Bill 85 (Legislature 11, Session 4)

L11 S4 6996

Alberta — Bills

Bill No. 85 of 1951. A BILL TO AMEND THE ALBERTA INSURANCE ACT. NOTE. This Bill amends The Alberta Insurance Act, being chap ter 201 of the Revised Statutes of Alberta, 1942. The amendments 'Contained in this Bill fall into two main groups. One group of amendments relates to administration of deposits, reciprocal deposits and winding-up of insurers. The second main group of amendments affects the auto mobile insurance part of the Act and the statutory condi tions contained in automobile insurance policies. The Insurance Acts of all the provinces of Canada except Quebec are uniform.

In most .cases it is customary to amend The Insurance Act only after the proposed amendments ha ve been discussed and approved by the Conference of Superintendents of Insurance representing all of the prov inces. Amendments approved by the Conference are recom mended to all the provinces of Canada for enactment and ordinarily they are brought into force simultaneously in all the provinces that enact them.

In the winding-up of the Home Assurance Company a number of diffi·culties were encountered which revealed the inadequate and ambiguous nature of the provisions of The Insurance Act dealing with administration of deposits, reciprocal deposits and winding-up. The Conference of Superintendents of Insurance in 1949 appointed a committee consisting of the Superintendents of Insurance and Legis lative Counsel of the provinces of Alberta, Manitoba and British Columbia to study this problem and make a report.

This committee met on several occasions throughout 1949 and 1950 with the liquidator of the Home Assurance Com pany and the solicitor representing him and the adminis trator of the deposit. The committee submitted a report to the Conference recommending a number of changes in the provisions relating to these subjects with a view to sim plifying and clarifying them. The recommendations of the committee were adopted by the Conference of Superintendents of Insurance at its 1950 meeting and were recommended to all of the provinces for enactment. This Bill contains those recommended amend ments.

Section 59 and sections 65 to 77 inclusive are struck out and new provisions are substituted in their stead. These provisions deal with the administration of the deposit of an insurer. Each insurer's deposit is taken under the provisions of The Alberta Insurance Act by the Superintendent of Insurance for the protection of policy-holders of that in surer.

Although any person entitled to share in the proceeds of the deposit may apply for administration of it the new provisions require adequate notice of the intended applica tion to be given to the Superintendent and .that the Superin tendent should have the first opportunity of applying for administration of the deposit. The amendments also provide a means of terminating outstanding contracts once admin istration of the deposit has been granted in order to preserve sufficient funds in the deposit to pay existing claims.

The Bill provides for notice to policy-holders so that they can protect themselves by reinsuring elsewhere. The amendments make it clear that the primary purpose of the deposit is for the protection of policy-holders. The sections provide that the only amount that can be paid out of the deposit apart from claims of policy-holders is the amount of the actual costs and expenses incurred in the administration of the deposit.

Under existing provisions a liquidator or receiver ad ministering a deposit cannot make an interim distribution on account of claims against the deposit but must wait until liability for and the amount of all claims is finally deter mined. This creates considerable hardship on policy-holders who have incurred heavy losses, the claims for which are admitted.

The Bill provides for distribution on account of claims from time to time with the approval of the court which avoids the necessity of such a policy-holder having to wait a year or more until other claims are settled before he receives any payment from the deposit on account of his claim. Reinsurance is impossible from a practical standpoint once the receiver or· liquidator commences to administer a deposit as policies are then being terminated both by the policy-holders themselves and by the fixing of a termination date under the Act.

The Bill accordingly provides that before administration of the deposit commences the deposit may be used for the purposes of reinsurance by the Minister, or in the case of a reciprocal deposit by agreement among the Superintendents of the provinces covered by the recip rocal deposit. Sections 78 to 81 of the Act deal with reciprocal deposits. These sections deal with cases where one province holds a deposit of an insurer not only for itself but for provinces which are reciprocating under the provisions of these sec tions. There are several amendments to the reciprocal

iii deposit sections to conform with the amendments made to the sections relating to the administration of individual deposits.

