, (a) where particular experience or expertise appears to be absent among the panel members; and (b) where a panel member is required or chooses to withdraw from the hearing of a particular appeal. Remuneration and expenses 389.2(9) The members of the appeal board may be paid the remuneration, and the travel and other out-of-pocket expenses incurred by them in the performance of their duties, that may be authorized by the Lieutenant Governor in Council. Oath 389.2(10) Before acting on the appeal board, every member of the appeal board shall take and subscribe before a person authorized to administer oaths and affirmations for use in the province, and file with the co-ordinator of appeals, an oath or affirmation in the following form: I , do solemnly swear (or affirm) that I will faithfully, truly, impartially and to the best of my knowledge, skill and ability, perform the duties of a member of The Insurance Agents' and Adjusters' Licensing Appeal Board under The Insurance Act and that I will not, without authority, disclose or make known anything that comes to my knowledge by reason of my appointment to the appeal board. So help me God. (Omit last four words where person affirms) S.M. 2000, c. 40, s. 24 . Rules of procedure 389.3(1) The appeal board may make rules not inconsistent with any Act or law to regulate its procedure and procedure in matters that come before it. Quorum 389.3(2) A majority of the members of the appeal board constitutes a quorum of the board. New hearing 389.3(3) An appeal under subsection 389.0.1(1) is a new hearing, and the appeal board may consider (a) any material filed or evidence submitted by the appellant or the superintendent touching on the subject of the appeal; and (b) any other material or evidence that it considers relevant to the appeal. Who is a party to an appeal 389.3(3.1) The parties to an appeal are the appellant and the superintendent. Representation by counsel 389.3(4) A party to an appeal under this section is entitled to be present at the hearing of the appeal, to be represented by counsel, and to be advised by such advisers as the party may require for the purposes of the appeal. Decision of board 389.3(5) After the conclusion of an appeal hearing and consideration of the material and evidence presented at, or received in relation to, the hearing, the appeal board may (a) dismiss the appeal; (b) allow the appeal; or (c) make such other order or decision as the appeal board considers appropriate, including, without limitation, (i) varying the length of a suspension, the conditions imposed on the issuing of a licence or the amount of a fine or assessment of costs, or (ii) fixing a new date for the payment of a fine or assessment of costs. 389.3(6) [Repealed] S.M. 2012, c. 29, s. 77 . Majority decision of appeal panel and voting 389.3(7) The outcome of an appeal hearing shall be decided by a majority vote of the panel of the appeal board hearing the appeal, and the chairperson of the panel has a vote in deciding any appeal or matter before the panel. Withdrawal of panel member 389.3(8) A panel member shall withdraw from hearing an appeal if there exists any circumstance in relation to the appellant or the appeal that might prejudice the panel member's objectivity, including, without limitation, if the panel member (a) has a personal or business relationship with the appellant; (b) has a business relationship with an insurer for whom the appellant acts or proposes to act as an agent or adjuster; or (c) has had a relationship mentioned in clause (a) or (b) that meets the criteria for withdrawal, if any, set out in rules of procedure made by the appeal board under subsection (1). Appeal hearing may proceed in absence of appellant 389.3(9) Where an appellant has been notified of the date, time and location of the appeal hearing in accordance with subsection 389.1(5) and fails to attend, the appeal board may proceed to hold the hearing and decide the appeal in the absence of the appellant. Adjournment of hearings 389.3(10) The appeal board may adjourn the hearing of an appeal before it from time to time as may be necessary and as it considers appropriate. Written notification of decision 389.3(11) The appeal board shall notify the parties to an appeal of its decision in writing. Powers of board 389.3(12) The appeal board may summon witnesses and require them to give evidence on oath or affirmation, orally or in writing, and for that purpose, the members of the board have the powers of commissioners under Part V of The Manitoba Evidence Act . Withdrawal of appeal 389.3(13) With the consent of the appeal board, an appellant may withdraw an appeal. Expert witnesses 389.3(14) The minister may (a) obtain the services of such experts, consultants or advisers as in the opinion of the minister may be required by the superintendent or the appeal board; and (b) authorize payment for those services. S.M. 2000, c. 40, s. 24 ; S.M. 2012, c. 29, s. 77 ; S.M. 2025, c. 12, s. 5 . Application to extend a deadline 389.4(1) By filing an application with the co-ordinator of appeals in the form approved by the superintendent, an appellant may apply to the appeal board for an extension of any deadline imposed by the