RSNL1990 CHAPTER I-10 - INSURANCE COMPANIES ACT

RSNL1990 CHAPTER I-10 INSURANCE COMPANIES ACT Amended: RSN1990 cI-9 s48; 1993 c53 s15; 1994 c4 s4; 1994 c43 s3; 1995 c13 s8; 1996 cR-10.1 s38; 1996 c35; 1998 c6 s15; 2001 cN-3.1 s2; 2004 c27 ss12-19; 2004 c38; 2005 c22; 2010 c14; 2010 c16; 2010 c23; 2016 cM-5.01 s58; 2019 c15; 2023 c19; 2024 c32 CHAPTER I-10 AN ACT RESPECTING INSURANCE COMPANIES Analysis 1. Short title 2. Definitions 3. Application of Act 3.1 Review by board 3.2 Superintendent and Deputy Superintendent of Insurance 4. Insurer undertaking insurance in the province 5. Certain societies 5.1 Withdrawal of insurance companies 6. Insurer to be licensed 7. Bodies not insurers 8. Unlicensed insurer in foreign jurisdiction 9. Licensed insurer reinsuring outside the province 10. Insurer which may be licensed 11. Rights and powers of licensed insurer 12. Life insurers 13. Fire insurers 14. Restriction on issue of licences 15. Notice of application published 16. Information to be filed by applicant 17. Power of attorney 18. Compensation fund 19. Expenses of incorporation of new company 20. Form of licences, etc. 21. Automatic cancellation of licence 22. Rep. by 2005 c22 s5 23. Insufficiency of assets 24. Action where licence suspended or cancelled elsewhere 25. Appeal 26. Rep. by 2005 c22 s6 27. Rep. by 2005 c22 s6 28. Rep. by 2005 c22 s6 29. Rep. by 2005 c22 s6 30. Rep. by 2005 c22 s6 31. Rep. by 2005 c22 s6 32. Rep. by 2005 c22 s6 33. Rep. by 2005 c22 s6 34. Rep. by 2005 c22 s6 35. Rep. by 2005 c22 s6 36. Rep. by 2005 c22 s6 37. Rep. by 2005 c22 s6 38. Rep. by 2005 c22 s6 39. Rep. by 2005 c22 s6 40. Rep. by 2005 c22 s6 41. Rep. by 2005 c22 s6 42. Rep. by 2005 c22 s6 43. Rep. by 2005 c22 s6 44. Rep. by 2005 c22 s6 45. Rep. by 2005 c22 s6 46. Rep. by 2005 c22 s6 47. Rep. by 2005 c22 s6 48. Rep. by 2005 c22 s6 49. Rep. by 2005 c22 s6 50. Rep. by 2005 c22 s6 51. Rep. by 2005 c22 s6 52. Rep. by 2005 c22 s6 53. Rep. by 2005 c22 s6 54. Rep. by 2005 c22 s6 55. Rep. by 2005 c22 s6 56. Rep. by 2005 c22 s6 57. Rep. by 2005 c22 s6 58. Rep. by 2005 c22 s6 59. Application of sections 60 to 71 60. Corporations Act applies to winding up 61. Application to court for winding up 62. Provisional liquidator 63. Remuneration 64. Proposal to liquidate, etc. 65. Existing contracts 66. Rep. by 2005 c22 s10 67. Where no reinsurance 68. Publication of notice 69. Liquidator to set aside sums 70. Payment of fees, etc., by insurer 71. Information to be filed in court 72. Rep. by 2010 c16 s4 73. Rep. by 1996 c35 s51 74. Access to books, etc. 75. Duty to furnish information 76. Inspection 77. Examination of insurers 77.1 Investigation order 77.2 Powers 77.3 Search and seizure with warrant 77.4 Production order 77.5 Interim preservation of property 78. Expenses of examination 79. Classification of contracts, etc. 80. Share register to be open to superintendent 81. Record of fire premium income and losses 82. Record of automobile premiums and costs 83. Balance sheet, etc. 84. Auditor's report 85. Financial information 86. Published statements 87. Certain forbidden statements 88. Misleading statements, etc. 89. Trafficking in life insurance prohibited 90. Privileged information 91. Insurer to file form of application 92. Investment of surplus funds 93. Prohibited loans and investments 94. Investments in corporate name 95. Underwriter's agency 95.1 Application 95.2 Prohibited practices 95.3 Prohibited grounds 96. Premium set out in policy 96.1 Prohibition: refusal to provide insurance 96.2 Prohibition: risk classification system 97. Facility Association continued 98. Facility Association 99. Board of directors 99.1 Assessments 100. By-laws 101. Amendment to by-laws 102. Rates 103. Information and report 104. Termination of contracts 105. Obligations of agents 106. Judgment Recovery 107. Regulations 108. Offence 108.1 Offence 108.2 Limitation period 109. Definitions 110. Reciprocal contracts 111. Insurer 112. Execution of contract 113. Court action 114. Declaration by members of exchanges 115. Licence 116. Security 117. Issue of licence 118. Service of process 119. Maximum indemnity 120. Amount of reserve 121. Guarantee fund 122. Deficiency 123. Investment of surplus funds and reserve 124. Evidence as to investments 125. Contracts 126. Reinsurance 127. Attorney 128. Suspension or revocation of licence 129. Fire insurance 130. Commencement Schedule Short title 1. This Act may be cited as the Insurance Companies Act. RSN1970 c176 s1 Back to Top Definitions 2. In this Act (a) "accident and sickness insurance" means accident and sickness insurance as defined in the Schedule; (b) "agent" means agent as defined by the Insurance Adjusters, Agents and Brokers Act; (b.1) "aircraft insurance" means aircraft insurance as defined in the Schedule; (b.2) "appellant" means a person who submits an appeal under section 25; (c) "approved securities" means securities of or guaranteed by Canada or by a province of Canada, securities of an incorporated municipality of Canada and other securities that are authorized for the investment of trust funds under the Trustee Act; (d) "association" means the Facility Association referred to in section 97; (e) "automobile" includes a trolley bus and a self propelled vehicle, and the trailers, accessories and equipment of automobiles, but does not include railway rolling stock that runs on rails or watercraft or aircraft; (f) "automobile insurance" means automobile insurance as defined in the Schedule; (f.1) "board" means the Board of Commissioners of Public Utilities established under the Public Utilities Act ; (f.2) "boiler and machinery insurance" means boiler and machinery insurance as defined in the Schedule; (g) "broker" means broker as defined by the Insurance Adjusters, Agents and Brokers Act; (h) "cash-mutual company" means a company without share capital or with guarantee capital subject to repayment by the company, in respect of which the dividend rate is limited by its charter, which is empowered to undertake insurance on both the cash plan and the mutual plan; ( i ) "charter" includes an Act, statute, ordinance or other provision of law by or under which an insurer has been incorporated or organized and an amendment applying to the insurer and a memorandum of association, articles of association, agreement or deed of settlement of the insurer, letters patent or other instrument incorporating the insurer, its regulations, by-laws and rules and amendments to them; (j) "contract" means a contract of insurance and includes a policy, certificate, interim receipt, renewal receipt or writing evidencing the contract, whether sealed or not, and a binding oral agreement; (k) "court" means the Supreme Court or a judge of the Supreme Court; (k.1) "credit insurance" means credit insurance as defined in the Schedule; (k.2) "credit protection insurance" means credit protection insurance as defined in the Schedule; (k.3) "department" means the department presided over by the minister; (k.4) "deputy minister" means the deputy minister of the department; (l) [Rep. by 2005 c22 s1] (m) [Rep. by 2010 c16 s1] (n) [Rep. by 2010 c16 s1] (o) "due application" includes information, evidence and material that the superintendent requires to be provided, and the payment of the fees prescribed in accordance with this Act in respect of an application, certificate or document required or issued by this Act; (o.1) "earned vehicles" means the aggregate exposure, in car years, for automobile liability coverage derived from all statistical experience reported and accepted by the Superintendent of Insurance under all types of business other than type 3, miscellaneous and fleets on an earnings, receipts or payroll basis, for those vehicle types exhibited annually in the Actual Loss Ratio Exhibits covering the general categories of private passenger, farmers, commercial, motor cycles, snow vehicles and interurban trucks; (p) "employees mutual benefit society" means a society incorporated or formed and operated by the officers or officers and employees of an employer for the purpose of providing support and pensions for those officers or employees who become incapacitated or who cease to be employed by the employer or for the purpose of paying pensions, annuities or gratuities to, or for dependents of, those officers or employees, or funeral benefits upon the death of those officers or employees, and membership in which is restricted exclusively to actual employees of an employer; (q) [Rep. by 2010 c16 s1] (r) "extra-provincial insurer" means an insurer incorporated or legally constituted in a foreign jurisdiction other than an insurer which is registered and holds a certificate of registry under the Insurance Companies Act (Canada); (r.1) "fidelity insurance" means fidelity insurance as defined in the Schedule; (s) "fire insurance" means insurance, not being insurance incidental to some other class of insurance defined by this Act, against loss of or damage to property through fire, lightning or explosion due to ignition; (t) "foreign jurisdiction" means a jurisdiction other than the province; (u) "fraternal or sororal society" means a society, order or association incorporated for the purpose of making with its members only, and not for profit, contracts of life or accident and sickness insurance under which benefits may be paid only to its members or their beneficiaries, in accordance with its charter and this Act; (v) "friendly society" means a society, order, association or company formed or incorporated and operated for the purpose of making with its members only, and not for profit, contracts under which ( i ) sickness, accident and disability benefits, or one or more of them, not exceeding $5 per week, or (ii) funeral benefits not exceeding $150, or all of those benefits may be paid only to its members or their beneficiaries in accordance with its charter and this Act; (v.1) "hail insurance" means hail insurance as defined in the Schedule; (w) "head office" means the place where the chief executive officer of an insurer transacts business; (x) "insurance" means the undertaking by a person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed, or to pay a sum of money or other thing of value upon the happening of a certain event; (y) "insurance money" means the amount payable by an insurer under a contract, and includes all benefits, surplus, profits, dividends, bonuses, and annuities payable under the contract; (z) "insurance on the cash plan" means insurance which is not mutual insurance; (aa) [Rep. by 2005 c22 s1] (bb) "insurer" means the person who undertakes or agrees or offers to undertake a contract; (bb.1) "legal expenses insurance" means legal expenses insurance as defined in the Schedule; (bb.2) "liability insurance" means liability insurance as defined in the Schedule; (cc) "licence" means a licence issued to an insurer under this Act to undertake insurance or to carry on business of insurance; (dd) "life insurance" means life insurance as defined in the Schedule; (ee) "loss" includes the happening of an event or contingency by reason of which a person becomes entitled to a payment under a contract of money other than a refund of unearned premiums; (ff) "marine insurance" means insurance against losses incidental to marine adventure which may by the express terms of a contract or by usage of trade extend so as to protect the insured against losses on inland waters or by land or air which are incidental to a sea voyage; (gg) "minister" means the minister appointed under the Executive Council Act to administer this Act; (gg.1) "mortgage insurance" means mortgage insurance as defined in the Schedule; (hh) "motor vehicle liability policy" means a policy or part of a policy evidencing a contract insuring ( i ) the owner or driver of an automobile, or (ii) a person who is not the owner or driver of an automobile where the automobile is being used or operated by the owner’s or driver’s employee or agent or another person the owner’s or driver’s behalf against liability arising out of bodily injury to or the death of a person or loss or damage to property caused by an automobile or the use or operation of an automobile; (ii) "mutual benefit society" means a mutual company formed for the purpose of providing sick and funeral benefits for its members, or for this and other necessary or incidental purposes, except life insurance, but does not include a pension fund or employees' mutual benefit society incorporated under or subject to the Corporations Act; ( jj ) "mutual insurance" means a contract in which the consideration is not fixed or certain at the time the contract is made and is to be determined at the termination of the contract or at fixed periods during the term of the contract according to the experience of the insurer in respect of all similar contracts whether or not the maximum amount of the consideration is predetermined; (kk) "mutual insurance company" means a company without share capital or with guarantee capital stock subject to repayment by the company, in respect of which the dividend rate is limited by its charter, which is empowered to undertake mutual insurance exclusively; ( ll ) [Rep. by 2005 c22 s1] (mm) "officer" includes a trustee, director, manager, treasurer, secretary or member of the board or committee of management of an insurer or a person appointed by the insurer to sue and be sued in its behalf; (mm.1) "other approved products insurance" means other approved products insurance as defined in the Schedule; ( nn ) "paid in" when applied to the capital of an insurer or to shares of an insurer, means the amount paid to the insurer on its shares, not including the premium paid, whether those shares are or are not fully paid; ( oo ) "paid up" when applied to the capital of an insurer or to shares of an insurer, means capital or shares on which there remains no liability, actual or contingent, to the issuing insurer; (pp) "plan" means the Plan of Operation referred to in subsection 98(2); ( qq ) "policy" means the instrument evidencing a contract; ( rr ) "premium" means the single or periodical payment under a contract for the insurance, and includes dues, assessments and other considerations; (ss) "premium note" means an instrument given as consideration for insurance by which the maker undertakes to pay a sum that may be legally demanded by the insurer, but the total of the sums does not exceed an amount specified in the instrument; (ss.01) "profit provision" means an amount added to automobile insurance premiums to provide a return on the cost of providing insurance; (ss.1) "property insurance" means property insurance as defined in the Schedule; ( tt ) "provisional liquidator" means a provisional liquidator appointed by the minister under this Act; ( uu ) [Rep. by 2005 c22 s1] (vv) "representative" means representative as defined by the Insurance Adjusters, Agents and Brokers Act; (ww) "sick and funeral benefits" includes insurance against sickness, disability or death under which the money payable upon the happening of sickness, disability or death does not exceed $30 a week in the case of sick benefits or $300 in the case of funeral benefits; (xx) [Rep. by 2010 c16 s1] ( yy ) "superintendent" means the Superintendent of Insurance appointed in the manner authorized by law; (yy.1) "surety insurance" means surety insurance as defined in the Schedule; (yy.2) "title insurance" means title insurance as defined in the Schedule; and ( zz ) "upon proof" as applied to a matter connected with the licensing of an insurer or other person means upon proof to the satisfaction of the superintendent. RSN1970 c176 s2; 1973 No39 Sch C; 1975-76 No58 s4; 1981 c4 Sch C; 1984 c41 Sch C; 1985 c21 s1; 1986 c12 Sch; 1986 c36 s50; 1986 c42 Sch A; 1987 c38 Sch B; 1989 c19 Sch B; RSN1990 cI-9 s48; 1994 c43 s3 ; 1995 c13 s8 ; 2001 cN-3.1 s2 ; 2004 c27 s12 ; 2005 c22 s1 ; 2010 c16 s1 ; 2023 c19 s1 ; 2024 c32 s18 Back to Top Application of Act 3. This Act applies to all classes of insurance undertaken in the province and to all insurers carrying on business in the province. RSN1970 c176 s3 Back to Top Review by board 3.1 (1) The Lieutenant-Governor in Council may by order direct the board to conduct a review of any aspect of insurance in the province on the terms and conditions that the Lieutenant-Governor in Council may specify. (2) The board may by order require an insurer carrying on business in the province to provide it with the information that the board considers necessary to conduct the review. (3) The provisions of the Public Utilities Act relating to the constitution, powers, procedures and practices of the board apply to and in respect of the board in the conduct of a review under this section. (4) The provisions of the Public Utilities Act relating to investigations generally shall apply to and in respect of the board or commissioners of the board in the conduct of a review under this section. (5) The board shall recover all expenses in connection with a review under this section including costs of counsel, engineers, valuators, stenographers, accountants and other assistants employed or retained by the board as well as the salaries and expenses of the members of the board while employed in and about the review, by assessing insurers who hold a licence to provide insurance which is the subject of the review. (6) The board may assess each insurer in the same manner as if the insurers were public utilities under section 13 of the Public Utilities Act or in another manner that the board considers equitable. (7) An insurer shall pay an amount assessed under this section within one month after it has been notified by the board of the amount, and in default of payment the board may sue for and recover the sum in a court. (8) The Lieutenant-Governor in Council may appoint, on the terms and conditions the Lieutenant-Governor in Council may determine, a consumer advocate for the purpose of a review by the board under this section. (9) The costs relating to the consumer advocate shall be paid by the board and shall be included in the expenses recovered under subsection (5). 