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Statutes of Newfoundland 1994


CHAPTER 43

CHAPTER 43

AN ACT TO AMEND THE HOSPITAL INSURANCE AGREEMENT ACT, THE INSURANCE
COMPANIES ACT AND THE MEDICAL CARE
INSURANCE ACT

(Assented to December 16, 1994)

Analysis

HOSPITAL INSURANCE AGREEMENT ACT

1. S.4.1 Added
Levy

2. S.5 Amdt.
Action in respect of injury

INSURANCE COMPANIES ACT

3. S.2 Amdt.
Definitions

4. S.14 Amdt.
Restriction on issue of licences

5. S.82 Amdt.
Record of automobile premiums and costs

MEDICAL CARE INSURANCE ACT

6. S.42.1 Added
Levy

7. S.43 Amdt.
Recovery of costs for services

8. Commencement

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:


HOSPITAL INSURANCE AGREEMENT ACT

RSN 1990 cH-7

1. The Hospital Insurance Agreement Act is amended by adding immediately after section 4 the following:

Levy

4.1 (1) This section applies where insured services are provided with respect to an injury or disability where the injury or disability was caused by, or contributed to by, or results from, a motor vehicle accident occurring on or after this section comes into force in which the person, whose fault, negligence or other wrongful act or omission caused, contributed to or resulted in the injury or disability, is insured, at the date of the accident, by a policy of insurance through a licensed insurer carrying on business in the province.

(2) In this section

(a) "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; and

(b) "levy year" means a calendar year in which a levy is due from insurance companies with respect to automobile insurance business transacted in the province.

(3) The minister shall impose a levy to be paid by every licensed motor vehicle insurer with respect to each vehicle insured by that insurer for the purpose of recovering insured services incurred by insured persons as a result of personal injury or disability where the injury or disability was caused by, or contributed to by, or results from, motor vehicle accidents.

(4) Every licensed insurer who carries on the business of automobile insurance in the province shall, in respect of each levy year, pay to the minister a levy determined by multiplying the base rate per vehicle by the number of earned vehicles at the end of each levy year.

(5) Every licensed insurer liable to pay a levy under subsection (4) shall before the last day of March, June, September and December in each levy year pay 1/4 of the levy estimated to be payable as calculated by the minister or his or her representative by reference to the number of earned vehicles and the base rate per vehicle for the immediately preceding levy year.

(6) Where a licensed insurer provides the minister with satisfactory proof that the actual earned vehicle count will vary significantly from the previous year on which the estimated levy is based, the minister may adjust the estimated levy.

(7) The Superintendent of Insurance shall provide annually to the minister, a report detailing actual automobile experience including the number of earned vehicles and the number of claims for every licensed insurer as provided under the Insurance Companies Act.

(8) Based on the report in subsection (7), the minister shall issue an adjustment invoice or credit as applicable to licensed insurers in respect of the immediately preceding levy year payable or refundable within 30 days of issuance.

(9) Where the levy is not paid in full on the due date, the licensed insurer shall pay to the minister, interest on the unpaid portion calculated at the rate of prime plus 2% from the due date of payment.

(10) The insurer shall pay any levy payable under this section prior to the issuance or renewal of a licence under the Insurance Companies Act.

(11) An amount payable under this section and unpaid constitutes a debt due the Crown and the minister may sue for its recovery in a court in the province.

(12) The minister may make regulations

(a) establishing an initial base rate per vehicle on the coming into force of this section;

(b) establishing a formula for the determination of the base rate for each vehicle in subsequent years;

(c) defining words and phrases not defined in this section required to give effect to the section; and

(d) generally, to give effect to the purpose of this section.

2. Subsection 5(1) of the Act is repealed and the following substituted:

Action in respect of injury

5. (1) This section applies where insured services are provided to an injured or disabled person, in this section referred to as the "insured person", with respect to an injury or disability where the injury or disability was caused by, or contributed to by, or results from an occurrence other than a motor vehicle accident in which the person, whose fault, negligence or other wrongful act or omission caused, contributed to or resulted in the injury or disability, in this section referred to as the "tortfeasor", is insured at the date of the accident, by a policy of insurance through a licensed insurer carrying on business in the province.

(1.1) An insured person who receives insured services in respect of an injury or disability caused or contributed to by or resulting from the fault, negligence or other wrongful act or omission of a tortfeasor has the same right to recover the cost of those insured services from the tortfeasor as the insured person would have had if the insured person had personally been required to pay for the services.

