RSNL1990 CHAPTER L-14 - LIFE INSURANCE ACT

RSNL1990 CHAPTER L-14 LIFE INSURANCE ACT Amended: 1995 cL-16.1 s30(3); 2001 c42 s28; 2009 cP-46.1 s28; 2010 c15 ss16-18; 2018 cC-12.3 s123; 2022 c11 CHAPTER L-14 AN ACT RESPECTING LIFE INSURANCE Analysis 1. Short title 2. Definitions 3. Application of Act 3.1 Undertaking to provide an annuity 4. Group insurance 5. Documents 6. Contents of policy 7. Contents of group policy 8. Contents of group certificate 9. Insurable interest 10. Insurable interest defined 11. Contract taking effect 12. Default in paying premium 13. Payment of premium 14. Disclosure 15. Incontestability 16. Nondisclosure by insurer 17. Misstatement of age 18. Misstatement of age in group insurance 19. Suicide 20. Exceptions 21. Designation of beneficiary 22. Designation of beneficiary irrevocably 23. Invalid will 24. Trustee for beneficiary 25. Beneficiary predeceasing life insured 26. Right to sue 27. Insurance money free from creditors 28. Insured dealing with contract 29. Dividends 30. Transfer of ownership 31. Assignee 32. Group life insured enforcing rights 33. Capacity of minors 34. Capacity of minor beneficiary 35. Proof of claim 36. Place of payment 37. Action in province 37.1 Amount held in contracts 38. Rep. by 1995 cL-16.1 s30(3) 39. Documents affecting title 40. Sufficiency of proof 41. Presumption of death 42. Court order 43. Stay of proceedings 44. Appeal 45. Power of court 46. Payment into court 47. Simultaneous deaths 48. Instalments 49. Insurer holding insurance money 50. Payment ordered 51. Costs 52. Where beneficiary a minor 53. Beneficiary under disability 54. Presumption against agency 55. Insurer giving information Short title 1. This Act may be cited as the Life Insurance Act. RSN1970 c205 s1 Back to Top Definitions 2. In this Act (a) [Rep. by 2010 c15 s16] (b) "application" means an application for insurance or for the reinstatement of insurance; (c) "beneficiary" means a person, other than the insured or the insured’s personal representative, to whom or for whose benefit insurance money is made payable in a contract or by a declaration; (d) "child" includes an adopted child; (e) "contract" means a contract of life insurance; (f) "court" means the Trial Division or a judge of the court; (g) "creditor's group insurance" means insurance effected by a creditor in respect of the lives of the creditor’s debtors by which the lives of the debtors are insured individually under a single contract; (h) "declaration" means an instrument signed by the insured (i) with respect to which an endorsement is made on the policy, (ii) that identifies the contract, or (iii) that describes the insurance or insurance fund or a part of it, in which the insured designates, or alters or revokes the designation of, the insured’s personal representative or a beneficiary as one to whom or for whose benefit insurance money is to be payable; (h.1) "exempt policy" means an exempt policy as defined in the Income Tax Regulations (Canada); (i) [Rep. by 2010 c15 s16] (j) "family insurance" means insurance by which the lives of the insured and 1 or more persons related to the insured by blood, marriage or adoption are insured under a single contract between an insurer and the insured; (k) "fraternal 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 in accordance with its constitution, by-laws and rules and this Act; (l) "grandchild" includes the child of an adopted child; (m) "group insurance" means insurance, other than creditor's group insurance and family insurance, by which the lives of a number of persons are insured individually under a single contract between an insurer and an employer or other person; (n) "group life insured" means a person whose life is insured by a contract of group insurance but does not include a person whose life is insured under the contract as a person dependent upon or related to that person; (o) "industrial contract" means a contract which is for an amount not exceeding $2,000, exclusive of a benefit, surplus, profit dividend or bonus also payable under the contract, and which provides for payment of premiums at bi-weekly or shorter intervals, or, where the premiums are usually collected at the home of the insured, at monthly intervals; (p) "instrument" includes a will; (q) "insurance" means life insurance; (r) "insurance money" includes benefits, surplus, profits, dividends, bonuses and annuities payable by an insurer under a contract; (s) "insured" (i) in the case of group insurance means, in this Act relating to the designation of beneficiaries and the rights and status of beneficiaries, the group life insured, and (ii) in all other cases means the person who makes a contract with an insurer; (t) "insurer" means the person who undertakes or agrees or offers to undertake a contract; (u) "life insurance" means life insurance as defined in the Insurance Companies Act ; (v) "person" includes a firm, partnership, corporation and an unincorporated society or association; (w) "policy" means the instrument evidencing a contract; (x) "premium" means