Insurance Act

Deposited with Clerk of the Legislative Assembly on June 21, 2012

111685340/1886088271/799179867

E3tlc12037

Interpretation, Application of Act and Introductory Provisions

Definitions and

interpretation

In this Act:

business authorization means a business authorization under the Financial Institutions Act ;

contract means a contract of insurance and includes a policy, certificate, interim receipt, renewal receipt or writing evidencing the contract, whether sealed or not, and a binding oral agreement;

corporation includes any incorporated company, association or society, wherever incorporated;

insurance means the undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed, or to pay a sum of money or other thing of value on the happening of a certain event;

insurance money means the amount payable by an insurer under a contract, and includes all benefits, surplus, profits, dividends, bonuses and annuities payable under the contract;

insurer means the person who undertakes, agrees or offers to undertake, a contract;

licence means a licence under Division 2 of

Part 6 of the Financial Institutions Act ;

mutual company has the same meaning as "mutual fire insurance company" in the Mutual Fire Insurance Companies Act ;

officer includes any director, manager, treasurer or secretary of an insurer, and any other member of the managing body of an insurer by whatever name called;

person includes corporation, unincorporated society or association, partnership, any group of underwriters and a Lloyd's association;

policy means the instrument evidencing a contract;

premium means the single or periodical payment under a contract for the insurance, and includes dues, assessments and other consideration;

property includes profits, earnings and other pecuniary interests, and expenditure for rents, interest, taxes and other outgoings and charges, and in respect of inability to occupy the insured premises, but only to the extent of express provision in the contract;

superintendent means the Superintendent of Financial Institutions under the Financial Institutions Act .

Application to contracts

This Act, except as provided under an enactment, applies to every contract of insurance made or deemed made in British Columbia.

This Act does not apply to or in respect of

a contract of marine insurance within the meaning of the Marine Insurance Act (Canada), or

vehicle insurance as defined in the Insurance (Vehicle) Act .

Contract must be consistent with Act

An insurer must not make a contract that is inconsistent with this Act.

A contract is not rendered void or voidable as against an insured, or a beneficiary or other person to whom insurance money is payable under the contract, by reason of a failure of the insurer to comply with a provision of this Act.

Liability of continuing insurer

If an insurer, in this

section called the "continuing insurer", and another insurer, in this

section called the "retiring insurer", enter into an agreement in anticipation of the retiring insurer ceasing to do business in British Columbia and the continuing insurer assuming liability under contracts of insurance issued by the retiring insurer and specified in the agreement, and the retiring insurer ceases to carry on business in British Columbia, an insured or other person entitled to rights under those contracts may enforce the rights against the continuing insurer as though those contracts had been issued by the continuing insurer.

Effect on contracts of violation of law

Unless a contract otherwise provides, a violation of a criminal or other law in force in British Columbia or elsewhere does not render unenforceable a claim for indemnity under the contract unless the violation is committed by the insured, or by another person with the consent of the insured, with intent to bring about loss or damage, except that in the case of a contract of life insurance this

section applies only to insurance payable under the contract in the event the person whose life is insured becomes disabled as a result of bodily injury or disease.

Application of Limitation Act

Sections 18 to 20, 25 and 26 of the Limitation Act apply to a limitation period established under this Act in respect of an action or proceeding on a contract as if the limitation period were established under the Limitation Act .

A limitation period established under this Act in respect of an action or proceeding on a contract may be varied by a contract to provide a longer period.

Electronic communications

If under this Act a record is required or permitted to be provided to a person personally, by mail or by any other means, unless regulations referred to in subsection (4) of this

section or under

section 149 (2) (

f) provide otherwise, the record may be provided to the person in electronic form in accordance with the Electronic Transactions Act .

Despite

section 2 (4) (

a) and (

b) of the Electronic Transactions Act , in this section, record includes a contract or declaration that designates the insured, the insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable.

If a record is provided in electronic form under this section,

the record is deemed to have been provided by registered mail, and

a period of time that, under this Act, starts to run when that record, or notification of it, is delivered to the addressee's postal address starts to run when the record is deemed received in accordance with the Electronic Transactions Act .

The Electronic Transactions Act and subsection (1) of this

section do not apply to a record, or in relation to a provision, under this Act that is excluded from their application by regulation.

General Insurance Provisions

Application of this Part

This Part applies to every contract except

subject to

section 38, a contract of life insurance,

subject to

section 93, a contract of accident and sickness insurance,

a contract of reinsurance, and

subject to regulations under

section 140, a contract to which

Part 5 applies.

Contracts deemed to be made in British Columbia

A contract is deemed to have been made in British Columbia and must be construed accordingly if it

insures a person domiciled or resident in British Columbia at the date of it, or

has as its subject matter property or an interest in property located in British Columbia.

Gaming or wagering contracts voided

A contract by way of gaming or wagering is void.

A contract is deemed to be a gaming or wagering contract if the insured has no interest in the subject matter of the contract.

Contents of policy

A policy must contain all of the following:

the name of the insurer;

the name of the insured;

the name of the person to whom the insurance money is payable;

the amount, or the method of determining the amount, of the premium for the insurance;

the subject matter of the insurance;

the indemnity for which the insurer may become liable;

the event on the happening of which the liability is to accrue;

the date the insurance takes effect;

the date the insurance terminates or the method by which that date is established;

the following statement:

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act .

This

section does not apply to a contract of fidelity insurance or surety insurance.

Dispute resolution

In this section, representative means a dispute resolution representative appointed under subsection (4).

This

section applies to disputes between an insurer and an insured about a matter that under Statutory Condition 11 set out in

section 29, or another condition of the contract, must be determined using this dispute resolution process.

Either the insured or the insurer may demand in writing the other's participation in a dispute resolution process after proof of loss has been delivered to the insurer.

Within 7 days after receiving or giving a demand under subsection (3), the insured and the insurer must each appoint a dispute resolution representative and, within 15 days after their appointment, the 2 representatives must appoint an umpire.

A person may not be appointed as a representative if the person is

the insured or the insurer, or

an employee of the insured or the insurer.

The representatives must

determine the matters in dispute by agreement, and

if they fail to agree, submit their differences to the umpire,

and the written determination of any 2 of them determines the matters.

Each party to the dispute resolution process must pay the representative whom the party appointed, and each party must bear equally the expense of the dispute resolution process and the umpire.

a party to a dispute resolution process fails to appoint a representative in accordance with subsection (4), or

a representative fails or refuses to act or is incapable of acting and the party that appointed that representative has not appointed another representative within 7 days after the failure, refusal or incapacity,

on application of the insurer or insured, on 2 days' notice to the other, the Supreme Court may appoint a representative.

On an application under subsection (8), the court may award special costs against the person whose representative is appointed by the court, whether or not that person appeared on the application.

the representatives fail to appoint an umpire in accordance with subsection (4), or

the umpire fails or refuses to act or is incapable of acting,

either representative may make an application to the superintendent for the appointment of an umpire, containing

the names of 3 persons the applicant believes are capable of performing the functions of the umpire, and

the credentials of the 3 persons.

Before making an application under subsection (10), the applicant must give notice in writing to the other representative of the intention to make the application, which notice must contain the names and credentials the applicant is submitting to the superintendent under subsection (10).

An application under subsection (10) must be accompanied by a copy of the notice, and the date it was given, under subsection (11).

Within 15 days after receiving a notice under subsection (11), the other representative may provide to the superintendent and the applicant

the names of 3 persons the representative believes are capable of performing the functions of the umpire, and

the credentials of the 3 persons.

The superintendent must appoint an umpire from the names provided under subsection (10) or (13) as soon as practicable after the earlier of the following occurs:

the superintendent receives names and credentials under subsection (13);

the period for providing names and credentials under subsection (13) expires.

Court may relieve against forfeiture and termination

Without limiting

section 24 of the Law and Equity Act , if

there has been

imperfect compliance with a statutory condition as to the proof of loss to be given by the insured or another matter or thing required to be done or omitted by the insured with respect to the loss, and

a consequent forfeiture or avoidance of the insurance in whole or in part, or

there has been a termination of the policy by a notice that was not received by the insured because of the insured's absence from the address to which the notice was addressed,

and the court considers it inequitable that the insurance should be forfeited or avoided on that ground or terminated, the court, on terms it considers just, may

relieve against the forfeiture or avoidance, or

if the application for relief is made within 90 days of the date of the mailing of the notice of termination, relieve against the termination.

Waiver and estoppel

The obligation of an insured to comply with a requirement under a contract is excused to the extent that

the insurer has given notice in writing that the insured's compliance with the requirement is excused in whole or in part, subject to the terms specified in the notice, if any, or

the insurer's conduct reasonably causes the insured to believe that the insured's compliance with the requirement is excused in whole or in part, and the insured acts on that belief to the insured's detriment.

Neither the insurer nor the insured is deemed to have waived any term or condition of a contract by reason only of

the insurer's or insured's participation in a dispute resolution process under

section 12,

the delivery and completion of a proof of loss, or

the investigation or adjustment of any claim under the contract.

Policy in accordance with terms of application

After an application or proposal for insurance is made by an insured, any policy issued or coverage provided by the insurer is deemed, for the benefit of the insured, to be in accordance with the terms of the application or proposal, unless the insurer immediately gives notice to the insured in writing of the particulars in which the policy or coverage differs from the application or proposal, in which case the insured, within 2 weeks after receiving the notice, may reject the policy.

Effect of terms of contract not set out in policy

Each term and condition of a contract must be set out in full in the policy or in writing securely attached to it when it is issued and, unless so set out, is not valid or admissible in evidence to the prejudice of the insured or a person to whom insurance money is payable under the contract.

This

section does not apply to an alteration of the contract agreed on in writing between the insurer and the insured after the issue of the policy.

Misrepresentation and nondisclosure

A contract is not rendered void or voidable by reason of any misrepresentation, or any failure to disclose on the part of the insured in the application or proposal for the insurance or otherwise, unless the misrepresentation or failure to disclose is material to the contract.

The question of materiality is one of fact.

Effect of delivery of policy or premium receipt

If a policy or a receipt for the premium under a contract is delivered to the insured by the insurer or its agent, the insurer is bound by the contract, even though

the delivery may have been made by the agent without authority, or

the premium may not in fact have been paid.

Payment of refund to assignee

If an insured assigns the right to refund of premium that may accrue by reason of the cancellation or termination of a contract of insurance under the terms of it and notice of the assignment is given by the assignee to the insurer, the insurer must pay any refund to the assignee, despite any condition in the contract, whether prescribed under this Act or not, requiring the refund to be paid to the insured or to accompany any notice of cancellation or termination to the insured.