2004 c27 s13 ; 2023 c19 s2 Back to Top Superintendent and Deputy Superintendent of Insurance 3.2 (1) The Lieutenant-Governor in Council may appoint a Superintendent of Insurance. (2) The Lieutenant-Governor in Council may appoint a Deputy Superintendent of Insurance (a) to act in place of the superintendent in the superintendent’s absence or incapacity; and (b) to exercise the powers and perform the duties of the superintendent under an Act or regulations that may be assigned by the superintendent. 2004 c38 s1 ; 2023 c19 s3 Back to Top Insurer undertaking insurance in the province 4. (1) An insurer undertaking a contract which, under this Act, is considered to be made in the province, whether the contract is original or a renewal, except the renewal of life insurance policies, is for the purpose of this Act considered to be undertaking insurance in the province. (2) An insurer which, within the province, (a) undertakes or offers to undertake insurance; (b) sets up or causes to be set up a sign containing the name of the insurer; (c) maintains or operates either in its own name or in the name of an agent or other representative an office for the transaction of the business of insurance within or outside the province; (d) distributes or publishes or has distributed or published a proposal, circular, card, advertisement, printed form or like document; (e) inserts, prints or publishes its name or permits or causes its name to be inserted, printed or published in a telephone directory or in another directory or list of the names, with or without addresses, of the residents or occupants of premises in a city, municipality, locality, area or district or in a building; (f) makes or has made a written or oral solicitation for insurance; (g) issues or delivers a policy of insurance or interim receipt, collects, receives or negotiates for or causes to be collected, received or negotiated for, a premium or part of a premium for a contract; (h) prosecutes or maintains an action or proceeding in respect of a contract; or ( i ) represents or holds itself out to the public as being engaged in the insurance business is for the purposes of this Act considered to be an insurer carrying on business in the province. RSN1970 c176 s4 Back to Top Certain societies 5. (1) A society, order, association or corporation which under its constitution and laws is empowered (a) to pay to its members or their beneficiaries, as a benefit payable by the society, order, association or corporation, the proceeds of a contingency levy; or (b) to pay sickness, accident, disability, unemployment, funeral, hospital, medical or dental benefits or benefits payable on death or on the happening of a contingency dependent on human life, in an amount that is fixed at the discretion of the directors or of an executive or management committee of the society, order, association or corporation, is considered to be an insurer. (2) For the purposes of this section, the expression "contingency levy" means an assessment or levy made on members of a society, order, association or corporation on the occasion of the happening to a member of one or more of certain contingencies upon the happening of which that member or the member’s beneficiaries become entitled to receive the proceeds of that assessment or levy. RSN1970 c176 s5; 2023 c19 s4 Back to Top Withdrawal of insurance companies 5.1 (1) For the purpose of this section, an insurer is withdrawing from the business of automobile insurance in the province if the insurer does anything that results, or is likely to result, in a significant reduction in the amount of direct premiums written by the insurer for automobile insurance in the province, including one or more of the following things that have or are likely to have that result: (a) declining to issue, terminating, refusing to renew or refusing to process applications for contracts of automobile insurance; (b) refusing to provide or continue coverage or endorsements in respect of contracts of automobile insurance; (c) taking actions that directly or indirectly result in termination of contracts between the insurer and agents and brokers who solicit or negotiate contracts of automobile insurance on behalf of the insurer; (d) reducing the ability of agents or brokers to solicit or negotiate contracts of automobile insurance on behalf of the insurer; (e) reducing the insurer's ability to act as a servicing carrier or ceasing to act as a servicing carrier under the Plan of Operation of the Facility Association; (f) taking actions that directly or indirectly result in the termination of a contract between the insurer and the Facility Association; or (g) engaging in an activity or failure to act that is prescribed by the regulations. (2) An insurer shall not withdraw from the business of automobile insurance in the province except in accordance with this section. (3) An insurer who intends to withdraw from the business of automobile insurance in the province shall file with the superintendent a notice in the form provided by the superintendent. (4) The notice shall specify the date that the insurer intends to begin to withdraw from the business of automobile insurance in the province and shall be filed at least 180 days before that date. (5) The superintendent may require the insurer to provide the information, material and evidence that the superintendent considers necessary in addition to the information, material and evidence required to be provided in the notice. (6) The insurer may withdraw from the business of automobile insurance in the province on or after the date specified in the notice under subsection (4). (7) Notwithstanding subsection (6), the superintendent may (a) authorize the insurer to withdraw from the business of automobile insurance in the province before the date specified in the notice under subsection (4); or (b) prohibit the insurer from withdrawing from the business of automobile insurance in the province until a date specified by the superintendent that is not later than 90 days after the 180 days referred to in subsection (4). 2004 c27 s14 Back to Top Insurer to be licensed 6. (1) An insurer undertaking insurance in the province or carrying on business in the province shall obtain from the superintendent and hold a licence. (2) An insurer undertaking insurance in the province or carrying on business in the province without first having obtained a licence is guilty of an offence. (3) A person who within the province does or causes to be done an act or thing mentioned in subsection 4(2) on behalf of or as an agent of an insurer which is not licensed or who receives directly or indirectly remuneration for so doing is guilty of an offence. RSN1970 c176 s6 Back to Top Bodies not insurers 7. The following are not considered to be insurers within the meaning of this Act or required to be licensed (a) employees' mutual benefit societies; (b) a society, association or organization the membership of which is limited to those engaged in or who, at the time they become members, are engaged in a particular trade, calling or profession which, under the authority of its charter, has an assurance or benefit fund for the benefit of its own members exclusively; (c) friendly societies; and (d) other organizations that the Lieutenant-Governor in Council may by regulation prescribe. RSN1970 c176 s7 Back to Top Unlicensed insurer in foreign jurisdiction 8. An insurer incorporated under the laws of the province which carries on or solicits business in a foreign jurisdiction without first being licensed and without first being authorized to do so under the law of the foreign jurisdiction is guilty of an offence. RSN1970 c176 s8 Back to Top Licensed insurer reinsuring outside the province 9. Nothing in this Act shall prevent a licensed insurer which has lawfully effected a contract in the province from reinsuring the risk or a portion of the risk with an insurer transacting business outside the province and not licensed under this Act. RSN1970 c176 s9 Back to Top Insurer which may be licensed 10. (1) Upon application and upon proof of compliance with this Act, the superintendent may issue a licence to undertake contracts and carry on business in the province to (a) an insurer which is incorporated under the laws of the province; (b) an extra-provincial insurer; (c) an insurer which is registered and holds a certificate of registry under the Insurance Companies Act ( Canada ); (d) a fraternal or sororal society; (e) a mutual benefit society; (f) an underwriter or syndicate of underwriters operating on the plan known as Lloyd's; and (g) reciprocal or inter-insurance exchanges. (2) The superintendent may include in a licence those restrictions, limitations and conditions that the superintendent considers necessary. (3) The superintendent shall not issue a licence to an insurer not coming within one of the classes referred to in subsection (1). (4) The superintendent shall not issue a licence under this section unless satisfied that the corporate name of the insurer is not that of another known insurer carrying on business in the province or a name likely to be confused with the known insurer's name or otherwise objectionable on public grounds. RSN1970 c176 s10; 1985 c21 s2; 1988 c42 s1; 1995 c13 s8 ; 2005 c22 s2 ; 2023 c19 s5 Back to Top Rights and powers of licensed insurer 11. (1) A licence authorizes the insurer named in the licence to exercise in the province all rights and powers reasonably incidental to the carrying on of the business of insurance named in the licence which are consistent with the laws of the province relating to insurance or with the terms of the insurer's charter. (2) Subject to the laws of the province, particularly relating to the classes of insurers mentioned in subsection 10(1), the superintendent may issue a licence to an insurer to carry on one or more of the classes of insurance that are set out in the Schedule. (3) Where a question arises as to the class of insurance into which a specific contract or form of policy falls, the minister may determine the question and the minister’s determination is effective and final for the purposes of this Act. RSN1970 c176 s11; 2010 c16 s2 ; 2023 c19 s6 Back to Top Life insurers 12. An insurer licensed to carry on life insurance may, subject to its charter and the restrictions, limitations and conditions contained in its licence, issue annuities and endowments of all kinds. 2010 c16 s3 Back to Top Fire insurers 13. An insurer licensed to carry on fire insurance may, subject to its charter and the restrictions, limitations and conditions contained in its licence, insure or reinsure property in which the insured has an insurable interest against loss or damage by fire, lightning or explosion and may insure or reinsure the same property against one or more perils falling within those other classes of insurance that are set out in the Schedule. 2010 c16 s3 Back to Top Restriction on issue of licences 14. (1) The superintendent shall not issue a licence to an insurer which is a company incorporated in the province if it is (a) a company undertaking life insurance, unless the company provides to the superintendent satisfactory evidence that not less than $500,000 of its capital has been in good faith subscribed for the shares allotted and at least $250,000 of the subscribed capital has been paid in, in cash; (b) a company undertaking one or more classes of insurance other than life insurance except upon proof ( i ) where a company is undertaking the insurance in the province only, that not less than $300,000 of its capital has been in good faith subscribed for and allotted and at least $150,000 of its subscribed capital has been paid in, in cash, and (ii) where a company is undertaking insurance elsewhere than in the province, that not less than $700,000 of its capital has been in good faith subscribed for and allotted and at least $400,000 of its subscribed capital has been paid in, in cash; or (c) a mutual insurance company, a cash-mutual insurance company or an underwriter or syndicate of underwriters operating on the plan known as Lloyd's, except upon proof that the net surplus of assets over all liabilities exceeds the amount fixed by this subsection for the paid in capital of insurance companies referred to in paragraphs (a) and (b) and that that net surplus of assets over all liabilities, together with the contingent liability of members, exceeds the amount fixed by this subsection for the subscribed and allotted capital of those insurance companies for the respective classes of insurance mentioned. (2) After February 17, 1986 the superintendent shall not issue a licence to an insurer which is a company incorporated in the province if it is (a) a company undertaking life insurance within or outside the province or both within and outside the province, unless the company provides to the superintendent satisfactory evidence that not less than $3,000,000 of the subscribed capital has been paid in, in cash; (b) a company undertaking one or more classes of insurance other than life insurance except upon proof satisfactory to the superintendent ( i ) where a company is undertaking insurance in the province only, that at least $1,000,000 of its subscribed capital has been paid in, in cash, and (ii) where a company is undertaking insurance outside the province, that at least $3,000,000 of its subscribed capital has been paid in, in cash; or (c) a mutual insurance company or a cash-mutual insurance company, except upon proof that the net surplus of assets over all liabilities, together with the contingent liability of members, exceeds the amount fixed by this subsection for the