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Statutes of Newfoundland and Labrador 2010


CHAPTER 16

AN ACT TO AMEND THE INSURANCE COMPANIES ACT NO. 2

(Assented to June 24, 2010)

Analysis


        1.   S.2 Amdt.
Definitions

        2.   S.11 Amdt.
Rights and powers of licensed insurer

        3.   Ss.12 & 13 R&S
12.   Life insurers
13.   Fire insurers

        4.   S.72 Rep.
Endowment and expectancy insurance discontinued

        5.   S.107 Amdt.
Regulations

        6.   S.110 R&S
Reciprocal contracts

        7.   Sch. Added


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 (1) Paragraph 2(a) of the Insurance Companies Act is repealed and the following substituted:

             (a)  "accident and sickness insurance" means accident and sickness insurance as defined in the Schedule;

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

          (b.1)  "aircraft insurance" means aircraft insurance as defined in the Schedule;

             (3)  Paragraph 2(f) of the Act is repealed and the following substituted:

              (f)  "automobile insurance" means automobile insurance as defined in the Schedule;

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

           (f.2)  "boiler and machinery insurance" means boiler and machinery insurance as defined in the Schedule;

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

          (k.1)  "credit insurance" means credit insurance as defined in the Schedule;

          (k.2)  "credit protection insurance" means credit protection insurance as defined in the Schedule;

             (6)  Paragraphs 2(m) and (n) of the Act are repealed.

             (7)  Paragraph 2(q) of the Act is repealed.

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

           (r.1)  "fidelity insurance" means fidelity insurance as defined in the Schedule;

             (9)  Paragraph 2(u) of the Act is repealed and the following substituted:

             (u)  "fraternal or sororal 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 under which benefits may be paid only to its members or their beneficiaries, in accordance with its charter and this Act;

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

          (v.1)  "hail insurance" means hail insurance as defined in the Schedule;

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

       (bb.1)  "legal expenses insurance" means legal expenses insurance as defined in the Schedule;

       (bb.2)  "liability insurance" means liability insurance as defined in the Schedule;

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

          (dd)  "life insurance" means life insurance as defined in the Schedule;

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

       (gg.1)  "mortgage insurance" means mortgage insurance as defined in the Schedule;

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

      (mm.1)  "other approved products insurance" means other approved products insurance as defined in the Schedule;

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

        (ss.1)  "property insurance" means property insurance as defined in the Schedule;

          (16)  Paragraph 2(xx) of the Act is repealed.

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

       (yy.1)  "surety insurance" means surety insurance as defined in the Schedule;

       (yy.2)  "title insurance" means title insurance as defined in the Schedule; and

 

        2. Subsection 11(2) of the Act is repealed and the following substituted:

             (2)  Subject to the laws of the province, particularly relating to the classes of insurers mentioned in subsection 10(1), the superintendent may issue a licence to an insurer to carry on one or more of the classes of insurance that are set out in the Schedule.

 

        3. Sections 12 and 13 of the Act are repealed and the following substituted:

Life insurers

      12. An insurer licensed to carry on life insurance may, subject to its charter and the restrictions, limitations and conditions contained in its licence, issue annuities and endowments of all kinds.

Fire insurers

      13. An insurer licensed to carry on fire insurance may, subject to its charter and the restrictions, limitations and conditions contained in its licence, insure or reinsure property in which the insured has an insurable interest against loss or damage by fire, lightning or explosion and may insure or reinsure the same property against one or more perils falling within those other classes of insurance that are set out in the Schedule.

 

        4. Section 72 of the Act is repealed.

 

        5. (1) Paragraph 107(b) of the Act is repealed and the following substituted:

             (b)  adding, removing or changing a class of insurance contained in the Schedule;

             (2)  Paragraph 107(c) of the Act is repealed.

             (3)  Paragraph 107(h) of the Act is repealed and the following substituted:

             (h)  extending the provisions of this Act to a class of insurance added to the Schedule under paragraph (b);

 

        6. Section 110 of the Act is repealed and the following substituted:

Reciprocal contracts

   110. It is lawful for a person to exchange with other persons in the province and elsewhere reciprocal contracts of indemnity or inter-insurance for classes of insurance for which an insurance company may be licensed under this Act except life insurance, accident and sickness insurance and surety insurance.