the single or periodical payment to be made for insurance, and includes dues and assessments; and (y) "side account" means an account, associated with or part of a contract, that may hold or receive funds in excess of the maximum amount permitted to be held in an exempt policy. RSN1970 c205 s2; 1974 No57 s38(264(s)); 1978 c19 s1; 1986 c42 Sch A; 2010 c15 s16 ; 2022 c11 s1 Back to Top Application of Act 3. (1) Notwithstanding an agreement, condition or stipulation to the contrary, this Act applies to any contract or side account made in this province after June 30, 1962 and, subject to subsections (2) and (3), applies to a contract made in this province before July 1, 1962. (1.1) The The Securities Act does not apply to exempt policies and side accounts which are subject to this Act. (2) The rights and interests of a beneficiary for value under a contract that was in force immediately before July 1, 1962 are those provided in The Life Insurance Act, Chapter 238 of The Revised Statutes of Newfoundland, 1952. (3) Where a person who would have been entitled to the payment of insurance money if the money had become payable immediately before July 1, 1962 was a preferred beneficiary within the meaning of The Life Insurance Act, Chapter 238 of The Revised Statutes of Newfoundland, 1952, the insured may not, except in accordance with that Act, (a) alter or revoke the designation of a beneficiary; or (b) assign, exercise rights under or in respect of, surrender or otherwise deal with, the contract, but this subsection does not apply after a time at which the insurance money, if it were then payable, would be payable wholly to a person other than a preferred beneficiary within the meaning of that Act. RSN1970 c205 s3; 2022 c11 s2 Back to Top Undertaking to provide an annuity 3.1 For the purpose of this Act, an undertaking entered into by an insurer to provide an annuity, or what would be an annuity except that the periodic payments may be unequal in amount, is considered to be and always to have been insurance, whether the annuity is for (a) a term certain; or (b) a term dependent solely or partly on the happening of an event not related to human life. 2010 c15 s17 Back to Top Group insurance 4. Where a contract of group insurance is made with an insurer authorized to transact insurance in this province at the time the contract was made this Act applies in determining (a) the rights and status of beneficiaries if the group life insured was living in this province at the time the group life insured became insured; and (b) the rights and obligations of the group life insured if the group life insured was living in this province at the time of becoming insured. RSN1970 c205 s4; 2022 c11 s3 Back to Top Documents 5. (1) An insurer entering into a contract shall issue a policy. (2) The provisions in (a) the application; (b) the policy; (c) a document attached to the policy when issued; and (d) an amendment to the contract agreed upon in writing after the policy is issued, constitute the entire contract. (3) Notwithstanding subsection (2), where a contract is made by a fraternal society, the policy, the Act or instrument of incorporation of the society, its constitution, by-laws and rules, the application for the contract and the medical statement of the applicant constitute the contract. (4) An insurer shall upon request provide to the insured or to a claimant under the contract a copy of the application. RSN1970 c205 s5 Back to Top Contents of policy 6. (1) An insurer shall set out in a policy (a) the name or a sufficient description of the insured and of the person whose life is insured; (b) the amount, or the method of determining the amount, of the insurance money payable and the conditions under which it becomes payable; (c) the amount, or the method of determining the amount, of the premium and the period of grace within which it may be paid; (d) whether the contract provides for participation in a distribution of surplus or profits that may be declared by the insurer; (e) the conditions upon which the contract may be reinstated if it lapses; and (f) the options (i) of surrendering the contract for cash, (ii) of obtaining a loan or an advance payment of the insurance money, and (iii) of obtaining paid-up or extended insurance. (2) This section does not apply to a contract (a) of group insurance; (b) of creditor's group insurance; or (c) made by a fraternal society. RSN1970 c205 s6 Back to Top Contents of group policy 7. In a contract of group insurance or of creditor's group insurance an insurer shall set out in a policy (a) the name or a sufficient description of the insured; (b) the method of determining the person whose lives are insured; (c) the amount, or the method of determining the amount, of the insurance money payable and the conditions under which it becomes payable; (d) the period of grace within which the premium may be paid; and (e) whether the contract provides for participation in a distribution of surplus or profits that may be declared by the insurer. RSN1970 c205 s7 Back