Section 137 dealing with liability of shareholders is struck out and a new

section is substituted. This

section now provides that a person holding shares in trust is not personally liable but that the estate in his hands is liable. If the only estate he holds in his hands in trust is the shares themselves there is no other estate in his hands from which callsc.an be paid. This is an obvious loophole by which shareholders of an insurer may evade liability in winding up. The new se,ction is similar to the present

section in the Dominion Companies Act and provides that the estate or person represented by the trustee continues to be liable. Thus, liability for calls on the insurer's shares in winding-up cannot be evaded simply by transferring the shares to a trustee.

Section 152, sections 162 to 168 inclusive and sections 462 to 467 inclusive are all struck out. These provisions relate to the liquidation or winding-up of insurers. New sections 162 to 168e inclusive are substituted in their stead. The ,circumstances which give rise to the administration of a deposit, reciprocal or otherwise, are the same circum stances which may result in the winding-up or the liquida tion of an insurer.

In many cases administration of the deposit and winding-up of an insurer may be taking place simultaneously and policy-holders seeking settlement of their claims may be entitled to share both in the proceeds of the deposit being administered by the receiver and in the general assets of the company being wound up by the liquidator. Consequently, the provisions relating to admin istration of the deposit and to winding-up of an insurer must be such that the duties of the receiver and the liquid ator do not conflict or are not inconsistent, particularly where their jurisdictions overlap.

The liquidation and winding-up provisions contained in this Bill are amended to make them consistent with the new provisions relating to administration of deposits and reciprocal deposits. The second general group of amendments relate to auto mobile insurance. These amendments are also recommended by the Superintendents of Insural}ce for en,actment ~y, all the provinces of Canada, A. stan~I!lg commItt,ee consIstIn~ of representatives of OntarIO, BrItIsh ColumbIa and ManI toba has been working for some years on these amendments in -consultation with representatives of the insurance companies.

The amendments are designed to provide for a new standard automobile policy which will be sold in all the provinces of Canada except Quebe,C and Newfoundland. The various sections of The Alberta Insurance Act and of the statutory conditions ielati?g to. autom~bile insurance are amended to provide for thIS revIsed pohcy form. The new standard policy contains several additional coverages. It

iv provides for "comprehensive" .coverage for d!lmage to t~e insured automobile. It also gIves coverage In stated CIr cumstances and under certain conditions to the owner with respect to newly acquired automobiles, temporary subst!tute automobiles and the driving of other non-owned prIvate passenger automobiles. This me~ns t~a~ the insured a~d his spouse would be ,covered whIle drIvIn~ not only th~Ir own automobile but some other automobIle. The polIcy also provides for medical payments ,coverage and c?verage for automobile radios. The addition of the new

sectIon 31a, the amendment of sections 257, 259, 264, 271 to 274, inclu sive, 276, 276a, 276b, 278, 282 and the. a;mendme~ts to

Schedule D containing the statutory condItions applIcable to. autGmobile insurance all deal with this same subject. Apart from the two large groups of amendments that have already been dealt with there are some others dealing with various subjects.

Section 2, subsection (34) is amended to make the defi nition of "insurance" in the Alberta Act exa,ctly the same as the corresponding definition in the Acts of the other provinces.

Section 2-6 is amended by the addition of a new subsection (4) which exempts insurers licensed under this Act from the payment of municipal license fees. Insurers are subject to municipal business taxes and to. licensing by the Province. The amendment will prevent further license fees being imposed.

Section 33 is amended by the addition of a new clause (00) which is similar to a provision contained in The llanitoba Insurance Act and The No,va Scotia Insurance Act. The effect of this amendment is that no. life insurance CGmpany can carryon business in Alherta unless it is registered not only in Alberta under The Alberta Insurance Act but under the Insurance Act (Canada) as' well.

This protects Alberta policy-holders by making sure that the head offices of all life insurance companies carrying on business in the Province are subject to inspection by the underwriters and actuaries .of the Dominion Department of Insurance. It is not practical fGr the Provincial Department of Insurance to employ a staff qualified for this purpose. The amendment will not adversely affect any company now licensed in the Province, as The Empire Life is the only one that has not applied for Dominion registration and it is specifically exempted from the application of this amendment.

Section 82, subsection (1), clause (

a) is amended. This

section sets out the securities in which insurers may invest their funds. The amendment will permit the investment of insurance moneys in debentures of school divisions.

Section 86 is amended. The effect of the amendment is to change the date of filing of annual returns from the 1st of April to the end of February.

