This is an official version.

Copyright 2004: Queen’s Printer,
St. John's, Newfoundland and Labrador, Canada

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Statutes of Newfoundland and Labrador 2004


CHAPTER 27

AN ACT TO AMEND THE AUTOMOBILE INSURANCE ACT, THE INSURANCE COMPANIES ACT AND THE HIGHWAY TRAFFIC ACT TO EFFECT CERTAIN REFORMS RESPECTING AUTOMOBILE INSURANCE

(Assented to June 8, 2004)

Analysis

AUTOMOBILE INSURANCE ACT

1. S.2 Amdt.
Definitions

2. S.4 Amdt.
Forms

3. Sections Added
6.1 Applicant to be to
given reasons
6.2 Information relating to
insurance
6.3 Monthly premium
payments

4. S.10.1 Added
Insurer not liable respecting excluded driver

5. S.19.1 Added
Excluded driver endorsement

6. Sections Added
26.1 Insurer to give notice
of claim
26.2 Application for
periodic payment
26.3 Settlement of claims
26.4 Benefits related to loss
of income
26.5 Damages for income
loss reduced

7. S.28.1 Added
Award reduced for failure to wear seat belt

8. S.33(1.1) Added
Uninsured motorist coverage

9. S.39.1 Added
Reduction in damages for non-pecuniary loss

10. S.60 Amdt.
Regulations

11. Sections Added
62. Rate reduction
63. Rates frozen

INSURANCE COMPANIES ACT

12. S.2 Amdt.
Definitions

13. S.3.1 Added
Review by board

14. S.5.1 Added
Withdrawal of insurance companies

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

16. Sections Added
96.1 Prohibition: refusal to
provide insurance
96.2 Prohibition: risk
classification system

17. S.102 Amdt.
Rates

18. S.107 Amdt.
Regulations

19. S.108 Amdt.
Offence

 

 

HIGHWAY TRAFFIC ACT

20. S.9 Amdt.
Powers of registrar

21. S.75 Amdt.
Uninsured vehicle

22. S.75.1 Added
Excluded driver provision

23. S.186 Amdt.
Regulations

24. Sch. Amdt.

25. Commencement

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

AUTOMOBILE INSURANCE ACT


RSNL1990 cA-22
as amended

1. (1) Section 2 of the Automobile Insurance Act is renumbered as subsection 2(1).

(2) Paragraph 2(a) of the Act is amended by renumbering it as paragraph (a.1).

(3) Section 2 of the Act is amended by adding immediately before paragraph (a.1) the following:

(a) "agent" means an agent as defined in the Insurance Adjusters, Agents and Brokers Act;

(4) Section 2 of the Act is amended by adding immediately after paragraph (c) the following:

(c.1) "broker" means a broker as defined in the Insurance Adjusters, Agents and Brokers Act;

(5) Section 2 of the Act is amended by adding immediately after paragraph (d) the following:

(d.01) "excluded driver" means a person named as an excluded driver in an endorsement under section 19.1;

(6) Paragraph 2(g) of the Act is repealed and the following substituted:

(g) "minister" means the minister appointed under the Executive Council Act to administer this Act;

(7) Section 2 of the Act is amended by deleting the word "and" at the end of paragraph (l) and by adding immediately after that paragraph the following:

(l.1) "representative" means a representative as defined in the Insurance Adjusters, Agents and Brokers Act; and

(8) Section 2 of the Act is amended by adding immediately after subsection (1) the following:

(2) The insured under a contract shall be considered not to include a person who sustains loss or damage while an automobile insured under the contract is being used or operated by an excluded driver.

 

2. (1) Section 4 of the Act is amended by adding immediately after subsection (1) the following:

(1.1) Subsection (1) applies to the Facility Association with respect to the insurance placed through the association.

(2) Section 4 of the Act is amended by adding after subsection (8) the following:

(9) Subsection (8) applies to the Facility Association with respect to the insurance placed through the association.

 

3. The Act is amended by adding immediately after section 6 the following:

Applicant to be given reasons

6.1 (1) An agent, a broker or a representative shall, in writing, inform a person to whom it provides automobile insurance through the Facility Association

(a) of the reasons why the insurance is being placed through the association;

(b) how long the person is anticipated to be provided with insurance through the association based on the person's driving record; and

(c) what steps the person may take to qualify for insurance other than through the association,

and shall provide a copy to the association.

