There have a been a number of recent amendments to the various
provincial insurance regulatory regimes, including changes
concerning interest rates on instalment payments, operational risk
management guidelines, and the Life Insurance Capital Adequacy
Test, to name a few. To help you stay on top of what you need to
know, set out below is a summary of the most recent amendments,
province by province.
Amendments to Regulation 664 of the Insurance Act R.R.O.
The following amendments have been made:
Changes to the maximum interest rate chargeable by the insurer
for instalment payments.
Insurers are now prohibited from taking into consideration a
minor accident that occurred on or after June 1st 2016 in deciding
whether to issue, renew or terminate any contract of automobile
insurance or to provide or continue any coverage, except in certain
circumstances, unless the automobile covered was involved in more
than one minor accident in the previous three years and the driver
was at fault.
Consultation on the Operational Risk Management Guideline
(published by the AMF on May 26th, 2016)
The Operational Risk Management Guideline is intended for
insurers of persons (life and health), damage insurers, portfolio
management companies controlled by an insurer, financial services
cooperatives as well as trust and savings companies, which are
governed by the following Acts:
An Act respecting insurance, CQLR, c. A-32;
An Act respecting financial services cooperatives, CQLR, c.
An Act respecting trust companies and savings companies, CQLR,
This guideline covers the interpretation, execution and
application of the financial institutions' legal requirement to
follow sound and prudent management practices. The consultation
will end on July 15th, 2016 and will come into effect on October
Intervention Guidelines For Quebec-Chartered P&C
Insurers and PACICC Member Companies (published by the AMF on April
The intervention guidelines will help stakeholders in
understanding the actions and measures that can be implemented,
either by the AMF or the Property and Casualty Insurance
Compensation Corporation, when a Quebec-chartered P&C insurer
and PACICC member company experiences difficulties that may
jeopardize its ability to meet its commitments to its
policyholders, claimants and other beneficiaries. The guidelines
came into effect on April 30, 2016.
Notice of Intent to Adopt Guideline: Life Insurance Capital
Adequacy Test (LICAT) (published by FIC on April 4th,
Section 8.1 of the Capital Requirements Regulation of the
Financial Institutions Act of British Columbia states, in part,
that the minimum adequate capital base of a life insurance company
is determined in accordance with the MCCSR Guideline as
established, published, and amended from time to time by OSFI. This
section would be amended with a reference to the LICAT.
Amendment to Automobile Insurance Contract Mandatory
Conditions Limitation Period
On April 13th, 2016, the government has changed the regulation
to effect a change in the limitation of civil claim caused by an
automobile injury from three years to two years making it
consistent with the Limitation of Actions Act.
The prospect of an internal investigation raises many thorny issues. This presentation will canvass some of the potential triggering events, and discuss how to structure an investigation, retain forensic assistance and manage the inevitable ethical issues that will arise.
From the boardroom to the shop floor, effective organizations recognize the value of having a diverse workplace. This presentation will explore effective strategies to promote diversity, defeat bias and encourage a broader community outlook.
Staying local but going global presents its challenges. Gowling WLG lawyers offer an international roundtable on doing business in the U.K., France, Germany, China and Russia. This three-hour session will videoconference in lawyers from around the world to discuss business and intellectual property hurdles.
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.
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