If the condition in the contract dealing with cancellation or termination by the insurer provides that the refund must accompany the notice of cancellation or termination, the insurer must include in the notice a statement that in place of payment of the refund in accordance with the condition the refund is being paid to the assignee under this section.

Effect of unpaid cheque or note for premium

If a cheque, bill of exchange or promissory note is given, whether originally or by way of renewal, for the whole or part of any premium, and the cheque, bill of exchange or promissory note is not honoured according to its tenor, the insurer may terminate the contract

in accordance with a statutory condition or other condition of the contract, or

if there is no relevant statutory condition or other condition of the contract, by giving notice by registered mail.

This

section does not apply to a mutual company.

Collecting unpaid premiums

An insurer may sue for the unpaid premium, and may deduct the amount of it from the amount for which the insurer is liable under the contract of insurance.

This

section does not apply to a mutual company.

Claims payable in Canadian money and in British Columbia

All money payable under a contract by an insurer must be paid in lawful money of Canada and, if the person entitled to it requires, in British Columbia.

Limitation of actions

An action or proceeding against an insurer in relation to a contract must be commenced,

in the case of loss or damage to insured property, not later than 2 years after the date the insured knew or ought to have known the loss or damage occurred, and

in any other case, not later than 2 years after the date the cause of action against the insurer arose.

An action must not be brought for the recovery of money payable under a contract of insurance until the expiration of 60 days after proof, in accordance with the contract

of the loss, or

of the happening of the event on which the insurance money is to become payable,

or of such shorter period as may be set by the contract of insurance.

Payment by insurer into court

If an insurer cannot obtain a sufficient discharge for insurance money for which it admits liability, the insurer may apply to the court without notice to any person for an order for the payment of it into court, and the court may order the payment into court to be made on terms as to costs and otherwise the court directs, and may provide to what fund or name the amount must be credited.

The receipt of the registrar or other proper officer of the court is a sufficient discharge to the insurer for the insurance money paid into court, and the insurance money must be dealt with according to the orders of the court.

Third person right of action against insurer

If a judgment has been granted against a person in respect of a liability against which the person is insured and the judgment has not been satisfied, the judgment creditor may recover by action against the insurer the lesser of

the unpaid amount of the judgment, and

the amount that the insurer would have been liable under the policy to pay to the insured had the insured satisfied the judgment.

The claim of a judgment creditor against an insurer under subsection (1) is subject to the same equities as would apply in favour of the insurer had the judgment been satisfied by the insured.

Insurer to furnish copy of application and policy

On request, the insurer must furnish to the insured a copy of

the insured's application or proposal for insurance, and

the insured's policy.

An insurer may charge a reasonable fee to cover its expenses in furnishing copies of a policy other than the first copy.

Insurer to furnish forms

Immediately on receipt of a request, and in any event no later than 60 days after receiving a notice of loss, an insurer must furnish to the insured or person to whom insurance money is payable forms on which the proof of loss required under the contract may be made.

If an insurer does not comply with subsection (1),

section 23 (2) is not available to the insurer as a defence to an action brought for the recovery of insurance money payable under the contract.

If, within 30 days after a notice of loss is given, the insurer has adjusted the loss acceptably to the person to whom the insurance money is payable, the insurer need not comply with subsection (1).

An insurer, by reason only that the insurer furnishes forms on which to make the proof of loss, must not be taken to have admitted that a valid contract is in force or that the loss in question falls within the insurance provided by the contract.

Cancellation by insurer

If a loss under a contract has, with the consent of the insurer, been made payable to a person other than the insured, the insurer must not cancel or alter the contract to the prejudice of that person without notice to that person.

The length of notice and manner of giving the notice under subsection (1) must be the same as for a notice of cancellation given to the insured under the contract.

Statutory conditions

Subject to subsections (2) and (3), the conditions set out in this

section are deemed to be part of every contract, and must be printed on every policy under the heading "Statutory Conditions", and no variation or omission of or addition to a statutory condition is binding on the insured.

This

section does not apply to contracts of surety insurance or a class of insurance prescribed by regulation.

Statutory Conditions 1 and 6 to 13 apply only to, and need only be printed on, contracts that include insurance against loss or damage to property.

In this section, "policy" does not include an interim receipt or binder.

STATUTORY CONDITIONS

Misrepresentation

If a person applying for insurance falsely describes the property to the prejudice of the insurer, or misrepresents or fraudulently omits to communicate any circumstance that is material to be made known to the insurer in order to enable it to judge the risk to be undertaken, the contract is void as to any property in relation to which the misrepresentation or omission is material.

Property of others

The insurer is not liable for loss or damage to property owned by a person other than the insured unless

(

a) otherwise specifically stated in the contract, or

(

b) the interest of the insured in that property is stated in the contract.

Change of interest

The insurer is liable for loss or damage occurring after an authorized assignment under the Bankruptcy and Insolvency Act (Canada) or a change of title by succession, by operation of law or by death.

Material change in risk

(1) The insured must promptly give notice in writing to the insurer or its agent of a change that is

(

a) material to the risk, and

(

b) within the control and knowledge of the insured.

(2) If an insurer or its agent is not promptly notified of a change under subparagraph (1) of this condition, the contract is void as to the part affected by the change.

(3) If an insurer or its agent is notified of a change under subparagraph (1) of this condition, the insurer may

(

a) terminate the contract in accordance with Statutory Condition 5, or

(

b) notify the insured in writing that, if the insured desires the contract to continue in force, the insured must, within 15 days after receipt of the notice, pay to the insurer an additional premium specified in the notice.

(4) If the insured fails to pay an additional premium when required to do so under subparagraph (3) (

b) of this condition, the contract is terminated at that time and Statutory Condition 5 (2) (

a) applies in respect of the unearned portion of the premium.

Termination of insurance

(1) The contract may be terminated

(

a) by the insurer giving to the insured 15 days' notice of termination by registered mail or 5 days' written notice of termination personally delivered, or

(

b) by the insured at any time on request.

(2) If the contract is terminated by the insurer,

(

a) the insurer must refund the excess of premium actually paid by the insured over the prorated premium for the expired time, but in no event may the prorated premium for the expired time be less than any minimum retained premium specified in the contract, and

(

b) the refund must accompany the notice unless the premium is subject to adjustment or determination as to amount, in which case the refund must be made as soon as practicable.

(3) If the contract is terminated by the insured, the insurer must refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium for the expired time specified in the contract, but in no event may the short rate premium for the expired time be less than any minimum retained premium specified in the contract.

(4) The 15 day period referred to in subparagraph (1) (

a) of this condition starts to run on the day the registered letter or notification of it is delivered to the insured's postal address.

Requirements after loss

(1) On the happening of any loss of or damage to insured property, the insured must, if the loss or damage is covered by the contract, in addition to observing the requirements of Statutory Condition 9,

(

a) immediately give notice in writing to the insurer,

(

b) deliver as soon as practicable to the insurer a proof of loss in respect of the loss or damage to the insured property verified by statutory declaration,

(

i) giving a complete inventory of that property and showing in detail quantities and cost of that property and particulars of the amount of loss claimed,

(ii)

stating when and how the loss occurred, and if caused by fire or explosion due to ignition, how the fire or explosion originated, so far as the insured knows or believes,

(iii)

stating that the loss did not occur through any wilful act or neglect or the procurement, means or connivance of the insured,

(iv)

stating the amount of other insurances and the names of other insurers,

(

v) stating the interest of the insured and of all others in that property with particulars of all liens, encumbrances and other charges on that property,

(vi)

stating any changes in title, use, occupation, location, possession or exposure of the property since the contract was issued, and

(vii)

stating the place where the insured property was at the time of loss,

(

c) if required by the insurer, give a complete inventory of undamaged property showing in detail quantities and cost of that property, and

(

d) if required by the insurer and if practicable,

(

i) produce books of account and inventory lists,

(ii)

furnish invoices and other vouchers verified by statutory declaration, and

(iii)

furnish a copy of the written portion of any other relevant contract.

(2) The evidence given, produced or furnished under subparagraph (1) (

c) and (

d) of this condition must not be considered proofs of loss within the meaning of Statutory Conditions 12 and 13.

Fraud

Any fraud or wilfully false statement in a statutory declaration in relation to the particulars required under Statutory Condition 6 invalidates the claim of the person who made the declaration.

Who may give notice and proof

Notice of loss under Statutory Condition 6 (1) (

a) may be given and the proof of loss under Statutory Condition 6 (1) (

b) may be made

(

a) by the agent of the insured, if

(

i) the insured is absent or unable to give the notice or make the proof, and

(ii)

the absence or inability is satisfactorily accounted for, or

(

b) by a person to whom any part of the insurance money is payable, if the insured refuses to do so or in the circumstances described in clause (

a) of this condition.

Salvage

(1) In the event of loss or damage to insured property, the insured must take all reasonable steps to prevent further loss or damage to that property and to prevent loss or damage to other property insured under the contract, including, if necessary, removing the property to prevent loss or damage or further loss or damage to the property.

(2) The insurer must contribute on a prorated basis towards any reasonable and proper expenses in connection with steps taken by the insured under subparagraph (1) of this condition.

Entry, control, abandonment

After loss or damage to insured property, the insurer has

(

a) an immediate right of access and entry by accredited representatives sufficient to enable them to survey and examine the property, and to make an estimate of the loss or damage, and

(

b) after the insured has secured the property, a further right of access and entry by accredited representatives sufficient to enable them to appraise or estimate the loss or damage, but

(

i) without the insured's consent, the insurer is not entitled to the control or possession of the insured property, and

(ii)

without the insurer's consent, there can be no abandonment to it of the insured property.

In case of disagreement

(1) In the event of disagreement as to the value of the insured property, the value of the property saved, the nature and extent of the repairs or replacements required or, if made, their adequacy, or the amount of the loss or damage, those questions must be determined using the applicable dispute resolution process set out in the Insurance Act , whether or not the insured's right to recover under the contract is disputed, and independently of all other questions.

(2) There is no right to a dispute resolution process under this condition until

(

a) a specific demand is made for it in writing, and

(

b) the proof of loss has been delivered to the insurer.

When loss payable

Unless the contract provides for a shorter period, the loss is payable within 60 days after the proof of loss is completed in accordance with Statutory Condition 6 and delivered to the insurer.

Repair or replacement

(1) Unless a dispute resolution process has been initiated, the insurer, instead of making payment, may repair, rebuild or replace the insured property lost or damaged, on giving written notice of its intention to do so within 30 days after receiving the proof of loss.

(2) If the insurer gives notice under subparagraph (1) of this condition, the insurer must begin to repair, rebuild or replace the property within 45 days after receiving the proof of loss, and must proceed with all due diligence to complete the work within a reasonable time.