appeal board, including a deadline to pay a fine or costs or a deadline to meet another condition imposed by the appeal board. Expedited applications 389.4(2) Despite sections 389.1 and 389.2 and subsection 389.3(1), the appeal board may determine its own procedure in hearing an application under subsection (1) or subsection 389.0.1(5), including (a) instructing the co-ordinator of appeals to arrange (i) an oral hearing, including an oral hearing by telephone, (ii) a hearing based on written submissions only, or (iii) a hearing that is partly oral and partly based on written submissions; and (b) having a panel of fewer than three members of the appeal board hear the application. Extension of deadline by consent 389.4(3) If the superintendent consents to extending the deadline and the appellant and superintendent agree on the extension date, the appeal board must extend the deadline to the date agreed upon. Extension of deadline when superintendent does not consent 389.4(4) If the superintendent does not consent to extending the deadline or there is no agreement on the extension date, the appeal board may extend the deadline and fix a new date for compliance with the appeal board's order if it is satisfied that (a) the person has made a reasonable effort to meet the deadline; and (b) hardship or injustice will result if the deadline is not extended. Reinstatement of licence by consent 389.4(5) If the superintendent consents to the reinstatement of an appellant's licence in response to an application under subsection 389.0.1(5), the appeal board must reinstate the appellant's licence until the final disposition of the appeal subject to any conditions the superintendent imposes. Imposing conditions on reinstatement of licence 389.4(6) In giving consent to the reinstatement of an appellant's licence, the superintendent may impose conditions on the consent, including conditions that the appeal board must attach to the licence. Reinstatement of licence when superintendent does not consent 389.4(7) If the superintendent does not consent to the reinstatement of the appellant's licence, the appeal board may (a) reinstate the licence until the final disposition of the appeal; or (b) dismiss the application if, after consideration, the appeal board believes that it is not in the public interest to reinstate the licence. S.M. 2012, c. 29, s. 78 . Revoking the reinstatement of a licence 389.5(1) Upon the application of the superintendent, the appeal board may revoke the reinstatement of a licence granted under section 389.4 if the appeal board believes that revoking the reinstatement is in the public interest. Procedure for revoking reinstatement 389.5(2) The procedure for revoking the reinstatement of a licence must be consistent with the procedure for reinstating a licence under section 389.4, and subsection 389.4(2) applies to an application under subsection (1). S.M. 2012, c. 29, s. 78 . AGENTS, BROKERS AND ADJUSTERS GENERALLY Effect of payments to agents 390 Payment in cash in whole or in part to an agent of an insurer of the amount of a premium or assessment due in respect of a contract issued by the insurer, shall be deemed a payment to the insurer, notwithstanding any condition or stipulation to the contrary; but this provision does not apply to life insurance. Holding out 391 Any person who, not being duly licensed as an agent, a broker, or an adjuster, represents or holds himself out to the public as being an agent, broker, or adjuster, or as being engaged in the insurance business, by means of advertisements, cards, circulars, letterheads, signs or other methods, or being duly licensed as such an agent, broker, or adjuster, advertises as aforesaid or carries on such a business in any other name than that stated in the licence, is guilty of an offence. List published 392(1) The superintendent may prepare, or cause to be prepared, published, and distributed, annually or at more frequent intervals, in The Manitoba Gazette or elsewhere, a list of persons to whom licences have been issued under this Act. Personal liability of agent for unlawful contracts 392(2) An agent or broker is personally liable to the insured on all contracts of insurance unlawfully made by or through him, directly or indirectly, with any insurer not licensed to undertake insurance in the province, in the same manner as if the agent or broker were the insurer. Payments to agents a trust 393 An agent or broker who acts in negotiating, or renewing or continuing a contract of insurance, other than life insurance, with a licensed insurer, and who receives any money or other consideration, as a premium for such a contract, from the insured, shall be deemed to hold the premium in trust for the insurer, and, if he fails to pay it over to the insurer within 15 days after written demand made upon him therefor, less his commission and any deductions to which, by the written consent of the insurer, he is entitled, the failure is evidence that he has applied the premiums to his own use or to a use contrary to his trust. Return of agents by insurer 394 Every insurer and every agent shall make a return under oath to the superintendent in such form, and at such times, as he