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Copyright 2000: Queen’s Printer,
St. John's, Newfoundland and Labrador, Canada

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Revised Statutes of Newfoundland 1990


CHAPTER A-22

AN ACT RESPECTING AUTOMOBILE INSURANCE

Analysis

1. Short title

2. Definitions

3. Application of Act

4. Forms

5. Persons forbidden to act as agent

6. Copy of application in policy

7. Misrepresentation of conditions

8. Statutory conditions

9. Exceptions respecting statutory conditions

10. Coverage of owner's policy

11. Coverage of non-owner's policy

12. Persons considered not owners

13. Territorial limits

14. Rights of unnamed insured

15. Additional agreements

16. Contamination of property in automobile

17. Exceptions from liability

18. Further exceptions

19. Exemptions from liability

20. Further exemptions from liability

21. Minimum liability under policy

22. Stipulation in policy

23. Excess insurance

24. Agreement for partial payment of claim

25. Nuclear energy contract

26. Advance payments and release

27. Defence where more than 1 contract

28. Application of insurance money under policy

29. Insured to give notice

30. Physical damage cover

31. Partial payment of loss clause

32. Claims to be adjusted

33. Uninsured motorist cover

34. Medical expense coverage

35. Accident benefits

36. Demand for particulars

37. Rights of unnamed insured

38. Occupants of motor vehicles and pedestrians

39. Claim for expenses and benefits

40. Payment into Supreme Court

41. Limitation of action

42. Demand on claimant

43. Terms of certain insurances

44. Other insurance

45. Subrogation

46. Fixing of rates for groups

47. General penalty

48. Power of board

49. Insurer to file rates

50. Prohibition

51. Change in rates

52. Additional details or information

53. Approval of rates

54. Offence and penalty

55. Superintendent sent copy of decisions

56. Report of board

57. General powers of board

58. Application of Public Utilities Act

59. Assessment

60. Regulations


Short title

1. This Act may be cited as the Automobile Insurance Act.

RSN1970 c17 s1

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Definitions

2. In this Act

(a) "automobile" includes a trolley bus and a self-propelled vehicle, and the trailers, accessories and equipment of automobiles, but does not include railway rolling stock that runs on rails or watercraft or aircraft;

(b) "automobile insurance" means insurance

(i) against liability arising out of

(A) bodily injury to or the death of a person, or

(B) loss of or damage to property

caused by an automobile or the use or operation of it, or

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

and includes insurance otherwise coming within the class of accident insurance where the accident is caused by an automobile or the use or operation of it, whether liability exists or not, if the contract also includes insurance described in subparagraph (i);

(c) "board" means the Board of Commissioners of Public Utilities established under the Public Utilities Act;

(d) "contract" means a contract of automobile insurance;

(e) "insured" means a person insured by a contract whether named or not;

(f) "insurer" means a person licensed under the Insurance Companies Act to carry on the business of automobile insurance in the province;

(g) "minister" means the Minister of Justice;

(h) "motor vehicle liability policy" means a policy or part of a policy evidencing a contract insuring

(i) the owner or driver of an automobile, or

(ii) a person who is not the owner or driver of an automobile where the automobile is being used or operated by his or her employee or agent or another person on his or her behalf

against liability 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 it;

(i) "non-owner's policy" means a motor vehicle liability policy insuring a person solely in respect of the use or operation by him or her or on his or her behalf of an automobile that is not owned by him or her;

(j) "owner's policy" means a motor vehicle liability policy insuring a person in respect of the ownership, use or operation of an automobile owned by him or her and within the description or definition of it in the policy and, if the contract so provides, in respect of the use or operation of another automobile;

(k) "policy" means the instrument evidencing a contract;

(l) "rates" means rates, surcharges, premiums or another amount payable by an insured for automobile insurance; and

(m) "superintendent" means the Superintendent of Insurance, or, where there is no superintendent, the official appointed by the Lieutenant-Governor in Council to carry out the duties of the superintendent under this Act.

RSN1970 c17 s2; 1975 No75 s1; 1975-76 No57 s2; 1977 c82 s1; 1987 c41 s3; 1989 c19 Sch B; 1989 c37 s121

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Application of Act

3. (1) This Act applies to contracts providing automobile insurance made or renewed in the province.

(2) This Act does not apply to contracts insuring only against

(a) loss of or damage to an automobile while in or on described premises;

(b) loss of or damage to property carried in or upon an automobile; or

(c) liability for loss of or damage to property carried in or upon an automobile.

(3) This Act does not apply to a contract providing insurance in respect of an automobile not required to be registered under the Highway Traffic Act unless it is insured under a contract evidenced by a form of policy approved under this Act.

(4) This Act does not apply to a contract insuring solely the interest of a person who has a lien upon or has as security legal title to an automobile and who does not have possession of the automobile.

RSN1970 c17 s3

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Forms

4. (1) An insurer shall not use a form of application, policy, endorsement or renewal or continuation certificate in respect of automobile insurance other than a form approved by the superintendent.

(2) An insurer may require additional information in an approved application form, but the additional information does not constitute part of the application for the purpose of section 7.

(3) Where, in the opinion of the superintendent, a provision of this Act, including a statutory condition, is wholly or partly inappropriate to the requirements of a contract or is inapplicable because of the requirements of an Act, he or she may approve a form of policy, or part of it, or endorsement evidencing a contract sufficient or appropriate to insure the risks required or proposed to be insured, and the contract evidenced by the policy or endorsement in the form so approved is effective and binding according to its terms notwithstanding that those terms are inconsistent with, vary, omit or add to a provision or condition of this Act.

(4) Except as to matters mentioned in section 17, the superintendent may, where he or she considers it to be in the public interest, approve a form of motor vehicle liability policy or endorsement to it that extends the insurance beyond that prescribed in this Act.

(5) The superintendent, in granting an approval under subsection (4), may require the insurer to charge an additional premium for the extension and to state that fact in the policy or in an endorsement.

(6) The superintendent may revoke an approval given under this section, and, upon notification of the revocation in writing, an insurer shall not use or deliver a form that contravenes the notification.

(7) The superintendent shall, on request of an interest insurer, specify in writing his or her reasons for granting, refusing or revoking an approval of a form.

(8) An insurer that issues or delivers an owner's policy in the province, or a renewal of it, or evidence of the continuation of the policy, shall issue to the insured a card evidencing the insurance, and the card shall be in a form approved by the superintendent.

RSN1970 c17 s4

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Persons forbidden to act as agent

5. A person carrying on the business of financing the sale or purchase of automobiles and an automobile dealer, insurance agent or broker and an officer or employee of a person, dealer, agent or broker shall not act as the agent of an applicant for the purpose of signing an application for automobile insurance.

RSN1970 c17 s5

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Copy of application in policy

6. (1) A copy of the written application, signed by the insured or his or her agent, or, where no signed application is made, a copy of the purported application or a copy of the part of the application or purported application that is material to the contract, shall be embodied in, endorsed upon or attached to the policy when issued by the insurer.