Notice

(1) Written notice to the insurer may be delivered at, or sent by registered mail to, the chief agency or head office of the insurer in the province.

(2) Written notice to the insured may be personally delivered at, or sent by registered mail addressed to, the insured's last known address as provided to the insurer by the insured.

Proportionate contributions

If, on the happening of loss or damage, there is in force more than one contract covering the loss or damage, the insurers under the respective contracts are each liable to the insured for their rateable proportion of the loss, unless it is otherwise expressly agreed in writing between the insurers.

For the purpose of subsection (1), a contract is deemed to be in force despite any term or condition of it that the contract does not cover the loss or damage or attach, come into force or become insurance with respect to the loss or damage until after full or partial payment of any loss under any other contract.

Nothing in subsection (1) affects

the validity of any divisions of the amount of insurance into separate items,

the limits of insurance on specified property,

a clause referred to in

section 31, or

a contract condition limiting or prohibiting the having or placing of other insurance.

Nothing in subsection (1) affects the operation of a deductible clause, and

if one contract contains a deductible clause, the prorated proportion of the insurer under that contract must be first ascertained without regard to the clause, and then the clause must be applied only to affect the amount of recovery under that contract, and

if more than one contract contains a deductible clause, the prorated proportions of the insurers under those contracts must be first ascertained without regard to the deductible clauses, and then the highest deductible must be prorated among the insurers with deductibles, and these prorated amounts affect the amount of recovery under those contracts.

Nothing in subsection (4) is to be construed to have the effect of increasing the prorated contribution of an insurer under a contract that is not subject to a deductible clause.

Despite subsection (1), insurance on identified articles is a first loss insurance as against all other insurance.

Limitation of liability clause

A contract containing

a deductible clause,

a co-insurance, average or similar clause, or

a conditional or unconditional clause limiting recovery by the insured to a specified percentage of the value of any property insured at the time of loss,

must have printed or stamped on its first page in conspicuous bold type the words "This policy contains a clause which may limit the amount payable" and, unless these words are so printed or stamped, the clause is not binding on the insured.

Unjust contract provisions

If a contract contains any term or condition, other than an exclusion prescribed by regulation for the purposes of

section 33 (1) or established by

section 34 (2) or (3), that is or may be material to the risk, including, but not restricted to, a provision in respect of the use, condition, location or maintenance of the insured property, the term or condition is not binding on the insured if it is held to be unjust or unreasonable by the court before which a question relating to it is tried.

Exclusions from coverage

An insurer must not provide in a contract that includes coverage for loss or damage by fire, or another peril prescribed by regulation, an exclusion relating to the cause of the fire or peril other than an exclusion prescribed by regulation or established by

section 34 (2) or (3).

An insurer must not provide in a contract that includes coverage for loss or damage by fire, or another peril prescribed by regulation, an exclusion relating to the circumstances of the fire or peril if those circumstances are prescribed by regulation.

An exclusion contrary to subsection (1) or (2) is invalid.

For greater certainty, subsections (1) and (2) apply in relation to loss or damage by fire, however the fire is caused and in whatever circumstances and whether the coverage is under a part of the contract specifically covering loss or damage by fire or under another part.

Fire perils insured against

A contract that includes coverage for loss or damage by fire is deemed to cover the insured property against loss or damage caused by

lightning, or

an explosion of natural gas or manufactured gas

in a building that does not form part of a gasworks,

from a cause, other than a cause excluded under

section 33 (1), and

iii

whether or not fire ensues.

The coverage described in subsection (1) (

a) does not include coverage against loss of or damage to electrical devices or appliances caused by lightning or other electrical currents, unless a fire

originates outside the device or appliance, and

causes the loss or damage.

Unless a contract that includes coverage for loss or damage by fire specifically provides otherwise, the contract does not cover insured property against loss or damage caused by contamination by radioactive material, resulting directly or indirectly from fire, lightning or an explosion described in subsection (1) (b).

If property

is insured at a specified location, and

is necessarily removed from the specified location to prevent loss or damage, or further loss or damage, to the property,

that part of the insurance that exceeds the amount of the insurer's liability for any loss or damage incurred before the date of removal must cover, for 7 days or for the unexpired term of the contract, whichever is the shorter period, the property removed from, and any property remaining at, the specified location on a prorated basis in accordance with the value of the property at each location.

Recovery by innocent persons

Despite

section 5, if a contract contains a term or condition excluding coverage for loss or damage to property caused by a criminal or intentional act or omission of an insured or any other person, the exclusion applies only to the claim of a person

whose act or omission caused the loss or damage,

who abetted or colluded in the act or omission,

who

consented to the act or omission, and

knew or ought to have known that the act or omission would cause the loss or damage, or

who is in a class prescribed by regulation.

Nothing in subsection (1) allows a person whose property is insured under the contract to recover more than their proportionate interest in the lost or damaged property.

A person whose coverage under a contract would be excluded but for subsection (1) must comply with any requirements prescribed by regulation.

Subrogation

The insurer, on making a payment or assuming liability under a contract, is subrogated to all rights of recovery of the insured against any person, and may bring an action in the name of the insured to enforce those rights.

If the net amount recovered after deducting the costs of recovery is not sufficient to provide a complete indemnity for the loss or damage suffered, that amount must be divided between the insurer and the insured in the proportions in which the loss or damage has been borne by them respectively.

Life Insurance

Definitions

In this Part:

application means an application for insurance or for the reinstatement of insurance;

beneficiary means a person, other than the insured or the insured's personal representative, to whom or for whose benefit insurance money is made payable in a contract or by a declaration;

blanket insurance means group insurance that covers loss

arising from specific hazards incidental to or defined by reference to a particular activity or activities, and

occurring during a limited or specified period not exceeding 30 days in duration;

contract means a contract of life insurance;

court means the Supreme Court;

creditor's group insurance means insurance effected by a creditor under which the lives of a number of the creditor's debtors are insured severally under a single contract;

debtor insured means a debtor whose life is insured under a contract of creditor's group insurance;

declaration , except in sections 76 to 79, means an instrument signed by the insured

with respect to which an endorsement is made on the policy,

that identifies the contract, or

that describes the insurance or insurance fund or a part of the insurance or insurance fund,

in which the insured

designates, or alters or revokes the designation of, the insured, the insured's personal representative or a beneficiary as one to whom or for whose benefit insurance money is to be payable, or

makes, alters or revokes an appointment under

section 62 (1) or a nomination referred to in

section 68;

family insurance means insurance under which the lives of the insured and one or more persons related to the insured by blood, marriage or adoption or because of a marriage-like relationship are insured under a single contract between an insurer and the insured;

fraternal society means a society, order or association incorporated for the purpose of making with its members only, and not for profit, contracts of life insurance and accident and sickness insurance in accordance with its constitution, bylaws and rules and this Act;

group insurance means insurance, other than creditor's group insurance and family insurance, under which the lives of a number of persons are insured severally under a single contract between an insurer and an employer or other person;

group life insured means a person, called the "primary person", whose life is insured under a contract of group insurance, but does not include a person whose life is insured under the contract as a person dependent on or related to the primary person;

instrument includes a will;

insurance means life insurance;

insured means

in the case of group insurance, in the provisions of this Part relating to the designation of beneficiaries or personal representatives as recipients of insurance money and their rights and status, the group life insured, and

in all other cases, the person who makes a contract with an insurer;

spouse means a person who

is married to another person, or

is living with another person in a marriage-like relationship;

will includes a codicil.

Application of

Part 2

Section 14 applies to contracts of life insurance.

Application of this Part

Despite any agreement, condition or stipulation to the contrary, but subject to regulations under

section 150 of this Act and

section 103 of the Insurance Amendment Act, 2009 , this Part applies to a contract made in British Columbia on or after July 1, 1962, and, subject to subsections (2) and (3), applies to a contract made in British Columbia before that day.

The rights and interests of a beneficiary for value under a contract that was in force immediately before July 1, 1962 are those provided in

Part IV of the Insurance Act then in force.

If the person who would have been entitled to the payment of insurance money if the money had become payable immediately before July 1, 1962 was a preferred beneficiary within the meaning of

Part IV of the Insurance Act then in force, the insured may not, except in accordance with that Part,

alter or revoke the designation of a beneficiary, or

assign, exercise rights under or in respect of, surrender or otherwise deal with the contract,

but this subsection does not apply after a time at which the insurance money, if it were then payable, would be payable wholly to a person other than a preferred beneficiary within the meaning of that Part.

Application of this Part to group insurance

In the case of a contract of group insurance made with an insurer authorized to transact insurance in British Columbia at the time the contract was made, this Part applies in determining

the rights and status of beneficiaries and personal representatives as recipients of insurance money if the group life insured was resident in British Columbia at the time the group life insured became insured, and

the rights and obligations of the group life insured if the group life insured was resident in British Columbia at the time the group life insured became insured.

Issuance and furnishing of policy

An insurer entering into a contract must

issue a policy, and

furnish to the insured the policy and a copy of the insured's application.

Subject to subsection (3), the provisions in

the application,

the policy,

any document attached to the policy when issued, and

any amendment to the contract agreed on in writing after the policy is issued

constitute the entire contract.

In the case of a contract made by a fraternal society, the policy, the Act or instrument of incorporation of the society, its constitution, bylaws and rules, and the amendments made to any of them, the application for the contract and the medical statement of the applicant constitute the entire contract.

Except in the case of a contract of group insurance or creditor's group insurance, an insurer, on request, must furnish to the insured or a claimant under the contract a copy of

the entire contract as set out in subsection (2) or (3), as applicable, and

any written statement or other record provided to the insurer as evidence of insurability under the contract.

In the case of a contract of group insurance, an insurer,

on request, must furnish to a group life insured or claimant under the contract a copy of

the group life insured's application, and

any written statement or other record, not otherwise part of the application, provided to the insurer as evidence of the insurability of the group life insured under the contract, and

on request and reasonable notice, must permit a group life insured or claimant under the contract to examine, and must furnish to that person, a copy of the policy of group insurance.

In the case of a contract of creditor's group insurance, an insurer,

on request, must furnish to a debtor insured or claimant under the contract a copy of

the debtor insured's application, and

any written statement or other record, not otherwise part of the application, provided to the insurer as evidence of the insurability of the debtor insured under the contract, and

on request and reasonable notice, must permit a debtor insured or claimant under the contract to examine, and must furnish to that person, a copy of the policy of creditor's group insurance.

An insurer may charge a reasonable fee to cover its expenses in furnishing copies of documents under subsection (4), (5) or (6), other than the first copy furnished to each person.