to Top Contents of group certificate 8. Where a contract of group insurance is made an insurer shall issue for delivery by the insured to each group life insured a certificate or other document in which are set out (a) the name of the insurer and an identification of the contract; (b) the amount, or the method of determining the amount, of insurance on the group life insured and on a person whose life is insured under the contract as a person dependent upon or related to the group life insured; and (c) the circumstances in which the insurance terminates and the rights upon that termination of the group life insured or of a person whose life is insured under the contract as a person dependent upon or related to the group life insured. RSN1970 c205 s8; 2022 c11 s4 Back to Top Insurable interest 9. (1) If at the time a contract would otherwise take effect the insured has no insurable interest the contract is void. (2) Notwithstanding subsection (1), a contract is not void for lack of insurable interest (a) where it is a contract of group insurance; or (b) where the person whose life is insured has consented in writing to the insurance being placed on the person’s life. (3) Where a person whose life is insured is under the age of 16 years, consent to insurance being placed on the person’s life may be given by one of the person’s parents or by a person standing in the place of the person’s parents. RSN1970 c205 s9; 2022 c11 s5 Back to Top Insurable interest defined 10. Without restricting the meaning of the expression "insurable interest", a person has an insurable interest in the person's own life and in the life of (a) the person's child or grandchild; (b) the person's spouse; (c) a person upon whom the person is wholly or in part dependent or from whom the person is receiving support or education; (d) the person's employee; and (e) a person in the duration of whose life the person has a monetary interest. RSN1970 c205 s10; 2022 c11 s6 Back to Top Contract taking effect 11. (1) Subject to a provision to the contrary in the application or the policy, a contract does not take effect unless (a) the policy is delivered to an insured, the insured’s assign or agent, or to a beneficiary; (b) payment of the 1st premium is made to the insurer or its authorized agent; and (c) no change has taken place in the insurability of the life to be insured between the time the application was completed and the time the policy was delivered. (2) Where a policy is issued on the terms applied for and is delivered to an agent of the insurer for unconditional delivery to a person referred to in paragraph (1)(a), it shall be considered, but not to the prejudice of the insured, to have been delivered to the insured. RSN1970 c205 s11; 2022 c11 s7 Back to Top Default in paying premium 12. (1) Where a cheque or other bill of exchange, or a promissory note or other written promise to pay, is given for the whole or part of a premium and payment is not made according to its tenor the premium or part of the premium shall be considered not to have been paid. (2) Where a remittance for or on account of a premium is sent in a registered letter to an insurer and is received by it the remittance shall be considered to have been received at the time of the registration of the letter. RSN1970 c205 s12 Back to Top Payment of premium 13. (1) Except in the case of group insurance, an assignee of a contract, a beneficiary or a person acting on behalf of 1 of them or of the insured may pay a premium that the insured is entitled to pay. (2) Where a premium, other than the initial premium, is not paid at the time it is due the premium may be paid within a period of grace of (a) 30 days or, in the case of an industrial contract, 28 days, from and excluding the day on which the premium is due; or (b) the number of days specified in the contract for payment of an overdue premium, whichever is the longer period. (3) Where the happening of an event upon which insurance money becomes payable occurs during the period of grace and before the overdue premium is paid, the contract shall be considered to be in effect as if the premium had been paid at the time it was due but the amount of the premium, together with interest at the rate specified in the contract, but not exceeding 6% a year, and the balance of the current year's premium may be deducted from the insurance money. RSN1970 c205 s13 Back to Top Disclosure 14. (1) An applicant for insurance and a person whose life is to be insured shall each disclose to the insurer in the application on a medical examination, and in written statements or answers provided as evidence of insurability, facts within each of their knowledge that are material to the insurance and are not so disclosed by the other. (2) A failure to disclose, or a misrepresentation of, a fact required to be disclosed under subsection (1) makes the contract voidable by the insurer. RSN1970 c205 s14; 2022 c11 s8 Back to Top Incontestability 15. (1) Where a contract has been in effect for 2 years during the lifetime of the