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Statutes of Newfoundland and Labrador
2005


Statutes of Newfoundland and Labrador 2005 Chapter 22

CHAPTER 22

AN ACT TO AMEND THE INSURANCE COMPANIES ACT

(Assented to May 19, 2005)

Analysis


††††††† 1. S.2 Amdt.
Definitions

††††††† 2. S.10 Amdt.
Insurer which may be licensed

††††††† 3. S.14 Amdt.
Restriction on issue of licences

††††††† 4. S.16 R&S
Information to be filed by applicant

††††††† 5. S.22 Rep.
Failure to keep deposit unimpaired

††††††† 6. Ss.26 to 58 Rep.
26.†† Application of sections
††††††† 27 to 78
27.†† Deposits
28.†† Value of securities
29.†† Substituted securities
30.†† Withdrawal of excess
††††††† deposit
31.†† Return of deposit
32.†† Transfer of deposit to
††††††† continuing insurer
33.†† Minister may reinsure
††††††† contracts
34.†† Administration of
††††††† deposit
35.†† Application to
††††††† administer deposit
36.†† Application by
††††††† minister
37.†† Service of summons
38.†† Receiver
39.†† Receiver may fix
††††††† termination date
40.†† Notice to insured
††††††† persons
41.†† Duty of receiver
42.†† Powers of liquidator
43.†† Receiver may apply for
††††††† order to sell securities
44.†† Proceeds of deposit
45.†† Priority of loss claims
46.†† Action of receiver on
††††††† receiving claims
47.†† List of persons entitled
††††††† to share deposit
48.†† Payment on account of
††††††† claims
49.†† Payment of delayed
††††††† claims
50.†† Application to court
††††††† for direction
51.†† Final accounts
52.†† Claims unpaid after
††††††† distribution of deposit
53.†† Certain persons not
††††††† entitled to proceeds of
††††††† deposit
54.†† Contracts
55.†† Sole deposit of insurer
††††††† in province
56.†† Exemption from
††††††† deposit
57.†† Deposits in other
††††††† provinces
58.†† Agreements to use
††††††† securities for
††††††† reinsurance

††††††† 7. S.59 R&S
Application of sections 60 to 71

††††††† 8.†† S.63 Amdt.
Remuneration

††††††† 9. S.65 Amdt.
Existing contracts

††††† 10. S.66 Rep.
Deposit transferred to liquidator

††††† 11. S.67 Amdt.
Where no reinsurance

††††† 12. S.69 Amdt.
Liquidator to set aside sums

††††† 13.†† S.77 Amdt.
Annual inspection of insurers

††††† 14.†† S.83 Amdt.
Balance sheet, etc.

††††† 15. Ss.85&86 R&S
85.†† Financial information
86.†† Published information

††††† 16. S.107 Amdt.
Regulations


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


 

RSNL1990 cI-10
as amended

††††††† 1. (1) Paragraph 2(l) of the Insurance Companies Act is repealed.

†††††††††††† (2)Paragraph 2(r) of the Act is amended by striking out the words and brackets "or under the Foreign Insurance Companies Act (Canada)".

†††††††††††† (3)Paragraphs 2(aa), (ll) and (uu) of the Act are repealed.

 

††††††† 2. (1) Paragraph 10(1)(b) of the Act is amended by striking out the words "approved by the minister to carry on business in the province".

†††††††††††† (2)Paragraph 10(1)(c) of the Act is amended by striking out the words and brackets "or the Foreign Insurance Companies Act (Canada)".

 

††††††† 3. (1) Subsections 14(5) and (6) of the Act are repealed.

†††††††††††† (2)Subsection 14(9) of the Act is repealed and the following substituted:

†††††††††††† (9)The superintendent shall not issue a licence to an insurer incorporated in a foreign jurisdiction except upon proof of the insurer's ability to provide for the payment at maturity of all its contracts but the superintendent may accept as sufficient the fact that the insurer

†††††††††††† (a)is licensed by any government in Canada; or

†††††††††††† (b)has been issued an order under subsection 53(1) or 574(1) of the Insurance Companies Act (Canada).