paid in capital of insurance companies referred to in paragraphs (a) and (b). (2.1) After this subsection comes into force, the superintendent shall not issue a licence to an insurer which is a company incorporated in the province undertaking one or more classes of insurance other than life insurance except upon proof satisfactory to the superintendent that at least $3,000,000 of its subscribed capital has been paid in, in cash. (3) Subsections (1), (2) and (2.1) do not apply to a purely mutual insurance company insuring only risks other than mercantile or manufacturing on the premium note plan. (4) The superintendent shall not issue a licence to an insurer which is incorporated in the province and which does not come within one of the classes referred to in subsections (1), (2), (2.1) and (3) except upon those terms and conditions, that may be prescribed by the laws of the province or by the Lieutenant-Governor in Council by regulation. (5) [Rep. by 2005 c22 s3] (6) [Rep. by 2005 c22 s3] (7) The superintendent shall not issue a licence to an insurer except upon proof satisfactory to the superintendent that the insurer has complied with those provisions of the laws of the province that may be applicable to it. (8) The superintendent shall not issue a licence to an insurer for the transaction of both fire and life insurance unless it maintains separate and distinct accounts, funds and securities in respect of its business of life insurance and those funds and securities are available only for the protection of the holders of its policies of life insurance and are not liable for the payment of claims arising from another class of insurance which the insurer undertakes, and unless the insurer complies with those other requirements, that the superintendent may prescribe for the purpose of this subsection. (9) The superintendent shall not issue a licence to an insurer incorporated in a foreign jurisdiction except upon proof of the insurer's ability to provide for the payment at maturity of all its contracts but the superintendent may accept as sufficient the fact that the insurer (a) is licensed by any government in Canada ; or (b) has been issued an order under subsection 53(1) or 574(1) of the Insurance Companies Act ( Canada ). (10) Effective July 1, 1994, after notification by the Department of Health to the superintendent of any unpaid levy due under the Medical Care and Hospital Insurance Act , the superintendent shall prohibit the insurer from entering into new contracts of insurance or renewing existing contracts of insurance until the levy is paid. RSN1970 c176 s14; 1975 No15 s2; 1985 c21 s3; 1994 c43 s4 ; 1995 c13 s8 ; 2004 c27 15 ; 2005 c22 s3 ; 2016 cM-5.01 s58 ; 2023 c19 s7 Back to Top Notice of application published 15. The superintendent may require an insurer applying for a licence to give notice of its application in the Gazette and elsewhere in a form that the superintendent considers necessary. RSN1970 c176 s15 Back to Top Information to be filed by applicant 16. (1) Before the superintendent issues a licence to an insurer incorporated under the laws of the province, the insurer shall file with the superintendent (a) a certified copy of the charter of the insurer verified in a manner satisfactory to the superintendent; (b) a certified copy of the balance sheet of the insurer and auditor’s report on the balance sheet; (c) notice of the place where the head office of the insurer is situated and the name of the insurer’s chief executive officer; (d) the names and addresses of the officers of the insurer; (e) the names and addresses of the directors of the insurer; (f) a list of the shareholders of the insurer showing, in respect of each, the number of shares held, the amount subscribed for, the amount paid in cash and the amount in arrears of call; (g) a statement showing the authorized capital of the insurer, the number of shares subscribed and the amount paid in cash; and (h) other documents or information that the superintendent may require. (2) Where an insurer referred to in subsection (1) is not a company or where some or all of the provisions of subsection (1) are otherwise inapplicable to that insurer, the superintendent may exempt the insurer from filing the documents or information which do not apply to the insurer. (3) Before the superintendent issues a licence to an insurer registered under the Insurance Companies Act (Canada) the insurer shall file with the superintendent (a) a copy of the order issued under subsection 53(1) or 574(1) of the Insurance Companies Act ( Canada ); (b) a notice of the classes of insurance that the insurer proposes to transact in the province and that notice shall not include a class of insurance not specifically provided for in the order referred to in paragraph (a); and (c) proof of registration under the Corporations Act. (4) Notwithstanding paragraph (3)(b), an insurer registered under the Insurance Companies Act (Canada) may, with the approval of the superintendent, undertake and carry on the business of marine insurance in the province, although that class of insurance is not specifically provided for in the order referred to in paragraph (3)(a). (5) Before the superintendent issues a licence to an extra-provincial insurer, the insurer shall file with the superintendent (a) proof of licensing issued to and held by the insurer in the home jurisdiction of the insurer; (b) a notice of the classes of insurance that the insurer proposes to transact in the province and that notice shall not include a class of insurance not specifically provided for in the licence held by the insurer; and (c) proof of registration under the Corporations Act. (6) Where a change is made in respect of the documents or information filed with the superintendent under subsection (1), (3) or (5), the insurer shall immediately notify the superintendent of the change and file with the superintendent those further documents or notices that are necessary to provide evidence of the change. (7) Where the documents or information referred to in subsection (1), (3) or (5) have been filed under the Corporations Act , those documents or the information shall be considered to have been filed in accordance with this section. 2005 c22 s4 Back to Top Power of attorney 17. (1) The power of attorney, to the chief agent or resident manager of an insurer in the province referred to in paragraph 16(1)(f) shall expressly authorize the attorney to receive service of process in all suits and proceedings against the insurer in the province in respect of liabilities incurred by the insurer and to receive from the superintendent all notices which the law requires to be given or which it is thought advisable to give and it shall declare that service of process for or in respect of those liabilities and receipt of those notices on or by the attorney shall be legal and binding on the insurer to all intents and purposes. (2) Where an insurer applying for a licence does not have a chief agent or resident manager in the province or where the chief agent or resident manager does not have power of attorney on behalf of the insurer, the insurer shall designate to the superintendent some other person resident in the province who has been authorized by the insurer to receive service of process and notices referred to in subsection (1) and service of process on or receipt of notices from the superintendent by that designated person is legal and binding on the insurer to all intents and purposes. (3) After a power of attorney under subsection (1) or a designation under subsection (2) is filed with the superintendent, process in a suit or proceeding against an insurer in respect of a liability incurred in the province may be validly served on the attorney or the person otherwise designated and the service shall be considered to be service on the insurer. RSN1970 c176 s17 Back to Top Compensation fund 18. An insurer licensed under this Act shall be a member of and adhere to the rules of a compensation fund that may be prescribed in the regulations. 1985 c21 s5 Back to Top Expenses of incorporation of new company 19. (1) Upon application being made for a licence by an insurer incorporated under the laws of the province after March 13, 1961, there shall be submitted to the superintendent a sworn or affirmed statement setting out the several sums of money paid in connection with the incorporation and organization of the insurer and listing all unpaid liabilities, in connection with or arising out of the incorporation and organization. (2) Until the licence is issued to it an insurer shall not make payments on account of expenses of incorporation and organization out of the money paid in by shareholders except reasonable sums for the payment of clerical assistance, legal service, office rental, advertising, stationery, postage and expense of travel. (3) The superintendent shall not issue the licence until satisfied that all the requirements of the laws of the province as to subscriptions to capital, the payment of money by shareholders on account of their subscriptions, the election of directors and other preliminaries have been complied with, and unless the superintendent is satisfied that the expenses of incorporation and organization, including the commission payable for the sale of shares of the insurer, are reasonable. RSN1970 c176 s18; 2023 c19 s8 Back to Top Form of licences, etc. 20. (1) A licence shall be in a form that the superintendent prescribes and considers necessary and shall specify the class of insurance which the insurer is authorized to transact in the province. (2) A licence remains in effect, subject to the filing of annual reports as prescribed by the superintendent and payment of an annual fee as prescribed by the minister, until it is suspended or cancelled under this Act. (2.1) The superintendent may issue a licence for a period of time the superintendent considers appropriate. (3) A licence to carry on automobile insurance in the province is subject to the following conditions: (a) in an action in the province against the licensed insurer, or its insured, arising out of an automobile accident in the province, the insurer shall appear and shall not set up a defence to a claim under a contract made outside the province, including defence as to the limit of liability under the contract, that might not be set up if the contract were evidenced by a motor vehicle liability policy issued in the province; and (b) in an action in another province or territory of Canada against the licensed insurer, or its insured, arising out of an automobile accident in that province or territory, the insurer shall appear and shall not set up a defence to a claim under a contract evidenced by a motor vehicle liability policy issued in the province, including a defense as to the limit of liability under the contract, that might not be set up if the contract were evidenced by a motor vehicle liability policy issued in that province or territory. (4) The superintendent may cancel the licence of an insurer who commits a breach of either of the conditions set out in subsection (3). (5) The superintendent may, notwithstanding anything contained in this Act, refuse to issue a licence without stating or assigning a reason for the refusal. (6) The minister may set fees required by the Act to be paid. RSN1970 c176 s19; 1996 c35 s48 Back to Top Automatic cancellation of licence 21. (1) Where written notice has been served on the superintendent and upon proof of an undisputed claim arising from loss insured against in the province remaining unpaid for the space of 60 days after being due, or of a disputed claim after final judgment in the regular course of law and tender of a legal and valid discharge being unpaid, the licence of the insurer is automatically void and is considered to be cancelled from the date the superintendent received the notice. (2) A licence which has been cancelled under subsection (1) may be restored and the insurer may again transact business in the province where, within 6 months after the superintendent received the notice referred to in subsection (1), the undisputed claim or final judgment referred to in that subsection is paid and satisfied. RSN1970 c176 s20 Back to Top Rep. by 2005 c22 s5 22. [Rep. by 2005 c22 s5] 2005 c22 s5 Back to Top Insufficiency of assets 23. (1) Where the superintendent, upon examination or from annual statements or upon other evidence, considers that the assets of an insurer are insufficient to justify the continuance of the insurer in business in the province or to provide proper security to persons effecting insurance with the insurer in the province or that an insurer has failed to comply with the laws of the province or with its charter or that an insurer should not be permitted to carry on business in the province, the superintendent shall report to the minister. (2) Where the minister, after consideration of a report made under subsection (1) and upon further inquiry and investigation that the minister may think appropriate to make, concurs in the report of the superintendent, the minister may suspend or cancel the licence of the insurer. (3) Notice of the suspension or cancellation of a licence under subsection (2) shall be published in the Gazette and elsewhere as the superintendent directs and once it is published a person transacting business in the province on behalf of the insurer except for winding-up purposes is guilty of an offence. (4) Where the superintendent has made a report under subsection (1), the minister may direct the superintendent to issue a modified, limited or conditional licence that the superintendent considers necessary for the protection of persons in the province who have effected or effect contracts of insurance with the insurer. RSN1970 c176 s22 Back to Top Action where licence suspended or cancelled elsewhere 24. (1) Upon the suspension or cancellation of the licence of an insurer in a foreign jurisdiction, the minister may direct the superintendent to and the superintendent shall suspend or cancel the licence of the insurer issued under this Act. (2) Where a licence has been suspended or cancelled, the superintendent may restore it where the insurer makes good the deficiency to the satisfaction of the minister or remedies the default that led to the licence being suspended or cancelled. RSN1970 c176 s23 Back to Top Appeal 25. (1) A person may appeal a decision to refuse to issue a licence or to suspend or cancel a licence under this Act to the deputy minister within 30 days of the decision. (2) An appeal referred to in subsection (1) shall (a) be submitted to the deputy minister, in writing, in the form and manner set by the deputy minister; (b) state the reasons for the appeal; and (c) include ( i ) a copy of the decision being appealed, (ii) all information that the appellant considers necessary for the appeal, and (iii) any information requested by the deputy minister. (3) The deputy minister shall begin a review of the decision within 30 days after the appeal has been received under subsection (2). (4) The deputy minister may confirm, revoke or vary the decision that is the subject of the appeal. (5) A decision of the deputy minister shall (a) be in writing; (b) state the reasons for the decision; and (c) be provided to the appellant and the superintendent no later than 30 days after the deputy minister completes the review of the decision. 2010 c23 s1 ; 2024 c32 s19 Back to Top Rep. by 2005 c22 s6 26. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 27. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 28. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 29. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 30. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 31. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 32. [Rep.

