16

 


 

Third Session, 46th General Assembly

59 Elizabeth II, 2010

BILL 16

AN ACT TO AMEND THE INSURANCE COMPANIES ACT

Received and Read the First Time...................................................................................................

Second Reading.................................................................................................................................

Committee............................................................................................................................................

Third Reading.....................................................................................................................................

Royal Assent......................................................................................................................................

HONOURABLE KEVIN O'BRIEN

Minister of Government Services

Ordered to be printed by the Honourable House of Assembly

 

EXPLANATORY NOTES

This Bill would amend the Insurance Companies Act

ˇ         to authorize the Lieutenant-Governor in Council to make regulations respecting the underwriting, rating and market conduct practices of property and casualty insurance companies;

ˇ         to add a provision to clarify that an insurer shall not decline to issue, refuse to renew or terminate a contract or refuse to provide or continue coverage on a ground prescribed in the regulations; and

ˇ         to add a provision to clarify that an insurer shall not use a ground in a risk classification system that is prohibited in the regulations.

A BILL

AN ACT TO AMEND THE INSURANCE COMPANIES ACT

Analysis


        1.   Ss.95.1 to 95.3 Added
95.1  Application
95.2  Prohibited practices
95.3 Prohibited grounds

        2.   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. The Insurance Companies Act is amended by adding immediately after section 95 the following:

Application

   95.1 Sections 95.2 and 95.3 apply to all classes of insurance except automobile insurance.

Prohibited practices

   95.2 An insurer shall not decline to issue, refuse to renew or terminate a contract or refuse to provide or continue coverage or an endorsement in respect of a contract on a ground prescribed in the regulations.

Prohibited grounds

   95.3 An insurer shall not use a ground in its risk classification system that is prohibited in the regulations.

 

        2. Section 107 of the Act is amended by adding immediately after paragraph (e.1) the following:

          (e.2)  prescribing the grounds an insurer is prohibited from using under section 95.2 to decline to issue, to refuse to renew or to terminate a contract or to refuse to provide or continue coverage or an endorsement in respect of a contract;

          (e.3)  prescribing the grounds an insurer is prohibited from using under section 95.3 in a risk classification system;

          (e.4)  for the purpose of paragraph (e.2) or (e.3), prescribing different prohibited grounds for different classes of insurance;

 ŠEarl G. Tucker, Queen's Printer