(2) Where a signed, written application is not received by the insurer prior to the issue of the policy, the insurer shall deliver or mail to the insured named in the policy, or to the agent for delivery or mailing to the insured, a form of application to be completed and signed by the insured and returned to the insurer.

(3) The insurer shall deliver or mail to the insured named in the policy, or to the agent for delivery or mailing to the insured, the policy or a true copy of it and an endorsement or other amendment to the contract.

(4) Where a written application signed by the insured or his or her agent is made for a contract, the policy evidencing the contract shall be considered to be in accordance with the application unless the insurer points out in writing to the insured named in the policy in what respect the policy differs from the application, and, in that event, the insured shall be considered to have accepted the policy unless within 1 week from the receipt of the notification he or she informs the insurer in writing that he or she rejects the policy.

(5) Notwithstanding subsection (3), where an insurer adopts the standard owner's policy, it may, instead of issuing the policy, issue a certificate in a form approved by the superintendent which when issued has the same effect as if it were in fact the standard owner's policy, subject to the limits and coverages shown on it by the insurer and any endorsements issued concurrently or subsequently to it but, at the request of an insured, the insurer shall provide a copy of the standard owner's policy the wording of which shall be as approved by the superintendent.

(6) Where a certificate is issued under subsection (5), then subsection (8) and subsection 31(2) apply with the necessary changes.

(7) Where an insurer issues a certificate under subsection (5), proof of the terms of the policy may be given by production of a copy of the Gazette containing the form of standard owner's policy approved by the superintendent.

(8) Upon an application form and policy, there shall be printed or stamped in conspicuous type a copy of subsection 7(1).

RSN1970 c17 s6; 1975 No75 s3

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Misrepresentation of conditions

7. (1) Where

(a) an application for a contract

(i) gives false particulars of the described automobile to be insured to the prejudice of the insurer, or

(ii) knowingly misrepresents or fails to disclose in the application a fact required to be stated in it;

(b) the insured contravenes a term of the contract or commits a fraud; or

(c) the insured wilfully makes a false statement in respect of a claim under the contract,

a claim by the insured is invalid and the right of the insured to recover indemnity is forfeited.

(2) A statement of the applicant shall not be used in defence of a claim under the contract unless it is contained in the signed written application or, where no signed written application is made, in the purported application, or part of it, that is embodied in, endorsed upon or attached to the policy.

(3) A statement contained in a purported copy of the application, or part of it, other than a statement describing the risk and the extent of the insurance, shall not be used in defence of a claim under the contract unless the insurer proves that the applicant made the statement attributed to him or her in the purported application, or part of it.

RSN1970 c17 s7

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Statutory conditions

8. (1) The conditions set out in this section are statutory conditions and shall be considered to be part of a contract and shall be printed in a policy with the heading "Statutory Conditions".

(2) A variation or omission of or addition to a statutory condition is not binding on the insured.

(3) In this section "policy" does not include an interim receipt or binder.

STATUTORY CONDITIONS

In these statutory conditions, unless the context otherwise requires, the word "insured" means a person insured by this contract whether named or not.

Material Change in Risk

1. (1) The insured named in this contract shall promptly notify the insurer or its local agent in writing of a change in the risk material to the contract and within his or her knowledge.

(2) The words "change in the risk material to the contract" include:

(a) a change in the insurable interest of the insured named in this contract in the automobile by sale, assignment or otherwise, except through change of title by succession, death or proceedings under the Bankruptcy Act (Canada);

and in respect of insurance against loss of or damage to the automobile,

(b) a mortgage, lien or encumbrance affecting the automobile after the application for this contract;

(c) other insurance of the same interest, whether valid or not, covering loss or damage insured by this contract or a portion of it.

Prohibited Use by Insured

2. (1) The insured shall not drive or operate the automobile

(a) unless he or she is either authorized by law or qualified to drive or operate the automobile; or

(b) while his or her licence to drive or operate an automobile is suspended or while his or her right to obtain a licence is suspended or while prohibited under order of a court from driving or operating an automobile; or

(c) while he or she is under the age of 16 years or under the age that is prescribed by the law of the province in which he or she lives at the time the contract is made as being the minimum age at which a licence or permit to drive an automobile may be issued; or

(d) for an illicit or prohibited trade or transportation; or

(e) in a race or speed test.

Prohibited Use by Others

(2) The insured shall not permit or connive at the use of the automobile,

(a) by a person,

(i) unless that person is either authorized by law or qualified to drive or operate the automobile, or

(ii) while that person is under the age of 16 years or under the age that is prescribed by the law of the province in which he or she lives at the time this contract is made as being the minimum age at which a licence or permit to drive an automobile may be issued; or

(b) by a person who is a member of the household of the insured while his or her licence to drive or operate an automobile is suspended or while his or her right to obtain a licence is suspended or while prohibited under order of a court from driving or operating an automobile; or

(c) for an illicit or prohibited trade or transportation; or

(d) in a race or speed test.

Requirements on Damage to Persons or Property

3. (1) The insured shall,

(a) promptly give to the insurer written notice, with all available particulars, of an accident involving loss or damage to persons or property and of a claim made on account of the accident;

(b) verify by statutory declaration, where required by the insurer, that the claim arose out of the use or operation of the automobile and that the person operating or responsible for the operation of the automobile at the time of the accident is a person insured under this contract; and

(c) forward immediately to the insurer letters, documents, advice or writs received by him or her from or on behalf of the claimant.

(2) The insured shall not,

(a) voluntarily assume liability or settle a claim except at his or her own cost; or

(b) interfere in a negotiation for settlement or in a legal proceeding.

(3) The insured shall, where requested by the insurer, help in securing information and evidence and the attendance of a witness and shall cooperate with the insurer, except in a monetary way, in the defence of an action or proceeding or in the prosecution of an appeal.

Requirements Where Loss or Damage to Automobile

4. (1) Where loss of or damage to the automobile occurs, the insured shall, if the loss or damage is covered by this contract,

(a) promptly give written notice of it to the insurer with the fullest information obtainable at the time;

(b) at the expense of the insurer, and where reasonably possible, protect the automobile from further loss or damage; and

(c) deliver to the insurer within 90 days after the date of the loss or damage a statutory declaration stating, to the best of his or her knowledge and belief, the place, time, cause and amount of the loss or damage, the interest of the insured and of all others in it, the encumbrances on it, all other insurance, whether valid or not, covering the automobile and that the loss or damage did not occur through a wilful act or neglect, procurement, means or connivance of the insured.

(2) A further loss or damage accruing to the automobile directly or indirectly from a failure to protect it as required under subcondition (1) is not recoverable under this contract.

(3) Repairs, other than those that are immediately necessary for the protection of the automobile from further loss or damage, shall not be undertaken and no physical evidence of the loss or damage shall be removed,

(a) without the written consent of the insurer; or

(b) until the insurer has had a reasonable time to make the examination for which provision is made in statutory condition 5.