Access to the documents described in subsections (5) (

b) and (6) (

b) does not extend to

information contained in those documents that would reveal personal information, as defined in the Personal Information Protection Act , about a person without that person's consent, other than information about

the group life insured or debtor insured in respect of whom the claim is made, or

the person who requests the information, or

information prescribed by regulation.

A claimant's access to documents under subsections (4) to (6) extends only to information that is relevant to

a claim under the contract, or

a denial of such a claim.

Particulars in policy

This

section does not apply to a contract

of group insurance,

of creditor's group insurance, or

made by a fraternal society.

An insurer must set out in the policy the following:

the name or a sufficient description of the insured and of the person whose life is insured;

the amount, or the method of determining the amount, of the insurance money payable, and the conditions under which it becomes payable;

the amount, or the method of determining the amount, of the premium and the period of grace, if any, within which it may be paid;

whether the contract provides for participation in a distribution of surplus or profits that may be declared by the insurer;

the conditions on which the contract may be reinstated if it lapses;

the options, if any,

of surrendering the contract for cash,

of obtaining a loan or an advance payment of the insurance money, and

iii

of obtaining paid up or extended insurance.

the following statement:

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act .

If a policy contains a provision removing or restricting the right of the insured to designate persons to whom or for whose benefit insurance money is to be payable, the front page of the policy must include the following statement in conspicuous bold type:

This policy contains a provision removing or restricting the right of the insured to designate persons to whom or for whose benefit insurance money is to be payable.

Particulars in group policy

In the case of a contract of group insurance or of creditor's group insurance, an insurer must set out in the policy the following:

the name or a sufficient description of the insured;

the method of determining the persons whose lives are insured;

the amount, or the method of determining the amount, of the insurance money payable, and the conditions under which it becomes payable;

the period of grace, if any, within which the premium may be paid;

whether the contract provides for participation in a distribution of surplus or profits that may be declared by the insurer;

in the case of a contract of group insurance, any provision removing or restricting the right of a group life insured to designate persons to whom or for whose benefit insurance money is to be payable;

in the case of a contract of group insurance that replaces another contract of group insurance on some or all of the group life insureds under the replaced contract, whether a designation of a group life insured, a group life insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable under the replaced contract applies to the replacing contract;

the following statement:

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act .

Particulars in group certificate

In the case of a contract of group insurance or creditor's group insurance, an insurer must issue, for delivery by the insured to each group life insured or debtor insured, a certificate or other document in which are set out the following:

the name of the insurer and a sufficient identification of the contract;

the amount, or the method of determining the amount, of insurance on

the group life insured and any person whose life is insured under the contract as a person dependent on or related to the group life insured, or

the debtor insured;

the circumstances in which the insurance terminates and the rights, if any, on termination of the insurance of

the group life insured and any person whose life is insured under the contract as a person dependent on or related to the group life insured, or

the debtor insured;

in the case of a contract of group insurance that contains a provision removing or restricting the right of the group life insured to designate persons to whom or for whose benefit insurance money is to be payable,

the method of determining the persons to whom or for whose benefit the insurance money is or may be payable, and

the following statement in conspicuous bold type:

This policy contains a provision removing or restricting the right of the group life insured to designate persons to whom or for whose benefit insurance money is to be payable;

in the case of a contract of group insurance that replaces another contract of group insurance on some or all of the group life insureds under the replaced contract, whether a designation of a group life insured, a group life insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable under the replaced contract applies to the replacing contract;

the rights of the group life insured, the debtor insured or a claimant under the contract to obtain copies of documents under

section 41 (5) or (6);

the following statement:

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act .

This

section does not apply to a contract of blanket insurance.

Lack of insurable interest

Subject to subsection (2), if at the time a contract would otherwise take effect the insured has no insurable interest, the contract is void.

A contract is not void for lack of insurable interest

if it is a contract of group insurance, or

if the person whose life is insured has consented in writing to the insurance being placed on the person's life.

If the person whose life is insured is under the age of 16 years, consent to insurance being placed on the person's life may be given by one of the person's parents or by a person standing in the place of a parent.

Persons insurable

Without restricting the meaning of "insurable interest", a person, in this

section called the "primary person", has an insurable interest,

in the case of a primary person who is a natural person, in the primary person's own life and in the lives of the following:

the primary person's child or grandchild;

the primary person's spouse;

iii

a person on whom the primary person is wholly or partly dependent for, or from whom the primary person is receiving, support or education;

the primary person's employee;

a person in the duration of whose life the primary person has a pecuniary interest, and

in the case of a primary person that is not a natural person, in the lives of the following:

the primary person's director, officer or employee;

a person in the duration of whose life the primary person has a pecuniary interest.

Termination of contract by court

a person whose life is insured under a contract is someone other than the insured, and

the person reasonably believes that their life or health might be endangered by the insurance on their life continuing under that contract,

on application of that person, the court may make the orders the court considers just in the circumstances.

Without limiting subsection (1), the orders that the court may make under subsection (1) include

an order that the insurance on that person's life under the contract be terminated in accordance with the terms of the contract, other than any terms respecting notice of termination, and

an order that the amount of insurance under the contract on that person's life be reduced.

An application under subsection (1) must be made on at least 30 days' notice to the insured, the beneficiary, the insurer and any other person the court considers to have an interest in the contract.

Despite subsection (3), if the court considers it just to do so, the court may dispense with the notice in the case of a person other than

the insurer, or

if the contract is a contract of group insurance or creditor's group insurance, the insured.

An order made under subsection (1) binds any person having an interest in the contract.

When contract takes effect

Subject to a provision to the contrary in the application or the policy, a contract does not take effect unless

the policy is delivered to an insured, the insured's assign or agent, or to a beneficiary,

payment of the initial premium is made to the insurer or its agent, and

no change has taken place in the insurability of the life to be insured between the time the application was completed and the time the policy was delivered.

If a policy is issued on the terms applied for and is delivered to an agent of the insurer for unconditional delivery to a person referred to in subsection (1) (a), it is deemed, but not to the prejudice of the insured, to have been delivered to the insured.

Payment of premiums

If a cheque or other bill of exchange, or a promissory note or other written promise to pay, is given for the whole or a part of a premium and the cheque, bill of exchange, promissory note or other promise to pay is not honoured according to its tenor, the premium or the part of the premium has not been paid.

If a remittance for or on account of a premium is sent in a registered letter to an insurer and is received by it, the remittance is deemed to have been received at the time of the registration of the letter.

Payment of premiums and grace periods

Except in the case of group insurance or creditor's group insurance, an assignee of a contract, a beneficiary or a person acting on behalf of one of them or of the insured may pay any premium that the insured is entitled to pay.

If a premium, other than the initial premium, is not paid at the time it is due, the premium may be paid within a period of grace of

30 days, or in the case of an industrial contract 28 days, from and excluding the day on which the premium is due, or

the number of days, if any, specified in the contract for payment of an overdue premium,

whichever is the longer period.

If the happening of the event on which the insurance money becomes payable occurs during the period of grace and before the overdue premium is paid, the contract is deemed to be in effect as if the premium had been paid at the time it was due, and, except in the case of group insurance or creditor's group insurance, the amount of the premium may be deducted from the insurance money.

Duty to disclose

An applicant for insurance and a person whose life is to be insured must each disclose to the insurer in the application, on a medical examination, if any, and in any written statements or answers furnished as evidence of insurability, every fact within the applicant's or person's knowledge that is material to the insurance and is not so disclosed by the other.

Subject to

section 52 and subsection (3) of this section, a failure to disclose, or a misrepresentation of, a fact referred to in subsection (1) renders the contract voidable by the insurer.

A failure to disclose, or a misrepresentation of, a fact referred to in subsection (1) relating to evidence of insurability with respect to an application for

additional coverage under a contract,

an increase in insurance under a contract, or

any other change to insurance after the policy is issued

renders the contract voidable by the insurer, but only in relation to the addition, increase or change.

Failure to disclose

This

section does not apply to

a misstatement to an insurer of the age of a person whose life is insured, or

insurance under which an insurer, as part of a contract, undertakes to pay insurance money or to provide other benefits in the event the person whose life is insured becomes disabled as a result of bodily injury or disease.

Subject to subsection (3), if a contract, or an addition, increase or change referred to in

section 51 (3), has been in effect for 2 years during the lifetime of the person whose life is insured, a failure to disclose, or a misrepresentation of, a fact required to be disclosed by

section 51 does not, in the absence of fraud, render the contract voidable.

In the case of a contract of group insurance or creditor's group insurance, a failure to disclose, or a misrepresentation of, a fact required by

section 51 to be disclosed in respect of a person whose life is insured under the contract does not render the contract voidable, but

if the failure to disclose or misrepresentation relates to evidence of insurability specifically requested by the insurer at the time of application for the insurance in respect of the person, the insurance in respect of that person is voidable by the insurer, and

if the failure to disclose or misrepresentation relates to evidence of insurability specifically requested by the insurer at the time of application for an addition, increase or change referred to in

section 51 (3) in respect of the person, the addition, increase or change in respect of that person is voidable by the insurer,

unless the insurance, addition, increase or change has been in effect for 2 years during the lifetime of that person, in which case the insurance, addition, increase or change is not, in the absence of fraud, voidable.

Nondisclosure by insurer

If an insurer fails to disclose or misrepresents a fact material to the insurance, the contract is voidable by the insured, but in the absence of fraud the contract is not by reason of such failure or misrepresentation voidable after the contract has been in effect for 2 years.

Misstatement of age

This

section does not apply to a contract of group insurance or of creditor's group insurance.

Subject to subsection (3), if the age of a person whose life is insured is misstated to the insurer, the insurance money provided by the contract must be increased or decreased to the amount that would have been provided for the same premium at the correct age.

If a contract limits insurable age and the correct age of the person whose life is insured exceeds that limit at the date of the application, the contract is voidable by the insurer for 5 years after the date the contract takes effect, but not afterwards, and only if

that person is alive, and

the insurer voids the contract within 60 days after it discovers the misstatement of age.

Misstatement of age in group insurance

In the case of a contract of group insurance or of creditor's group insurance, a misstatement to the insurer of the age of a person whose life is insured does not of itself render the contract voidable, and the provisions, if any, of the contract with respect to age or misstatement of age apply.

Effect of suicide on contract

If a contract contains an undertaking, express or implied, that insurance money will be paid if a person whose life is insured commits suicide, the undertaking is lawful and enforceable.

If a contract provides that in case a person whose life is insured commits suicide within a certain period of time the contract is void or the amount payable under it is reduced, if the contract lapses and is subsequently reinstated on one or more occasions, the period of time begins to run from the date of the latest reinstatement.

Reinstatement of contract

This

section does not apply to a contract of group insurance or creditor's group insurance or to a contract made by a fraternal society.