Section 253, subsection (4) is amended. The duties of the Official Guardian are now earried on by the Public T'rustee and the

section is amended accordingly. A new

section 292a is added. This

section will enable the Superintendent of Insurance to issue permits to insurers desirous of using automatic vending machines for the sale of transportation, accident, trip policies. The machines will sell policies of accident insurance and the legislation author izing them will be uniformly enacted in all provinces where the mathines are installed.

Section 468, subsection (2) is amended to correct an error. The Bill comes into force on a date to be fixed by procla mation so that the ,amendments to the uniform sections of the Insurance Acts of the various provinces may be made effective from the same date for all provinces. KENNETH A. McKENZIE, Legislative Counsel. (This note does not form a,ny part of the Bill but is offered in explanation Of its provisions.)

BILL No. 85 of 1951.

An Act to amend The Alberta Insurance Act. (Assented to , 1951.) HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. The Alberta Insurance Act, being

chapter 201 of the Revised Statutes of Alberta, 1942, is hereby amended.

Section 2, subsection (34) is amended by striking S t" 2 out the words "from certain risks or perils" and by sub- a~e~od~d stituting the words "for loss in respect of a certain risk or peril".

Section 26 is amended by adding immediately after

Section 26 subsection (3) the following new subsection: amended "( 4) The holder of a license under the provisions of this Act shall be exempt from payment of any license fee for the transaction of the business of insurance imposed by a mu nicipal corporation within the Province.". 4. The following new

section 31a is added immediately N after

section 31: se~~on 3la "31a. Every insurer licensed for the transaction of Restricted automobile insurance may, under the authority of its ?-ccident license, unless the license expressly provides otherwise, pro- msurance vide the restricted accident insurance authorized under

section 276a.". 5.

(1) Section 33 is: amended hy adding immediately after clause (

a) the following new clause:

Section 33 amended " (aa) to any insurer undertaking life insurance, unless the insurer is registered under The Canadian and British Insurance Companies Act, 1932 (Canada), or under The Foreign Insurance Companies Act, 1932 (Canada), or has obtained its certificate of registry from the Superintendent of Insurance ap: pointed under The Department of Insurance Act (Canada) ;". (2) Subsection (1) does not apply to The Empire Life Insurance Company.

Section 59 is repealed.

Section 59 repealed 7. Sections 6~ to 77 inclusive are struck out and the fol- ~;~vons 65 lowing are ~ubsbtuted : ' amended

Interpreta tion "Alberta contract" "insured person" "loss" "reciprocal deposit" "reciprocat ing province" Use of deposit for reinsurance 2 "65. In sections 65 to 81 inclusive and .in secti~ns 162 to 168e inclusive, unless the context otherWIse requIres,- "(a) 'Alberta contract' means a subsisting contract of insurance that,- "(

i) has for its subject,- "(

A) property that at ~he time of t?e makil}g ?,f the contract is In the PrOVInce or IS In transit to or from the Province; or "(

B) the life, s:aiety, fidelity or insurahle in terest of a person who at the time of the making of the contract is resident in, or has its head office in the Province; or "(ii) makes provision for payment thereunder prim arily to a resident of the Province or to an in corporated company, that has its head office in the Province; " (b) 'insured person' means a person who enters into a subsisting contract of insurance with an insurer and includes,- "(

i) every person insured by a contract, whether named or not; and "(ii) every person to whom or for whose benefit all or part of the proceeds of a contract of in surance are payable; and "(iii) every person entitled to have insurance money applied toward satisfaction of his judgment in accordance with

section 278; " (c) 'loss' includes the happening of an event or ,con tingency by reason of which a person becomes en titled to a payment under a contract of insurance of moOney other than a refund of unearned pre'miums; "(d) 'reciprocal deposit' means a deposit of an insurer held pursuant to sections 79 or 80 ; " (e) 'reciprocating province' means a province that has been declared to be a reciprocating province pur suant to

section 79, subsection (1), clause (

a) or

section 80, subsection (1), with respect to the de posit of a particular insurer. ",66.