†††††††††††† (3)Subsection 14(10) of the Act is repealed and the following substituted:

†††††††††† (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 prohibit the insurer from entering into new contracts of insurance or renewing existing contracts of insurance until the levy is paid.

 

††††††† 4. Section 16 of the Act is repealed and the following substituted:

Information to be filed by applicant

††††††††††† 16.(1) Before the superintendent issues a licence to an insurer incorporated under the laws of the province, the insurer shall file with the superintendent

†††††††††††† (a)a certified copy of the charter of the insurer verified in a manner satisfactory to the superintendent;

†††††††††††† (b)a certified copy of the balance sheet of the insurer and auditorís report on the balance sheet;

†††††††††††† (c)notice of the place where the head office of the insurer is situated and the name of the insurerís chief executive officer;

†††††††††††† (d)the names and addresses of the officers of the insurer;

†††††††††††† (e)the names and addresses of the directors of the insurer;

††††††††††††† (f)a list of the shareholders of the insurer showing, in respect of each, the number of shares held, the amount subscribed for, the amount paid in cash and the amount in arrears of call;

†††††††††††† (g)a statement showing the authorized capital of the insurer, the number of shares subscribed and the amount paid in cash; and

†††††††††††† (h)other documents or information that the superintendent may require.

†††††††††††† (2)Where an insurer referred to in subsection (1) is not a company or where some or all of the provisions of subsection (1) are otherwise inapplicable to that insurer, the superintendent may exempt the insurer from filing the documents or information which do not apply to the insurer.

†††††††††††† (3)Before the superintendent issues a licence to an insurer registered under the Insurance Companies Act (Canada) the insurer shall file with the superintendent

†††††††††††† (a)a copy of the order issued under subsection 53(1) or 574(1) of the Insurance Companies Act (Canada);

†††††††††††† (b)a notice of the classes of insurance that the insurer proposes to transact in the province and that notice shall not include a class of insurance not specifically provided for in the order referred to in paragraph (a); and

†††††††††††† (c)proof of registration under the Corporations Act.

†††††††††††† (4)Notwithstanding paragraph (3)(b), an insurer registered under the Insurance Companies Act (Canada) may, with the approval of the superintendent, undertake and carry on the business of marine insurance in the province, although that class of insurance is not specifically provided for in the order referred to in paragraph (3)(a).

†††††††††††† (5)Before the superintendent issues a licence to an extra-provincial insurer, the insurer shall file with the superintendent

†††††††††††† (a)proof of licensing issued to and held by the insurer in the home jurisdiction of the insurer;

†††††††††††† (b)a notice of the classes of insurance that the insurer proposes to transact in the province and that notice shall not include a class of insurance not specifically provided for in the licence held by the insurer; and

†††††††††††† (c)proof of registration under the Corporations Act.

†††††††††††† (6)Where a change is made in respect of the documents or information filed with the superintendent under subsection (1), (3) or (5), the insurer shall immediately notify the superintendent of the change and file with the superintendent those further documents or notices that are necessary to provide evidence of the change.

†††††††††††† (7)Where the documents or information referred to in subsection (1), (3) or (5) have been filed under the Corporations Act, those documents or the information shall be considered to have been filed in accordance with this section.

 

††††††† 5. Section 22 of the Act is repealed.

 

††††††† 6. Sections 26 to 58 of the Act are repealed.

 

††††††† 7. Section 59 of the Act is repealed and the following substituted:

Application of sections 60 to 71

††††† 59. Sections 60 to 71 apply only to an insurer incorporated under the laws of the province.

 

††††††† 8. (1) Subsection 63(2) of the Act is amended by striking out the words and figure "other than the deposit unless otherwise directed under subsection (3)".

†††††††††††† (2)Subsection 63(3) of the Act is repealed.

 

††††††† 9. (1) Subsection 65(1) of the Act is amended by striking out the words "before an order granting administration of the deposit and".