If a contract lapses at the end of a period of grace because a premium due at the beginning of the period of grace was not paid, the contract may be reinstated by payment of the overdue premium within a further period of 30 days after the end of the period of grace, but only if the person whose life was insured under the contract is alive at the time payment is made.

If a contract lapses and is not reinstated under subsection (2), the insurer must reinstate it if, within 2 years after the date the contract lapsed, the insured

applies for the reinstatement,

pays to the insurer all overdue premiums and other indebtedness under the contract, together with interest not exceeding the rate determined under

section 7 of the Court Order Interest Act , and

produces evidence satisfactory to the insurer of the good health and insurability of the person whose life was insured.

Subsections (2) and (3) do not apply if the cash surrender value has been paid or an option of taking paid up or extended insurance has been exercised.

Sections 51 and 52 apply, so far as applicable and with the necessary changes, to reinstatement of a contract.

Termination and replacement of group policies

If a contract of group insurance, or a benefit provision in a contract of group insurance, under which the insurer undertakes to pay insurance money or provide other benefits if a group life insured becomes disabled as a result of bodily injury or disease is terminated, the insurer continues, as though the contract or benefit provision had remained in full force and effect, to be liable to pay insurance money or provide benefits in respect of a group life insured for liability arising from an accident or disease that occurred before the termination of the contract or benefit provision if the disability is reported to the insurer within the 6 month period following the termination or a longer continuous period specified in the contract.

Despite subsection (1), an insurer does not remain liable under a contract or benefit provision described in that subsection to pay insurance money or provide a benefit for the recurrence of a disability after both of the following occur:

the termination of the contract or benefit provision;

a continuous period of 6 months, or any longer period provided in the contract, during which the group life insured was not disabled.

An insurer that is liable under subsection (1) to pay insurance money or provide a benefit as a result of the disability of a group life insured is not liable to pay the insurance money or provide the benefit for any period longer than the portion remaining, at the date the disability began, of the maximum period provided under the contract for the payment of insurance money or the provision of a benefit in respect of a disability of the group life insured.

If a contract of group insurance, in this subsection called the "replacement contract", is entered into within 31 days after the termination of another contract of group insurance, in this subsection called the "other contract", and that replacement contract insures some or all of the same group life insureds as the other contract,

the replacement contract is deemed to provide that any person who was insured under the other contract at the time of its termination is insured under the replacement contract from and after the termination of the other contract if

the insurance on that person under the other contract terminated by reason only of the termination of the other contract, and

the person is a member of a class eligible for insurance under the replacement contract, and

no person who was insured under the other contract at the time of its termination may be excluded from eligibility under the replacement contract by reason only of not being actively at work on the effective date of the replacement contract,

and, despite subsection (1), if the replacement contract provides that insurance money or other benefits to be paid or provided under subsection (1) by the insurer of the other contract are to be paid instead under the replacement contract, the insurer of the other contract is not liable to pay that insurance money or provide those benefits.

Designation of beneficiary

Subject to subsection (4), an insured may in a contract or by a declaration designate the insured, the insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable.

Subject to

section 60, the insured may alter or revoke the designation by a declaration.

A designation in favour of the "heirs", "next of kin" or "estate" of an insured, or the use of words having similar meaning in a designation, is deemed to be a designation of the personal representative of the insured.

Subject to the regulations, an insurer may restrict or exclude in a contract the right of an insured to designate persons to whom or for whose benefit insurance money is to be payable.

A contract of group insurance replacing another contract of group insurance on some or all of the group life insureds under the replaced contract may provide that a designation applicable to the replaced contract of a group life insured, a group life insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable is deemed to apply to the replacing contract.

If a contract of group insurance replacing another contract of group insurance provides that a designation referred to in subsection (5) is deemed to apply to the replacing contract,

each certificate in respect of the replacing contract must indicate that the designation under the replaced contract has been carried forward and that the group life insured should review the existing designation to ensure it reflects the group life insured's current intentions, and

as between the insurer under the replacing contract and a claimant under that contract, that insurer is liable to the claimant for any errors or omissions by the previous insurer in respect of the recording of the designation carried forward under the replacing contract.

If a beneficiary becomes entitled to insurance money and all or part of the insurance money remains with the insurer under a settlement option provided for in the contract or permitted by the insurer, that portion of the insurance money remaining with the insurer is deemed to be insurance money held under a contract on the life of the beneficiary, and, subject to the provisions of the settlement option, the beneficiary has the rights and interests of an insured with respect to the insurance money.

Irrevocable designation of beneficiary

An insured may in a contract or by a declaration, other than a declaration that is part of a will, filed with the insurer at its head or principal office in Canada during the lifetime of the person whose life is insured, designate a beneficiary irrevocably, and in that event the insured, while the beneficiary is living, may not alter or revoke the designation without the consent of the beneficiary, and the insurance money is not subject to the control of the insured or the claims of the insured's creditors and does not form part of the insured's estate.

If the insured purports to designate a beneficiary irrevocably in a will or in a declaration that is not filed as provided in subsection (1), the designation has the same effect as if the insured had not purported to make it irrevocable.

Designation in will

A designation in an instrument purporting to be a will is not ineffective by reason only of the fact that the instrument is invalid as a will, or that the designation is invalid as a bequest under the will.

Despite the Wills, Estates and Succession Act , a designation in a will is of no effect against a designation made later than the making of the will.

If a designation is contained in a will and subsequently the will is revoked by operation of law or otherwise, the designation is revoked.

If a designation is contained in an instrument that purports to be a will and the instrument, if it were valid as a will, would be revoked by operation of law or otherwise, the designation is revoked.

Trustee for beneficiary

An insured may in a contract or by a declaration appoint a trustee for a beneficiary and may alter or revoke the appointment by a declaration.

A payment made by an insurer to the trustee for a beneficiary discharges the insurer to the extent of the payment.

Predeceased or disclaiming beneficiary

If a beneficiary predeceases the person whose life is insured, and no disposition of the share of the deceased beneficiary in the insurance money is provided for in the contract or by a declaration, the share is payable

to the surviving beneficiary,

if there is more than one surviving beneficiary, to the surviving beneficiaries in equal shares, or

if there is no surviving beneficiary, to the insured or the insured's personal representative.

If 2 or more beneficiaries are designated otherwise than alternatively, but no division of the insurance money is made, the insurance money is payable to them in equal shares.

A beneficiary may disclaim the beneficiary's right to insurance money by filing notice in writing with the insurer at its head or principal office in Canada.

A notice of disclaimer filed under subsection (3) is irrevocable.

Subsection (1) applies in the case of a disclaiming beneficiary or in the case of a beneficiary determined by a court to be disentitled to insurance money as if the disclaiming or disentitled beneficiary predeceased the person whose life is insured.

Enforcement of payment by beneficiary or trustee

A beneficiary may enforce in the beneficiary's own name and for the beneficiary's own benefit, and a trustee appointed under

section 62 may enforce as trustee, the payment of insurance money made payable to the beneficiary or trustee in the contract or by a declaration and in accordance with the provisions of it, but the insurer may set up any defence that it could have set up against the insured or the insured's personal representative.

Insurance money exempt from seizure

If a beneficiary is designated, the insurance money, from the time of the happening of the event on which the insurance money becomes payable, is not part of the estate of the insured and is not subject to the claims of the creditors of the insured.

While there is in effect a designation in favour of any one or more of a spouse, child, grandchild or parent of a person whose life is insured, the insurance money and the rights and interests of the insured in the insurance money and in the contract are exempt from execution or seizure.

Assignment of insurance

If a beneficiary

is not designated irrevocably, or

is designated irrevocably but has attained the age of 19 years and consents,

the insured may assign, exercise rights under or in respect of, surrender or otherwise deal with the contract as provided in it or in this Part, or as may be agreed on with the insurer.

Despite

section 60 (1), if a beneficiary is designated irrevocably and has not consented as described in subsection (l) (

b) of this section, the insured may exercise any rights in respect of the contract that are prescribed by regulation.

Subject to the terms of a consent under subsection (l) (

b) or a court order under subsection (4), if there is an irrevocable designation of a beneficiary under a contract, a person acquiring an interest in the contract takes that interest subject to the rights of that beneficiary.

When a beneficiary who is designated irrevocably is unable to provide consent under subsection (1) (

b) because of legal incapacity, an insured may apply to the court for an order permitting the insured to deal with the contract without that consent.

The court may grant an order under subsection (4) on any notice and terms it considers just.

Entitlement to dividends

Despite the irrevocable designation of a beneficiary, the insured is entitled before the insured's death to the dividends or bonuses declared on a contract, unless the contract provides otherwise.

Unless the insured directs otherwise, the insurer may apply the dividends or bonuses declared on the contract for the purpose of keeping the contract in force.

Transfer of insured's rights

Despite the Wills, Estates and Succession Act , if, in a contract or declaration, it is provided that a person named in the contract or declaration has, on the death of the insured, the rights and interests of the insured in the contract,

the rights and interests of the insured in the contract do not, on the death of the insured, form part of the insured's estate, and

on the death of the insured, the person named in the contract or declaration has the rights and interests given to the insured by the contract and by this Part and is deemed to be the insured.

If the contract or declaration provides that 2 or more persons named in the contract or in the declaration, on the death of the insured, have successively on the death of each of them the rights and interests of the insured in the contract, this

section applies successively, so far as applicable and with the necessary changes, to each of those persons and their rights and interests in the contract.

Despite a nomination made under this section, the insured may, before the insured's death,

assign, exercise rights under or in respect of, surrender or otherwise deal with the contract as if the nomination had not been made, and

subject to the terms of the contract, alter or revoke the nomination by declaration.

Effect of assignment

If an assignee of a contract gives notice in writing of the assignment to the insurer at its head or principal office in Canada, the assignee has priority of interest as against

an assignee other than one who gave notice earlier to the insurer of an assignment in the manner provided for in this subsection, and

a beneficiary other than one designated irrevocably as provided for in

section 60 before the assignee gave notice to the insurer of the assignment in the manner provided for in this subsection.

If a contract is assigned as security, the rights of a beneficiary under the contract are affected only to the extent necessary to give effect to the rights and interests of the assignee.

If a contract is assigned unconditionally and otherwise than as security, the assignee has all the rights and interests given to the insured by the contract and by this Part and is deemed to be the insured.

Unless the document by which a contract is assigned specifies otherwise, an assignment described in subsection (3) made on or after the date this

section comes into force revokes

a designation of a beneficiary made before or after that date and not made irrevocably, and

a nomination referred to in

section 68 (1) made before or after that date.

A contract may provide that the rights or interests of the insured or, in the case of a contract of group insurance or creditor's group insurance, of the group life insured or debtor insured, as applicable, are not assignable.