(2) An agent, a broker or a representative shall annually, while it provides automobile insurance to a person through the Facility Association, inform the person, in writing,

(a) of the reasons why the insurance is placed through the association;

(b) how long the person is anticipated to be provide with insurance through the association based on the person's driving record; and

(c) what steps the person may take to qualify for insurance other than through the association,

and shall provide a copy to the association.

Information relating to insurance

6.2 (1) An agent, a broker or a representative shall, on request, provide a person with the names of all the insurers with whom the agent, broker or representative has an agency contract, or who the agent, broker or representative represents, relating to automobile insurance, and all information obtained by the agent, broker or representative relating to quotations on automobile insurance for the person.

(2) An agent, a broker or a representative shall, when providing the information required by subsection (1), identify an affiliation an insurer has with another insurer where there is one.

(3) 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.

(4) An agent, a broker or a representative shall provide the information referred to in subsections (1) and (2) in writing if the person so requests.

Monthly premium payments

6.3 (1) An insured may pay the premium required under a contract, without penalty, in equal monthly payments totalling the amount of the premium.

(2) Where an insured pays a premium in equal monthly payments, an insurer may charge interest not exceeding the rate the minister may approve by regulation.

(3) An insurer is not required to permit an insured to pay the premium in instalments unless all of the following conditions are met:

(a) the insurer, together with its affiliates, insured in the province during the previous year at least 5,000 automobiles used for the purposes listed under the heading "Type of Use-Private Passenger" in the automobile insurance statistical plan prepared under section 82 of the Insurance Companies Act;

(b) the contract is limited to automobiles used for the purposes listed under the heading "Type of Use-Private Passenger" in the automobile insurance statistical plan prepared under section 82 of the Insurance Companies Act;

(c) the contract does not insure 5 or more automobiles that are under common ownership or management;

(d) the total annual premium payable under the contract exceeds $300; and

(e) the insured has not had more than one contract terminated by an insurer for non-payment of the premium during the 36 months before the contract takes effect.

(4) As a condition for permitting an insured to pay the premium in instalments, an insurer may require that the insured,

(a) make an initial payment equal to 2 monthly instalments of the premium; and

(b) agree to make all payments under the contract by pre-authorized payment from the insured's account at a financial institution.

(5) The amount of each instalment payment shall be calculated as blended principal and interest.

(6) An insurer who is not required to permit its insureds to pay their premiums in instalments but who chooses to do so is subject to the same requirements as those insurers who are required to permit their insureds to pay their premiums in instalments.

(7) This section applies to the Facility Association with respect to the insurance placed through the association.

(8) Section 7 of the Corporations Act applies, with the necessary changes, to the determination of whether 2 or more insurers are affiliates for the purpose of paragraph (3)(a).

 

4. The Act is amended by adding immediately after section 10 the following:

Insurer not liable respecting excluded driver

10.1 Where a contract evidenced by a motor vehicle liability policy names an excluded driver, the insurer is not liable to a person under the contract or under this Act or the regulations for loss or damage that occurs while the excluded driver is driving an automobile insured under the contract.

 

5. The Act is amended by adding immediately after section 19 the following:

Excluded driver endorsement

19.1 A named insured may stipulate by endorsement to a contract evidenced by a motor vehicle liability policy that a person named in the endorsement is an excluded driver under the contract.

 

6. The Act is amended by adding immediately after section 26 the following:

Insurer to give notice of claim

26.1 (1) Where an insurer receives a claim from a person who is or alleges to be entitled to recover from an insured covered by a motor vehicle liability policy, the insurer shall, in writing, inform the named insured of the receipt of the claim.

(2) An insurer who makes a payment on behalf of an insured under a contract evidenced by a motor vehicle liability policy to a person making a claim shall, in writing, inform the named insured of the total amount paid with respect to the claim.

Application for periodic payment

26.2 (1) An injured person, or the administrator or a beneficiary of the estate of a deceased person, to whom or on whose behalf compensation is payable under a contract evidenced by a motor vehicle liability policy for bodily injury or death caused by an automobile or the use or operation of an automobile may apply to a judge of the Trial Division for an order directing an insurer to pay the compensation periodically.