(1) Notwithstanding anything hereinafter con tained but subject to subsection (2), at any time before the granting of an order for administration of a' deposit and upon the recommendation of the Superintendent cer tifying that such action is necessary or desirable for the protection of policy-holders entitled to share in the proceeds of the deposit, the Minister may use all or any part of the deposit for the purpose of reinsuring all or any part of the Alberta contracts. "

(2) A reciprocal deposit may be used for purposes of reinsurance in the manner and to the extent agreed upon by the Superintendents of Insurance of the reciprocating provinces and not otherwise.

3 "67.

(1) The deposit made by an insurer under this Act ~dministra- h II b b · t t d" t t' . h . bon (If S a e su J ec 0 a mInIS ra IOn In t e manner hereIn- deposit after provided. "

(2) Subje,ct to sections 79 and 80, the deposit shall be Per.sons h Id d d . . t h . entitled to e an a mInIS ered for t e benefit of all Insured persons share in under Alberta contracts and they shall be entitled to share deposit in the proceeds of the deposit. "(3). An insured person under an Alberta contract shall ~~~~~ie be entItled to share in the proceeds of the deposit in re- from. spect of.,- dr'rOslt " (

a) a claim for a loss that is covered by the contract and that occurred before the termination date fixed pursuant to

section 72 or

section 168a; or "(

b) a claim for refund of unearned premiums except in the case of life insurance; or . " (

c) a claim for payment of the legal reserve in respect of the contract in the case of life insurance; or "(d) ,claims under both clauses (

a) and (b). "168.

(1) An application for administration of a deposit Applit:a~i!J.1I shall be made by originating notice of motion to a judge of ~~:'a~?o~l~r the Supreme Court of Alberta. deposit "

(2) The application shall be made in the judicial district in Alberta,- "(

a) in which the head offi,ce of the insurer is situate; or "(

b) in which the chief office of the insurer in the Province is situate if its head office is outside the Province. "69.

(1) With the approval of the Minister, the Super- Application intendent may make application for administration at any ~,~~a~r~~ig; time when, in his opinion, it is necessary or desirable for depos!t by the protection of the insured persons entitled to share in ~~ferll1tend the proceeds of the deposit. "

(2) In the case of a reciprocal deposit held in this Applica~io.11 P · th S . t d t f If' for admlnl-rOVInCe, e uperIn en en 0 nsurance 0 any reCI- stration of procating pr.ovince may make application for administration ~~~ig~i~cal of the depOSIt. "

(3) An insured person entitled to share in the proceeds AppliC'a,~i0.n of a deposit may make application for administration of the ~~:'a~r~~l~r deposit upon producing evidence,- ~eposit by • Insured "(

a) that he has served the SuperIntendent of Insurance person for Alberta with a notice in writing of his intention to make the application if the Superintendent or the Superintendent of Insurance of any reciprocat- ing province does not apply; and "(

b) that sixty days have elapsed since the service of the notice and that no application for administration of the deposit has been made. "

(4) In the case of a reciprocal deposit, if the Super intendent is served with a notice as provided in subsection (3), he shall forthwith notify the Superintendent of Insur ance of each reciprocating province that he has been so served.

Persons to be served with notice of applica tion for administra tion of deposit 4 "70.

(1) The applicant for administrati?n of the deposit shall serve the originating noti,ce of motion at least ~en days prior to the date specified in the notice for the making of the application,- "(

a) upon the insur~r o.r, where the !nsurer is in liquida tion, upon the lIqUIdator of the Insurer; and "(

b) upon the Superintendent of Insurance for Alberta; and "(

c) in the case of a reciprDcal deposit, upon the Super intendent of Insurance of each reciprocating prov- ince. Order for "

(2) An applicant for administration shall be entitled administra- tion to an order for administration upon proof,- "(

a) that the license of the insurer has been cancelled, and that its assets are insufficient to discharge its outstanding liabilities; or " (

b) that an order has been made for the winding-up of the insurer; or "(

c) that the insurer has failed to pay,- "(

i) an undisputed claim for sixty days after it has been admitted; or " (ii) a disputed claim after final judgment and tender of a valid discharge; if the claim arose under a contract of insurance in respect of which the deposit is subject to adminis tration. ~~~~i~:-' "71.