person whose life is insured, a failure to disclose, or a misrepresentation of, a fact required to be disclosed under section 14 does not, in the absence of fraud, make the contract voidable. (2) Notwithstanding subsection (1), in the case of a contract of group insurance a failure to disclose, or a misrepresentation of, a fact required to be disclosed under section 14 in respect of a person whose life is insured under the contract does not make the contract voidable, but where evidence of insurability is specifically requested by the insurer the insurance in respect of that person is voidable by the insurer unless it has been in effect for 2 years during the lifetime of that person in which event it is not, in the absence of fraud, voidable. (3) This section does not apply to a misstatement of age or to insurance undertaken by an insurer as part of a contract of life insurance where the insurer 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. RSN1970 c205 s15; 2010 c15 s18 Back to Top Nondisclosure by insurer 16. Where an insurer fails to disclose, or misrepresents, a fact material to the insurance the contract is voidable by the insured, but in the absence of fraud the contract is not because of the failure or misrepresentation voidable after the contract has been in effect for 2 years. RSN1970 c205 s16 Back to Top Misstatement of age 17. (1) Where the age of a person whose life is insured is misstated to the insurer the insurance money provided by the contract shall be increased or decreased to the amount that would have been provided for the same premium at the correct age. (2) Notwithstanding subsection (1), where a contract limits the insurable age, and the correct age of the person whose life is insured at the date of the application exceeds the age so limited, the contract is, during the lifetime of that person but not later than 5 years from the date the contract takes effect, voidable by the insurer within 60 days after it discovers the error. (3) This section does not apply to a contract of group insurance or of creditor's group insurance. RSN1970 c205 s17 Back to Top Misstatement of age in group insurance 18. In the case of a contract of group insurance or of creditor's group insurance, a misstatement to the insurer of the age of a person whose life is insured does not of itself make the contract voidable and the provisions of the contract with respect to age or misstatement of age apply. RSN1970 c205 s18 Back to Top Suicide 19. (1) Where a contract contains an undertaking, express or implied, that insurance money will be paid if a person whose life is insured commits suicide, the undertaking is lawful and enforceable. (2) Where a contract provides that in case a person whose life is insured commits suicide within a certain period of time the contract is void or the amount payable under it is reduced, if the contract lapses and is later reinstated on 1 or more occasions, the period of time starts to run from the date of the latest reinstatement. RSN1970 c205 s19 Back to Top Exceptions 20. (1) This section does not apply to a contract of group insurance or to a contract made by a fraternal society. (2) Where a contract lapses and the insured within 2 years applies for reinstatement of the contract, if within that time the insured (a) pays the overdue premiums and other indebtedness under the contract to the insurer, together with interest at the rate specified in the contract, but not exceeding 6% a year, compounded annually; and (b) produces (i) evidence satisfactory to the insurer of the good health, and (ii) other evidence satisfactory to the insurer of the insurability, of the person whose life was insured, the insurer shall reinstate the contract. (3) Subsection (2) does not apply when the cash surrender value has been paid or an option of taking paid-up or extended insurance has been exercised. (4) Sections 14 and 15 apply, with the necessary changes, to reinstatement of a contract. RSN1970 c205 s20 Back to Top Designation of beneficiary 21. (1) An insured may in a contract or by a declaration designate the insured’s personal representative or a beneficiary to receive insurance money. (2) An insured may by a declaration alter or revoke a designation. (3) A designation in favour of the "heirs", "next of kin" or "estate" of an insured, or the use of words of the same import in a designation, shall be considered to be a designation of the personal representative of the insured. RSN1970 c205 s21; 2022 c11 s9 Back to Top Designation of beneficiary irrevocably 22. (1) An insured may in a contract or by a declaration, other than a declaration that is part of a will, filed with the insurer at its head or principal office in Canada during the lifetime of the person whose life is insured, designate a beneficiary irrevocably and in that event the insured, while the beneficiary is living, may not alter or revoke the designation without the consent of the beneficiary and the insurance money is not subject to the control of the insured or of the insured’s creditors and