(2) A judge to whom an application is made under subsection (1) may make an order directing an insurer to pay compensation periodically on the terms the judge considers just.

Settlement of claims

26.3 (1) An insurer who is defending an action on behalf of an insured 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 shall attempt to settle the claim as expeditiously as possible.

(2) Where an insurer admits liability in respect of all or part of a claim, the insurer shall make payments to the person making the claim pending the determination of the amount owing.

(3) The amount of the payment under subsection (2) shall be based on the insurer's estimate of the amount owing in respect of the claim having regard to information provided to the insurer by the person making the claim.

(4) Subsections 26(1), (2) and (3) apply, with the necessary changes, to an advance payment made under this section.

(5) An insurer's failure to comply with this section shall be considered by the court in awarding costs.

Benefits related to loss of income

26.4 (1) Notwithstanding another Act or a rule of law, the owner, operator or occupants of an automobile, a person present at an incident and a person who is or may be vicariously liable with respect to either of them, are not liable in an action in the province for the following damages for income loss or loss of earning capacity from bodily injury or death arising directly or indirectly from the use or operation of an automobile:

(a) damages for loss of income suffered in excess of the net loss of income, as defined by the regulations; and

(b) damages for loss of earning capacity suffered in excess of the net loss of earning capacity, as defined by the regulations.

(2) Subsection (1) applies to all actions, including actions under the Fatal Accidents Act.

Damages for income loss reduced

26.5 (1) In an action for loss or damage from bodily injury or death arising directly or indirectly from the use or operation of an automobile, the damages to which a plaintiff is entitled for loss of income and loss of earning capacity shall be reduced by all payments in respect of the incident that the plaintiff has received or to which the plaintiff is entitled, for loss of income, or loss of earning capacity, under the laws of this province or another jurisdiction, or under an income continuation benefit plan where, under the law or the plan, the provider of the benefit retains no right of subrogation.

(2) Damages shall not be reduced under subsection (1) by a payment that a plaintiff has received or to which a plaintiff is entitled under the Workplace Health, Safety and Compensation Act.

 

7. The Act is amended by adding immediately after section 28 the following:

Award reduced for failure to wear seat belt

28.1 (1) Where a person who is required by section 178 of the Highway Traffic Act to wear a seat belt assembly sustains bodily injury or dies in an accident while the person is not wearing a seat belt assembly, the amount recoverable by the person, or, in the event of the death of the person, the administrator or a beneficiary of the estate of the deceased person, as damages for bodily injury or death in an action arising out of the accident shall be reduced by 25%, unless the person or the administrator or the beneficiary establishes that the failure to wear the seat belt assembly did not contribute to the bodily injury or death.

(2) Where a person to whom subsection (1) applies contributed to his or her bodily injury or death by other acts or omissions in addition to the failure to wear a seat belt assembly, and the person, or, in the event of the death of the person, the administrator or a beneficiary of the estate of the deceased person, does not establish that the failure to wear a seat belt assembly did not contribute to the bodily injury or death, the reduction in the amount of damages shall be determined with regard to all circumstances but shall not be less than 25%.

(3) Subsection (1) does not apply to a person who sustains bodily injury or dies in an accident while the person is wearing a seat belt assembly but is not wearing it in a properly adjusted and securely fastened manner as required under section 178 of the Highway Traffic Act.

 

8. Section 33 of the Act is amended by adding immediately after subsection (1) the following:

(1.1) Notwithstanding the definition of "person insured under the contract" in subsection (1), a person who sustains loss or damage while the insured automobile is being used or operated by an excluded driver is considered not to be a person insured under the contract in which the excluded driver is named.

 

9. The Act is amended by adding immediately after section 39 the following:

Reduction in damages for non-pecuniary loss

39.1 In an action in the province for loss or damage from bodily injury or death arising directly or indirectly from the use or operation of an automobile, the damages to which a plaintiff is entitled for non-pecuniary loss or damage shall be reduced by the amount the Lieutenant-Governor in Council may set by regulation.

