The Saskatchewan Minister of Justice and Attorney General has
introduced Bill 177 which will implement new legislation, The
Insurance Act, and repeal The Saskatchewan Insurance
Act.1 Bill 177 was read by the legislative assembly
of Saskatchewan for the first time on December 4, 2014. The
proposed Act is very similar to Alberta's insurance
legislation. If Bill 177 passes the next two readings and receives
Royal Assent, it will come into force on proclamation.
The proposed Act is comprised of 11 parts: 1) Preliminary
Matters; 2) Licensing of Insurers; 3) Provincial Companies; 4)
Fraternal Societies; 5) Insurance Intermediaries and Insurance
Councils; 6) Unsolicited Insurance, Reinsurance and Special
Brokers; 7) Market Conduct; 8) Contracts of Insurance; 9)
Inspections, Investigations, Enforcement and Administration; 10)
General Provisions; and 11) Repeal, Consequential Amendments,
Transitional and Coming into Force.
There are newly expanded definitions. Of note, a person is
"carrying on the business of insurance" if the person
"solicits, negotiates, provides, promotes, advertises,
markets, sells or distributes any contract of insurance by any
means that cause communication from the insurer or the
insurer's agents or representatives to reach a person in
The proposed Act includes significant changes to address market
conduct and unfair practices. By way of example, insurers and
intermediates are prohibited from tied selling practices and from
inducing prospective insurance customers through direct or indirect
payments, allowances or gifts. If an insurer, insurance
intermediary or adjuster is notified of a loss and recommends a
service to the insured, they must advise the insured in writing
that the insured may choose any service provider. Insurers must
give written notice to claimants as to the limitation periods
applicable to their claims within a prescribed notice period.
Another aspect of Bill 177 that constitutes an important change
is the addition of insurance compliance self-evaluative audits. The
self-evaluative provisions are very similar to provisions currently
existing in the Alberta insurance legislation. An insurer must
conduct a self-evaluative audit when it is requested by the
Superintendent. The self-evaluative audit is privileged and will
not be admissible in a civil or administrative proceeding unless
privilege is expressly waived by the insurer.
If Bill 177 is passed by the legislative assembly of
Saskatchewan there are transitional provisions that address the
implementation of The Insurance Act. Investigations,
actions, proceedings and orders under the former Act will be
continued under The Insurance Act. Licenses issued under
the former Act will continue on the same terms and conditions until
expired, amended, cancelled or renewed under The Insurance
1 Bill 177, An Act respecting Insurance and Insurers and
making consequential amendments to other Acts and regulations,
4th Sess, 27th Leg, Saskatchewan, 2014 (first reading 4 December
2014) [Bill 177].
The foregoing provides only an overview and does not
constitute legal advice. Readers are cautioned against making any
decisions based on this material alone. Rather, specific legal
advice should be obtained.
Under B.C.'s former and current Limitation Act, the limitation period for a Plaintiff's claim can be extended on the basis of a Defendant having acknowledged in writing some liability for the cause of action.
Automobile drivers, like fine wine, tend to get better with age. Older drivers can draw on a wealth of experience from their years on the road to assist them when faced by a variety of dangerous conditions.
The insurance industry will be interested in Ledcor Construction Ltd v. Northbridge Indemnity Insurance Co because of principles the Supreme Court of Canada applied to the "faulty workmanship" exclusion in a Builders' Risk policy.
For the first time in BC, a Court has decided that an insured is entitled to special costs, rather than the lower tariff costs, solely because they were successful in a coverage action against their insurer.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).