does not form part of the insured’s estate. (2) Where an insured purports to designate a beneficiary irrevocably in a will or in a declaration that is not filed in accordance with subsection (1), the designation has the same effect as if the insured had not purported to make it irrevocable. RSN1970 c205 s22; 2022 c11 10 Back to Top Invalid will 23. (1) A designation in an instrument purporting to be a will is not ineffective by reason only of the fact that the instrument is invalid as a will or that the designation is invalid as a bequest under the will. (2) Notwithstanding the Wills Act, a designation in a will is of no effect against a designation made later than the making of the will. (3) Where a designation is contained in a will and later the will is revoked by operation of law or otherwise the designation is revoked. (4) Where a designation is contained in an instrument that purports to be a will and later the instrument if valid as a will would be revoked by operation of law or otherwise the designation is revoked. RSN1970 c205 s23 Back to Top Trustee for beneficiary 24. (1) An insured may in a contract or by a declaration appoint a trustee for a beneficiary and may alter or revoke the appointment by a declaration. (2) A payment made by an insurer to a trustee for a beneficiary discharges the insurer to the extent of the payment. RSN1970 c205 s24 Back to Top Beneficiary predeceasing life insured 25. (1) Where a beneficiary predeceases the person whose life is insured and no disposition of the share of the deceased beneficiary in the insurance money is provided in the contract or by a declaration, the share is payable (a) to the surviving beneficiary; (b) where there is more than 1 surviving beneficiary, to the surviving beneficiaries in equal shares; or (c) where there is no surviving beneficiary, to the insured or the insured’s personal representative. (2) Where 2 or more beneficiaries are designated otherwise than alternately but no division of the insurance money is made the insurance money is payable to them in equal shares. RSN1970 c205 s25; 2022 c11 s11 Back to Top Right to sue 26. A beneficiary may enforce for the beneficiary's own benefit, and a trustee appointed under section 24 may enforce as trustee, the payment of insurance money made payable to the beneficiary in a contract or by a declaration and in accordance with the contract or declaration, but the insurer may set up a defence that it could have set up against the insured or the insured's personal representative. RSN1970 c205 s26; 2022 c11 s12 Back to Top Insurance money free from creditors 27. (1) Where a beneficiary is designated, the insurance money, from the time of the happening of the event upon which the insurance money becomes payable, is not part of the estate of the insured and is not subject to the claims of the creditors of the insured. (2) While a designation in favour of a spouse, child, grandchild or parent of a person whose life is insured is in effect, the insurance money and the rights and interests of the insured in the insurance money and in the contract are exempt from execution or seizure. RSN1970 c205 s27 Back to Top Insured dealing with contract 28. Where a beneficiary (a) is not designated irrevocably; or (b) is designated irrevocably but has become 19 years old and consents, the insured may assign, exercise rights under or in respect of, surrender or otherwise deal with, the contract as provided in the contract or in this Act or as may be agreed upon with the insurer. RSN1970 c205 s28; 1971 No71 s35 Back to Top Dividends 29. (1) Notwithstanding the designation of a beneficiary irrevocably, an insured is entitled, while living, to the dividends or bonuses declared on a contract unless the contract otherwise provides. (2) Unless an insured otherwise directs, an insurer may apply the dividends or bonuses declared on the contract for the purpose of keeping the contract in force. RSN1970 c205 s29 Back to Top Transfer of ownership 30. (1) Notwithstanding the Wills Act, where in a contract or in a written agreement between an insurer and an insured it is provided that a person named in the contract or in the agreement has, upon the death of the insured, the rights and interests of the insured in the contract, (a) the rights and interests of the insured in the contract do not, upon the death of the insured, form part of the insured’s estate; and (b) upon the death of the insured, the person named in the contract or in the agreement has the rights and interests given to the insured by the contract and by this Act and is considered to be the insured. (2) Where a contract or agreement provides that 2 or more persons named in the contract or in the agreement shall, upon the death of the insured, have successively on the death of each of them the rights and interests of the insured in the contract, this section applies successively with the necessary changes to each of those persons and to each of their rights and interests in the contract. (3) Notwithstanding a nomination made under this