The Insurance Group at Stikeman Elliott notes the following recent developments on some of the legislative changes, court cases, and regulatory initiatives expected to have a significant impact on the Canadian insurance industry over the next year.
1. Insurance Companies Act (Canada) Part XIII Amendments
- In a letter to the industry dated August 15, OSFI advised that, upon the coming into force of the amendments in January 2009, there would be a rebuttable presumption that all risks reported on the books of a foreign branch at that time have been insured in Canada and will therefore be subject to Part XIII requirements, unless the foreign insurer satisfies OSFI otherwise.
- WEB LINKS:
- The letter is available at this link.
- In September, OSFI also issued an Advisory on the insurance in Canada of risks.
- This was followed shortly thereafter by a Ruling on the same topic in respect of certain types of insurance.
2. Quebec Regulations
- On August 30, the updated "Regulation respecting Information to be Provided to Consumers" came into force
- On the same date, the "Regulation Respecting Titles Similar to the Title of Financial Planner" also came into force
- WEB LINK: both regulations are available on the AMF's website.
3. New AMF Guideline on Transferring a P&C Portfolio Between Brokers
- The AMF has yet to issue either a guideline for the industry or a communication to its employees regarding the transfer of a property & casualty portfolio from one market intermediary to another, although that continues to be the AMF's intention
4. British Columbia Launches Consultation on its Insurance Legislation
- British Columbia's Finance Department continues to review submissions received in response to its consultation paper released this past April on proposed amendments to its Insurance Act
- WEB LINK: the consultation paper is available at this link.
5. Alberta's Insurance Amendment Act, 2007
- Alberta similarly continues to review submissions received in response to Alberta Finance's release in June of Bill 42, Insurance Amendment Act, 2007
- A bill is to be tabled in the Spring 2008 session of the legislature; changes expected to be implemented 6-12 months after bill is passed
6. Amendments to Manitoba's Insurance Act
- Bill 11 was introduced and went through first reading on November 30, 2006, but died on the order paper in April when a provincial election was called for May
- Subsequently, the bill was reintroduced as Bill 7, The Insurance Amendment Act and went to first reading on October 9 and second reading on October 18
- WEBLINK: the full text of the bill is available at this link.
7. OSFI Guideline E-17 - Assessments of Responsible Persons by FREs
- This proposed new guideline was released this past spring in draft form for consultation and industry comment
- WEB LINK: the draft guideline is available on OSFI's website.
8. AML/ATF Regulations
- As part of Bill C-25, new regulations to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) will come into force in June 2008
- WEB LINK: the full text of the amended regulations is available at this link.
9. Supreme Court of Canada's Causation Rulings
- In two companion cases released by the Supreme Court of Canada on October 19, 2007, the Court unanimously reaffirmed the requirement for a clear "unbroken chain" of causation in order to allow recovery in tort cases
- WEB LINKS: the full text of the decisions are available on-line as follows:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.