Examination of Insured

(4) The insured shall submit to examination under oath or affirmation, and shall produce for examination at a reasonable place and time designated by the insurer or its representative all documents in his or her possession or control that relate to the matter in question, and he or she shall permit extracts and copies to be made.

Insurer Liable for Cash Value of Automobile

(5) The insurer shall not be liable for more than the actual cash value of the automobile at the time loss or damage occurs, and the loss or damage shall be ascertained or estimated according to that actual cash value with proper deduction for depreciation, however caused, and shall not exceed the amount that it would cost to repair or replace the automobile, or a part of it, with material of the same kind and quality, but, if a part of the automobile is obsolete and out of stock, the liability of the insurer in respect of it shall be limited to the value of that part at the time of loss or damage, not exceeding the maker's latest list price.

Repair or Replacement

(6) Except where an appraisal has been made, the insurer, instead of making payment, may, within a reasonable time, repair, rebuild or replace the property damaged or lost with other of the same kind and quality if, within 7 days after the receipt of the proof of loss, it gives written notice of its intention to do so.

No Abandonment; Salvage

(7) There shall be no abandonment of the automobile to the insurer without the insurer's consent. Where the insurer exercises the option to replace the automobile or pays the actual cash value of the automobile, the salvage shall vest in the insurer.

In Case of Disagreement

(8) In the event of disagreement as to the nature and extent of the repairs and replacements required, or as to their adequacy, if effected, or as to the amount payable in respect of a loss or damage, those questions shall be determined by appraisal as provided under the Insurance Contracts Act before there can be recovery under this contract, whether the right to recover on the contract is disputed or not, and independently of all other questions. There shall be no right to an appraisal until a specific demand is made in writing and until after proof of loss has been delivered.

Inspection of Automobile

5. The insured shall permit the insurer at reasonable times to inspect the automobile and its equipment.

Time and Manner of Payment of Insurance Money

6. (1) The insurer shall pay the insurance money for which it is liable under this contract within 60 days after the proof of loss has been received by it or, where an appraisal is made under subcondition 4(8), within 15 days after the award is made by the appraisers.

When Action May be Brought

(2) The insured shall not bring an action to recover the amount of a claim under this contract unless the requirements of statutory conditions 3 and 4 are complied with or until the amount of the loss has been ascertained as provided or by a judgment against the insured after trial of the issue or by agreement between the parties with the written consent of the insurer.

Limitations of Actions

(3) An action or proceeding under this contract against the insurer in respect of a claim for indemnification for liability to the insured for loss or damage to property of another person or for personal injury to or death of another person shall be started within 2 years after the liability of the insured is established by a court and not afterwards. All other actions or proceedings against the insurer, under this contract, in respect of loss or damage to the automobile shall be started within 2 years from the time the loss or damage was sustained and not afterwards.

Who May Give Notice and Proofs of Claim

7. Notice of claim may be given and proofs of claim may be made by the agent of the insured named in this contract in case of absence or inability of the insured to give the notice or make the proof, that absence or inability being satisfactorily accounted for or if the insured refuses to do so, by a person to whom a part of the insurance money is payable.

Termination

8. (1) This contract may be terminated,

(a) by the insurer giving to the insured 15 days' notice of termination by registered mail or 5 days' written notice of termination personally delivered;

(b) by the insured on request.

(2) Where this contract is terminated by the insurer,

(a) the insurer shall refund the excess of premium actually paid by the insured over the proportional premium of the expired time, but in no event shall the premium for the expired time be considered to be less than a minimum retained premium specified; and

(b) the refund shall accompany the notice unless the premium is subject to adjustment or determination as to the amount, in which case the refund shall be made as soon as practicable.

(3) Where this contract is terminated by the insured, the insurer shall refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium for the expired time, but in no event shall the short rate premium for the expired time be considered to be less than a minimum retained premium specified.

(4) The refund may be made by money, postal or express company money order or cheque payable at par.

(5) The 15 days mentioned in paragraph (1)(a) starts to run on the day following the receipt of the registered letter at the post office to which it is addressed.

Notice

9. (1) A written notice to the insurer may be delivered at, or sent by registered mail to, the chief agency or head office of the insurer in the province.

(2) Written notice may be given to the insured named in this contract by letter personally delivered to him or her or by registered mail addressed to him or her at the latest post office address.

(3) In this condition, the expression "registered" means registered in or outside Canada.

RSN1970 c17 s8; 1971 No74 s2; 1974 No10 s2;
1974 No111 s2; 1975 No31 s5; 1975-76 No57 s2; 1978 c60 s1; 1982 c60 ss1&2

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Exceptions respecting statutory conditions

9. (1) Except as otherwise provided in the contract, the statutory conditions set out in section 8 do not apply to insurance coming within section 33, 34 or 35.

(2) Where a contract does not insure against liability for loss or damage to persons and property, statutory condition 3 is not a part of the policy and may be omitted from the printing of the conditions in the policy.

(3) Where a contract does not insure against loss of or damage to the automobile, statutory condition 4 is not a part of the policy and may be omitted from the printing of the conditions in the policy.

RSN1970 c17 s9; 1978 c35 s2

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Coverage of owner's policy

10. (1) A contract evidenced by an owner's policy insures the person named in it and other persons who with his or her consent personally drive an automobile owned by the insured named in the contract and within the description or definition of it in the contract against liability imposed by law upon the insured named in the contract or those other persons for loss or damage,

(a) arising from the ownership, use or operation of the automobile; and

(b) resulting from bodily injury to or the death of a person and damage to property.

(2) Where the contract evidenced by an owner's policy also provides insurance against liability in respect of an automobile not owned by the insured named in the contract, an insurer may stipulate in the contract that the insurance is restricted to the persons specified in the contract.

(3) Where the insured named in an owner's policy dies, the following persons shall be considered to be the insured under the policy:

(a) the spouse of the deceased insured if living in the same dwelling premises at the time of death; and

(b) in respect of the described automobile, a newly-acquired automobile that was acquired by the deceased insured prior to death and a temporary substitute automobile, all as defined by the policy,

(i) a person having proper temporary custody of it until grant of probate or administration to the personal representative of the deceased insured,

(ii) the personal representative of the deceased insured.

RSN1970 c17 s10

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Coverage of non-owner's policy

11. A contract evidenced by a non-owner's policy insures the person named in it and another person specified in the policy against liability imposed by law upon the insured named in the contract or that other person for loss or damage,

(a) arising from the use or operation of an automobile within the definition of it in the policy, other than an automobile owned by him or her or registered in his or her name; and

(b) resulting from bodily injury to or the death of a person, and damage to property.

RSN1970 c17 s11

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Persons considered not owners

12. A person shall not be considered to be the owner of an automobile for the reason only that he or she has a lien on the automobile or has legal title to the automobile as security.

RSN1970 c17 s12

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Territorial limits

13. Insurance under sections 10 and 11 applies to the ownership, use or operation of the insured automobile within Canada and the United States of America and upon a vessel plying between ports of those countries.