†††††††††††† (2)Subsection 65(2) of the Act is repealed and the following substituted:

†††††††††††† (2)The entire assets of the insurer in the province shall be available for the purpose of securing the reinsurance in accordance with subsection (1) other than the amount reasonably estimated by the liquidator or the provisional liquidator as being required to pay

†††††††††††† (a)the costs of the liquidation or winding up;

†††††††††††† (b)all claims for losses covered by the insurerís contracts of which notice has been received by the insurer or liquidator or provisional liquidator before the date on which the reinsurance is effected; and

†††††††††††† (c)the claims of the preferred creditors who are persons paid in priority to other creditors under the winding-up provisions of the Corporations Act,

all of which shall be the first charge on the assets of the insurer.

†††††††††††† (3)Subsection 65(3) of the Act is repealed.

†††††††††††† (4)Subsection 65(4) of the Act is amended by striking out the word and figure "subparagraph (2)(a)(iii)" and substituting the word and figure "paragraph (2)(c)".

†††††††††††† (5)Subsection 65(5) of the Act is repealed and the following substituted:

†††††††††††† (5)Where, after providing for the payments mentioned in subsection (2), the balance of the assets of the insurer is insufficient to secure the reinsurance of the contracts of the insured persons in full, the reinsurance may be effected for the portion of the full amount of the contracts that may be possible.

 

††††† 10. Section 66 of the Act is repealed.

 

††††† 11. (1) Subsection 67(1) of the Act is amended by striking out the words "the Newfoundland and Labrador contracts" and substituting the word "those".

†††††††††††† (2)Subsection 67(2) of the Act is repealed.

 

††††† 12. (1) Paragraph 69(1)(b) of the Act is repealed and the following substituted:

†††††††††††† (b)all claims for losses covered by the insurerís contracts that occurred before the termination date fixed under section 67 that have not been paid and of which notice has been received by the insurer or the liquidator;

†††††††††††† (2)Subsection 69(2) of the Act is amended by

†††††††††††† (a)striking out the word "dates" and substituting the word "date"; and

†††††††††††† (b)striking out the words "or provided for in the administration of the deposit".

†††††††††††† (3)Paragraph 69(3)(a) of the Act is repealed and the following substituted:

†††††††††††† (a)as at the termination date fixed under section 67; or

 

††††† 13. Subsection 77(1) of the Act is amended by adding immediately after the word "insurer" wherever it appears the words "incorporated under the laws of the province".

 

††††† 14. Section 83 of the Act is amended by adding immediately after the word "insurer" the words "incorporated under the laws of the province".

 

††††† 15. Sections 85 and 86 of the Act are repealed and the following substituted:

Financial information

††††† 85. (1) An insurer incorporated under the laws of the province shall file with the superintendent, on an annual basis and as otherwise may be required by the superintendent, a financial report in the form and verified in the manner prescribed by the superintendent.

†††††††††††† (2)An insurer other than an insurer incorporated under the laws of the province shall file with the superintendent, on an annual basis and as otherwise may be required by the superintendent, financial and other information in the form and verified in the manner prescribed by the superintendent.

†††††††††††† (3)Where an insurer other than an insurer incorporated under the laws of the province has filed the information referred to in subsection (2) in a foreign jurisdiction, that information shall be considered to have been filed in accordance with subsection (2) if it is available to the superintendent under an information sharing agreement entered into by the minister and the foreign jurisdiction.

†††††††††††† (4)An insurer referred to in subsection (1) or (2) shall reply promptly and explicitly to an inquiry directed to the insurer by the superintendent in relation to the transactions of the insurer in the province.

Published statements

††††† 86. A report or statement purporting to show the financial condition of an insurer differing from the financial information shown by a report or statement filed with the superintendent shall not be published or circulated and an insurer publishing or circulating the report or statement is guilty of an offence.

 

††††† 16. Paragraphs 107(f) and (g) of the Act are repealed.