On September 9, 2009, most of Quebec's new Regulation
under the Act respecting insurance came into force. Replacing
the former Regulation respecting the application of the Act
respecting insurance, which was originally adopted in 1982,
the new regulation implements a number of important regulatory
changes, including simplified disclosure requirements and
harmonization with certain parts of other Canadian provincial
insurance regimes. The key regulatory changes include the following.
Classes of insurance
The definitions of different classes of insurance have been
harmonized with certain other Canadian jurisdictions and now
correspond to the classes agreed in 2002 by the Canadian Council of
Insurance Regulators. (Sections 11 to 28)
Information on application for license
The information to be supplied when applying for an insurance
licence has also been amended. Among other things, insurers must
now include information respecting: (i) the sales methods to be
used; (ii) the training that will be provided to staff; and (iii)
how claim settlement services will be organized. (Section 30)
Market conduct disclosure
Disclosure requirements for commercial practices and conditions
of insurance contracts have been simplified. There are now five
general obligations to which insurers are subject, being: (i)
insurers must accurately disclose their identity and may not use
phrases or identification marks that could cause confusion; (ii) an
"insurance offer" (an undefined term) may not exaggerate
the extent of protection or minimize the associated costs; (iii) an
insurer must specify whether an advertised claim that no prior
medical examination is required applies to the application for
insurance or to the payment of benefits; (iv) coverage limitations
resulting from pre-existing health conditions must be disclosed;
and (v) an insurance offer may not make false claims respecting
special protection or advantages. We understand that the
Autorité des marchés financiers (AMF) will be
publishing guidelines respecting the above obligations in the near
future. (Section 34 to 37)
Permitted subsidiaries of a Quebec-incorporated insurer now
include (among others): (i) firms providing travel, legal and road
assistance when complementary to insurance distribution; (ii)
companies involved in purchasing, managing or leasing real estate;
(iii) firms under the Act respecting the distribution of
financial products and services; and (iv) entities operating
residential and long-term care centres. There are restrictions,
however, on the investments that may be made by subsidiaries.
(Sections 38 to 40)
Trust company powers
The trust company powers of Quebec-incorporated insurers are now
prescribed and an insurer is authorized to act as a trustee for:
(i) registered savings or retirement plans; (ii) investment funds;
and (iii) annuities, if these are administered by the insurer.
The group insurance rules have been substantially revised. The
changes include (i) the expansion of the meaning of
"group" to cover accident and sickness insurance in
addition to life insurance, including coverage of families and
dependants (Sections 59 and 60); (ii) new rules for the conversion
of a group life insurance policy to an individual life insurance
contract (Sections 62 and 93); and (iii) limits for creditor's
group insurance. (Section 79)
The Tariff of fees payable to the AMF and the Ministry has been
updated and consolidated. (Section 88)
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.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
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).