RSN1970 c17 s13

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Rights of unnamed insured

14. A person insured by but not named in a contract to which section 10 or 11 applies may recover indemnity in the same manner and to the same extent as if named in it as the insured, and for that purpose shall be considered to be a party to the contract and to have given consideration for it.

RSN1970 c17 s14

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Additional agreements

15. A contract evidenced by a motor vehicle liability policy shall provide that, where a person insured by the contract is involved in an accident resulting from the ownership, use or operation of an automobile in respect of which insurance is provided under the contract and resulting in loss or damage to persons or property, the insurer shall

(a) upon receipt of notice of loss or damage caused to persons or property, make investigations, conduct negotiations with the claimant and effect settlements of resulting claims that are considered expedient by the insurer;

(b) defend in the name and on the behalf of the insured and at the cost of the insurer a civil action that is brought against the insured on account of loss or damage to persons or property;

(c) pay all costs taxed against the insured in a civil action defended by the insurer and interest accruing after entry of judgment upon that part of the judgment that is within the limits of the insurer's liability; and

(d) where the injury is to a person, reimburse the insured for outlay for medical aid that is immediately necessary at the time.

RSN1970 c17 s15

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Contamination of property in automobile

16. Liability arising from contamination of property carried in an automobile shall not be considered to be liability arising from the ownership, use or operation of the automobile.

1971 No74 s3

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Exceptions from liability

17. The insurer is not liable under a contract evidenced by a motor vehicle liability policy for liability

(a) imposed by a worker's compensation law upon a person insured by the contract;

(b) resulting from bodily injury to or the death of an employee of a person insured by the contract while engaged in the operation or repair of the automobile.

RSN1970 c17 s16; 1982 c33 s4

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Further exceptions

18. The insurer may provide under a contract evidenced by a motor vehicle liability policy that it shall not be liable

(a) to indemnify a person engaged in the business of selling, repairing, maintaining, servicing, storing or parking automobiles for loss or damage sustained while engaged in the use or operation of or while working upon the automobile in the course of that business unless the person is the owner of the automobile or is his or her employee; or

(b) for loss of or damage to property carried in or upon the automobile or to property owned or rented by or in the care, custody or control of the insured.

RSN1970 c17 s17

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Exemptions from liability

19. Subject to the limitations and exclusions of the endorsement, the insurer may provide by endorsement to a contract evidenced by a motor vehicle liability policy that it shall not be liable for loss or damage resulting from the ownership, use or operation of machinery or apparatus, including its equipment, mounted on or attached to the automobile while the automobile is at the site of the use or operation of that machinery or apparatus.

1974 No111 s3

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Further exemptions from liability

20. (1) The insurer may provide under a contract evidenced by a motor vehicle liability policy that it shall not be liable while

(a) the automobile is rented or leased to another person;

(b) the automobile is used to carry explosives or to carry radioactive material for research, education, development or industrial purposes or for incidental purposes;

(c) the automobile is used as a taxi-cab, public omnibus, livery, jitney or sightseeing conveyance or for carrying passengers for compensation or hire;

(d) where the insured vehicle is an automobile, other than a trailer, it is used for towing a trailer owned by the insured unless the same indemnity is also provided by the insurer in respect of the trailer; or

(e) where the insured vehicle is a trailer, it is towed by an automobile owned by the insured unless the same indemnity is also provided by the insurer in respect of the automobile.

(2) In paragraph (1)(b), "radioactive material" means

(a) spent nuclear fuel rods that have been exposed to radiation in a nuclear reactor;

(b) radioactive waste material;

(c) unused enriched nuclear fuel rods; or

(d) other radioactive material of a quantity and quality that would be harmful to persons or property if its container were destroyed or damaged.

(3) Paragraph (1)(a) does not include the use by an employee of his or her automobile on the business of his or her employer and for which he or she is paid.

(4) Paragraph (1)(c) does not include

(a) the use by a person of his or her automobile for the carrying of another person in return for the former's being carried in the automobile of the latter;

(b) the occasional and infrequent use by a person of his or her automobile for the carrying of another person who shares the cost of the trip;

(c) the occasional and infrequent use by the insured of his or her automobile for the transportation of children to or from school or school activities conducted within the educational program;

(d) the use by a person of his or her automobile for the carrying of a temporary or permanent domestic servant of the insured or his or her spouse; or

(e) the use by a person of his or her automobile for the carrying of a client or customer or a prospective client or customer.

RSN1970 c17 s19; 1971 No74 s4

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Minimum liability under policy

21. (1) A contract evidenced by a motor vehicle liability policy insures, in respect of an accident, to the limit of $200,000, exclusive of interest and costs, against liability resulting from bodily injury to or the death of 1 or more persons and loss of or damage to property.

(2) The contract shall be interpreted to mean that where because of an accident liability results from bodily injury or death and from loss of or damage to property,

(a) claims against the insured arising out of bodily injury or death have priority to the extent of $180,000 over claims arising out of loss of or damage to property; and

(b) claims against the insured arising out of loss of or damage to property have priority to the extent of $20,000 over claims arising out of bodily injury or death.

(3) The insurer may, instead of specifying a limit in the policy for an inclusive amount, specify a limit of liability of at least $200,000, exclusive of interest and costs, against liability resulting from bodily injury to or the death of 1 or more persons and a limit of liability of at least $200,000, exclusive of interest and costs, against liability for loss of or damage to property.

(4) Nothing in this Act precludes an insurer, with respect to a limit in excess of those specified in subsection (1) or (3), from increasing or reducing the limit specified in the contract with respect to the use or operation of the automobile by a named person, but no reduction is effective for a limit less than that required under subsection (1) or (3).

(5) The Lieutenant-Governor in Council may by order amend the limits set out in subsections (1), (2) and (3), and references in the Highway Traffic Act to limits set out in subsections (1), (2) and (3) shall be read in light of these amendments.

1982 c31 s1

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Stipulation in policy

22. (1) A motor vehicle liability policy issued in the province shall provide that, in the case of liability arising out of the ownership, use or operation of the automobile in a province or territory of Canada,

(a) the insurer shall be liable up to the minimum limits prescribed for that province or territory where those limits are higher than the limits prescribed by the policy;

(b) the insurer shall not set up a defence to a claim that might not be set up if the policy were a motor vehicle liability policy issued in that province or territory; and

(c) the insured, by acceptance of the policy, constitutes and appoints the insurer his or her irrevocable attorney to appear and defend in a province or territory of Canada in which an action is brought against the insured arising out of the ownership, use or operation of the automobile.

(2) A provision in a motor vehicle liability policy in accordance with paragraph (1)(c) is binding on the insured.

RSN1970 c17 s21

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Excess insurance

23. (1) Nothing in this Act precludes an insurer from providing insurance under a contract evidenced by a motor vehicle liability policy restricted to a limit in excess of that provided by another designated contract evidenced by a motor vehicle liability policy, whether the designated contract is a first loss insurance or an excess insurance.