by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 33. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 34. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 35. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 36. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 37. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 38. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 39. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 40. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 41. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 42. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 43. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 44. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 45. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 46. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 47. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 48. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 49. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 50. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 51. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 52. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 53. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 54. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 55. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 56. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 57. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Rep. by 2005 c22 s6 58. [Rep. by 2005 c22 s6] 2005 c22 s6 Back to Top Application of sections 60 to 71 59. Sections 60 to 71 apply only to an insurer incorporated under the laws of the province. 2005 c22 s7 Back to Top Corporations Act applies to winding up 60. An insurer is subject to the winding-up provisions of the Corporations Act except in so far as they may be varied by this Act. RSN1970 c176 s53 Back to Top Application to court for winding up 61. (1) An insurer may be wound up by order of the court on the application of the minister where the court is satisfied that (a) the insurer has failed to exercise its corporate powers during a continuous period of one year; (b) the insurer has not started business or gone into actual operation within one year after it was incorporated; (c) the insurer has discontinued business for one year after it has undertaken contracts within the meaning of this Act; (d) the insurer's licence has been suspended for one year or more; (e) the insurer has carried on business or entered into a contract or used its funds in a manner or for a purpose prohibited or not authorized by this Act or by its charter or by the Corporations Act or by a special Act; or (f) other sufficient cause has been shown. (2) The minister shall not make an application under subsection (1) without the approval of the Lieutenant-Governor in Council. (3) Upon the making of an order under subsection (1) the provisions of the Corporations Act relating to the winding up of a company, in so far as they are consistent with this Act, apply. RSN1970 c176 s54; 1986 c12 Sch; 1987 c38 Sch B; 2023 c19 s9 Back to Top Provisional liquidator 62. (1) Where (a) [Rep. by 1996 c35 s50] (b) the licence of an insurer is cancelled, the minister may appoint a provisional liquidator who shall take charge of the affairs of the insurer and may direct that it be wound up immediately under the Corporations Act. (2) Until a permanent liquidator is appointed the provisional liquidator shall exercise all the powers of the insurer and none of the officers or employees of the insurer shall make a contract for, incur a liability on behalf of, or spend money of the insurer without the approval of the provisional liquidator. (3) The provisional liquidator shall petition the court for a winding-up order and where the court is of the opinion that it is just and equitable to do so it may make an order for the winding up of the insurer and the provisions of the Corporations Act relating to the winding up of a company, in so far as they are consistent with this Act, apply. (4) The provisional liquidator or the liquidator, notwithstanding the Corporations Act, but subject to the approval of the court, may sell the business and undertaking of the insurer as a going concern. RSN1970 c176 s55; 1986 c12 Sch; 1987 c38 Sch B; 1996 c35 s50 Back to Top Remuneration 63. (1) The remuneration to be paid to a provisional liquidator shall be fixed by the minister. (2) The remuneration and all expenses and outlay in connection with the appointment of the provisional liquidator, together with all expenses and outlay of the provisional liquidator while the provisional liquidator acts in that capacity, shall be borne and paid by the insurer and shall form a first charge upon the assets of the insurer. (3) [Rep. by 2005 c22 s8] RSN1970 c176 s56; 2005 c22 s8 ; 2023 c19 s10 Back to Top Proposal to liquidate, etc. 64. (1) When an insurer proposes to cease writing insurance or to call a general meeting to consider a resolution for the voluntary liquidation of the insurer under the Corporations Act, it shall give at least one month's notice in writing to the minister. (2) Where an insurer has passed a resolution for voluntary winding up, the insurer shall notify the minister of the winding up and of the date at which contracts will cease to be entered into by the insurer and of the name and address of its liquidator. (3) The notice under subsection (2) shall also be published by the insurer in 2 consecutive issues of the Gazette and in those newspapers and other publications that the minister may require. (4) A fraternal or sororal society or mutual insurance company to which this Act applies shall not go into voluntary liquidation or otherwise arrange for the winding up of its affairs without the written consent of the minister. RSN1970 c176 s57; 1986 c12 Sch; 1987 c38 Sch B; 2023 c19 s11 Back to Top Existing contracts 65. (1) The provisional liquidator or the liquidator, before the fixing of a termination date under section 67, may arrange for the reinsurance of the existing contracts of the insurer with some other insurer licensed in the province. (2) The entire assets of the insurer in the province shall be available for the purpose of securing the reinsurance in accordance with subsection (1) other than the amount reasonably estimated by the liquidator or the provisional liquidator as being required to pay (a) the costs of the liquidation or winding up; (b) all claims for losses covered by the insurer’s contracts of which notice has been received by the insurer or liquidator or provisional liquidator before the date on which the reinsurance is effected; and (c) the claims of the preferred creditors who are persons paid in priority to other creditors under the winding-up provisions of the Corporations Act, all of which shall be the first charge on the assets of the insurer. (3) [Rep. by 2005 c22 s9] (4) Creditors of the insurer, other than the insured persons and the preferred creditors referred to in paragraph (2)(c), are entitled to receive a payment on their claims only if provision has been made for the payments mentioned in subsection (2) and for the reinsurance. (5) Where, after providing for the payments mentioned in subsection (2), the balance of the assets of the insurer is insufficient to secure the reinsurance of the contracts of the insured persons in full, the reinsurance may be effected for the portion of the full amount of the contracts that may be possible. (6) A contract of reinsurance shall not be entered into under this section until it is approved by the court. (7) Nothing in this section prejudices or affects the priority of a mortgage, lien or charge upon the property of the insurer. RSN1970 c176 s58; 1986 c12 Sch; 1987 c38 Sch B; 2005 c22 s9 Back to Top Rep. by 2005 c22 s10 66. [Rep. by 2005 c22 s10] 2005 c22 s10 Back to Top Where no reinsurance 67. (1) Where the provisional liquidator or the liquidator fails to secure reinsurance or if, in the provisional liquidator’s or the liquidator’s opinion, it is impracticable or inexpedient to arrange for reinsurance, the provisional liquidator or the liquidator, (a) with the approval of the court and subject to those terms that may be prescribed by the court; and (b) for the purpose of securing the payment of existing claims and avoiding further losses, may publish a notice fixing a termination date for the existing contracts of that insurer, and on and after that date coverage and protection under those shall cease, and the insurer is not liable under those contracts for a loss that occurs after that date. (2) [Rep. by 2005 c22 s10] RSN1970 c176 s60; 2001 cN-3.1 s2 ; 2005 c22 s10 ; 2023 c19 s12 Back to Top Publication of notice 68. The provisional liquidator or the liquidator shall (a) publish the notice referred to in section 67 in the Gazette and in those newspapers, that the court may direct in order to give reasonable notice of the termination date so fixed; and (b) mail the notice referred to in section 67 to each policyholder at the policyholder’s address as shown on the books and records of the insurer. RSN1970 c176 s61; 2023 c19 s13 Back to Top Liquidator to set aside sums 69. (1) The liquidator shall pay or set aside from the assets of the insurer sums which in the liquidator’s opinion are sufficient to pay (a) the costs of the liquidation or winding up; (b) all claims for losses covered by the insurer’s contracts that occurred before the termination date fixed under section 67 that have not been paid and of which notice has been received by the insurer or the liquidator; (c) the full amount of the legal reserve in respect of each unmatured life insurance contract; and (d) the claims of preferred creditors who are the persons paid in priority to other creditors under the winding-up provisions of the Corporations Act. (2) Except in the case of life insurance, the assets remaining after payment or making provision for payment of the amounts referred to in subsection (1) shall be used to pay the claims of insured persons for refunds of unearned premiums on a proportional basis in proportion to the periods of their contracts respectively unexpired on the termination date, to the extent those claims have not been paid. (3) The claims of insured persons for refunds of unearned premiums shall be calculated (a) as at the termination date fixed under section 67; or (b) as at the date the insured person cancelled the contract, whichever date is the earlier. (4) The refund of all or a portion of a premium under this section does not destroy or defeat another remedy the insured person may have against the insurer. (5) Nothing in this section prejudices or affects the priority of a mortgage, lien or charge upon the property of the insurer. RSN1970 c176 s62; 1986 c12 Sch; 1987 c38 Sch B; 2005 c22 s12 ; 2023 c19 s14 Back to Top Payment of fees, etc., by insurer 70. The fees, taxes and costs payable by the insurer shall be paid out of the assets of the insurer remaining after the reinsurance of the existing contracts of the insurer or after the payment of the claims of policyholders for refund of unearned premiums and the balance shall be distributed among the creditors of the insurer, other than the insured persons and preferred creditors. RSN1970 c176 s63 Back to Top Information to be filed in court 71. (1) Unless otherwise ordered by the court, within 7 days after the close of each period of 3 months after a liquidator's appointment and until the affairs of the insurer are wound up and the accounts are finally closed the liquidator shall file with the court or other authority appointing the liquidator and with the minister detailed schedules showing, in those forms that may be required, (a) receipts and expenditures; and (b) assets and liabilities of the insurer. (2) The liquidator shall, where the liquidator is required to do so by the authority appointing the liquidator or by the minister, exhibit the office books and vouchers and provide other information respecting the affairs of the insurer that may be required. (3) A liquidator who refuses or neglects to provide information under subsection (2) is guilty of an offence and may, in addition, be dismissed or removed. 2010 c23 s2 ; 2023 c19 s15 Back to Top Rep. by 2010 c16 s4 72. [Rep. by 2010 c16 s4] 2010 c16 s4 Back to Top Rep. by 1996 c35 s51 73. [Rep. by 1996 c35 s51] 1996 c35 s51 Back to Top Access to books, etc. 74. The superintendent, or a person authorized by the superintendent, in writing, shall, at reasonable times, have access to the books, securities and documents of an insurer, agent or broker that relate to contracts of insurance, and an officer or person in charge, possession, custody or control of those books, securities or documents who refuses or neglects to give that access is guilty of an offence. 1981 c88 s2 Back to Top Duty to furnish information 75. It is the duty of the officers and agents of a licensed insurer, and of persons licensed under this Act, or of an insured, to provide the superintendent on the superintendent’s request with full information relating to a contract of insurance issued by the insurer or to the insured or relative to a settlement or adjustment under the contract. 1981 c88 s2; 2023 c19 s16 Back to Top Inspection 76. The minister may instruct the superintendent to visit the head office or chief agency from which the contract was issued, or the office of the adjuster, and inquire into the contract or settlement, and section 74 applies with the necessary changes to the inquiry. 1981 c88 s2 Back to Top Examination of insurers 77. (1) The superintendent, or a person appointed by the superintendent for the purpose, may conduct an examination at the head office or chief office in the province of an insurer incorporated under the laws of the province and the superintendent or a person appointed by the superintendent may examine the statements of the condition and affairs of each insurer incorporated under the laws of the province filed under this Act, and make those inquiries that are necessary to ascertain its condition and ability to provide for the payment of its contracts as they mature and whether or not it has complied with all the provisions of this Act applicable to its transactions. (2) Where the head office of an insurer is not in the province and the superintendent considers it necessary to make a further examination into its affairs, the superintendent, or a person appointed by the superintendent for the purpose, may visit the head office of the insurer to examine its affairs and to make those further inquiries that the superintendent considers appropriate. (3) The officers and agents of an insurer shall open the books and records of the insurer for the examination of the superintendent, or a person appointed by the superintendent for the purpose, and shall otherwise facilitate the examination. (4) In order to facilitate the examination of the books and records of an insurer, the insurer may be required by the superintendent, or a person appointed by the superintendent for the purpose, to produce the books and records at the head office or chief office in the province of the insurer or at another convenient place that the superintendent or the person directs. (5) For the purpose of an examination under this section, the superintendent, or a person appointed by the superintendent for the purpose, may examine documents or other things, whether they are in the possession or control of the insurer or another person or company. 