requires, showing all persons duly authorized as its or his agents in the province, and of persons to whom it or he has paid or allowed, or agreed to pay or allow, directly or indirectly, compensation for placing or negotiating insurance on lives, property, or interests in the province, or negotiating the continuance or renewal thereof, or for attempting to do so. 395 [Repealed] R.S.M. 1987 Supp., c. 18, s. 14 ; S.M. 2000, c. 40, s. 25 ; S.M. 2002, c. 47, s. 10 ; S.M. 2007, c. 10, s. 34 ; S.M. 2012, c. 29, s. 79 . Restrictions on licence 396(1) A licence may be issued to an insurance agent, or to a broker, adjuster or assistant adjuster subject to such limitations and conditions as the superintendent may prescribe. Reprimand 396(2) A reprimand may be attached to a licence issued to an insurance agent, or to a broker, adjuster or assistant adjuster where it has been determined by the superintendent that the agent, broker, adjuster or assistant adjuster is guilty of conduct which (a) offends this Act; or (b) is not in the public interest; or (c) is not appropriate for an agent, broker, adjuster or assistant adjuster. Reprimand, etc. to form part of records 396(3) A reprimand, suspension, or cancellation of a licence, or a condition attached to a licence under this Act forms part of the record of an agent, broker, adjuster or assistant adjuster, as the case may be, licensed or authorized under this Act. Removal of reprimands, suspensions or conditions 396(4) Records of reprimands, suspensions and conditions of licences may at the discretion of the superintendent be removed from the record of an agent, broker, adjuster or assistant adjuster at the end of three consecutive years during which the agent, broker, adjuster or assistant adjuster has not received any further reprimand, suspension or condition of licence. R.S.M. 1987 Supp., c. 18, s. 14 ; S.M. 2007, c. 10, s. 35 . Definitions 396.1(1) The following definitions apply in this section. "agent" means a general insurance agent, a life insurance agent, an insurance adjuster or a person that holds a restricted insurance agent licence under section 380.1. (« agent ») "insurance council" means an insurance council established under this section. (« conseil d'assurance ») Regulations establishing insurance councils 396.1(2) The Lieutenant Governor in Council may, by regulation, establish one or more insurance councils. 396.1(3) [Repealed] S.M. 2007, c. 10, s. 36 . Regulations re membership, powers, functions and duties of councils 396.1(4) The Lieutenant Governor in Council may make regulations (a) respecting the membership of insurance councils; (b) prescribing the powers, functions and duties of insurance councils; (c) governing how insurance councils must exercise their powers and carry out their functions and duties. Delegation of powers 396.1(5) The Lieutenant Governor in Council may, by regulation, authorize the superintendent to delegate to any insurance council or insurance councils certain powers, functions and duties that the superintendent has under this Act and the regulations and specify the powers, functions and duties that may be so delegated. Fees 396.1(6) The Lieutenant Governor in Council may, by regulation, fix the licence, registration or other annual and special fees to be paid by agents or applicants for agents' licences and specify the portion of such fees that shall be paid to the government and the portion of such fees that shall be retained by each insurance council to finance its operations under this section. Specific powers and functions 396.1(7) Without limiting the generality of subsections (4) and (5), the Lieutenant Governor in Council may make regulations empowering insurance councils, on any terms and conditions the Lieutenant Governor in Council deems appropriate, to (a) collect any fees fixed under subsection (6); (b) exercise and perform such powers, functions and duties as are conferred or imposed upon or delegated to the insurance councils under this section; (c) establish the educational, training and other standards and qualifications required for the licensing or registration of agents; (d) establish and enforce ethical, operational and trade practices for agents; (e) investigate complaints and adjudicate or mediate disputes respecting services provided by any agent; (f) initiate and engage in programs of consumer protection; (g) make recommendations to the minister; (h) make rules for its own procedure; and may make regulations respecting any other matter or thing relating to insurance councils that the Lieutenant Governor in Council deems necessary. Statutes and Regulations Act does not apply 396.1(8) The Statutes and Regulations Act does not apply to a rule of an insurance council made pursuant to this section. Rules require approval 396.1(9) All rules made by an insurance council pursuant to this section are subject to the superintendent's approval and are of no force or effect unless and until they are approved by the superintendent. Appeals from licence refusal 396.1(10) Every refusal, suspension or cancellation of a licence by an insurance council is subject to appeal in accordance with sections 389 to 389.3 with necessary modifications. Review of decisions 396.1(11) The superintendent may review (a) any decision of an insurance council, other than a decision under subsection (10); and (b) any existing or proposed activity or program of an insurance council; and may prohibit, or order the insurance council to revoke or cancel or amend, the decision, activity or program, and the insurance council may appeal from any such prohibition or order in accordance with section 389 with necessary modifications. S.M. 1989-90, c. 57, s. 12 ; S.M. 1992, c. 58, s. 12 ; S.M. 2007, c. 10, s. 36 ; S.M. 2012, c. 29, s. 80 ; S.M. 2013, c. 39, Sch. A, s. 64 . 