(2) Where the contract designated in the excess contract terminates or is terminated, the excess contract is also automatically terminated.

RSN1970 c17 s22

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Agreement for partial payment of claim

24. Nothing in this Act precludes an insurer from entering into an agreement with its insured under a contract evidenced by a motor vehicle liability policy providing that the insured will reimburse the insurer in an agreed amount in respect of a claim by or judgment in favour of a 3rd party against the insured, and the agreement may be enforced against the insured according to its meaning.

RSN1970 c17 s23

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Nuclear energy contract

25. (1) In this section, "nuclear energy hazard" means the radioactive, toxic, explosive or other hazardous properties of prescribed substances under the Atomic Energy Control Act (Canada).

(2) Where an insured is covered, whether named or not, under a contract evidenced by a motor vehicle liability policy for loss or damage resulting from bodily injury to or the death of a person or damage to property arising directly or indirectly out of a nuclear energy hazard and is also covered, whether named or not, against the loss or damage under a contract evidenced by a policy of nuclear energy hazard liability insurance issued by a group of insurers and in force at the time of the event giving rise to the loss or damage,

(a) the motor vehicle liability insurance is excess to the nuclear energy hazard liability insurance, and the insurer under the contract of motor vehicle liability insurance is not liable to pay beyond the minimum limit provided by section 21; and

(b) the unnamed insured under the contract of nuclear energy liability insurance may, in respect of the loss or damage, recover indemnity under that contract in the same manner and to the same extent as if named in it as the insured, and for that purpose he or she shall be considered to be a party to the contract and to have given consideration for it.

(3) For the purpose of this section, a contract of nuclear energy hazard liability insurance shall be considered to be in force at the time of the event giving rise to the loss or damage, notwithstanding that the limits of liability under it have been exhausted.

RSN1970 c17 s24; 1973 No108 s3; 1982 c31 s2

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Advance payments and release

26. (1) Where an insurer makes a payment on behalf of an insured under a contract evidenced by a motor vehicle liability policy to a person who is or alleges to be entitled to recover from the insured covered by the policy, the payment constitutes, to the extent of the payment, a release by the person or his or her personal representative of a claim that the person or his or her personal representative or a person claiming through or under him or her or under the Fatal Accidents Act may have against the insured and the insurer.

(2) Nothing in this section precludes the insurer making the payment from demanding, as a condition precedent to the payment, a release from the person or his or her personal representative or another person to the extent of the payment.

(3) Where the person starts an action, the court shall adjudicate upon the matter first without reference to the payment but in giving judgment the payment shall be taken into account and the person shall only be entitled to judgment for the net amount.

(4) The intention of this section is to permit payments to a claimant without prejudice to the defendant or his or her insurer, either as an admission of liability or otherwise, and the fact of a payment shall not be disclosed to the judge or jury until after judgment but before formal entry of the judgment.

1971 No74 s5

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Defence where more than 1 contract

27. (1) Where a person is insured under more than 1 contract evidenced by a motor vehicle liability policy, whether the insurance is first loss insurance or excess, and a question arises under paragraph 15(b) between an insurer and the insured or between the insurers as to which insurer shall undertake the obligation to defend in the name and on behalf of the insured, whether or not an insurer denies liability under its contract, the insured or an insurer may apply to the Trial Division, and the court shall give the directions that may appear appropriate with respect to the performance of the obligation.

(2) On an application under subsection (1), the only parties entitled to notice of it and to be heard are the insured and his or her insurers, and no material or evidence used or taken upon an application is admissible upon the trial of an action brought against the insured for loss or damage to persons or property arising out of the use or operation of the automobile in respect of which the insurance is provided.

(3) An order under subsection (1) does not affect the rights and obligations of the insurers in respect of payment of an indemnity under their respective policies.

(4) Where indemnity is provided to the insured under 2 or more contracts and 1 or more of them is excess insurance, the insurers shall, as between themselves, contribute to payment of expenses, costs and reimbursement for which provision is made in section 15 in accordance with their respective liabilities for damages awarded against the insured.

RSN1970 c17 s25

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Application of insurance money under policy

28. (1) A person who has a claim against an insured for which indemnity is provided by a contract evidenced by a motor vehicle liability policy, notwithstanding that the person is not a party to the contract, may, upon recovering a judgment for it in a province or territory of Canada against the insured, have the insurance money payable under the contract applied in or towards satisfaction of the judgment and of other judgments or claims against the insured covered by the contract and may, on behalf of himself or herself and persons having those judgments or claims, maintain an action against the insurer to have the insurance money so applied.

(2) An action shall not be brought against an insurer under subsection (1) after the expiration of 1 year from the final determination of the action against the insured, including appeals.

(3) A creditor of the insured is not entitled to share in the insurance money payable under a contract unless his or her claim is one for which indemnity is provided for by that contract.

(4) The right of a person who is entitled under subsection (1) to have insurance money applied upon his or her judgment or claim is not prejudiced by

(a) an assignment, waiver, surrender, cancellation or discharge of the contract, or of an interest in it or of the proceeds, made by the insured after the happening of the event giving rise to a claim under the contract;

(b) an act or default of the insured before or after that event in contravention of this Act or of the terms of the contract; or

(c) a contravention of the Criminal Code (Canada) or a statute of a province or territory of Canada or of a state or the District of Columbia of the United States of America by the owner or driver of the automobile,

and nothing mentioned in paragraph (a), (b) or (c) is available to the insurer as a defence in an action brought under subsection (1).

(5) It is not a defence to an action under this section that an instrument issued as a motor vehicle liability policy by a person engaged in the business of an insurer and alleged by a party to the action to be the policy is not a motor vehicle liability policy, and this section applies with the necessary changes to the instrument.

(6) The insurer may require other insurers liable to indemnify the insured in whole or in part in respect of judgments or claims to which reference is made in subsection (1) to be made parties to the action and contribute according to their respective liabilities, whether the contribution is rateably or by way of first loss or excess insurance, and the insured shall on demand provide the insurer with particulars of other insurance covering the subject-matter of the contract.

(7) Where a person has recovered a judgment against the insured and is entitled to bring action under subsection (1), and the insurer admits liability to pay the insurance money under the contract and the insurer considers that

(a) there are or may be other claimants; or

(b) there is no person capable of giving and authorized to give a valid discharge for payment who is willing to do so,

the insurer may apply to the court without giving notice to other parties for an order for payment of the money into court, and the court may, upon the notice that it thinks necessary, make an order accordingly.

(8) The receipt of the appropriate officer of the court is sufficient discharge to the insurer for the insurance money paid into court under subsection (7), and the insurance money shall be dealt with as the court may order upon application of an interested person.

(9) Notwithstanding anything contained in the contract to the contrary, a contract evidenced by a motor vehicle liability policy shall, for the purpose of this section, be considered to provide all the types of coverage mentioned in section 20, but the insurer is not liable to a claimant with respect to the coverage in excess of the limit provided by section 21.