2010 c23 s3 Back to Top Investigation order 77.1 The superintendent may, by order, appoint a person to conduct an investigation that the superintendent considers necessary for the administration of this Act. 2010 c23 s4 Back to Top Powers 77.2 (1) A person conducting an examination under section 77 or an investigation under section 77.1 has the same power to summon and enforce the attendance of a person and to compel the person to testify on oath or otherwise, and to summon and compel a person or company to produce documents and other things, that is vested in a judge of the Supreme Court, and the refusal of the person to attend or to answer questions, or of a person or company to produce documents or other things that are in the person's or company's custody or possession makes the person or company liable to be committed for contempt by a judge of the Supreme Court as if in breach of an order of that court. (2) A person or company giving evidence under subsection (1) may be represented by counsel and may claim a privilege to which the person or company is entitled. 2010 c23 s4 ; 2023 c19 s17 Back to Top Search and seizure with warrant 77.3 (1) Where the superintendent, or a person appointed by the superintendent under section 77 or 77.1, believes on reasonable grounds that a person is contravening or has contravened this Act, the superintendent, or person appointed by the superintendent may, with a warrant issued under subsection (2), enter a premises and seize anything that may be there that may provide evidence of the contravention. (2) A judge of the Provincial Court or the Supreme Court who is satisfied on oath or affirmation that there are reasonable grounds for believing that a contravention of this Act has occurred, or is occurring, may issue a warrant authorizing the person named in the warrant to enter premises, including a dwelling house, and to (a) search; (b) examine the contents of the premises and make those inquires that the investigator considers necessary; and (c) copy, extract, photograph, video, seize and take away evidence, books and records for the purpose of investigating the suspected contravention. (3) A person present at a premises referred to in this section shall not obstruct the person named in the warrant in its execution. 2010 c23 s4 ; 2023 c19 s18 Back to Top Production order 77.4 (1) A judge of the Provincial Court or a judge of the Supreme Court may order a person, other than a person who is the subject of an investigation, (a) to produce a document or a copy of a document, certified by affidavit to be a true copy, or to produce data; or (b) to prepare a document based on a document or data already in existence and to produce it. (2) An order referred to in subsection (1) shall require the document or data to be produced within the time, at the place and in the form specified and to be given to the person making the investigation. (3) A judge may make an order referred to in subsection (1) where satisfied on the basis of an application made in writing on oath or affirmation and without notice that there are reasonable grounds to believe that (a) a person has contravened or is contravening this Act or the regulations or is suspected to have contravened this Act or the regulations; (b) the document or data will provide evidence respecting a contravention or suspected contravention of this Act or the regulations; and (c) the person who is subject to the order has possession or control of the document or data. (4) An order referred to in subsection (1) may contain terms and conditions that the judge considers advisable in the circumstances, including terms and conditions to protect a privileged communication between a lawyer and client. (5) The order referred to in subsection (1) may be revoked, renewed or varied. (6) A copy of a document produced under this section, on proof by affidavit that it is a true copy, is admissible in evidence in proceedings under this Act and has the same probative force as the original document would have if it had been proved in the ordinary way. (7) Copies of documents produced under this section are not required to be returned to the person who provided them. 2010 c23 s4 ; 2023 c19 s19 Back to Top Interim preservation of property 77.5 (1) Where the superintendent considers it necessary for the administration of this Act, the superintendent may direct a person or company having on deposit or under its control or for safekeeping funds or property of a person or company, to retain those funds or property and to hold it until the superintendent in writing revokes the direction or consents to release a particular fund or property from the direction, or until a judge of the Supreme Court orders otherwise. (2) A direction under subsection (1) that names a bank or other financial institution shall apply only to a branch of the bank or other financial institution identified in the direction. (3) As soon as practicable, and not later than 7 days after a direction is issued under subsection (1), the superintendent shall apply to a judge of the Supreme Court to continue the direction or for another order that the judge considers appropriate. (4) A direction under subsection (1) may be made without notice but, in that event, copies of the direction shall be sent immediately by means that the superintendent may determine to all persons and companies named in the direction. 2010 c23 s4 ; 2023 c19 s20 Back to Top Expenses of examination 78. (1) The superintendent, with the approval of the minister, may prepare abstracts of the books and vouchers and a valuation to be made of the assets or liabilities of the insurer and the cost of so doing upon the certificate of the superintendent approved by the minister shall be paid by the insurer. (2) Where the office of an insurer at which an examination is made under this section is out of the province, the insurer shall pay the account in connection with the examination upon the certificate of the superintendent approved by the minister. (3) Upon the certificate of the superintendent, approved by the minister, an insurer shall pay the account in connection with an examination made under sections 74 to 77. 1981 c88 s2 Back to Top Classification of contracts, etc. 79. An insurer shall keep the classification of its contracts and the registers and books of account that are directed or authorized by the superintendent and where it appears to the superintendent that the classification, registers or books are not kept in a business-like way as to make a proper showing of the affairs and standing of the insurer, the superintendent shall nominate an accountant, under the superintendent’s direction, to audit them and to give those instructions that will enable the insurer to keep them correctly and the expense of the audit and necessary travelling expenses of the accountant shall be paid immediately by the insurer upon being certified and approved by the superintendent. RSN1970 c176 s67; 1985 c21 s9; 2023 c19 c21 Back to Top Share register to be open to superintendent 80. The share register of the insurer shall at reasonable times be open to the examination of the superintendent or the superintendent’s representative without charge. RSN1970 c176 s68; 1985 c21 s10; 2023 c19 s22 Back to Top Record of fire premium income and losses 81. (1) A licensed insurer which carries on in the province the business of fire insurance shall keep a record of its premium income derived from risks located in the province and of claims paid in respect of those risks so as to show its experience according to the classification of occupancy hazards of the National Board of Fire Underwriters with those modifications that the superintendent may prescribe. (2) Where it appears to the superintendent that records referred to in subsection (1) are not kept in a manner as to correctly show the experience of the insurer in the province as required by that subsection, the minister may nominate an accountant to proceed under the minister’s direction to audit the books and records of the insurer and to give those instructions that will enable the officers of the insurer to keep the records correctly and the expense of the audit and necessary travelling expenses of the accountant shall be paid immediately by the insurer upon being certified and approved by the superintendent. (3) A licensed insurer undertaking the business of fire insurance in the province shall prepare and file with the superintendent before April 1 in each year in a form prescribed by the superintendent a statement of the premium income and losses experience within the province for the calender year immediately preceding the date of the return according to the records required to be kept under this section. (4) An insurer and the principal officer within the province of an insurer that contravenes this section is guilty of an offence. RSN1970 c176 s69; 2010 c23 s5 ; 2023 c19 s23 Back to Top Record of automobile premiums and costs 82. (1) A licensed insurer which carries on in the province the business of automobile insurance shall, where the superintendent so directs, prepare and file with the superintendent or with a statistical agency that the superintendent may designate a record of its automobile insurance premiums and of its loss and expense costs in the province in a form and manner and according to the system of classification that the superintendent may prescribe. (2) The superintendent may require an agency designated under subsection (1) to compile the data filed under that subsection in a form that the superintendent may prescribe and the expense of making the compilation shall be apportioned among the insurers whose data is compiled by the agency by the superintendent who shall certify in writing the amount due from each insurer and the amount is payable by the insurer to the agency immediately. (2.1) The superintendent shall provide annually to the Minister of Health information received from licensed motor vehicle insurers detailing automobile experience including the number of earned vehicles and the number of claims for each licensed insurer for the purpose of calculating a per vehicle levy. (3) Subsections 81(2) and (4) apply with the necessary changes to this section. RSN1970 c176 s70; 1994 c43 s5 Back to Top Balance sheet, etc. 83. A copy of every balance sheet or other statement published or circulated by an insurer incorporated under the laws of the province purporting to show its financial condition, together with an auditor's report, shall be mailed or delivered to the superintendent concurrently with its issue to its shareholders or policyholders or to the general public. RSN1970 c176 s71; 2005 c22 s14 Back to Top Auditor's report 84. The auditor of an insurer shall after the auditor has made an annual audit of the books of the insurer report to the shareholders that (a) the auditor has audited the books of the insurer and verified the cash, bank balance and securities; (b) in the case of insurers transacting other than life insurance, the auditor has checked the reserve for unearned premiums and that it is calculated as required by the laws of the province; (c) the auditor has examined the reserve for unpaid claims and whether in the auditor’s opinion it is adequate; (d) the auditor has verified the balances owing by agents and other insurers; (e) the balance sheet does not include as assets items prohibited by the laws of the province from being shown in the annual statements required to be filed; (f) after consideration, the auditor has formed an independent opinion and according to the best of the auditor’s information and the explanations given the auditor, the balance sheet sets out fairly the state of affairs of the insurer; and (g) all transactions of the insurer that have come within the auditor’s notice have been within its powers. RSN1970 c176 s72; 1985 c21 s9; 2023 c19 s24 Back to Top Financial information 85. (1) An insurer incorporated under the laws of the province shall file with the superintendent, on an annual basis and as otherwise may be required by the superintendent, a financial report in the form and verified in the manner prescribed by the superintendent. (2) An insurer other than an insurer incorporated under the laws of the province shall file with the superintendent, on an annual basis and as otherwise may be required by the superintendent, financial and other information in the form and verified in the manner prescribed by the superintendent. (3) Where an insurer other than an insurer incorporated under the laws of the province has filed the information referred to in subsection (2) in a foreign jurisdiction, that information shall be considered to have been filed in accordance with subsection (2) if it is available to the superintendent under an information sharing agreement entered into by the minister and the foreign jurisdiction. (4) An insurer referred to in subsection (1) or (2) shall reply promptly and explicitly to an inquiry directed to the insurer by the superintendent in relation to the transactions of the insurer in the province. 2005 c22 s15 Back to Top Published statements 86. A report or statement purporting to show the financial condition of an insurer differing from the financial information shown by a report or statement filed with the superintendent shall not be published or circulated and an insurer publishing or circulating the report or statement is guilty of an offence. 2005 c22 s15 Back to Top Certain forbidden statements 87. A person who represents orally or in writing that the issue of a licence to an insurer or the printing or publication of an annual statement in a report or other publication of the government of the province or any other circumstance of the supervision or regulation of the business of the insurer by law is a warranty or guarantee of the financial standing of the insurer or of its ability to provide for the payment of its contracts at maturity is guilty of an offence. RSN1970 c176 s75 Back to Top Misleading statements, etc. 88. An insurer and an officer, director, agent and employee of an insurer who, for the purpose of inducing a person to insure with the insurer, makes or uses a misleading statement purporting to show the dividends, profits or surplus which have been paid or may be paid by the insurer in respect of a policy issued or to be issued by it, is guilty of an offence. RSN1970 c176 s76 Back to Top Trafficking in life insurance prohibited 89. A person other than an insurer or its authorized agent who advertises or represents to be a purchaser of life insurance policies or of benefits under life insurance policies or who trafficks or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of life insurance policies to themself or another person is guilty of an offence. RSN1970 c176 s77; 2023 c19 s25 Back to Top Privileged information 90. Any information, document, record, statement or thing made or disclosed to or filed with the minister or the superintendent concerning an insurer licensed or applying for licence is absolutely privileged and shall not be used as evidence in an action or proceeding in a court brought by or on behalf of that person. RSN1970 c176 s78 Back to Top Insurer to file form of application 91. (1) The superintendent may require an insurer to file with the superintendent copies of all policy forms and forms of application issued or used by the insurer. (2) Where an insurer issues a policy or uses an application which, in the opinion of the superintendent, is unfair, fraudulent or not in the public interest, the superintendent may prohibit the insurer from issuing or using that form of policy or application. (3) An insurer which has been prohibited under subsection (2) from issuing or using a form of policy or application and later issues or uses the prohibited form is guilty of an offence. RSN1970 c176 s79 Back to Top Investment of surplus funds 92. (1) An insurer incorporated under the laws of the province or an extra-provincial insurer may, unless the Lieutenant-Governor in Council otherwise provides by regulation, invest its funds only in or on the security of investments in which or on the security of which a company registered under the Insurance Companies Act (Canada) may invest or lend its funds and only subject to the limitations and restrictions that apply to a company registered under that Act. (2) Uninvested funds of the insurer shall be kept on deposit in the name of the insurer in an institution, authorized to take deposits, which is insured by the Canada Deposit Insurance Corporation. 