(1) Upon granting an order for administration the receiver court shall appoint a receiver to administer the deposit. ~~~~i~:- "

(2) Where a provisional liquidator or a liquidator has provisional been appointed under this Act or The Companies Act, or a l:;~!f~r~fster liquidator has been appointed under the Winding-up Act deposit (Canada) to wind up a company that has made a denosit under this Act, the court may appoint the provisional liquidator or the liquidator as the receiver to. administer the deposit. "

(3) Thereupon the provisional liquidator or the liquid ator shall administer the deposit for the benefit of the in sured persons entitled to share in the proceeds thereof in accordance with the priorities and other provisions pre scribed in this Act. Fixing of "72.

(1) Where a termination date has not been fixed termination date by a provisional liquidator or a liquidator pursuant to sec- tion 168a, forthwith after his appointment the receiver shall fix a termination date for the subsisting contracts of insurance of the insurer; and on and after that date cover age and protection under the Alberta contracts shall cease and determine, and the insurer shall not be liable under any such contract for a loss that occurs after that date. ;eo:se:sa:;ter "

(2) Where a receiver administering a reciprocal de termination posit held in another province for the benefit of the insured date fixed persons under Alberta contracts fixes a termination date for the subsisting contracts of insurance of the insurer, on and

5 after that date coverage and protection under the Alberta contracts shall cease and the insurer shall not be liable under any such contract for a loss that occurs after that date. "

(3) The termination date shall not be fewer than twenty nor more than forty-five days after the date upon which the receiver was appointed. "

(4) The receiver shall forthwith give notice in writing Noti<;e of. of the termination date to the Superintendent of Insurance ~e:tr::matlOn for Alberta and, in the case of a reciprocal deposit, to the Superintendent of Insurance of each reciprocating province. "

(5) The receiver shall forthwith publish notice of the termination date in the official gazette of this Province and of each reciprocating province and in such newspapers circulating in those provinces as the receiver in his opinion deems advisable in order to give reasonable notice of the termination date. "73.

(1) The Superintendent, forthwith upon receiving ~o,tice to notice of a termination date fixed by the receiver administer- ~~~~~~~ of ing the deposit of an insurer, shall take such action as he termination may deem advisable in the interests of the insured persons date under Alberta contracts to give notice of that date to them as soon as is reasonably possible. "

(2) Without restricting the generality of subsection (1), the Superintendent may forthwith require each agent of the insurer in the Province to forward to him a list show ing the name and address of each person who has entered into a contra'ct of insurance with the insurer of whom he has a record. "

(3) On receipt of ea,ch list forwarded by an agent the Superintendent may send by ordinary mail to each person whose name appears on the list a notice containing the following information,- "(

a) the termination date fixed by the receiver; "(

b) the name and address of the 'receiver to whom par ticulars of claims for loss and claims for refund of unearned premiums should be submitted; "(

c) such other information as the Superintendent deems advisable. "

(4) The Superintendent, in his discretion, may publish, broadcast or otherwise communicate or distribute the in formation stated in the notice, either generally or in any particular area or case, in such manner and by such means as he deems best suited to convey the information to the insured persons as soon as is reasonably possible having regard to all the circumstances. "74. Forthwith after his appointment the receiver Duti.es of shaH,- reeeiver "(

a) call either upon the insurer or its agents or liquidat- or to furnish a list of all insured persons who are entitled to share in the proceeds of the deposit; and "(

b) call upon all insured persons who are entitled to share in the proceeds of the deposit to file their claims if they have not already done so.

Powers of receiver Receiyf'l' may apply to court for (l1"l1e1' Payment of pl'ocef'ds of rh'llusit N E'W st'ctions 77(1 to 71 h indusive Prioritvof claims' Refund of unearned lll'f'miums 6 "75. The court by the order appointing a receiver or by any subsequent order, may authoriz~ the receiver to exercise in respect of the accounts of the Insurer, all or any of the p'owers that the Master in C.hamber~ would have. if he were taking an account of the claIms agaInst the deposIt; and every reC€iver so authorized shall have those powers, as well as all other powers enjoyed by a receiver appointed under an order of the court. "716.