(10) Where 1 or more contracts provide for coverage of a type mentioned in section 18 or 19, except as provided in subsection (12), the insurer may,

(a) with respect to that type of coverage; and

(b) as against a claimant,

avail itself of a defence that it is entitled to set up against the insured, notwithstanding subsection (4).

(11) Where 1 or more contracts provide for coverage in excess of the limit provided by section 21, except as provided in subsection (12), the insurer may

(a) with respect to the coverage in excess of those limits; and

(b) as against a claimant,

avail itself of a defence that it is entitled to set up against the insured, notwithstanding subsection (4).

(12) Where a contract provides coverage of a type mentioned in paragraph 19(a) in respect of an automobile operated in the business of carrying passengers for compensation or hire and insured for that purpose, the insurer may

(a) with respect to that type of coverage; and

(b) as against a claimant,

only avail itself of a defence that it is entitled to set up against the insured in respect of that part of the coverage that exceeds

(c) the limit provided by section 21; or

(d) the minimum limits required for that type of coverage under another Act,

whichever is greater.

(13) The insured shall reimburse the insurer upon demand in the amount that the insurer has paid because of this section and that it would not otherwise be liable to pay.

(14) Where an insurer denies liability under a contract evidenced by a motor vehicle liability policy, it shall, upon application to the court, be made a 3rd party in an action to which the insured is a party and in which a claim is made against the insured by a party to the action in which it is or might be asserted that indemnity is provided by the contract, whether or not the insured enters an appearance or defence in the action.

(15) Upon being made a 3rd party, the insurer may

(a) contest the liability of the insured to a party claiming against the insured;

(b) contest the amount of a claim made against the insured;

(c) deliver pleadings in respect of the claim of a party claiming against the insured;

(d) have production and discovery from a party adverse interest; and

(e) examine and cross-examine witnesses at the trial,

to the same extent as if it were a defendant in the action.

(16) An insurer may avail itself of subsection (15) notwithstanding that another insurer is defending in the name and on behalf of the insured an action to which its insured is a party.

RSN1970 c17 s26; 1973 No108 s4; 1982 c31 s3; 1982 c60 s3

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Insured to give notice

29. (1) An insured against whom an action is started for damages occasioned by an automobile shall give written notice of it to the insurer within 5 days after service of a notice or process in the action.

(2) An insured against whom an action is started for damages occasioned by an automobile shall upon recovery of a judgment against the insured disclose to a judgment creditor entitled to the benefit of a motor vehicle liability policy particulars of the contract within 10 days after written demand for it.

RSN1970 c17 s27

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Physical damage cover

30. The insurer may provide in a contract the exclusions and limitations, in respect of loss of or damage to or the loss of use of the automobile, that it considers necessary.

RSN1970 c17 s28

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Partial payment of loss clause

31. (1) A contract or part of a contract providing insurance against loss of or damage to an automobile and the loss of use of it may contain a clause to the effect that, in the event of loss, the insurer shall pay only

(a) an agreed portion of a loss that may be sustained; or

(b) the amount of the loss after deduction of a sum specified in the policy,

and in either case not exceeding the amount of the insurance.

(2) Where a clause is inserted in accordance with subsection (1), there shall be printed or stamped upon the face of the policy in conspicuous type the words: "This policy contains a partial payment of loss clause.".

RSN1970 c17 s29

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Claims to be adjusted

32. (1) Where a claim is made under a contract other than a contract evidenced by a motor vehicle liability policy, the insurer shall, notwithstanding an agreement, adjust the amount of the claim with the insured named in the contract as well as with a person having an interest indicated in the contract.

(2) Where notice is given or proof of loss is made by a person other than the insured, because the insured cannot be located or neglects or refuses or is unable to give notice and make claim under statutory conditions 4 and 7, the insurer may, notwithstanding subsection (1) but not earlier than 60 days from delivery of the proof required under paragraph (1)(c) of statutory condition 4, adjust and pay the claim to the other person having an interest indicated in the contract.

RSN1970 c17 s30

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Uninsured motorist cover

33. (1) Where an insurer provides in a contract insurance against loss resulting from bodily injury to or the death of a person insured arising out of an accident involving an automobile where

(a) there is legal liability of another person for the injury or death; and

(b) the other person has no insurance against his or her liability or that person cannot be identified,

that insurance applies only in respect of

(c) a person who sustains bodily injury or death while driving, being carried in or upon or entering or getting on to or alighting from the described automobile in respect of which insurance of the class mentioned in subparagraph 2(b)(i) is provided under the contract; and

(d) the insured named in the contract and his or her spouse and a dependent relative living in the same dwelling premises as the insured named in the contract who sustains bodily injury or death while driving, being carried in or upon or entering or getting on to or alighting from or as a result of being struck by another automobile that is defined in the contract for the purposes of that insurance.

(2) The insurance mentioned in subsection (1) does not apply in respect of a person specified in the contract who has a right of recovery under Part V of the Highway Traffic Act or the Judgment Recovery Newfoundland Limited Act, or similar legislation of another province or territory of Canada or of a state or the District of Columbia of the United States of America.

RSN1970 c17 s31

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Medical expense coverage

34. (1) Where in a contract an insurer provides insurance against expenses for medical, surgical, dental, ambulance, hospital, professional nursing or funeral services, the insurance applies only in respect of reasonable expenses

(a) of or insured for a person who sustains bodily injury or death while driving or being carried in or upon or entering or getting on to or alighting from or, if not the occupant of another automobile, as a result of being struck by an automobile owned by the insured named in the contract in respect of which insurance of the class mentioned in subparagraph 2(b)(i) is provided under the contract; and

(b) of the insured named in the contract and his or her spouse and a dependent relative living in the same dwelling premises as the insured named in the contract who sustains bodily injury or death while driving or being carried in or upon or entering or getting on to or alighting from or as a result of being struck by another automobile that is defined in the contract for the purposes of that insurance.

(2) Where an insurer makes a payment under a contract of insurance referred to in subsection (1), the payment constitutes, to the extent of the payment, a release by the insured person or his or her personal representatives or a claim that the insured person or his or her personal representatives or a person claiming through or under him or under the Fatal Accidents Act may have against the insurer and another person who may be liable to the insured person or his or her personal representatives if that other person is insured under a contract of the same type as is specified in subsection (1), but nothing in this subsection precludes an insurer from demanding, as a condition precedent to payment, a release to the extent of the payment from the person insured or his or her personal representative or another person.

(3) The insurance mentioned in paragraph (1)(a) is a first loss insurance, and another automobile insurance of the same type available to the injured person or in respect of a deceased person is excess insurance only.

(4) The insurance mentioned in paragraph (1)(a) is excess insurance to another insurance not being automobile insurance of the same type indemnifying the injured person or in respect of a deceased person for the expenses.