INSURANCE COMPANIES ACT

RSN 1990 cI-10 as amended

3. Section 2 of the Insurance Companies Act is amended by adding immediately after paragraph (o) the following:

(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;

4. Section 14 of the Act is amended by adding the following immediately after subsection (9):

(10) Effective July 1, 1994, after notification by the Department of Health to the superintendent of any unpaid levy due under the Medical Care Insurance Act or the Hospital Insurance Agreement Act, the superintendent shall refuse to issue or renew a licence to an insurer until the levy is paid.

5. Section 82 of the Act is amended by adding the following immediately after subsection (2):

(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.

MEDICAL CARE INSURANCE ACT

RSN 1990 cM-5 as amended

6. The Medical Care Insurance Act is amended by adding immediately after section 42 the following:

Levy

42.1 (1) This section applies where insured services are provided with respect to an injury or disability where the injury or disability was caused by, or contributed to by, or results from, a motor vehicle accident occurring on or after this section comes into force in which the person, whose fault, negligence or other wrongful act or omission caused, contributed to or resulted in the injury or disability, is insured, at the date of the accident, by a policy of third party liability insurance through a licensed insurer carrying on business in the province.

(2) In this section

(a) "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; and

(b) "levy year" means a calendar year in which a levy is due from insurance companies with respect to automobile insurance business transacted in the province.

(3) The minister shall impose a levy to be paid by every licensed motor vehicle insurer with respect to each vehicle insured by that insurer for the purpose of recovering insured services incurred by insured persons as a result of personal injury or disability where the injury or disability was caused by, or contributed to by, or results from, motor vehicle accidents.

(4) Every licensed insurer who carries on the business of automobile insurance in the province shall, in respect of each levy year, pay to the minister a levy determined by multiplying the base rate per vehicle by the number of earned vehicles at the end of each levy year.

(5) Every licensed insurer liable to pay a levy under subsection (4) shall before the last day of March, June, September and December in each levy year pay 1/4 of the levy estimated to be payable as calculated by the minister or his or her representative by reference to the number of earned vehicles and the base rate per vehicle for the immediately preceding levy year.

(6) Where a licensed insurer provides the minister with satisfactory proof that the actual earned vehicle count will vary significantly from the previous year on which the estimated levy is based, the minister may adjust the estimated levy.

(7) The Superintendent of Insurance shall provide annually to the minister, a report detailing actual automobile experience including the number of earned vehicles and the number of claims for every licensed insurer as provided under the Insurance Companies Act.

(8) Based on the report in subsection (7), the minister shall issue an adjustment invoice or credit as applicable to licensed insurers in respect of the immediately preceding levy year payable or refundable within 30 days of issuance.

(9) Where the levy is not paid in full on the due date, the licensed insurer shall pay to the minister, interest on the unpaid portion calculated at the rate of prime plus 2% from the due date of payment.

(10) The insurer shall pay any levy payable under this section prior to the issuance or renewal of a licence under the Insurance Companies Act.

(11) An amount payable under this section and unpaid constitutes a debt due the Crown and the minister may sue for its recovery in a court in the province.

(12) The minister may make regulations

(a) establishing an initial base rate per vehicle on the coming into force of this section;

(b) establishing a formula for the determination of the base rate for each vehicle in subsequent years;

(c) defining words and phrases not defined in this section required to give effect to the section; and

(d) generally, to give effect to the purpose of this section.

7. Subsection 43(1) of the Act is repealed and the following substituted:

Recovery of costs for services

43. (1) This section applies where insured services are provided to an injured or disabled person, in this section referred to as the "insured person", with respect to an injury or disability where the injury or disability was caused by, or contributed to by, or results from an occurrence other than a motor vehicle accident in which the person, whose fault, negligence or other wrongful act or omission caused, contributed to or resulted in the injury or disability, in this section referred to as the "tortfeasor", is insured at the date of the accident, by a policy of insurance through a licensed insurer carrying on business in the province.

(1.1) An insured person who receives insured services in respect of an injury or disability caused or contributed to by or resulting from the fault, negligence or other wrongful act or omission of a tortfeasor has the same right to recover the cost of those insured services from the tortfeasor as he or she would have had if the person had himself or herself been required to pay for the services.

Commencement

8. This Act is considered to have come into force on July 1, 1994.

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