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. S.M. 2025, c. 12, s. 6 . Regulations 396.2 The Lieutenant Governor in Council may make regulations (a) respecting liability insurance required by the holders of insurance agent and insurance adjuster licences, including specifying the exclusion of certain perils from the coverage required by holders of specified classes of licence; (a.1) prescribing the value of claims for the purposes of subclause 385(9)⁠(f)⁠(i); (b) respecting fines and costs and their imposition and assessment by the superintendent or The Insurance Agents' and Adjusters' Licensing Appeal Board; (c) respecting interest on fines and costs; (d) respecting the retention of fines and costs by an insurance council established under section 396.1; (e) for the purposes of subsection 381(5), governing the security to be given in respect of a special broker's licence, including governing forfeiture of the security and the disposition of its proceeds; (f) exempting, with or without conditions, certain classes of persons from the requirement to hold a licence under any section of this Part and establishing classes of persons for the purpose of an exemption under this clause; (g) respecting any matter the Lieutenant Governor in Council considers necessary or advisable to carry out the purposes of this Part. S.M. 2000, c. 40, s. 27 ; S.M. 2007, c. 10, s. 37 ; S.M. 2012, c. 29, s. 81 . PART XVI AMALGAMATION, TRANSFER AND REINSURANCE "Reinsurance" defined 397 In this Part, "reinsurance" means an agreement whereby contracts made in the province by a licensed insurer or any class or group thereof are undertaken or reinsured by another insurer either by novation, transfer, assignment or as a result of amalgamation of the insurers. Saving effect 398 Nothing in this Part affects contracts of reinsurance of individual risks made by insurers in the ordinary course of business. Transfer and reinsurance 399(1) An insurer incorporated and licensed under the laws of the province may amalgamate its property and business with those of any other insurer, or may transfer its contracts to, or reinsure them with, or transfer its property and business or any part thereof to, any other insurer, and the insurers may enter into all contracts and agreements necessary to the amalgamation, transfer, or reinsurance upon compliance with the conditions of this Part. Reinsurance 399(2) An insurer so incorporated and licensed may, in like manner, reinsure the contracts of any other insurer, or purchase and take over the business and property or any portion thereof of any other insurer. Agreement for 400 No such agreement respecting such an amalgamation, transfer, reinsurance, or purchase, comes into force unless it has been approved by the Lieutenant Governor in Council; and the insurers, parties thereto, shall file with the superintendent a petition for the purpose within 60 days from the date of execution of the agreement. Petition for in case of life insurers 401(1) In the case of insurers undertaking life insurance, before such a petition is heard, notice thereof together with the following documents, (a) a statement of the nature and terms of the agreement for reinsurance; (b) an abstract containing the material facts embodied in the agreement under which the reinsurance is proposed to be effected; and (c) copies of the actuarial or other reports upon which such agreement is founded including a report by an independent actuary approved by the superintendent; shall be served on the shareholders or members and on policyholders in the province of each insurer other than holders of industrial policies; but the superintendent may dispense with service of such notice and documents on the policyholders of the reinsuring insurer. Service of notice of hearing 401(2) The service shall be effected in each case by forwarding by registered mail the notice and documents directed to the registered or other known address of the shareholder, member or policyholder, so as to reach him, if delivered in due course of mail, at least 30 days before the day appointed for the hearing of the petition. Fraternal society 401(3) Where a fraternal society is a party to such an agreement, the notice and documents shall be deemed to be served on its members if published in any official publication of the society at least 30 days before the day appointed for the hearing of the petition. Inspection 401(4) The agreement shall be open to the inspection of the shareholders, members and policyholders at the principal offices of the insurers within the province for a period of 30 days after service