Group life insured may enforce rights

A group life insured may in their own name enforce a right given to the group life insured under a contract, subject to any defence available to the insurer against the group life insured or against the insured.

Debtor insured may enforce rights

A debtor insured, or a debtor who is jointly liable for the debt with the debtor insured, may enforce

in the case of the debtor insured, in the debtor insured's own name, or

in the case of the jointly liable debtor, in the jointly liable debtor's own name,

the creditor's rights in respect of a claim arising in relation to that debtor insured, subject to any defence available to the insurer against the creditor or that debtor insured.

Subject to subsection (3), if an insurer pays insurance money in respect of a claim under subsection (1), the insurer must pay the insurance money to the creditor.

If the debtor insured provides evidence satisfactory to the insurer that the insurance money exceeds the debt then owing to the creditor, the insurer may pay the excess directly to that debtor insured.

Capacity of minors

Except in respect of the minor's rights as beneficiary, a minor who has reached the age of 16 years has the capacity of a person of the age of 19 years

to make an enforceable contract, and

in respect of a contract.

Proof of claim

If an insurer receives sufficient evidence of

the happening of the event on which insurance money becomes payable,

the age of the person whose life is insured,

the right of the claimant to receive payment, and

the name and age of the beneficiary, if there is a beneficiary,

it must, within 30 days after receiving the evidence, pay the insurance money to the person entitled to it.

Payment of insurance money

Subject to subsections (3) to (5), insurance money is payable in British Columbia.

Unless a contract otherwise provides, a reference in it to dollars means Canadian dollars, whether the contract by its terms provides for payment in Canada or elsewhere.

If a person entitled to receive insurance money is not resident in British Columbia, the insurer may pay the insurance money to that person or to any other person who is entitled to receive it on the person's behalf by the law of the jurisdiction in which the payee resides, and the payment discharges the insurer to the extent of the amount paid.

In the case of a contract of group insurance, insurance money is payable in the province or territory of Canada in which the group life insured was resident at the time the group life insured became insured.

If insurance money is payable under a contract to a deceased person who was not resident in British Columbia at the date of their death or to that person's personal representative, the insurer may pay the insurance money to the deceased person's personal representative as appointed under the law of the jurisdiction in which the person was resident at the date of their death, and the payment discharges the insurer to the extent of the amount paid.

Action in British Columbia

Regardless of the place where a contract was made, a claimant who is resident in British Columbia may bring an action in British Columbia if the insurer was authorized to transact insurance in British Columbia at the time the contract was made or is so authorized at the time the action is brought.

Limitation of actions

Subject to subsections (2) and (5), an action or proceeding against an insurer for the recovery of insurance money payable in the event of a person's death must be commenced not later than the earlier of

2 years after the date evidence is furnished under

section 73, and

6 years after the date of the death.

Subject to subsection (5), if a declaration has been made under the Presumption of Death Act , an action or proceeding referred to in subsection (1) must be commenced not later than 2 years after the date of the declaration.

Subject to subsection (5), an action or proceeding against an insurer for the recovery of insurance money not referred to in subsection (1) must be commenced not later than 2 years after the date the claimant knew or ought to have known of the first instance of the loss or occurrence giving rise to the claim for insurance money.

If insurance money is not payable unless a loss or occurrence continues for a period of time specified in the contract, the date of the first instance of the loss or occurrence for the purposes of subsection (3) is deemed to be the first day after the end of that period.

An action or proceeding against an insurer for the recovery of insurance money payable on a periodic basis must be commenced not later than the later of

the last day of the applicable period under subsection (1), (2), (3) or (4) for commencing an action or proceeding, and

if insurance money was paid, 2 years after the date the next payment would have been payable had the insurer continued to make periodic payments.

Documents affecting right to insurance money

Until an insurer receives at its head or principal office in Canada an instrument or an order of a court affecting the right to receive insurance money, or a notarial copy, or a copy verified by statutory declaration, of the instrument or order, it may make payment of the insurance money and is discharged to the extent of the amount paid as if there were no instrument or order.

Subsection (1) does not affect the rights or interests of any person other than the insurer.

Declaration as to sufficiency of proof

If an insurer admits the validity of the insurance but does not admit the sufficiency of the evidence required by

section 73 and there is no other question in issue except a question under

section 3 of the Presumption of Death Act , the insurer or the claimant may, before or after action is brought and on at least 30 days' notice, apply to the court for a declaration as to the sufficiency of the evidence furnished, and the court may make the declaration or may direct what further evidence must be furnished, and on it being furnished may make the declaration or, in special circumstances, may dispense with further evidence.

Court may make order for payment

On making a declaration under

section 78 or an order under the Presumption of Death Act , the court may make an order respecting the payment of the insurance money and respecting costs it considers just, and a declaration or direction or order made under this subsection is binding on the applicant and on all persons to whom notice of the application has been given.

A payment made under an order under subsection (1) discharges the insurer to the extent of the amount paid.

Application to court operates as stay of proceedings

Unless the court otherwise orders, an application made under

section 78 or

section 3 of the Presumption of Death Act operates as a stay of any pending action with respect to the insurance money.

Powers of court

If the court finds that the evidence furnished under

section 73 is not sufficient or that a presumption of death is not established under the Presumption of Death Act , it may order that the matters in issue be decided in an action brought or to be brought, or may make such other order as it considers just respecting further evidence to be furnished by the claimant, publication of advertisements, further inquiry or any other matter or respecting costs.

Payment into court

If an insurer admits liability for insurance money or any part of it and it appears to the insurer that

there are adverse claimants,

there is no person capable of giving and authorized to give a valid discharge who is willing to do so,

the insurance money has become unclaimed property under the Unclaimed Property Act ,

there is no person entitled to the insurance money, or

the person to whom the insurance money is payable would be disentitled on public policy or other grounds,

the insurer may, without notice to any person but subject to subsection (2), apply to the court for an order for payment of the money into court.

An application to the court under this

section may not be made until

in a case to which subsection (1) (a), (b) (

d) or (

e) applies, 30 days from the date of the happening of the event on which the insurance money became payable, or

in a case to which subsection (1) (

c) applies, 30 days after the insurance money became unclaimed property under the Unclaimed Property Act .

On application under this section, the court may, on notice, if any, as it thinks necessary, make an order for payment of the insurance money into court.

On payment into court of insurance money referred to in subsection (1) (c),

Part 3 of the Unclaimed Property Act ceases to apply to that money.

A payment made under an order under this

section discharges the insurer to the extent of the payment.

Simultaneous deaths

Unless a contract or a declaration provides otherwise, if the person whose life is insured and a beneficiary die at the same time or in circumstances rendering it uncertain which of them survived the other, the insurance money is payable as if the beneficiary had predeceased the person whose life is insured.

Insurance money payable in instalments

In this section, instalments includes insurance money held by the insurer under

section 85.

Subject to subsections (3) and (4), if insurance money is payable in instalments and a contract, or an instrument signed by the insured and delivered to the insurer, provides that a beneficiary does not have the right to commute the instalments or to alienate or assign the beneficiary's interest in the instalments, the insurer must not, unless the insured subsequently directs otherwise in writing, commute the instalments or pay them to any person other than the beneficiary, and the instalments are not, in the hands of the insurer, subject to any legal process, except an action to recover the value of necessaries supplied to the beneficiary or the beneficiary's minor children.

A court may, on the application of a beneficiary on at least 10 days' notice, declare that in view of special circumstances

the insurer may, with the consent of the beneficiary, commute instalments of insurance money, or

the beneficiary may alienate or assign the beneficiary's interest in the insurance money.

After the death of the beneficiary, the beneficiary's personal representative may, with the consent of the insurer, commute any instalments of insurance money payable to the beneficiary.

Insurer holding insurance money

An insurer may hold insurance money

subject to the order of an insured or a beneficiary, or

on trusts or other agreements for the benefit of the insured or the beneficiary,

as provided in the contract, by an agreement in writing to which it is a party, or by a declaration, with interest at a rate agreed on in it or, if no rate is agreed on, at the rate declared by the insurer in respect of insurance money held by it.

The insurer is not bound to hold insurance money as provided in subsection (1) under the terms of a declaration to which it has not agreed in writing.

Court may order payment

If an insurer does not, within 30 days after receipt of the evidence required by

section 73, pay the insurance money to some person competent to receive it or into court, the court may, on application of any person, order that the insurance money or any part of it be paid into court, or may make such other order as to the distribution of the money as it considers just, and payment made in accordance with the order discharges the insurer to the extent of the amount paid.

Costs

The court may fix without taxation the costs incurred in connection with an application or order made under

section 82 or 86, and may order them to be paid out of the insurance money or by the insurer or the applicant, or otherwise as it considers just.

Payment of insurance money for minors

If an insurer admits liability for insurance money payable to a minor or for insurance money payable to a trustee for a beneficiary who is a minor, the insurer must, within 30 days after receiving the evidence referred to in

section 73,

in the case of money payable to a minor, other than a minor referred to in paragraph (b), pay the money in trust for the minor to

a trustee for the minor appointed in relation to that money by the insured or group life insured in a contract or by a declaration, or

if no trustee is appointed for the minor in relation to that money, the Public Guardian and Trustee,

in the case of money payable to a minor referred to in subsection (4), pay the money to the minor, and

in the case of money payable to a trustee for a beneficiary who is a minor, pay the money to the trustee.

An insurer who makes a payment under subsection (1) (a) (

i) or (

c) must, within 30 days after the date of payment, give written notice to the Public Guardian and Trustee stating the name and address of the minor, the name and address of the trustee and the amount of the payment.

Payment of the insurance money referred to in subsection (1) discharges the insurer if the payment is made in accordance with subsection (1).

A beneficiary who has reached the age of 18 years has the capacity of a person who has reached the age of 19 years for the purposes of receiving insurance money payable to the minor and giving a discharge for it.

Payment to representative of beneficiary

Despite

section 88, if it appears to an insurer that a representative of a beneficiary who is a minor or otherwise under a legal disability may accept payments on behalf of the beneficiary under the law of the jurisdiction in which the beneficiary resides, the insurer may make payment to the representative, and the payment discharges the insurer to the extent of the amount paid.

Presumption against agency

An officer, agent or employee of an insurer, or a person soliciting insurance whether or not an agent of the insurer, must not be considered to be the agent of the insured, person whose life is insured, group life insured or debtor insured, to that person's prejudice, in respect of any question arising out of a contract.

Insurer giving information

An insurer does not incur any liability for any default, error or omission in giving or withholding information as to any notice or instrument that it has received and that affects the insurance money.