 

        7. The Act is amended by adding immediately after section 130 the following:

Schedule

Definitions

        1. In this Act

             (a)  "accident and sickness insurance" means insurance

                      (i)  against loss resulting from bodily injury to, or the death of, a person caused by an accident,

                     (ii)  under which an insurer undertakes to pay a certain sum or sums of insurance money in the event of bodily injury to, or the death of, a person caused by an accident,

                    (iii)  against loss resulting from the sickness or disability of a person excluding loss resulting from an accident or death,

                    (iv)  under which an insurer undertakes to pay a certain sum or sums of insurance money in the event of the sickness or disability of a person not caused by an accident, or

                     (v)  under which an insurer undertakes to pay insurance money in respect of the health care, including the dental care and the preventive care, of a person;

             (b)  "aircraft insurance" means insurance against

                      (i)  liability arising out of bodily injury to, or the death of, a person, or the loss of, or damage to, property, in each case caused by an aircraft or the use of an aircraft, or

                     (ii)  the loss of, the loss of use of, or damage to, an aircraft;

             (c)  "automobile insurance" means insurance

                      (i)  against liability arising out of bodily injury to, or the death of, a person, or the loss of, or damage to, property, in each case caused by an automobile or the use or operation of an automobile,

                     (ii)  against the loss of, the loss of use of, or damage to, an automobile, or

                    (iii)  that falls within subparagraph (i) or (ii) of the class of accident and sickness insurance, where the accident is caused by an automobile or the use or operation of an automobile, whether or not liability exists in respect of the accident, and the automobile insurance contract includes insurance against liability arising out of bodily injury to, or the death of, a person caused by an automobile or the use or operation of an automobile;

             (d)  "boiler and machinery insurance" means insurance

                      (i)  against liability arising out of bodily injury to, or the death of, a person, or the loss of, or damage to, property, or against the loss of, or damage to, property, in each case caused by the explosion or rupture of, or accident to, pressure vessels of any kind or pipes, engines and machinery connected to or operated by those pressure vessels, or

                     (ii)  against liability arising out of bodily injury to, or the death of, a person, or the loss of, or damage to, property, or against the loss of, or damage to, property, in each case caused by a breakdown of machinery;

             (e)  "credit insurance" means insurance against loss to a person who has granted credit where the loss is the result of the insolvency or default of the person to whom the credit was given;

              (f)  "credit protection insurance" means insurance under which an insurer undertakes to pay off credit balances or debts of an individual, in whole or in part, in the event of an impairment or potential impairment in the individual’s income or ability to earn an income;

             (g)  "fidelity insurance" means

                      (i)  insurance against loss caused by the theft, the abuse of trust or the unfaithful performance of duties by a person in a position of trust, and

                     (ii)  insurance under which an insurer undertakes to guarantee the proper fulfillment of the duties of an office;

             (h)  "hail insurance" means insurance against the loss of, or damage to, crops in the field caused by hail;

              (i)  "legal expenses insurance" means insurance against the costs incurred by a person or persons for legal services specified in the legal expenses insurance policy, including a retainer and fees incurred for the services, and other costs incurred in respect of the provision of the services;

              (j)  "liability insurance" means insurance other than insurance that is incidental to another class of insurance,

                      (i)  against liability arising out of bodily injury to, or the disability or death of, a person, including an employee,

                     (ii)  against liability arising out of the loss of, or damage to, property, or

                    (iii)  where the liability insurance contract includes the insurance described in subparagraph (i), against expenses arising out of bodily injury to a person other than the insured or a member of the insured's family, whether or not liability exists;

             (k)  "life insurance" means

                      (i)  insurance that is payable

                            (A)  on death,

                            (B)  on the happening of an event or contingency dependent on human life,

                            (C)  at a fixed or determinable future time, or

                            (D)  for a term dependent on human life,

and includes

                     (ii)  insurance under which an insurer, as part of a contract of life insurance, undertakes to pay an additional sum of insurance money in the event of the death by accident of the person whose life is insured,

                    (iii)  insurance under which an insurer, as part of a contract of life insurance, 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, and

                    (iv)  an undertaking to provide an annuity, or what would be an annuity except that the periodic payments may be unequal in amount, for a term dependent solely or partly on a human life, and that undertaking shall be considered always to have been life insurance;

              (l)  "mortgage insurance" means insurance against loss caused by default on the part of a borrower under a loan secured by a mortgage or charge on real property or an immovable, a hypothec on an immovable or another interest in real or immovable property;

            (m)  "other approved products insurance" means insurance against risks that do not fall within another class of insurance;

             (n)  "property insurance" means insurance against the loss of, or damage to, property and includes insurance against loss caused by forgery;

             (o)  "surety insurance" means insurance under which an insurer undertakes to guarantee the due performance of a contract or undertaking or the payment of a penalty or indemnity for a default; and

             (p)  "title insurance" means insurance against loss or damage caused by

                      (i)  the existence of a mortgage, charge, lien, encumbrance, servitude or another restriction on real property,

                     (ii)  the existence of a mortgage, charge, lien, pledge, encumbrance or another restriction on personal property,

                    (iii)  a defect in a document that evidences the creation of a restriction referred to in subparagraph (i) or (ii),

                    (iv)  a defect in the title to property, or

                     (v)  another matter affecting the title to property or affecting the right to the use and enjoyment of property.