section, an insured may before the insured’s death assign, exercise rights under or in respect of, surrender or otherwise deal with, the contract as if the nomination had not been made and may alter or revoke the nomination by written agreement with the insurer. RSN1970 c205 s30; 2022 c11 s13 Back to Top Assignee 31. (1) Where an assignee of a contract gives written notice of the assignment to the insurer at its head or principal office in Canada the assignee has priority of interest as against (a) an assignee other than one who gave notice earlier in the same manner; and (b) a beneficiary other than one designated irrevocably in accordance with section 22 before the time the assignee gave notice to the insurer of the assignment in the manner prescribed in this subsection. (2) Where a contract is assigned as security the rights of a beneficiary under the contract are affected only to the extent necessary to give effect to the rights and interests of the assignee. (3) Where a contract is assigned unconditionally and otherwise than as security the assignee has all the rights and interests given to the insured by the contract and by this Act and is considered to be the insured. (4) A provision in a contract to the effect that the rights or interests of the insured, or in the case of group insurance the group life insured, are not assignable is valid. RSN1970 c205 s31 Back to Top Group life insured enforcing rights 32. A group life insured may in the group life insured's own name enforce a right given to the group life insured under a contract, subject to a defence available to the insurer against the group life insured or against the insured. RSN1970 c205 s32; 2022 c11 s14 Back to Top Capacity of minors 33. Except in respect of rights as beneficiary, a minor who has become 16 years old has the capacity of a person of the age of 19 years (a) to make an enforceable contract; and (b) in respect of a contract. RSN1970 c205 s33; 1971 No71 s36; 2022 c11 s15 Back to Top Capacity of minor beneficiary 34. A beneficiary who has become 18 years old has the capacity of a person of the age of 19 years to receive insurance money payable to the beneficiary and to give a discharge for the insurance money. RSN1970 c205 s34; 1971 No71 s37; 2022 c11 s16 Back to Top Proof of claim 35. Where an insurer receives sufficient evidence of (a) the happening of the event upon which insurance money becomes payable; (b) the age of the person whose life is insured; (c) the right of the claimant to receive payment; and (d) the name and age of the beneficiary, where there is a beneficiary, it shall, within 30 days after receiving the evidence, pay the insurance money to the person entitled to the insurance money. RSN1970 c205 s35 Back to Top Place of payment 36. (1) Insurance money is payable in this province. (2) Unless a contract otherwise provides, a reference in the contract to dollars means Canadian dollars. (3) Where a person entitled to receive insurance money is not domiciled in this province the insurer may pay the insurance money to that person or to another person who is entitled to receive it on the person’s behalf by the law of the domicile of the payee. (4) Notwithstanding subsection (1), in the case of a contract of group insurance, insurance money is payable in the province or territory of Canada in which the group life insured was resident at the time of becoming insured. RSN1970 c205 s36; 2022 c11 s17 Back to Top Action in province 37. Notwithstanding where a contract was made, an action on it may be brought in a court by a resident of this province if the insurer was authorized to transact insurance in this province at the time the contract was made or at the time the action was brought. RSN1970 c205 s37 Back to Top Amount held in contracts 37.1 (1) In this section, "actuarial basis" means the assumptions and methods generally accepted and used by fellows of the Canadian Institute of Actuaries to establish the cost of life insurance. (2) With respect to a contract that is an exempt policy, the amount that may be held in a side account shall not exceed the lesser of (a) the sum of (i) the amount that would be required to pay future costs of insurance, related premium taxes and administrative fees or charges, and (ii) any additional funds that could, in the future, be eligible to be held in the exempt policy; or (b) the limit provided under the terms of the contract. (3) With respect to a contract that is not an exempt policy, the amount that may be held in a contract together with an associated side account shall not exceed the amount required to pay future costs of insurance, related premium taxes and administrative fees or charges. (4) The amounts in paragraph (2)(a) and subsection (3) shall be determined by the insurer on an actuarial basis using the remaining lifetime of the persons then insured under the contract. (5) Any amount that exceeds the limits in subsections (2) and (3) (a) is not a premium; (b) is considered to have never been a premium; and (c) cannot be held in a contract or side account regardless of the date of issue of the policy. (6) This section does not apply to annuities. (7) Notwithstanding anything in this section, where, on the day this section comes into force, a side account holds an amount of funds in excess of the maximum amount permitted under subsection (2), (a) the amount is not required to be refunded in respect of the funds held in excess; (b) additional funds may not be added to the account until the amount of funds held in the side account is below the maximum amount permitted under subsection (1); and (c) once the amount of funds held in the side account is below the maximum amount permitted under subsection (1), the maximum amount permitted under subsection (1) applies in respect of the side account. 