of the notice. Documents with application 402 Upon the filing of the petition the insurers party to the agreement shall deposit with the superintendent the following documents, that is to say: (a) a certified copy of the agreement for reinsurance; (b) a statement of the nature and terms of reinsurance; (c) certified copies of the statements of assets and liabilities of the insurers parties to the agreement; (d) certified copies of the actuarial or other reports upon which the agreement is founded; (e) a declaration under the hands of the president or principal officer and manager or secretary of each insurer verifying the copy of agreement and stating that to the best of their knowledge and belief every payment made or to be made to any person whatsoever on account of the reinsurance is therein fully set forth and that no other payments beyond those set forth have been made or are to be made either in money, policies, bonds, valuable securities or other property by or with the knowledge of any of the parties to the reinsurance; (f) evidence of the service and publication of the notices required to be served or published, if any; (g) such other information and reports as the superintendent requires. Hearing of application 403 Upon receipt of the petition, the superintendent shall fix a day for hearing the petition, and notice of the hearing shall be given in The Manitoba Gazette at least 10 days before the date so fixed, and in case of insurers undertaking life insurance 30 days before that date. Recommendation of superintendent 404 After hearing the directors, shareholders, members and policyholders and such other persons as he considers entitled to be heard upon the petition, or giving them an opportunity to be so heard, the superintendent may recommend that the agreement be approved by the Lieutenant Governor in Council if he is satisfied that no sufficient objection to the agreement has been established. Refusal of recommendation 405 No such agreement shall be recommended if it appears to the superintendent that, upon the consummation of the reinsurance, an impairment or deficiency will exist in the balance sheet of the continuing or reinsuring insurer when its liabilities (including its capital stock, if any), are calculated according to this Act. Statutory novation on amalgamation, transfer or reinsurance under this Part 406 Where an insurer enters into a contract or agreement for amalgamation, transfer or reinsurance with another insurer as provided in this Part and the contract or agreement is approved by the Lieutenant Governor in Council, subject to the terms of that contract or agreement, any contract of insurance taken over, transferred or reinsured by the other insurer may be enforced against the other insurer as though that insurer had entered into the contract of insurance with the insured; but nothing in this section affects the liability of the original insurer under the contract of insurance. Transfer of contracts where insurer leaves Manitoba 407 Where under an agreement between an insurer, in this section called the "continuing insurer", and another insurer, in this section called the "retiring insurer", in anticipation of the retiring insurer ceasing to do business in the province, the continuing insurer assumes liability under contracts of insurance specified in the agreement issued by the retiring insurer and the retiring insurer ceases to carry on business in the province, an insured or other person entitled to rights under those contracts may enforce the rights as though those contracts had been issued by the continuing insurer. 408 [Repealed] S.M. 2000, c. 40, s. 28 . 409 [Repealed] S.M. 2000, c. 40, s. 29 . PART XVII OFFENCES AND PENALTIES Offences 410(1) A person is guilty of an offence if the person (a) directly or indirectly provides false, misleading or incomplete information to the superintendent or to an insurance council established under section 396.1, whether the information is required under this Act or is volunteered; (b) fails to comply with any requirement of this Act or the regulations, or of an order made under this Act or a regulation; (c) contravenes this Act or the regulations; or (d) contravenes any condition or limitation imposed on or by the person's licence. Penalties 410(2) A person who is guilty of an offence is liable on summary conviction (a) in the case of an individual, to a fine of not more than $200,000. or imprisonment for a term of not more than one year, or both; and (b) in any other case, to a fine of not more than $1,000,000. Additional fine 410(3) If a person is convicted of an offence under this Act and the court is satisfied that, as a result of the commission of the offence, (a) the person acquired any monetary benefits; or (b) monetary benefits accrued to the person; the court may order the person to pay a fine of not more than the court's estimation of the amount of those monetary benefits. A fine under this subsection is in addition to and not in place of a fine under subsection (2). Continuing offence 410(4) When a contravention of this Act or a regulation under this Act continues for more than one day, the person is guilty of a separate offence for each day the