Accident and Sickness Insurance

Definitions

In this Part:

application means an application for insurance or for the reinstatement of insurance;

beneficiary means a person, other than the insured or the insured's personal representative, to whom or for whose benefit insurance money is made payable in a contract or by a declaration;

blanket insurance means group insurance that covers loss

arising from specific hazards incidental to or defined by reference to a particular activity or activities, and

occurring during a limited or specified period not exceeding 6 months in duration;

contract means a contract of insurance;

creditor's group insurance means insurance effected by a creditor under which the lives or well being or both of a number of the creditor's debtors are insured severally under a single contract;

debtor insured means a debtor whose life or well being or both are insured under a contract of creditor's group insurance;

declaration , except in sections 104 and 123, means an instrument signed by the insured

with respect to which an endorsement is made on the policy,

that identifies the contract, or

that describes the insurance or insurance fund or a part of the insurance or insurance fund,

in which the insured

designates, or alters or revokes the designation of, the insured, the insured's personal representative or a beneficiary as one to whom or for whose benefit insurance money is to be payable, or

makes, alters or revokes an appointment under

section 120 (1) or a nomination referred to in

section 127;

family insurance means insurance under which the lives or well-being or both of the insured and one or more persons related to the insured by blood, marriage or adoption or because of a marriage-like relationship are insured under a single contract between an insurer and the insured;

fraternal society means a society, order or association incorporated for the purpose of making with its members only, and not for profit, contracts of life insurance and accident and sickness insurance in accordance with its constitution, bylaws and rules and this Act;

group insurance means insurance other than creditor's group insurance and family insurance under which the lives or well being or both of a number of persons are insured severally under a single contract between an insurer and an employer or other person;

group person insured means a person, called the "primary person", whose life or well being or both are insured under a contract of group insurance, but does not include a person whose life or well being or both are insured under the contract as a person dependent on or related to the primary person;

instrument includes a will;

insurance means accident and sickness insurance;

insured means

in the case of group insurance, in the provisions of this Part relating to the designation of beneficiaries or personal representatives as recipients of insurance money and their rights and status, the group person insured, and

in all other cases, the person who makes a contract with an insurer;

person insured means a person in respect of an accident to whom, or in respect of whose sickness, insurance money is payable under a contract, but does not include a group person insured or debtor insured;

spouse means a person who

is married to another person, or

is living with another person in a marriage-like relationship;

will includes a codicil.

Application of

Part 2

Sections 13 and 14 apply to contracts of accident and sickness insurance.

Application of this Part

Despite any agreement, condition or stipulation to the contrary, but subject to regulations under

section 150 of this Act and

section 103 of the Insurance Amendment Act, 2009 , this Part applies to a contract made in British Columbia on and after October 1, 1970 and sections 92 to 96, 103, 107 to 110, 114 and 117 to 139 apply also to a contract made in British Columbia before that day.

Sections 178 to 181, 183, 190 and 193 of

Part V of the Insurance Act , R.S.B.C. 1979, c. 200, in force immediately before October 1, 1970 apply to a contract made in British Columbia before that day.

This Part does not apply to either of the following:

except as otherwise provided by regulation, insurance that is part of a contract of life insurance under which the insurer undertakes to pay insurance money, or to provide other benefits, in the event the person whose life is insured becomes disabled as a result of bodily injury or disease;

insurance that is part of a contract of life insurance under which the insurer undertakes to pay an additional amount of insurance money in the event of death by accident of the person whose life is insured.

Application of this Part to group insurance

In the case of a contract of group insurance made with an insurer authorized to transact insurance in British Columbia at the time the contract was made, this Part applies in determining

the rights and status of beneficiaries and personal representatives as recipients of insurance money, if the group person insured was resident in British Columbia at the time the group person insured became insured, and

the rights and obligations of the group person insured if the group person insured was resident in British Columbia at the time the group person insured became insured.

Issuance and furnishing of policy

An insurer entering into a contract must

issue a policy, and

furnish to the insured the policy and a copy of the insured's application.

Subject to subsection (3), the provisions in

the application,

the policy,

any document attached to the policy when issued, and

any amendment to the contract agreed on in writing after the policy is issued

constitute the entire contract.

In the case of a contract made by a fraternal society, the policy, the Act or instrument of incorporation of the society, its constitution, bylaws and rules, and the amendments made to any of them, the application for the contract and the medical statement of the applicant constitute the entire contract.

Except in the case of a contract of group insurance or creditor's group insurance, an insurer, on request, must furnish to the insured or a claimant under the contract a copy of

the entire contract as set out in subsection (2) or (3), as applicable, and

any written statement or other record provided to the insurer as evidence of insurability under the contract.

In the case of a contract of group insurance, an insurer,

on request, must furnish to a group person insured or claimant under the contract, a copy of

the group person insured's application, and

any written statement or other record, not otherwise part of the application, provided to the insurer as evidence of the insurability of the group person insured under the contract, and

on request and reasonable notice, must permit a group person insured or claimant under the contract to examine, and must furnish to that person, a copy of the policy of group insurance.

In the case of a contract of creditor's group insurance, an insurer,

on request, must furnish to a debtor insured or claimant under the contract a copy of

the debtor insured's application, and

any written statement or other record, not otherwise part of the application, provided to the insurer as evidence of the insurability of the debtor insured under the contract, and

on request and reasonable notice, must permit a debtor insured or claimant under the contract to examine, and must furnish to that person, a copy of the policy of creditor's group insurance.

An insurer may charge a reasonable fee to cover its expenses in furnishing copies of documents under subsection (4), (5) or (6), other than the first copy furnished to each person.

Access to the documents described in subsections (5) (

b) and (6) (

b) does not extend to

information contained in those documents that would reveal personal information, as defined in the Personal Information Protection Act , about a person without that person's consent, other than information about

the group person insured or debtor insured in respect of whom the claim is made, or

the person who requests the information, or

information prescribed by regulation.

A claimant's access to documents under subsections (4) to (6) extends only to information that is relevant to

a claim under the contract, or

a denial of such a claim.

Particulars in policy

This

section does not apply to a contract

of group insurance,

of creditor's group insurance, or

made by a fraternal society.

An insurer must set out in the policy the following:

the name or a sufficient description of the insured and of the person insured;

the amount, or the method of determining the amount, of the insurance money payable and the conditions under which it becomes payable;

the amount, or the method of determining the amount, of the premium and the period of grace, if any, within which it may be paid;

the conditions on which the contract may be reinstated if it lapses;

the term of the insurance or the method of determining the dates on which the insurance starts and terminates;

the following statement:

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act .

If a policy contains a provision removing or restricting the right of the insured to designate persons to whom or for whose benefit insurance money is to be payable, the front page of the policy must include the following statement in conspicuous bold type:

This policy contains a provision removing or restricting the right of the insured to designate persons to whom or for whose benefit insurance money is to be payable.

Particulars in group policy

In the case of a contract of group insurance or creditor's group insurance, an insurer must set out in the policy the following:

the name or a sufficient description of the insured;

the method of determining the persons whose lives or well being or both are insured;

the amount, or the method of determining the amount, of the insurance money payable and the conditions under which it becomes payable;

the period of grace, if any, within which the premium may be paid;

the term of the insurance or the method of determining the dates on which the insurance starts and terminates;

in the case of a contract of group insurance, any provision removing or restricting the right of a group person insured to designate persons to whom or for whose benefit insurance money is to be payable;

in the case of a contract of group insurance that replaces another contract of group insurance on some or all of the group person insureds under the replaced contract, whether a designation of a group person insured, a group person insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable under the replaced contract applies to the replacing contract;

the following statement:

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act .

Particulars in group certificate

In the case of a contract of group insurance or creditor's group insurance, an insurer must issue, for delivery by the insured to each group person insured or debtor insured, a certificate or other document in which are set out the following:

the name of the insurer and a sufficient identification of the contract;

the amount, or the method of determining the amount, of insurance on the group person insured or debtor insured and on any person insured;

the circumstances under which the insurance terminates, and the rights, if any, on termination of the insurance of the group person insured or debtor insured and of any person insured;

in the case of a contract of group insurance that contains a provision removing or restricting the right of the group person insured to designate persons to whom or for whose benefit insurance money is to be payable,

the method of determining the persons to whom or for whose benefit the insurance money is or may be payable, and

the following statement in conspicuous bold type:

This policy contains a provision removing or restricting the right of the group person insured to designate persons to whom or for whose benefit insurance money is to be payable;

in the case of a contract of group insurance that replaces another contract of group insurance on some or all of the group person insureds under the replaced contract, whether a designation of a group person insured, a group person insured's personal representative or a beneficiary, as a person to whom or for whose benefit insurance money is to be payable under the replaced contract applies to the replacing contract;

the rights of the group person insured, the debtor insured or a claimant under the contract to obtain copies of documents under

section 96 (5) or (6);

the following statement:

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act .

This

section does not apply to a contract

of blanket insurance, or

of group insurance of a nonrenewable type issued for a term not exceeding 6 months.

Exceptions and reductions must be set out in policy

Subject to

section 101 and except as otherwise provided in this section, the insurer must set out in the policy every exception or reduction affecting the amount payable under the contract, either in the provision affected by the exception or reduction, or under a heading such as "Exceptions" or "Reductions".

If the exception or reduction affects only one provision in the policy, it must be set out in that provision.

If the exception or reduction is contained in an endorsement, insertion or rider, the endorsement, insertion or rider must, unless it affects all amounts payable under the contract, make reference to the provisions in the policy affected by the exception or reduction.

The exception or reduction mentioned in

section 115 need not be set out in the policy.

This

section does not apply to a contract

of group insurance,

of creditor's group insurance, or

made by a fraternal society.

Statutory conditions

Subject to

section 102, the conditions set out in this

section are deemed to be part of every contract, other than a contract of group insurance or creditor's group insurance, and must be printed on or attached to the policy forming part of the contract under the heading "Statutory Conditions", and no variation or omission of or addition to any statutory condition not authorized by

section 102 is binding on the insured.

STATUTORY CONDITIONS

The contract

The application, this policy, any document attached to this policy when issued and any amendment to the contract agreed on in writing after this policy is issued constitute the entire contract and no agent has authority to change the contract or waive any of its provisions.

Material facts

No statement made by the insured or a person insured at the time of application for the contract may be used in defence of a claim under or to avoid the contract unless it is contained in the application or any other written statements or answers furnished as evidence of insurability.

Changes in occupation

(1) If after this policy is issued the person insured engages for compensation in an occupation that is classified by the insurer as more hazardous than that stated in the contract, the liability under the contract is limited to the amount that the premium paid would have purchased for the more hazardous occupation according to the limits, classification of risks, and premium rates in use by the insurer at the time the person insured engaged in the more hazardous occupation.