(5) The insurance mentioned in paragraph (1)(b) is excess insurance to other insurance indemnifying the injured person or in respect of a deceased person for the expenses.

RSN1970 c17 s32

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Accident benefits

35. (1) Where in a contract an insurer provides accident insurance benefits in respect of the death of or injury to an insured person arising out of an accident involving an automobile, the insurance applies only in respect of

(a) a person who sustains bodily injury or death while driving or being carried in or upon or entering or getting on to or alighting from or, if not the occupant of another automobile, as a result of being struck by an automobile owned by the insured named in the contract in respect of which insurance of the class mentioned in subparagraph 2(b)(i) is provided under the contract; and

(b) the insured named in the contract and his or her spouse and a dependent relative living in the same dwelling premises as the named insured who sustains bodily injury or death while driving or being carried in or upon or entering or getting on to or alighting from or as a result of being struck by another automobile that is defined in the policy for the purposes of the insurance.

(2) Where an insurer makes a payment under a contract of insurance to which subsection (1) refers, the payment constitutes, to the extent of the payment, a release by the insured person or his or her personal representatives of a claim that the insured person or his or her personal representatives or a person claiming through or under him or her or under the Fatal Accidents Act may have against the insurer and another person who may be liable to the insured person or his or her personal representatives if that other person is insured under a contract of the same type as is specified in subsection (1), but nothing in this subsection precludes an insurer from demanding, as a condition precedent to payment, a release to the extent of the payment from the person insured or his or her personal representatives or another person.

(3) The insurance mentioned in paragraph (1)(a) is a first loss insurance, and other automobile insurance of the same type available to the injured person or in respect of a deceased person is excess insurance only.

(4) The insurance mentioned in paragraph (1)(b) is excess insurance over other automobile insurance of the same type available to the injured person or in respect of a deceased person.

(5) Notwithstanding subsections (3) and (4), where a person is entitled to benefits under more than 1 contract providing insurance of the type mentioned in this section, the person or his or her personal representative or a person claiming through or under him or her or under the Fatal Accidents Act may recover only an amount equal to

(a) 1 benefit, if the benefits under the contracts are of the same limit; or

(b) the highest benefit, if the benefits under the contracts are not of the same limit.

RSN1970 c17 s33

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Demand for particulars

36. (1) Where a person is injured or killed in an accident in the province involving an automobile, that person or his or her personal representative may serve

(a) a demand by registered mail on the owner of the automobile; or

(b) a demand by registered mail on the insurer of the owner of the automobile,

requiring the owner or insurer to state in writing to the person making the demand whether or not that owner has insurance of the type mentioned in section 34 or 35 and, where the demand is made under paragraph (a), requiring the owner, if he or she has insurance, to state the name of the insurer.

(2) An owner or insurer who does not, within 10 days after receiving a demand made under subsection (1), comply with the demand is guilty of an offence.

RSN1970 c17 s34

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Rights of unnamed insured

37. A person insured by but not named in a contract to which section 33, 34 or 35 applies may recover under the contract in the same manner and to the same extent as if named in it as the insured, and for that purpose shall be considered to be a party to the contract and to have given consideration for it.

RSN1970 c17 s35; 1971 No74 s6

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Occupants of motor vehicles and pedestrians

38. (1) Where a person entitled to benefits provided by insurance under section 34 or 35

(a) is an occupant of a motor vehicle involved in an accident, the insurer of the owner of the motor vehicle shall, in the first instance, be liable for payment of the benefits provided by the insurance; or

(b) is a pedestrian and is struck by a motor vehicle, the insurer of the owner of that motor vehicle shall, in the first instance, be liable for the payment of the benefits provided by the insurance.

(2) Nothing in this section shall affect the operation of subsections 34(2) to (5) and 35(2) to (5).

1971 No74 s7

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Claim for expenses and benefits

39. Where a person entitled to benefits provided by insurance under section 34 or 35, instead of claiming the benefits, claims for the expenses referred to in section 34 or the benefits referred to in section 35 against a person, the person forfeits his or her claim for the insurance benefits provided in the sections.

1971 No74 s7

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Payment into Supreme Court

40. (1) Where an insurer admits liability for insurance money payable under section 33, 34 or 35 and it appears that

(a) there are adverse claimants;

(b) the whereabouts of an insured person entitled is unknown; or

(c) there is no person capable of giving and authorized to give a valid discharge who is willing to do so,

the insurer may, after 30 days after the date upon which the insurance money becomes payable, apply to the court without giving notice to other parties for an order for payment of the money into the Trial Division, and the court may upon the notice that it thinks necessary make an order accordingly.

(2) The receipt of the appropriate officer of the court is sufficient discharge to the insurer for the insurance money paid into the Trial Division, and the insurance money shall be dealt with as the court orders.

RSN1970 c17 s36; 1986 c42 Sch A

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Limitation of action

41. An action or proceeding against an insurer under a contract in respect of insurance provided under section 33, 34 or 35 shall be started within the limitation period specified in the contract, but in no event shall the limitation period be less than 1 year after the happening of the accident.

RSN1970 c17 s37

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Demand on claimant

42. Where a person makes a claim for damages in respect of bodily injury or death sustained by the person or another person while driving or being carried in or upon or entering or getting on to or alighting from or as a result of being stuck by an automobile, he or she shall, where required by the person against whom the claim is made or by someone acting on his or her behalf, provide to or for that person full particulars of all insurance available to the claimant under contracts falling within the scope of section 34 or 35, and of payments of insurance money made or to be made under it.

RSN1970 c17 s38

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Terms of certain insurances

43. An insurer may in a policy,

(a) provide insurance that is less extensive in scope than the insurance mentioned in section 33, 34 or 35; and

(b) provide the terms of the contract that relate to the insurance mentioned in section 33, 34 or 35.

RSN1970 c17 s39

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Other insurance

44. (1) Insurance under a contract evidenced by a valid owner's policy of the kind mentioned in paragraph 2(j) is, in respect of liability arising from or occurring in connection with the ownership, use or operation of an automobile owned by the insured named in the contract and within the description or definition in the policy, a first loss insurance, and insurance attaching under another valid motor vehicle liability policy is excess insurance only.

(2) Where the insured named in a contract has or places another valid insurance, whether against liability for the ownership, use or operation of, or against loss of or damage to an automobile or otherwise, of his or her interest in the subject-matter of the contract or a part of it, the insurer is liable only for its rateable proportion of liability, expense, loss or damage.

(3) "Rateable proportion" used in subsection (2) means

(a) where there are 2 insurers liable and each has the same policy limits, that each of the insurers shall be liable to share equally in liability, expense, loss or damage;

(b) where there are 2 insurers liable with different policy limits, that the insurers shall be liable to share equally up to the limit of the smaller policy limit; and

(c) where there are more than 2 insurers liable, paragraphs (a) and (b) shall apply with the necessary changes.

RSN1970 c17 s40; 1971 No74 s8

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Subrogation

45. (1) An insurer who makes a payment or assumes liability for a payment under a contract is subrogated to all rights of recovery of the insured against a person and may bring action in the name of the insured to enforce those rights.