contravention continues. Liability of directors and officers 410(5) If a person other than an individual commits an offence under this Act or a regulation under this Act, any of the person's directors or officers who authorized, permitted or acquiesced in the commission of the offence are also guilty of an offence and are liable on summary conviction to the penalties set out in clause (2)⁠(b), whether or not the person has been prosecuted or convicted. Order to comply 410(6) When a person is convicted of an offence under a provision of this Act or the regulations, the court may, in addition to imposing a fine or imprisonment, order the person to comply with the provision. Restitution 410(7) When a person is convicted of an offence under this Act, the court may, in addition to imposing a fine or imprisonment, order the person to pay compensation or restitution in respect of the offence. Filing restitution order in Court of King's Bench 410(8) The person to whom compensation or restitution is payable under an order made under subsection (7) may file the order in the Court of King's Bench. Once filed, it may be enforced as a judgment of the court in the person's favour. S.M. 2007, c. 10, s. 38 . Time limit for prosecution 411 A prosecution under this Act may not be commenced later than two years after the day the alleged offence was committed.[replaces section 112] S.M. 2007, c. 10, s. 38 . Application for compliance order 412(1) The superintendent may apply to the Court of King's Bench for an order under subsection (2) if a person contravenes (a) a provision of this Act or the regulations; (b) an order made by the superintendent; or (c) a limitation or condition imposed on or by the person's licence. Compliance order 412(2) The court may make an order (a) directing the person to comply with, or restraining the person from contravening, the provision, order, limitation or condition; and (b) in the case of a person who is not an individual, directing its directors and officers to cause it to comply with or to cease contravening the provision, order, limitation or condition. Application by an insurance council 412(3) An application under subsection (1) in respect of a contravention of Part XV or a regulation made under that Part may be made by an insurance council established under section 396.1. S.M. 2007, c. 10, s. 38 . SCHEDULE A (Section 359) No. Term of licence _______ to ______ SUPERINTENDENT OF INSURANCE, MANITOBA RECIPROCAL INSURANCE LICENCE This is to certify that _______ being an exchange within the meaning of The Insurance Act , has complied with the requirements of that Act; and the subscribers of the exchange are hereby licensed and authorized, for and during the term beginning on the ____ day of ______ 20__, and ending on the ____ day of _______ 20__, to exchange reciprocal contracts of indemnity or inter-insurance (here state class of insurance). Superintendent of Insurance. S.M. 2012, c. 29, s. 82 . SCHEDULE B (Section 136.4) STATUTORY CONDITIONS Misrepresentation 1 If a person applying for insurance falsely describes the property to the prejudice of the insurer, or misrepresents or fraudulently omits to communicate any circumstance that is material to be made known to the insurer in order to enable it to judge the risk to be undertaken, the contract is void as to any property in relation to which the misrepresentation or omission is material. Property of others 2 The insurer is not liable for loss or damage to property owned by a person other than the insured unless (a) otherwise specifically stated in the contract, or (b) the interest of the insured in that property is stated in the contract. Change of interest 3 The insurer is liable for loss or damage occurring after an authorized assignment under the Bankruptcy and Insolvency Act (Canada) or a change of title by succession, by operation of law or by death. Material change in risk 4(1) The insured must promptly give notice in writing to the insurer or its agent of a change that is (a) material to the risk, and (b) within the control and knowledge of the insured. 4(2) If an insurer or its agent is not promptly notified of a change under subparagraph (1) of this condition, the contract is void as to the part affected by the change. 4(3) If an insurer or its agent is notified of a change under subparagraph (1) of this condition, the insurer may (a) terminate the contract in accordance with Statutory Condition 5, or (b) notify the insured in writing that, if the insured desires the contract to continue in force, the insured must, within 15 days after receipt of the notice, pay to the insurer an additional premium specified in the notice. 4(4) If the insured fails to pay an additional premium when required to do so under subparagraph (3)⁠(b) of this condition, the contract is terminated at that time, and Statutory Condition 5(2)⁠(a) applies in respect of the unearned portion of the premium. Termination of contract 5(1) The contract may be terminated, (a) by the insurer giving to the insured 15 days' notice of termination by registered mail or 5 days' written notice of termination personally delivered, or (b) by the insured at any time on request. 