(2) If the person insured changes occupation from that stated in the contract to an occupation classified by the insurer as less hazardous and the insurer is so advised in writing, the insurer must either

(

a) reduce the premium rate, or

(

b) issue a policy for the unexpired term of the contract at the lower rate of premium applicable to the less hazardous occupation,

according to the limits, classification of risks, and premium rates used by the insurer at the date of receipt of advice of the change in occupation, and must refund to the insured the amount by which the unearned premium on the contract exceeds the premium at the lower rate for the unexpired term.

Termination of insurance

(1) The contract may be terminated

(

a) by the insurer giving to the insured 15 days' notice of termination by registered mail or 5 days' written notice of termination personally delivered, or

(

b) by the insured at any time on request.

(2) If the contract is terminated by the insurer,

(

a) the insurer must refund the excess of premium actually paid by the insured over the prorated premium for the expired time, but in no event may the prorated premium for the expired time be less than any minimum retained premium specified in the contract, and

(

b) the refund must accompany the notice.

(3) If the contract is terminated by the insured, the insurer must refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium calculated to the date of receipt of the notice according to the table in use by the insurer at the time of termination.

(4) The 15 day period referred to in subparagraph (1) (

a) of this condition starts to run on the day the registered letter or notification of it is delivered to the insured's postal address.

Notice and proof of claim

(1) The insured or a person insured, or a beneficiary entitled to make a claim, or the agent of any of them, must

(

a) give written notice of claim to the insurer

(

i) by delivery of the notice, or by sending it by registered mail to the head office or chief agency of the insurer in the province, or

(ii)

by delivery of the notice to an authorized agent of the insurer in the province,

not later than 30 days after the date a claim arises under the contract on account of an accident, sickness or disability,

(

b) within 90 days after the date a claim arises under the contract on account of an accident, sickness or disability, furnish to the insurer such proof, as is reasonably possible in the circumstances, of

(

i) the happening of the accident or the start of the sickness or disability,

(ii)

the loss caused by the accident, sickness or disability,

(iii)

the right of the claimant to receive payment,

(iv)

the claimant's age, and

(

v) if relevant, the beneficiary's age, and

(

c) if so required by the insurer, furnish a satisfactory certificate as to the cause or nature of the accident, sickness or disability for which claim is made under the contract and, in the case of sickness or disability, its duration.

Failure to give notice or proof

(2) Failure to give notice of claim or furnish proof of claim within the time required by this condition does not invalidate the claim if

(

a) the notice or proof is given or furnished as soon as reasonably possible, and in no event later than one year after the date of the accident or the date a claim arises under the contract on account of sickness or disability, and it is shown that it was not reasonably possible to give the notice or furnish the proof in the time required by this condition, or

(

b) in the case of the death of the person insured, if a declaration of presumption of death is necessary, the notice or proof is given or furnished no later than one year after the date a court makes the declaration.

Insurer to furnish forms for proof of claim

The insurer must furnish forms for proof of claim within 15 days after receiving notice of claim, but if the claimant has not received the forms within that time the claimant may submit a proof of claim in the form of a written statement of the cause or nature of the accident, sickness or disability giving rise to the claim and of the extent of the loss.

Rights of examination

As a condition precedent to recovery of insurance money under the contract,

(

a) the claimant must give the insurer an opportunity to examine the person of the person insured when and as often as it reasonably requires while a claim is pending, and

(

b) in the case of death of the person insured, the insurer may require an autopsy, subject to any law of the applicable jurisdiction relating to autopsies.

When money payable other than for loss of time

All money payable under the contract, other than benefits for loss of time, must be paid by the insurer within 60 days after it has received proof of claim.

When loss of time benefits payable

The initial benefits for loss of time must be paid by the insurer within 30 days after it has received proof of claim, and payment must be made after that date in accordance with the terms of the contract but not less frequently than once in each succeeding 60 days while the insurer remains liable for the payments if the person insured, when required to do so, furnishes proof of continuing sickness or disability before payment.

Omission or variation of statutory conditions

If a statutory condition is not applicable to the benefits provided by the contract, it may be omitted from the policy or varied so that it will be applicable.

Statutory Conditions 3 and 7 may be omitted from the policy if the contract does not contain any provisions respecting the matters dealt with in them.

Statutory Condition 4 must be omitted from the policy if the contract does not provide that it may be terminated by the insurer prior to the expiry of any period for which a premium has been accepted.

Statutory Conditions 3, 4 and 7, and, subject to the restriction in subsection (5), Statutory Condition 5 may be varied; but if by reason of the variation the contract is less favourable to the insured, a person insured, or a beneficiary than it would be if the condition had not been varied, the condition is deemed to be included in the policy in the form in which it appears in

section 101.

Statutory Condition 5 (1) (

a) and (

b) may not be varied in policies providing benefits for loss of time.

Statutory Conditions 8 and 9 may be varied by shortening the periods set out in them.

The title of a statutory condition must be reproduced in the policy along with the statutory condition, but the number of a statutory condition may be omitted.

In the case of a contract made by a fraternal society,

the following provision must be printed on every policy in substitution for Statutory Condition 1:

The contract

This policy, the Act or instrument of incorporation of the society, its constitution, bylaws, and rules, and the amendments made from time to time to any of them, the application for the contract and the medical statement of the applicant, constitute the entire contract, and no agent has authority to change the contract or waive any of its provisions.

and

Statutory Condition 4 (1) (

b) and (3) must not be printed on the policy.

Notice of statutory conditions

In the case of a policy of accident and sickness insurance of a nonrenewable type issued for a term of 6 months or less or in relation to a ticket of travel, the statutory conditions need not be printed on or attached to the policy if the policy contains the following notice printed in conspicuous bold type:

Despite any other provision contained in the contract, the contract is subject to the statutory conditions in the Insurance Act respecting contracts of accident and sickness insurance.

Limitation of actions

Subject to subsections (2) and (5), an action or proceeding against an insurer for the recovery of insurance money payable in the event of a person's death must be commenced not later than the earlier of

2 years after the proof of claim is furnished, and

6 years after the date of the death.

Subject to subsection (5), if a declaration has been made under the Presumption of Death Act , an action or proceeding referred to in subsection (1) must be commenced not later than 2 years after the date of the declaration.

Subject to subsection (5), an action or proceeding against an insurer for the recovery of insurance money not referred to in subsection (1) must be commenced not later than 2 years after the date the claimant knew or ought to have known of the first instance of the loss or occurrence giving rise to the claim for insurance money.

If insurance money is not payable unless a loss or occurrence continues for a period of time specified in the contract, the date of the first instance of the loss or occurrence for the purposes of subsection (3) is deemed to be the first day after the end of that period.

An action or proceeding against an insurer for the recovery of insurance money payable on a periodic basis must be commenced not later than the later of

the last day of the applicable period under subsection (1), (2), (3) or (4) for commencing an action or proceeding, and

if insurance money was paid, 2 years after the date the next payment would have been payable had the insurer continued to make periodic payments.

Sufficiency of proof and role of court

Sections 78 to 81 of

Part 3 apply with the necessary changes in the case of insurance money payable under this

Part in the event of a person's death and, for that purpose, a reference in those sections to

section 73 must be read as a reference to Statutory Condition 5 (1) set out in

section 101.

Termination for non-payment

If a policy evidencing a contract or a certificate evidencing the renewal of a contract is delivered to the insured and the initial premium due under the contract or renewal has not been fully paid,

the contract or the renewal of it evidenced by the policy or certificate is as binding on the insurer as if the premium had been paid even if the policy or certificate was delivered by an officer or an agent of the insurer who did not have authority to deliver it, and

the contract may be terminated for non-payment of the premium by the insurer giving

15 days' notice of termination by registered mail, or

5 days' written notice of termination personally delivered.

If a premium referred to in subsection (1) has not been fully paid, the insurer may do one or both of the following:

sue for any unpaid premium;

if there is a claim under the contract, except in the case of a contract of group insurance or creditor's group insurance, deduct the amount of the unpaid premium from the amount for which the insurer is liable under the contract.

If a premium, other than a premium referred to in subsection (1), is not fully paid at the time it is due, the premium may be paid within

a period of grace of 30 days after the date the premium is due, or

the period of grace within which the premium may be paid, if any, specified in the contract,

whichever is the longer period.

If the event on which the insurance money becomes payable occurs during the period of grace and before the overdue premium is paid, the contract is deemed to be in effect as if the premium had been paid at the time it was due.

Except in the case of a contract of group insurance or creditor's group insurance, the amount of the unpaid premium under subsection (4) may be deducted from the amount for which the insurer is liable under the contract.

The 15 day period referred to in subsection (1) (b) (

i) starts to run on the day the registered letter or notification of it is delivered to the insured's postal address.

Subsection (1) does not apply to a contract made by a fraternal society.

Lack of insurable interest

Subject to subsection (2), if at the time a contract would otherwise take effect, the insured has no insurable interest, the contract is void.

A contract is not void for lack of insurable interest

if it is a contract of group insurance, or

if the person insured has consented in writing to the insurance.

If the person insured is under the age of 16 years, consent to the insurance may be given by one of the person insured's parents or by a person standing in the place of a parent.

Persons insurable

Without restricting the meaning of "insurable interest", a person, in this

section called the "primary person", has an insurable interest,

in the case of a primary person who is a natural person, in the primary person's own life and well being and in the lives and well being of the following:

the primary person's child or grandchild;

the primary person's spouse;

iii

a person on whom the primary person is wholly or partly dependent for, or from whom the primary person is receiving, support or education;

the primary person's employee;

a person in the duration of whose life or in whose well being the primary person has a pecuniary interest, and

in the case of a primary person that is not a natural person, in the lives and well being of the following:

the primary person's director, officer or employee;

a person in the duration of whose life or in whose well being the primary person has a pecuniary interest.

Termination of contract by court

a person whose life or well being or both are insured under a contract is someone other than the insured, and

the person reasonably believes that their life or health might be endangered by the insurance on their life or well being or both continuing under that contract,

on the application of that person, the court may make the orders the court considers just in the circumstances.

Without limiting subsection (1), the orders that the court may make under subsection (1) include

an order that the insurance on that person under the contract be terminated in accordance with the terms of the contract, other than any terms respecting notice of termination, and

an order that the amount of insurance under the contract be reduced.

An application under subsection (1) must be made on at least 30 days' notice to the insured, the beneficiary, the insurer and any other person the court considers to have an interest in the contract.

Despite subsection (3), if the court considers it just to do so, the court may dispense with the notice in the case of a person other than

the insurer, or

if the contract is a contract of group insurance or creditor's group insurance, the insured.

An order made under subsection (1) binds any person having an interest in the contract.