1985 c21 s11; 1993 c53 s15 Back to Top Prohibited loans and investments 93. (1) An insurer shall not knowingly make an investment, after February 1, 1986, other than a loan on the security of a policy of life insurance issued by it (a) by way of a loan to ( i ) a director or officer of the insurer, or a spouse or child of that director or officer, or (ii) an individual, the individual's spouse or the individual's children under 19 years of age where either the individual or a group, consisting of the individual, the individual's spouse and those children, is a substantial shareholder of the insurer; (b) in a corporation that is a substantial shareholder of the insurer; or (c) in a corporation in which, ( i ) an individual mentioned in subparagraph (a)( i), (ii) an individual who is a substantial shareholder of the insurer, (iii) another corporation that is a substantial shareholder of the insurer, or (iv) a group consisting exclusively of individuals mentioned in subparagraph (a)( i), has a significant interest. (2) An insurer shall not knowingly retain an investment mentioned in subsection (1). (3) For the purpose of this section, (a) a person has a significant interest in a corporation, or a group of persons has a significant interest in a corporation where, ( i ) in the case of a person, the person owns beneficially, either directly or indirectly, more than 10%, or (ii) in the case of a group of persons, they own beneficially, either individually or together and either directly or indirectly, more than 50%, of the shares of the corporation for the time being outstanding; (b) a person is a substantial shareholder of a corporation or a group of persons is a substantial shareholder of a corporation where that person or group of persons owns beneficially, either individually or together and either directly or indirectly, equity shares to which are attached more than 10% of the voting rights attached to all of the equity shares of the corporation for the time being outstanding; and in calculating the percentage of voting rights attached to equity shares owned by an underwriter, there shall be excluded the voting rights attached to equity shares acquired by that underwriter as an underwriter during the course of distribution to the public by the underwriter of those shares; (c) "equity share" means a share of a class to which are attached voting rights exercisable under all circumstances and a share of a class to which are attached voting rights by reason of the occurrence of a contingency that has occurred and is continuing; (d) "investment" means ( i ) an investment in a corporation by way of purchase of bonds, debentures, notes or other evidences of indebtedness or shares, or (ii) a loan to a person, but does not include a normal working balance between an insurer and another corporation transacting the business of insurance or an advance or loan that is merely ancillary to the main business of the insurer; and (e) notwithstanding paragraph 2(mm), "officer" means only the president, vice-president, the secretary, the treasurer, the manager, the controller and the actuary of an insurer, and another person designated as an officer of the insurer by by-law or by resolution of the directors. (4) For the purposes of this section, where a person or a group of persons owns beneficially, directly or indirectly, or is considered by this subsection to own beneficially, shares of a corporation, that person or group of persons shall be considered to own beneficially that proportion of the shares of another corporation that is owned beneficially, directly or indirectly, by the first-mentioned corporation, that is equal to the proportion of the shares of the first-mentioned corporation that is owned beneficially, directly or indirectly, or is considered by this subsection to be owned beneficially, by that person or group of persons. (5) Notwithstanding subsection (4), an insurer is not prohibited from making an investment in a corporation only because a person or a group of persons that owns beneficially, directly or indirectly, or is considered to own beneficially, equity shares of the insurer is, by reason of that subsection, considered to own beneficially equity shares of that corporation. (6) Where a person or group of persons is a substantial shareholder of an insurer, and, as a consequence of that and of the application of this section, certain investments are prohibited for the insurer, the minister may, on the advice of the superintendent, and on application by the insurer, exempt from that prohibition a particular investment of a particular class where the minister is satisfied (a) that the decision of the insurer to make or hold an investment so exempted has not been and is not likely to be influenced in a significant way by that person or group, and does not involve in a significant way the interests of that person or group apart from their interests as a shareholder of the insurer; and (b) that the investment is to be made under the power granted to the insurer under this Act. (7) An order of exemption made by the minister under subsection (6) may contain conditions or limitations considered by the minister to be appropriate and may be revoked by the minister. 1985 c21 s11 Back to Top Investments in corporate name 94. (1) All investments and deposits of the funds of an insurer shall be made in its corporate name. (2) An insurer shall at all times retain in Canada and under its own control assets of a value at least equal to its total liabilities to its policyholders in Canada. (3) Where the laws of a province, state or country in which an insurer transacts or is about to transact business require that the deposits made or to be made by that insurer in a province, state or country shall be made in the name of or transferred or assigned to a person or corporation other than the insurer, this section does not prohibit that insurer from making in the name of, or transferring or assigning to, that person or corporation the investments and deposits necessary to comply with those laws. (4) A director or officer of an insurer and a member of a committee having an authority in the investment or disposition of its funds shall not accept or be the beneficiary of, either directly or indirectly, a fee, brokerage, commission, gift or other consideration for or on account of a loan, deposit, purchase, sale, payment or exchange made by or on behalf of the insurer, or be pecuniarily interested in that purchase, sale or loan, either as borrower, principal, co-principal, agent or beneficiary, except that, where the director, officer or member is a policyholder, that director, officer or member is entitled to all the benefits accruing under the terms of the contract. (5) Except as provided in this section, all the securities of an insurer incorporated and licensed under the laws of the province shall be held at the head office of the insurer or elsewhere in the province and the holding of securities, wherever situated, is subject to those regulations respecting their safekeeping, including registration and the bonding of directors, officers and employees of the insurer, that the Lieutenant-Governor in Council may prescribe. 1985 c21 s11 Back to Top Underwriter's agency 95. (1) A policy of insurance shall not be issued through an underwriter's agency under its own name for an insurer unless the insurer is licensed to carry on business in the province and has obtained from the superintendent a licence to issue contracts of insurance through the underwriter's agency. (2) A policy of insurance issued through an underwriter's agency shall be in a form approved by the superintendent and shall bear upon its face the name and address of the insurer in a prominent and conspicuous manner and the name of the underwriter's agency shall not appear on the face of the policy except as a counter-signature to the policy. (3) On no other part of the policy shall the name of the underwriter's agency appear except that for identification purposes the words "issued through the . . . . . . . . . . . . . . . . . Underwriter's Agency" may be printed on the filing back of the policy following the name of the insurer and in type not larger than half the depth of that used in printing that name. (4) Upon an application for a licence under this section an insurer shall provide to the superintendent evidence of its approval and adoption of the form of policy to be issued through the underwriter's agency and of the authority of the underwriter's agency or its agents to bind the insurer. (5) An insurer licensed under this Act carrying on business or issuing a policy of insurance through an underwriter's agency shall file an annual return of the business transacted through that underwriter's agency in a form prescribed by the superintendent. RSN1970 c176 s81 Back to Top Application 95.1 Sections 95.2 and 95.3 apply to all classes of insurance except automobile insurance. 2010 c14 s1 Back to Top Prohibited practices 95.2 An insurer shall not decline to issue, refuse to renew or terminate a contract or refuse to provide or continue coverage or an endorsement in respect of a contract on a ground prescribed in the regulations. 2010 c14 s1 Back to Top Prohibited grounds 95.3 An insurer shall not use a ground in its risk classification system that is prohibited in the regulations. 2010 c14 s1 Back to Top Premium set out in policy 96. (1) An insurer and an officer, employee or agent of an insurer who, directly or indirectly, makes or attempts to make an agreement as to the premium to be paid for a policy other than as set out in the policy or pays, allows or gives or offers or agrees to pay, allow or give a rebate of the whole or part of the premium stipulated by the policy or another consideration or thing of value intended to be in the nature of a rebate of premium to a person insured or applying for insurance in respect of life, person or property in the province is guilty of an offence. (2) Nothing in this section affects a payment by way of dividend, bonus, profit or savings which is provided for by a policy or shall be construed so as to prevent an insurer compensating a salaried employee of its head or branch office in respect of insurance issued by the employing insurer upon the life of that employee or so as to require that the employee shall be licensed as a representative of a life insurer licensed under the Insurance Adjusters, Agents and Brokers Act to effect that insurance. RSN1970 c176 s82; 1986 c36 s50; RSN1990 cI-9 s48 Back to Top Prohibition: refusal to provide insurance 96.1 (1) This section applies to an insurer with respect to contracts of automobile insurance only and for the purpose of this section "insurer" includes the Facility Association with respect to the insurance placed through the association. (2) An insurer shall not decline to issue, terminate or refuse to renew a contract or refuse to provide or continue a coverage or endorsement, by reason of the age, sex or marital status of a person or for a ground set out in the regulations. (3) Subsection (2) does not apply in respect of a contract if the insured has (a) given false particulars of the described automobile to the prejudice of the insurer; or (b) has knowingly misrepresented or failed to disclose in an application for insurance a fact required to be stated in it. (4) An insurer shall file with the board the grounds on which it intends to decline to issue, terminate or refuse to renew a contract, or refuse to provide or continue a coverage or endorsement. (5) Where the board determines that an insurer is not complying with subsection (2) or where the board becomes aware that an insurer is using a ground to decline to issue, terminate, or refuse to renew a contract or to refuse to provide or continue a coverage or endorsement and that ground or the manner in which it applies (a) is subjective; (b) is arbitrary; (c) bears little or no relationship to the risk to be borne by the insurer in respect of an insured; or (d) is contrary to public policy, the board shall notify the insurer in writing that it is prohibited from using the ground. (6) The superintendent may exempt an insurer in whole or in part from the application of subsection (2) or (5) if, in the opinion of the superintendent, compliance would impair the solvency of the insurer or would cause the insurer to be in contravention of this Act or the regulations, or an Act of another province or territory or of Canada. (7) Where the superintendent exempts an insurer under subsection (6), the superintendent shall inform the board. (8) Where the board notifies an insurer that the insurer is prohibited from using a ground, the insurer may within 15 days request a hearing before the board and the board shall conduct a hearing. (9) After conducting a hearing the board may issue an order it considers appropriate. (10) The provisions of the Public Utilities Act relating to the holding of a hearing apply, with the necessary changes, to a hearing conducted under this section. (11) An appeal lies from a decision of the board under this section to the Court of Appeal. (12) The board may require insurers, agents, brokers and representatives to provide the information, material and evidence that the board considers necessary for the purpose of this section. (13) The costs incurred by the board in carrying out its duties under this section may be recovered by the board from insurers to whom this section applies in the amounts and manner the board may determine. 2004 c27 s16 Back to Top Prohibition: risk classification system 96.2 (1) This section applies to an insurer with respect to contracts of automobile insurance only and for the purpose of this section "insurer" includes the Facility Association with respect to the insurance placed through the association. (2) In this section (a) "rates" means rates as defined in the Automobile Insurance Act; and (b) "risk classification system" means the elements used in the determination of rates for a coverage or a category of insurance, including the variables, criteria, rules and procedures used for that purpose. (3) An insurer shall not use a risk classification system that (a) is not just and reasonable in the circumstances; (b) is not reasonably predictive of the risk; (c) does not distinguish fairly between risks; or (d) is otherwise prohibited in the regulations. (4) An insurer shall file with the board the risk classification system it intends to use in determining the rates for each coverage and category of insurance and the filing shall be in a manner which the board may determine. (5) Where the board determines that an insurer's risk classification system, or an element of its risk classification system, is prohibited by subsection (3) or its filing is not in accordance with the manner set by the board under subsection (4), the board shall notify the insurer in writing and order the insurer to bring its risk classification system or its filing into compliance. (6) Where the board issues an order under subsection (5), the insurer may within 15 days request a hearing before the board and the board shall conduct a hearing. (7) After conducting a hearing the board may issue an order it considers appropriate.