 

10. Subsection 60(1) of the Act is amended by

(a) deleting the word "and" at the end of paragraph (f); and

(b) adding immediately after paragraph (g) the following:

(g.1) defining net loss of income and net loss of earning capacity for the purpose of section 26.4;

(g.2) setting the amount by which damages for non-pecuniary loss or damage shall be reduced for the purpose of section 39.1; and

 

11. The Act is amended by adding immediately after section 61 the following:

Rate reduction

62. (1) Notwithstanding paragraph 2(l), in this section

(a) "base rate" means the rate approved by the board for each coverage in each territory and specified in an order of the board and from which all other rates are derived by way of the application of differentials; and

(b) "rates" means base rates.

(2) On the day this section comes into force, the rates charged by an insurer for private passenger automobile insurance as approved by the board shall be reduced

(a) with respect to third party liability coverage, by 9% in all territories;

(b) with respect to collision coverage, by

(i) 27% in the Avalon district territory,

(ii) 37% in the Bonavista and Burin district territory and the remainder of the province other than the areas referred to in subparagraph (i) and (iii), and

(iii) 29% in the Labrador district territory;

(c) with respect to comprehensive coverage, by 19% in all territories;

(d) with respect to specified perils coverage, by 16% in all territories;

(e) with respect to all perils coverage, by the amount contained in paragraph (b) for the collision portion and by the amount contained in paragraph (c) for the comprehensive portion; and

(f) with respect to uninsured motorist coverage, by 11% in all territories.

(3) Subsection (2) applies to all contacts of insurance in effect on the date this section comes into force and to all contracts entered into from that date.

(4) An insurer shall refund to a person with whom it has entered into a contract of insurance the difference between the rates agreed to with the person at the time the contract was entered into and paid by him or her to the insurer and the rates the insurer is permitted to charge for the same coverage as a result of subsection (2) and, where the time remaining under the contract is less than a year, the refund shall be reduced proportionally.

(5) Notwithstanding subsection (4), where a contract that is in effect on the day this section comes into force expires within 3 months of that day, the insurer may credit the amount of the refund, calculated under subsection (1), to the insured on the premium to be paid for renewal of the contract, but the insured is entitled to the refund if he or she requests it or if he or she does not renew the contract with that insurer.

(6) Notwithstanding subsections (4) and (5), where a person is paying the premium under his or her contract in monthly payments, the insurer may credit the amount of the refund against the payments remaining on the contract.

(7) In this section and section 63,

(a) "private passenger automobile" refers to vehicles used for the purposes listed under the heading "Type of Use-Private Passenger"; and

(b) "territory" means the areas of the province set out under the heading of "Statistical Territory",

in the automobile insurance statistical plan prepared under section 82 of the Insurance Companies Act.

(8) An insurer shall, within 30 days of the coming into force of this section, file with the board a revised schedule of rates reflecting the reductions required by subsection (2) and, where an insurer does not comply with this subsection, the board shall, by order, set rates that the insurer shall apply, that are in keeping with the reductions required under that subsection.

(9) This section applies to the Facility Association with respect to the insurance placed through the association.

Rates frozen

63. (1) An insurer shall not apply for and the board shall not approve an application for an increase in a rate for private passenger automobile insurance for a period of 12 months from the date this section comes into force or a longer period the Lieutenant-Governor in Council may set.

(2) This section applies to the Facility Association with respect to the insurance placed through the association.

(3) This section is considered to have come into force on March 17, 2004.

INSURANCE COMPANIES ACT

RSNL1990 cI-10
as amended

12. (1) Section 2 of the Insurance Companies Act is amended by adding immediately after paragraph (f) the following:

(f.1) "board" means the Board of Commissioners of Public Utilities established under the Public Utilities Act;

(2) Paragraph 2(gg) of the Act is repealed and the following substituted:

(gg) "minister" means the minister appointed under the Executive Council Act to administer this Act;

 

13. The Act is amended by adding immediately after section 3 the following:

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 1 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).

 

14. The Act is amended by adding immediately after section 5 the following:

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).

 

15. (1) Section 14 of the Act is amended by adding immediately after subsection (2) the following:

(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.

(2) Subsection 14(3) of the Act is amended by striking out the word and numbers "(1) and (2)" and substituting the word and numbers "(1), (2) and (2.1)".