5(2) If the contract is terminated by the insurer, (a) the insurer must refund the excess of premium actually paid by the insured over the prorated premium for the expired time, but in no event may the prorated premium for the expired time be less than any minimum retained premium specified in the contract, and (b) the refund must accompany the notice unless the premium is subject to adjustment or determination as to amount, in which case the refund must be made as soon as practicable. 5(3) If the contract is terminated by the insured, the insurer must refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium for the expired time specified in the contract, but in no event may the short rate premium for the expired time be less than any minimum retained premium specified in the contract. 5(4) The 15-day period referred to in subparagraph (1)⁠(a) of this condition starts to run on the day the registered letter or notification of it is delivered to the insured's postal address. Requirements after loss 6(1) On the happening of any loss or damage to insured property, the insured must, if the loss or damage is covered by the contract, in addition to observing the requirements of Statutory Condition 9, (a) immediately give notice in writing to the insurer, (b) deliver as soon as practicable to the insurer a proof of loss in respect of the loss or damage to the insured property verified by statutory declaration (i) giving a complete inventory of that property and showing in detail quantities and costs of that property and particulars of the 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) stating the amount of other insurances and the names of other insurers, (v) stating the interest of the insured and of all others in that property with particulars of all liens, encumbrances and other charges on that property, (vi) stating any changes in title, use, occupation, location, possession or exposure of the property since the contract was issued, and (vii) stating the place where the insured property was at the time of loss, (c) if required by the insurer, give a complete inventory of undamaged property showing in detail quantities and cost of that property, and (d) if required by the insurer and if practicable, (i) produce books of account and inventory lists, (ii) furnish invoices and other vouchers verified by statutory declaration, and (iii) furnish a copy of the written portion of any other relevant contract. 6(2) The evidence given, produced or furnished under subparagraph (1)⁠(c) and (d) of this condition must not be considered proofs of loss within the meaning of Statutory Conditions 12 and 13. Fraud 7 Any fraud or wilfully false statement in a statutory declaration in relation to the particulars required under Statutory Condition 6 invalidates the claim of the person who made the declaration. Who may give notice and proof 8 Notice of loss under Statutory Condition 6(1)⁠(a) may be given and the proof of loss under of Statutory Condition 6(1)⁠(b) may be made (a) by the agent of the insured if (i) the insured is absent or unable to give the notice or make the proof, and (ii) the absence or inability is satisfactorily accounted for, or (b) by a person to whom any part of the insurance money is payable, if the insured refuses to do so, or in the circumstances described in clause (a) of this condition. Salvage 9(1) In the event of loss or damage to insured property, the insured must take all reasonable steps to prevent further loss or damage to that property and to prevent loss or damage to other property insured under the contract, including, if necessary, removing the property to prevent loss or damage or further loss or damage to the property. 9(2) The insurer must contribute on a prorated basis towards any reasonable and proper expenses in connection with steps taken by the insured under subparagraph (1) of this condition. Entry, control, abandonment 10 After loss or damage to insured property, the insurer has (a) an immediate right of access and entry by accredited representatives sufficient to enable them to survey and examine the property, and to make an estimate of the loss or damage, and (b) after the insured has secured the property, a further right of access and entry by accredited representatives sufficient to enable them to appraise or estimate the loss or damage, but (i) without the insured's consent, the insurer is not entitled to the control or possession of the insured property, and (ii) without the insurer's consent, there can be no abandonment to it of the insured property. In case of disagreement 11(1) In the event of disagreement as to the value of the insured property, the value of the property saved, the nature and extent of the repairs or replacements required or, if made, their adequacy, or the amount of the loss or damage, those questions must be determined using the applicable dispute resolution process set out in the Insurance Act whether or not the insured's right to recover under the contract is disputed, and independently of all other questions. 11(2) There is no right to a dispute resolution process under this condition until (a) a specific demand is made for it in writing, and (b) the proof of loss has been delivered to the insurer.
