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Newfoundland and Labrador
Regulation 2004


NEWFOUNDLAND AND LABRADOR REGULATION 80/04

NEWFOUNDLAND AND LABRADOR
REGULATION 80/04

Automobile Insurance Prohibited Underwriting
Regulations
under the
Insurance Companies Act
(O.C. 2004-297)

(Filed July 28, 2004)

Under the authority of paragraph 107(e.1) of the Insurance Companies Act, the Lieutenant-Governor in Council makes the following regulations.

Dated at St. Johnís, July 28, 2004.

Robert C. Thompson
Clerk of the Executive Council

REGULATIONS

Analysis


††††††† 1. Short title

††††††† 2. Definitions

††††††† 3. Prohibition:Refusal to provide insurance

††††††† 4. Prohibition - risk classification system

††††††† 5. Commencement


Short title

††††††† 1. These regulations may be cited as Automobile Insurance Prohibited Underwriting Regulations.

Definitions

††††††† 2. In these regulations

†††††††††††† (a)"Act" means the Insurance Companies Act; and

†††††††††††† (b)"minister" means the minister appointed under the Executive Council Act to administer the Act.

Prohibition:Refusal to provide insurance

††††††† 3. (1) For the purpose of subsection 96.1(2) of the Act, an insurer shall not decline to issue, terminate or refuse to renew a contract or refuse to provide or continue a coverage or endorsement on one or more of the following grounds:

†††††††††††† (a)the insured, the applicant or another person who is or would be an insured under the contract

††††††††††††††††††††† (i)had an accident in the past, or claimed in the past under a contract as a result of an accident, for which the insured, applicant or other person was not at fault,

††††††††††††††† (ii)has enquired as to coverage under a contract or has advised of an accident for which indemnity or coverage is provided for under a contract, and no payment was made to indemnify an insured or to an insured under the contract,

 

††††††††††††††††††† (iii)failed to make a payment to an insurer or a payment was returned to the insurer dishonored, other than the first payment due on a contract, if the missed payment or dishonored payment was replaced within 30 days of the date on which it was originally due,

 

††††††††††††††††††† (iv)has been declined insurance or refused a renewal of insurance by an insurer,

†††††††††††††††††††† (v)has a lapse in coverage for a period of less than 24 months, unless the lapse resulted directly or indirectly from

††††††††††††††††††††††††††† (A)termination of a contract for failure to pay premiums due under a contract,

††††††††††††††††††††††††††† (B)termination of a contract for failing to disclose a conviction or claim and the conviction or claim would likely have led to a higher premium being charged, or

††††††††††††††††††††††††††† (C)suspension of the personís drivers licence for an offence related to the use or operation of an automobile,

 

††††††††††††††††††† (vi)does not have another insurance policy of any kind with the insurer or its affiliates or that he or she refused to consider or purchase another insurance policy from the insurer or its affiliates, or

†††††††††††††††††† (vii)is or has been insured through the Facility Association;

†††††††††††† (b)the age of the vehicle, except that an inspection satisfactory to the insurer may be required once the vehicle is 8 years old, provided that the inspection requirements are set out in writing by the insurer and given to the applicant for a contract; and

†††††††††††† (c)another ground approved by the minister.

†††††††††††† (2)For the purpose of this section, section 7 of the Corporations Act applies, with the necessary changes, to the determination of whether there is an affiliation between 2 or more insurers.

Prohibition - risk classification system

††††††† 4. (1) For the purpose of paragraph 96.2(3)(d), an insurer shall not use one or more of the following elements in its risk classification system:

†††††††††††† (a)an accident or a claim resulting from an accident for which the insured was not at fault;

†††††††††††† (b)an inquiry by an insured as to coverage under a contract, or any advice of an accident by an insured for which indemnity or coverage is provided for under a contract, where no payment was made to indemnify an insured or to an insured under a contract;

†††††††††††† (c)failure by the insured to make a payment to an insurer, or a payment being returned to an insurer dishonored, other than the first payment due on a contract, if the missed payment or dishonored payment was replaced within 30 days of the date on which it was originally due;

†††††††††††† (d)the insured was declined insurance or refused a renewal of insurance by an insurer;

†††††††††††† (e)the insured has a lapse in coverage under a contract for a period of less than 24 months, unless the lapse resulted directly or indirectly from

††††††††††††††††††††† (i)termination of a contract for failure to pay premiums due under a contract,

†††††††††††††††††††† (ii)termination of a contract for failing to disclose a conviction or claim and the conviction or claim would likely have led to a higher premium being charged, or

††††††††††††††††††† (iii)suspension of the personís drivers licence for an offence related to the use or operation of an automobile; and

††††††††††††† (f)another element approved by the minister.

Commencement

††††††† 5. These regulations shall come into force on August 1, 2004.