(2) Where the net amount recovered whether by action or on settlement is, after deduction of the costs of the recovery, not sufficient to provide complete indemnity for the loss or damage suffered, the amount remaining shall be divided between the insurer and the insured in the proportion in which the loss or damage has been borne by them.

(3) Where the interest of an insured in a recovery is limited to the amount provided under a clause in the contract to which section 31 applies, the insurer shall have control of the action.

(4) Where the interest of an insured in a recovery exceeds that referred to in subsection (3) and the insured and the insurer cannot agree as to

(a) the solicitors to be instructed to bring the action in the name of the insured;

(b) the conduct and carrying of the action or matters pertaining to it;

(c) an offer of settlement or the apportionment of it, whether action has been started or not;

(d) the acceptance of money paid into court or the apportionment of the money;

(e) the apportionment of costs; or

(f) the launching or prosecution of an appeal,

either party may apply to the Trial Division for the determination of the matters in question, and the court shall make the order that it considers reasonable having regard to the interest of the insured and the insurer in a recovery in the action or proposed action or in an offer of settlement.

(5) On an application under subsection (4), the only parties entitled to notice and to be heard on it are the insured and the insurer, and no material or evidence used or taken upon the application is admissible upon the trial of an action brought by or against the insured or the insurer.

(6) A settlement or release given before or after an action is brought does not bar the rights of the insured or the insurer unless they have concurred.

RSN1970 c17 s41; 1986 c42 Sch A

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Fixing of rates for groups

46. (1) An insurer shall not fix or make a rate or schedule of rates or charge a rate for automobile insurance to a group of persons because of the members of that group

(a) being engaged in a trade, calling, profession or occupation;

(b) being members of a guild, union, society, club or association;

(c) being engaged in common employment; or

(d) enjoying common occupancy of the same building or group of buildings,

or where for another reason the fixing or making of a rate or schedule or the charging of a rate for automobile insurance would result in a lower cost for automobile insurance for the members of the group than those members would have to pay if they entered into contracts separately.

(2) Nothing in this Act prohibits the fixing or charging of a special rate for the insurance of 2 or more vehicles owned by and registered in the name of the same person, except where the owner is engaged in the business of leasing the vehicles and the vehicles are the subject of a leasing agreement for a period in excess of 30 days.

(3) Nothing in this section prohibits the fixing or charging of a special rate for the insurance of 2 or more vehicles of a lessor that are rented to the same lessee.

RSN1970 c17 s42

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General penalty

47. (1) A person who contravenes this Act or the requirements of obligations imposed on him or her under this Act is guilty of an offence and liable on summary conviction to a fine not exceeding $200.

(2) The conviction of a person in accordance with subsection (1) or in accordance with another section of this Act does not operate as a bar to further prosecution for the continued contravention on the part of the person in accordance with subsection (1) or another section of this Act.

RSN1970 c17 s43

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Power of board

48. The board has the general supervision of the rates an insurer charges or proposes to charge for automobile insurance.

1977 c82 s2

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Insurer to file rates

49. (1) An insurer shall file with the board the rates it proposes to charge for automobile insurance.

(2) The board shall, within 60 days from the filing of the rates, approve, prohibit or vary the rates filed under subsection (1).

1977 c82 s2

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Prohibition

50. An insurer shall not charge rates that have not been approved or considered to have been approved by the board under this Act.

1977 c82 s2

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Change in rates

51. Where an insurer wishes to make a change with respect to the rates approved under this Act, the insurer may make an application to the board for the approval of the change and the board by order may approve, prohibit or vary the change.

1977 c82 s2

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Additional details or information

52. Where the board is not satisfied that an insurer has filed all the matters necessary under sections 49, 50 and 51, or requires additional details or information, the board may, by order directed to the insurer, require the additional details or information.

1977 c82 s2

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Approval of rates

53. (1) Notwithstanding subsection 49(2), where the board does not, within 60 days of the filing of rates as required by section 49 or within 60 days of the receipt of an application for change in rates under section 51, approve or prohibit in whole or in part or vary the rates filed or the change in rates, the proposed rates shall be considered to have been approved.

(2) Where the rates filed as required by section 49, or the application for a change in rates under section 51, have been approved or considered to have been approved under subsection (1), the board may investigate the rates charged by the insurer and, notwithstanding approval of those rates or that they are considered to have been approved, may order the insurer to make the changes the board considers appropriate.

1977 c82 s2

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Offence and penalty

54. (1) An insurer who fails to comply with sections 49 to 53 or the regulations is guilty of an offence and is liable on summary conviction to a fine of not more than $5,000.

(2) Where an insurer is convicted of an offence under sections 49 to 53 or the regulations the minister may suspend or cancel the licence of the insurer.

1977 c82 s2

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Superintendent sent copy of decisions

55. The board shall forward to the superintendent a copy of all decisions or orders made under sections 49 to 60.

1977 c82 s2

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Report of board

56. (1) The board shall forward to the minister by March 1 in each year an annual report on the operation of the board under this Act for the preceding calendar year.

(2) The minister shall lay the report before the House of Assembly within 15 days after he or she receives it or, if the House of Assembly is not then sitting, within the 1st 15 days that the House of Assembly is sitting.

1977 c82 s2

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General powers of board

57. 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 when acting under this Act.

1977 c82 s2; 1989 c37 s121

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Application of Public Utilities Act

58. The provisions of the Public Utilities Act relating to investigations generally, appeals and stated cases shall apply to and in respect of the board or commissioners of the board when acting under this Act or the regulations.

1977 c82 s2; 1989 c37 s121

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Assessment

59. The board shall, with the approval of the minister, levy an assessment on insurers in the same manner as if the insurers were public utilities under section 13 of the Public Utilities Act.

1977 c82 s2; 1989 c37 s121

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Regulations

60. (1) The Lieutenant-Governor in Council may make regulations

(a) prescribing the basic rating groups, classes and other things that are necessary to the establishment of minimal requirements for a common rating structure that all insurers will be required to observe in the development of rates;

(b) respecting rate reductions in the case of automobiles owned by the same person;

(c) permitting insurers in the case of special risks, as defined by the regulations, to charge rates that have not been approved;

(d) respecting the filing of rates or an application for a change in rates by a rating bureau, as defined by the regulations, on behalf of 1 or more insurers;

(e) prescribing the manner of gathering statistics and other information;

(f) prescribing the exclusions, restrictions, terms and conditions with respect to a motor vehicle liability policy referred to in section 21; and

(g) for the better administration of section 21 and sections 49 to 60;

(h) generally, to give effect to the purpose of this Act.

(2) A regulation made under paragraph (1)(d) does not relieve an insurer on whose behalf a rating bureau is acting for a failure by the insurer to comply with sections 49 to 60.

1977 c82 s2; 1983 c23 s4

©Earl G. Tucker, Queen's Printer