(8) The provisions of the Public Utilities Act relating to the holding of a hearing apply, with the necessary changes, to a hearing conducted under this section. (9) An appeal lies from a decision of the board under this section to the Court of Appeal. (10) The board may require insurers, agents, brokers and representatives to provide the information, material and evidence that the board considers necessary for the purpose of this section. (11) The costs incurred by the board in carrying out its duties under this section may be recovered by the board from insurers to whom this section applies in the amounts and manner the board may determine. 2004 c27 s16 Back to Top Facility Association continued 97. The unincorporated non-profit association of insurers known as the Facility Association is continued under the name Facility Association. 1994 c4 s4 Back to Top Facility Association 98. (1) An insurer licensed to transact automobile insurance in the province is a member of the association and shall be bound by the articles and by-laws of the association. (2) The association shall, in its articles of association or by-laws and in terms not inconsistent with this Act, establish a plan to be known as the Plan of Operation (a) to provide automobile insurance to owners and licensed operators of automobiles who would be unable to obtain that insurance without the Plan of Operation; and (b) to provide, in accordance with sections 45.1 to 45.21 of the Automobile Insurance Act, payment with respect to claims for damages made by persons who are not insured under a contract within the meaning of section 33 of the Automobile Insurance Act and who have no other insurance or who have other insurance that is inadequate with respect to the damages claimed, and shall, in accordance with those articles of association or by-laws and this Act, establish and implement the Plan of Operation and carry out its obligations in the province with respect to that plan. (2.1) The association shall include in its plan a provision with respect to the establishment and operation of a risk sharing pool for members of the association. (2.2) The maximum rate of commission that may be paid to a broker for association business in relation to taxis and limousine services is 3%. (3) The association shall (a) in accordance with the Plan of Operation referred to in paragraph 2(a) ensure through its members that a contract of automobile insurance is provided with respect to every application for automobile insurance submitted under the Plan of Operation to an insurer by an agent, broker or representative on behalf of a person; and (b) in accordance with that aspect of the Plan of Operation referred to in paragraph (2)(b), carry out, in accordance with sections 45.1 to 45.21 of the Automobile Insurance Act, its obligations with respect to applications made to it for payment of damages under those sections. (4) An agent, broker or representative submitting an application under the plan to an insurer shall be bound by the applicable articles of association and by-laws of the association. (5) The association may, in its name, (a) be prosecuted for an offence under this Act or another applicable Act; and (b) sue and be sued. 1985 c21 s12; 1994 c4 s4 ; 2019 c15 s1 Back to Top Board of directors 99. (1) The affairs of the association shall be administered by a board of directors established in accordance with its articles of association. (2) The association shall notify the superintendent of the names and residence addresses of the persons elected or appointed as officers and directors of the association immediately after that election or appointment, and the names and addresses may be made available to the public by the superintendent. (3) The association shall appoint an agent for service in the province and shall, in writing, notify the superintendent of the name of that agent for service and that agent's address and the superintendent shall file that notice. (4) Where an agent for service appointed under subsection (3) dies or resigns or the appointment is revoked, the Facility Association shall immediately appoint another agent for service in the same manner as under subsection (3). (5) The association shall immediately, in writing, notify the superintendent of a change of address of its agent for service and the superintendent shall file that notice. (6) The address of an agent for service referred to under subsections (3), (4) and (5) shall be an office that is accessible to the public during normal business hours. (7) Service of process, a notice or document in a civil, criminal or administrative action shall be considered to have been made upon the association if made upon the agent for service in the following manner: (a) by personally serving the agent for service as shown in the notice last filed with the superintendent; (b) by delivery of the notice or document to the address of its agent for service as last filed with the superintendent; or (c) by sending the notice or document by registered mail to that address. (8) Obligations of the association under this or the Automobile Insurance Act that are not carried out by the association in accordance with those Acts and liability of the association arising out of those obligations shall be considered to have been assumed by the insurers licensed under this Act for automobile insurance and the insurers shall be jointly and individually liable for damages arising out of those obligations in respect of which the association is or would be liable under this Act or the Automobile Insurance Act. 1985 c21 s12; 1994 c4 s4 ; 2023 c19 s26 Back to Top Assessments 99.1 The association may, in accordance with its Plan of Operation, impose assessments on each member for the purpose of meeting the operating costs of the association and the Plan of Operation and each member shall, in accordance with the Plan of Operation, pay to the association those assessments which are imposed. 1994 c4 s4 Back to Top By-laws 100. (1) The association may pass by-laws relating to its affairs and consistent with this Act or the regulations (a) providing for the execution of documents by the association; (b) respecting banking and finance; (c) fixing the financial year of the association and providing for the audit of the accounts and transactions of the association; (d) providing for the appointment and remuneration of officers and employees of the association; (e) respecting the calling, holding and conducting of meetings of the association and the duties of members of the association; (f) delegating to an operating committee those powers and duties of the board of directors that are set out in the by-laws, other than the power to make, amend or revoke by-laws; (g) prescribing forms and providing for their use; (h) respecting management of the property of the association; ( i ) respecting the application of the funds of the association and the investment and reinvestment of its funds not immediately required and for the safekeeping of its securities; (j) imposing assessments on members of the association for the purpose of meeting the operating costs of the association and the plan and providing for the collection of those assessments; (k) prescribing rules and procedures related to the operation of the plan; and (l) respecting all of the things that are considered necessary for the operation of the plan and the attainment of the objects of the association and the efficient conduct of its affairs. (2) A power of the association that may be exercised by by-law under subsection (1) may be provided for in the articles of association of the association. 1985 c21 s12 Back to Top Amendment to by-laws 101. (1) A by-law and an amendment, revision or consolidation of the articles of association or by-laws of the association shall be filed with the superintendent at least 30 days before the effective date of the by-laws or the amendment, revision or consolidation of the articles of association or by-laws. (2) A by-law and an amendment, revision or consolidation of the articles of association or by-laws of the association shall not come into effect unless they are approved by the superintendent. 1985 c21 s12 Back to Top Rates 102. (1) The association shall file with the board the rates that it proposes to charge for automobile insurance placed through the association. (1.1) The proposed rates for automobile insurance filed under subsection (1) shall not include a profit provision. (2) The board shall deal with a filing under subsection (1) as if it were a filing made under subsection 49(1) of the Automobile Insurance Act . (3) Subsection 49(2) and sections 51, 52, 54, 55, 56, 57 and 58 of the Automobile Insurance Act shall apply in connection with a filing under subsection (1). (4) Where the rates filed in accordance with subsection (1) or the application for a change in rates under section 51 of the Automobile Insurance Act have been approved, the board may investigate the rates charged for automobile insurance placed through the association, and notwithstanding approval of those rates, may order the association to make a change the board considers appropriate. (5) A member of the association shall not, after February 1, 1986, charge rates for automobile insurance placed through the association that have not been approved by the board in accordance with this section. 1985 c21 s12; 2004 c27 s17 ; 2023 c19 s27 Back to Top Information and report 103. (1) The members of the board of directors and the officers and employees of the association shall provide the superintendent each year with information and financial statements with respect to the association and the plan that the superintendent may require. (2) The superintendent shall make an annual report to the minister on the affairs of the association. 1985 c21 s12 Back to Top Termination of contracts 104. (1) Where a contract of automobile insurance has been in effect for more than 60 days, the insurer may only terminate the contract under Statutory Condition 8 of section 8 of the Automobile Insurance Act for one or more of the following reasons: (a) non-payment of, or a part of, the premium due under the contract or of a charge under an agreement ancillary to the contract; (b) the insured has given false particulars of the described automobile to the prejudice of the insurer; (c) the insured has knowingly misrepresented or failed to disclose in an application for insurance a fact required to be stated in the application; and (d) for a material change in risk within the meaning of Statutory Condition 1 of section 8 of the Automobile Insurance Act . (2) Subsection (1) does not apply to (a) an insurer running off its business, where the insurer has specific approval of the superintendent to cancel a contract; or (b) a contract in respect of a motor vehicle used in the course of carrying on a business, trade or profession. 1985 c21 s12; 2023 c19 s28 Back to Top Obligations of agents 105. An agent, broker or representative shall (a) provide to an owner of a motor vehicle who is a resident of the province an application for automobile insurance; and (b) submit to an insurer a completed application for automobile insurance, when requested to do so by the owner of a motor vehicle. 1985 c21 s12 Back to Top Judgment Recovery 106. An insurer licensed to issue motor vehicle liability policies shall be a member of Judgment Recovery (Nfld.) Ltd. and is bound by the provisions governing those members. 1985 c21 s12 Back to Top Regulations 107. The Lieutenant-Governor in Council may make regulations (a) prescribing organizations which, in addition, to those referred to in section 7, are not considered to be insurers within the meaning of this Act or which are not required to be licensed; (b) adding, removing or changing a class of insurance contained in the Schedule; (c) [Rep. by 2010 c16 s5] (d) prescribing terms and conditions upon which the superintendent may issue licences to insurers not coming within one of the classes referred to in subsections 14(1), (2) and (3); (e) prescribing the requirements for membership in a compensation fund referred to in section 18; (e.1) to give effect to paragraph 5.1(1)(g), subsection 96.1(2) and paragraph 96.2(3)(d); (e.2) prescribing the grounds an insurer is prohibited from using under section 95.2 to decline to issue, to refuse to renew or to terminate a contract or to refuse to provide or continue coverage or an endorsement in respect of a contract; (e.3) prescribing the grounds an insurer is prohibited from using under section 95.3 in a risk classification system; (e.4) for the purpose of paragraph (e.2) or (e.3), prescribing different prohibited grounds for different classes of insurance; (f) [Rep. by 2005 c22 s16] (g) [Rep. by 2005 c22 s16] (h) extending the provisions of this Act to a class of insurance added to the Schedule under paragraph (b); ( i ) providing for investment of surplus funds and reserve by insurers incorporated under the laws of the province; and (j) generally, to give effect to the purpose of this Act. RSN1970 c176 s84; 1985 c21 s13; 2004 c27 s18 ; 2005 c22 s16 ; 2010 c14 s2 ; 2010 c16 s5 ; 2023 c19 s29 Back to Top Offence 108. (1) A person who contravenes this Act or the regulations is guilty of an offence and liable on summary conviction to a penalty of not more than $1,000,000 or to a period of imprisonment of not more than 2 years, or to both a fine and imprisonment. (2) A person who obstructs or interferes with an investigator or examiner in the course of a lawful investigation or examination under this Act or the regulations is guilty of an offence and is liable on summary conviction to a penalty of not more than $1,000,000 or to a period of imprisonment of not more than 2 years, or to both a fine and imprisonment. (3) A penalty imposed under this Act shall be paid into the Consolidated Revenue Fund. (4) Where a person is convicted of an offence under this Act or the regulations, the court making the conviction may, in addition to another penalty, order the person convicted to pay compensation or restitution. 2010 c23 s6 Back to Top Offence 108.1 (1) An insurer who fails to comply with section 5.1 is guilty of an offence and liable on summary conviction to a fine of not less than $100,000 and not more than $1,000,000. (2) An insurer who fails to comply with a requirement of section 96.1 or 96.2 is guilty of an offence and liable on summary conviction (a) for a first conviction to a fine of not less than $25,000 and not more than $1,000,000; and (b) for a second or subsequent conviction, to a fine of not less than $50,000 and not more than $1,000,000. (3) In subsection (2), "insurer" includes the Facility Association. (4) Where a person is convicted of an offence under this section, the court making the conviction may, in addition to another penalty, order the person convicted to pay compensation or make restitution. 2010 c23 s6 Back to Top Limitation period 108.2 A prosecution under this Act and the regulations shall not be started later than 2 years from the date the offence was discovered by the superintendent. 2010 c23 s6 Back to Top Definitions 109. In sections 110 to 129 (a) "attorney" means a person authorized to act for subscribers as provided in section 112; and (b) "subscribers" means persons exchanging with each other reciprocal contracts of indemnity or inter-insurance as provided in section 110. 1988 c42 s2 Back to Top Reciprocal contracts 110. It is lawful for a person to exchange with other persons in the province and elsewhere reciprocal contracts of indemnity or inter-insurance for classes of insurance for which an insurance company may be licensed under this Act except life insurance, accident and sickness insurance and surety insurance. 2010 c16 s6 Back to Top Insurer 111. A person shall not be considered to be an insurer within the meaning of this Act by reason of exchanging with other persons reciprocal contracts of indemnity or inter-insurance under this Act. 1988 c42 s2 Back to Top Execution of contract 112. Reciprocal contracts of indemnity or inter-insurance may be executed on behalf of subscribers by another person acting as attorney under a power of attorney, a copy of which has been filed as required by section 114. 