(3) Subsection 14(4) of the Act is amended by adding a comma and the number "(2.1)" immediately after the number "(2)".

 

16. The Act is amended by adding immediately after section 96 the following:

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.

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.

 

17. Section 102 of the Act is amended by striking out wherever they occur the words "Public Utilities Board" and substituting the word "board".

 

18. Section 107 of the Act is amended by adding immediately after paragraph (e) the following:

(e.1) to give effect to paragraph 5.1(1)(g), subsection 96.1(2) and paragraph 96.2(3)(d);

 

19. Section 108 of the Act is amended by adding immediately after subsection (1) the following:

(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.

(1.2) 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 $250,000; and

(b) for a second or subsequent conviction, to a fine of not less than $50,000 and not more than $500,000.

(1.3) In subsection (1.2) "insurer" includes the Facility Association.

HIGHWAY TRAFFIC ACT

RSNL1990 cH-3
as amended

20. Subsection 9(1) of the Highway Traffic Act is amended by adding immediately after paragraph (a) the following:

(a.1) to seize and impound vehicles under paragraph 75(6.1)(b);

 

21. (1) Subsection 75(2) of the Act is repealed and the following substituted:

(2) The owner of a motor vehicle or, where the owner is not the operator of the motor vehicle, the person operating it, shall, when requested to by a traffic officer, produce proof that a policy of insurance is in force with respect to the motor vehicle.

(2) Section 75 of the Act is amended by adding immediately after subsection (6) the following:

(6.1) A court that convicts a person for a violation of paragraph (5)(a) or (b) shall report the conviction to the registrar who shall by order in writing

(a) suspend the driver's licence of the owner of the vehicle for a period of 90 days beginning on the date determined by the registrar and set out in the order; and

(b) direct the seizure and impoundment of the motor vehicle by a peace office or a traffic officer for a period of 90 days beginning on the day the peace officer or traffic officer takes possession of the vehicle.

(6.2) Notwithstanding subsection (6.1), where the person who is convicted of a violation of paragraph (5)(a) or (b) is not the owner of the vehicle and has not been driving the vehicle with the consent of the owner, the registrar shall suspend the driver's licence of the person who was convicted instead of the owner and shall not order the seizure and impoundment of the motor vehicle, but, if the person whose licence is being suspended is the owner of a vehicle, the registrar shall order the seizure and impoundment of that vehicle for a period of 90 days beginning on the date the peace officer or traffic officer takes possession of the vehicle.

(6.3) A person whose driver's licence is suspended under paragraph (6.1)(a) or subsection (6.2) shall immediately return his or her licence to the registrar.

 

22. The Act is amended by adding immediately after section 75 the following:

Excluded driver provision

75.1 (1) Notwithstanding there is in force a policy of insurance in respect of a motor vehicle, the vehicle is considered to be an uninsured vehicle for the purpose of this Act while it is being operated by an excluded driver as defined in the Automobile Insurance Act with respect to that policy unless the excluded driver is insured under another policy of insurance in respect of the vehicle being operated.

(2) An operator of a motor vehicle who is named as an excluded driver under a policy of insurance under which the vehicle is insured shall, when requested to do so by a traffic officer, produce proof that the operator is a named insured under another policy of insurance with respect to the vehicle being operated.

(3) Subsections 75(3) to (6.1) apply, with the necessary changes, to an excluded driver under this section.

 

23. Section 186 of the Act is amended by adding immediately after paragraph (g) the following:

(g.1) respecting the seizure and impoundment of vehicles under paragraph 75(6.1)(b) including prescribing the fees to be paid in relation to the impoundment and release of a vehicle;

 

24. The Schedule to the Act is amended by striking out the penalty for a violation of paragraph 75(5)(b) and substituting the following:

75(5)(b)

Operating or permitting the operation of a motor vehicle without a policy
Second offence

4000
5000

2000
3000

134 days
167 days

40 days
60 days

 

Commencement

25. This Act or a section or subsection of it comes into force on a day to be proclaimed by the Lieutenant-Governor in Council.

 

 

 

 

 

 

 

 

©Earl G. Tucker, Queen's Printer