2022 c11 s18 Back to Top Rep. by 1995 cL-16.1 s30(3) 38. [Rep. by 1995 cL-16.1 s30(3)] 1995 cL-16.1 s30(3) Back to Top Documents affecting title 39. (1) Until an insurer receives at its head or principal office in Canada an instrument or an order of a court affecting the right to receive insurance money, or a notarial copy, or a copy verified by statutory declaration, of an instrument or order, it may pay the insurance money and shall be as fully discharged to the extent of the amount paid as if there were no instrument or order. (2) Subsection (1) does not affect the rights or interests of a person other than the insurer. RSN1970 c205 s39 Back to Top Sufficiency of proof 40. Where an insurer admits the validity of the insurance but does not admit the sufficiency of the evidence required by section 35 and there is no other question in issue except a question under section 41, the insurer or the claimant may, before or after action is brought and upon at least 30 days' notice, apply to the court for a declaration as to the sufficiency of the evidence provided, and the court may make the declaration or may direct what further evidence shall be provided and on the providing of the evidence may make the declaration or, in special circumstances, may dispense with further evidence. RSN1970 c205 s40 Back to Top Presumption of death 41. Where a claimant alleges that the person whose life is insured should be presumed to be dead because of the person not having been heard of for 7 years and there is no other question in issue except a question under section 40, the insurer or the claimant may, before or after action is brought and upon at least 30 days' notice, apply to the court for a declaration as to presumption of the death and the court may make the declaration. RSN1970 c205 s41; 2022 c11 s19 Back to Top Court order 42. (1) Upon making a declaration under section 40 or 41, the court may make an order respecting the payment of the insurance money and respecting costs that it considers just and a declaration or direction or order made under this subsection is binding upon the applicant and upon all persons to whom notice of the application has been given. (2) A payment made under an order made under subsection (1) discharges the insurer to the extent of the amount paid. RSN1970 c205 s42 Back to Top Stay of proceedings 43. Unless the court otherwise orders, an application made under section 40 or 41 operates as a stay of a pending action with respect to the insurance money. RSN1970 c205 s43 Back to Top Appeal 44. An appeal lies from a declaration, direction or order made under section 40, section 41, or subsection 42(1). RSN1970 c205 s44 Back to Top Power of court 45. Where the court finds that the evidence provided under section 35 is not sufficient or that a presumption of death is not established, it may order that the matters in issue be decided in an action brought or to be brought, or may make another order that it considers just respecting further evidence to be provided by the claimant, publication of advertisements, further inquiry or another matter or respecting costs. RSN1970 c205 s45 Back to Top Payment into court 46. Where an insurer admits liability for insurance money and it appears to the insurer that (a) there are adverse claimants; (b) the whereabouts of a person entitled is unknown; or (c) there is no person capable of giving and authorized to give a valid discharge for the insurance money, who is willing to do so, the insurer may, after 30 days from the date of the happening of the event upon which the insurance money becomes payable, apply to the court unilaterally for an order for payment of the money into court, and the court may upon the notice that it thinks necessary make an order accordingly. RSN1970 c205 s46 Back to Top Simultaneous deaths 47. Unless a contract or a declaration otherwise provides, where a person whose life is insured and the person’s beneficiary die at the same time or in circumstances making it uncertain which of them survived the other, the insurance money is payable in accordance with subsection 25(1) as if the beneficiary had predeceased the person whose life is insured. RSN1970 c205 s47; 2022 c11 s20 Back to Top Instalments 48. (1) Where insurance money is payable in instalments and a contract, or