1988 c42 s2 Back to Top Court action 113. Notwithstanding a condition or stipulation of a power of attorney or of a contract of indemnity or inter-insurance, an action or proceeding in respect of that contract may be maintained in a court in the province. 1988 c42 s2 Back to Top Declaration by members of exchanges 114. The persons constituting an exchange shall, through their attorney, file with the superintendent a declaration verified by oath or affirmation, setting out (a) the name of the attorney and the name or designation under which the contracts are issued, which name or designation shall not be so similar to another name or designation previously adopted by an exchange or by a licensed insurer as in the opinion of the superintendent to be likely to result in confusion or deception; (b) the classes of insurance to be effected or exchanged under the contracts; (c) a copy of the form of the contract, agreement or policy by which the reciprocal contracts of indemnity or inter-insurance are to be effected or exchanged; (d) a copy of the form of power of attorney under which the contracts are to be effected or exchanged; (e) the location of the office from which the contracts are to be issued; (f) a financial statement in a form prescribed by the superintendent; (g) evidence satisfactory to the superintendent that it is the practice of the exchange to require its subscribers to maintain in the hands of the attorney, as a condition of membership in the exchange, a premium deposit reasonably sufficient for the risk assumed by the exchange; and (h) evidence satisfactory to the superintendent that the management of the affairs of the exchange is subject to the supervision of an advisory board or committee of the subscribers in accordance with the terms of the power of attorney. 1988 c42 s2 Back to Top Licence 115. On an exchange complying with this Act and paying the prescribed fee the superintendent may issue a licence in the prescribed form. 1988 c42 s2 Back to Top Security 116. The superintendent may, with the approval of the minister, require an exchange, as a condition of the issue of its licence, to deposit approved securities with the minister in the amount and on the terms and conditions that the superintendent considers appropriate. 1988 c42 s2; 1996 c35 s52 Back to Top Issue of licence 117. A licence shall not be issued to an exchange to effect or exchange contracts of indemnity or inter-insurance (a) against loss by fire, until evidence satisfactory to the superintendent has been filed with the superintendent that applications have been made for indemnity on at least 75 separate risks in the province or elsewhere totalling not less than $1,500,000 as represented by executed contracts or applications made in good faith to become concurrently effective; or (b) in respect of automobiles, until evidence satisfactory to the superintendent has been filed with the superintendent that applications have been made for indemnity on at least 500 automobiles as represented by executed contracts or applications made in good faith to become concurrently effective and that arrangements satisfactory to the superintendent are in effect for the reinsurance of all liabilities in excess of the limits the superintendent may establish. 1988 c42 s2; 2023 c19 s30 Back to Top Service of process 118. Where the office from which the contracts are to be issued is not in the province, service on the superintendent of notice or process in an action or proceeding in the province in respect of contracts of indemnity or inter-insurance effected by an exchange shall be considered service on the subscribers who are members of the exchange at the time of service. 1988 c42 s2 Back to Top Maximum indemnity 119. There shall be filed with the superintendent by the attorney, as often as the superintendent requires, a statement of the attorney under oath or affirmation showing, in the case of fire insurance, the maximum amount of indemnity on a single risk and a statement of the attorney verified by oath or affirmation to the effect that the attorney has examined the commercial rating, as shown by the reference book of a commercial agency, of the subscribers of an exchange having at least 500 subscribers and that from the examination or other information in the attorney’s possession it appears that no subscriber has assumed on a single fire insurance risk an amount greater than 10% of the net worth of the subscriber. 1988 c42 s2; 2023 c19 s31 Back to Top Amount of reserve 120. (1) There shall at all times be maintained with the attorney, as a reserve fund, a sum in cash or approved securities equal to 50% of the annual deposits or advance premiums collected or credited to the accounts of subscribers on contracts in force having one year or less to run and proportionally on those for longer periods. (2) In this section and in section 121 "approved securities" means securities the investment in which is authorized by subsection 92(1). 1988 c42 s2; 2023 c19 s32 Back to Top Guarantee fund 121. (1) Except as provided in this section, there shall also be maintained as a guarantee fund or surplus an additional sum, in excess of all liabilities, in cash or approved securities amounting to not less than $50,000. (2) In the case of a fire insurance exchange whose principal office is in the province, the guarantee fund or surplus referred to in subsection (1) shall not be less than $25,000. (3) In the case of an automobile insurance exchange whose principal office is in the province, the guarantee fund or surplus referred to in subsection (1) shall, during the first year of operation of the exchange, be maintained at an amount not less than $10,000, and after the first year at an amount not less than $25,000. 1988 c42 s2; 2023 c19 s33 Back to Top Deficiency 122. (1) Where at any time the amounts on hand are less than required under sections 120 and 121, the subscribers or the attorney shall immediately make up the deficiency. (2) Where funds other than those that accrued from premiums or deposits of subscribers are supplied to make up a deficiency, the funds shall, so long as a deficiency exists, be deposited and held for the benefit of subscribers under the terms and conditions the superintendent may require, and may be afterward returned to the depositor. 1988 c42 s2 Back to Top Investment of surplus funds and reserve 123. Where the principal office of the exchange is in the province, the surplus insurance funds and the reserve fund of the exchange shall be invested in the class of securities authorized by subsection 92(1). 1988 c42 s2 Back to Top Evidence as to investments 124. Where the principal office of the exchange is outside the province, it is a condition precedent to the issue of a licence under this Act that evidence satisfactory to the superintendent shall be filed with the superintendent showing that the class of securities in which funds of the exchange are required by law to be invested and are in fact invested, is within the limits of investment prescribed for the investment of the reserve funds of an insurance corporation by the jurisdiction in which the office of the exchange is situated. 1988 c42 s2 Back to Top Contracts 125. An exchange shall not undertake a liability on a contract of indemnity, inter-insurance or insurance except on behalf of a subscriber. 1988 c42 s2 Back to Top Reinsurance 126. An attorney or exchange shall not effect reinsurance of risks undertaken by the exchange in another reciprocal or inter-insurance exchange. 1988 c42 s2 Back to Top Attorney 127. (1) A person shall not (a) act as attorney, or for or on behalf of an attorney, in the exchange of reciprocal contracts of indemnity or inter-insurance, or in acts or transactions in connection with the exchange of reciprocal contracts of indemnity or inter-insurance; or (b) exchange a reciprocal contract of indemnity or inter-insurance with another person, unless a licence has been issued and is in force. (2) A person who contravenes subsection (1) is guilty of an offence. 1988 c42 s2 Back to Top Suspension or revocation of licence 128. (1) Where an exchange or attorney contravenes this Act, the licence issued to the exchange may be suspended or revoked by the minister on the report of the superintendent after notice and opportunity for a hearing before the superintendent has been given to the exchange or its attorney. (2) The suspension or revocation does not affect the validity of a reciprocal contract of indemnity or inter-insurance effected prior to the suspension or revocation or the rights and obligations of subscribers under the contract. (3) Notice of the suspension or revocation shall be given by the superintendent in at least 2 successive issues of the Gazette as soon as reasonably possible after the suspension or revocation. 1988 c42 s2 Back to Top Fire insurance 129. (1) A person may, in an exchange not licensed under this Act, insure against fire a property situated in the province and property so insured or to be insured may be inspected and a loss incurred in respect of the property adjusted. (2) Subsection (1) only applies where the insurance is effected outside the province and without solicitation in the province directly or indirectly on the part of the insurer. 1988 c42 s2 Back to Top Commencement 130. Paragraphs 2(g) and (vv) come into force on the day the Insurance Adjusters, Agents and Brokers Act comes into force. ( Parargraphs 2(g) and (vv) in force - Jul. 1/93) RSN1990 s130 Back to Top Schedule Definitions 1. In this Act (a) "accident and sickness insurance" means insurance ( i ) against loss resulting from bodily injury to, or the death of, a person caused by an accident, (ii) under which an insurer undertakes to pay a certain sum or sums of insurance money in the event of bodily injury to, or the death of, a person caused by an accident, (iii) against loss resulting from the sickness or disability of a person excluding loss resulting from an accident or death, (iv) under which an insurer undertakes to pay a certain sum or sums of insurance money in the event of the sickness or disability of a person not caused by an accident, or (v) under which an insurer undertakes to pay insurance money in respect of the health care, including the dental care and the preventive care, of a person; (b) "aircraft insurance" means insurance against ( i ) liability arising out of bodily injury to, or the death of, a person, or the loss of, or damage to, property, in each case caused by an aircraft or the use of an aircraft, or (ii) the loss of, the loss of use of, or damage to, an aircraft; (c) "automobile insurance" means insurance ( i ) against liability arising out of bodily injury to, or the death of, a person, or the loss of, or damage to, property, in each case caused by an automobile or the use or operation of an automobile, (ii) against the loss of, the loss of use of, or damage to, an automobile, or (iii) that falls within subparagraph ( i ) or (ii) of the class of accident and sickness insurance, where the accident is caused by an automobile or the use or operation of an automobile, whether or not liability exists in respect of the accident, and the automobile insurance contract includes insurance against liability arising out of bodily injury to, or the death of, a person caused by an automobile or the use or operation of an automobile; (d) "boiler and machinery insurance" means insurance ( i ) against liability arising out of bodily injury to, or the death of, a person, or the loss of, or damage to, property, or against the loss of, or damage to, property, in each case caused by the explosion or rupture of, or accident to, pressure vessels of any kind or pipes, engines and machinery connected to or operated by those pressure vessels, or (ii) against liability arising out of bodily injury to, or the death of, a person, or the loss of, or damage to, property, or against the loss of, or damage to, property, in each case caused by a breakdown of machinery; (e) "credit insurance" means insurance against loss to a person who has granted credit where the loss is the result of the insolvency or default of the person to whom the credit was given; (f) "credit protection insurance" means insurance under which an insurer undertakes to pay off credit balances or debts of an individual, in whole or in part, in the event of an impairment or potential impairment in the individual’s income or ability to earn an income; (g) "fidelity insurance" means ( i ) insurance against loss caused by the theft, the abuse of trust or the unfaithful performance of duties by a person in a position of trust, and (ii) insurance under which an insurer undertakes to guarantee the proper fulfillment of the duties of an office; (h) "hail insurance" means insurance against the loss of, or damage to, crops in the field caused by hail; ( i ) "legal expenses insurance" means insurance against the costs incurred by a person or persons for legal services specified in the legal expenses insurance policy, including a retainer and fees incurred for the services, and other costs incurred in respect of the provision of the services; (j) "liability insurance" means insurance other than insurance that is incidental to another class of insurance, ( i ) against liability arising out of bodily injury to, or the disability or death of, a person, including an employee, (ii) against liability arising out of the loss of, or damage to, property, or (iii) where the liability insurance contract includes the insurance described in subparagraph ( i ), against expenses arising out of bodily injury to a person other than the insured or a member of the insured's family, whether or not liability exists; (k) "life insurance" means ( i ) insurance that is payable (A) on death, (B) on the happening of an event or contingency dependent on human life, (C) at a fixed or determinable future time, or (D) for a term dependent on human life, and includes (ii) insurance under which an insurer, as part of a contract of life insurance, undertakes to pay an additional sum of insurance money in the event of the death by accident of the person whose life is insured, (iii) insurance under which an insurer, as part of a contract of life insurance, undertakes to pay insurance money or to provide other benefits in the event that the person whose life is insured becomes disabled as a result of bodily injury or disease, and (iv) an undertaking to provide an annuity, or what would be an annuity except that the periodic payments may be unequal in amount, for a term dependent solely or partly on a human life, and that undertaking shall be considered always to have been life insurance; (l) "mortgage insurance" means insurance against loss caused by default on the part of a borrower under a loan secured by a mortgage or charge on real property or an immovable, a hypothec on an immovable or another interest in real or immovable property; (m) "other approved products insurance" means insurance against risks that do not fall within another class of insurance; (n) "property insurance" means insurance against the loss of, or damage to, property and includes insurance against loss caused by forgery; (o) "surety insurance" means insurance under which an insurer undertakes to guarantee the due performance of a contract or undertaking or the payment of a penalty or indemnity for a default; and (p) "title insurance" means insurance against loss or damage caused by ( i ) the existence of a mortgage, charge, lien, encumbrance, servitude or another restriction on real property, (ii) the existence of a mortgage, charge, lien, pledge, encumbrance or another restriction on personal property, (iii) a defect in a document that evidences the creation of a restriction referred to in subparagraph ( i ) or (ii), (iv) a defect in the title to property, or (v) another matter affecting the title to property or affecting the right to the use and enjoyment of property. 2010 c16 s7