an instrument signed by the insured and delivered to the insurer, provides that a beneficiary does not have the right to calculate the instalments or to alienate or assign the beneficiary’s interest in them, the insurer shall not, unless the insured later directs otherwise in writing, calculate the instalments or pay them to a person other than the beneficiary, and the instalments are not, in the hands of the insurer, subject to a legal process except an action to recover the value of necessaries supplied to the beneficiary or the beneficiary’s infant children. (2) Notwithstanding subsection (1), the court may, upon the application of a beneficiary and upon at least 10 days' notice, declare that in view of special circumstances (a) the insurer may, with the consent of the beneficiary, calculate instalments of insurance money; or (b) the beneficiary may alienate or assign the beneficiary’s interest in the insurance money. (3) Notwithstanding subsection (1), after the death of a beneficiary, the beneficiary's personal representative may, with the consent of the insurer, calculate instalments of insurance money payable to the beneficiary. (4) In this section "instalments" includes insurance money held by the insurer under section 49. RSN1970 c205 s48; 2022 c11 s21 Back to Top Insurer holding insurance money 49. (1) An insurer may hold insurance money (a) subject to the order of an insured or a beneficiary; or (b) upon trusts or other agreements for the benefit of the insured or the beneficiary as provided in the contract, by a written agreement to which it is a party, or by a declaration, with interest at a rate agreed upon in the contract or, where no rate is agreed upon, at the rate declared by the insurer in respect of insurance money so held by it. (2) The insurer is not bound to hold insurance money in accordance with subsection (1) under the terms of a declaration to which it has not agreed in writing. RSN1970 c205 s49 Back to Top Payment ordered 50. Where an insurer does not within 30 days after receipt of the evidence required by section 35 pay the insurance money to some person competent to receive it or into court, the court may, upon application of a person, order that the insurance money or a part of the insurance money be paid into court, or may make another order as to the distribution of the money that it considers just, and payment made in accordance with the order discharges the insurer to the extent of the amount paid. RSN1970 c205 s50 Back to Top Costs 51. The court may fix without taxation the costs incurred in connection with an application or order made under section 46 or 50, and may order them to be paid out of the insurance money or by the insurer or the applicant or otherwise as it considers just. RSN1970 c205 s51 Back to Top Where beneficiary a minor 52. (1) Where an insurer admits liability for insurance money payable to a minor and there is no person capable of giving and authorized to give a discharge for the insurance money, who is willing to do so, the insurer may after 30 days from the date of the happening of the event upon which the insurance money becomes payable pay the money, less the applicable costs mentioned in subsection (2), into court to the credit of the minor. (2) The insurer may retain out of the insurance money for costs incurred upon payment into court under subsection (1) the sum of $10 where the amount does not exceed $1,000, and the sum of $15 in other cases, and payment of the remainder of the money into court discharges the insurer. (3) An order is not necessary for payment into court under subsection (1), but the public trustee shall receive the money upon the insurer filing with the public trustee an affidavit showing the amount payable and the name, date of birth and residence of the minor and upon the payment being made the insurer shall immediately notify a provincial director appointed under the Children, Youth and Families Act and deliver to the provincial director a copy of the affidavit. RSN1970 c205 s52; 2001 c42 s28 ; 2009 cP-46.1 s28 ; 2018 cC-12.3 s123 ; 2022 c11 s22 Back to Top Beneficiary under disability 53. Where it appears that a representative of a beneficiary who is under disability may under the law of the domicile of the beneficiary accept payments on behalf of the beneficiary, the insurer may make payment to the representative and that payment discharges the insurer to the extent of the amount paid. RSN1970 c205 s53 Back to Top Presumption against agency 54. An officer, agent or employee of an insurer and a person soliciting insurance, whether or not the person is an agent of the insurer shall not, to the prejudice of the insured, be considered to be the agent of the insured in respect of a question arising out of a contract. RSN1970 c205 s54; 2022 c11 s23 Back to Top Insurer giving information 55. An insurer does not incur liability for a default, error or omission in giving or withholding information as to a notice or instrument that it has received and that affects the insurance money. RSN1970 c205 s55