(1) The receiver may apply to the court from time to time for an order authorizing him,- " (

a) to sell or realize upon all or any portion of the securities comprised in the deposit of the insurer; and " (

b) to pay from the proceeds thereof the costs of the administration of the deposit including salaries of office staff, office expenses, the fee for the services of the receiver, fees and disbursements to adjusters and solicitors, and such other costs and expenses as the court deems proper. "

(2) The court may require the receiver to give such notice, if any, of the application, in such manner, as 'the court may require. "

(3) After hearing the application the ,court may make the order and may require the receiver to comply with such conditions as the court may direct. "77. The proceeds of the deposit shall be payable, "(

a) firstly in payment of the receiver and of all costs and expenses incurred by him in the administration of the deposit and in payment of all or part of the remuneration, costs and expenses of the provisional liquidator if ·so ordered by the Minister pursuant to

section 165, subsection (3) ; " (

b) secondly in payment of the insured persons who are entitled to share in the proceeds of the deposit in accordance with the priorities set out in

section 77a~ "77 a.

(1) Except in the case of life insurance, each in sured person who daims in respect of a loss ,covered by the contract that occurred before the termination date fixed pursuant to

section 72 or

section 168a shall be entitled to receive payment of his approved or settled claim in full in priority to the insured persons who claim in respect of re funds of unearned premiums. "

(2) Subject to subsection (1), an insured person who claims in respect of a refund of unearned premiums may claim such part of the premium paid as is proportionate to the period of his ,contract unexpired,- "(

a) at the termination date fixed by the receiver pur suant to

section 72 or fixed by the provisional liquidator or the liquidator pursuant to

section 168a.; or "(

b) at the date the insured person cancelled the con tract; whichever date is the earlier.

7 "

(3) In th~ case of life insurance, each insured person ~~r~~~tion who has a claIm for a loss covered by the contract that oc- of proceeds curred before the termination date fixed pursuant to

section 72 or

section 168a shall rank in the distribution of the proceeds of the deposit for the approved or settled amount of the claim pari passu with insured persons under un- matured life insurance contracts. "

(4) An insured person under an unmatured life in- ~:s~a~e surance contract shall be entitled to the full amount of the r legal reserve in respect of his contract determined by the receiver according to the valuation thereof approved by the Superintendent under the provisions of this Act. "77b.

(1) Where an insured person has filed a claim for ~~~~~~tr a loss covered by the contra,ct that occurred before the ter- c1aif!1 by mination date fixed pursuant to

section 72 or

section 168a, receIver the receiver shall inquire into the claim and,- "(

a) may approve the claim if a final judgment has been obtained against the insurer in respect there of; or " (

b) may approve the claim if it has been adj usted or settled by the insurer or by the receiver at an amount that, in his opinion the claimant is reason ably entitled to receive; "(

c) may refuse to approve the claim or the amount thereof. "

(2) An appeal lies from any decision of the receiver if ;t;J:t~rf~~m taken within thirty days from the date on which the person receiver appealing has received notice of the decision. " (3) 'The appeal shall be taken by the filing and service on the receiver of a notice of motion returnable before a judge of the Supreme Court in Chambers, who may sum marily determine the matter, or may direct an issue to be tried, or may make such other order as he deems proper. "77 c.

(1) The receiver shall prepare a list showing the List of names of the persons who appear by the books and records ~~~~t~~~ to of the insurer or oth~rwise to be entitled to share in the ~~~~~An proceeds of the depOSIt. "

(2) The receiver shall prepare and attach to the list a

Schedule of h I f 1 · f 1 h" t approved SC edu e 0 approved c alms or osses s OWIng In respec claims of each approved claim for loss made by a person appearing on the list,- " (

a) the name and address of the claimant; " (

b) the particulars of the contract of insurance upon which the claim is based; "(

c) whether the claim was reduced to judgment or was adj usted or settled; and " (

d) the amount for which the claimant is entitled to rank upon the fund. "

(3) The receiver shall prepare and attac~ to .the list a ~~~~~~~~~~

schedule of unapproved claims for losses shOWIng In respect claims of each claim for loss that has not yet been approved made by a person appearing on the list,---

Schedule of refundable unearned premiums

Schedule of contract legal reserves Order authorizing payment of claims Distribution of deposit 8 " (

a) the name and address of the claimant; " (

b) the particulars of the ,contract of insurance upon which the claim is based; " (

c) the amount for which the claim is made or the amount estimated by the receiver as the probable maximum amount that will be payable under the contract in respect of that loss. "( 4) Except in the case of life insurance, the receiver shall prepare and atta,ch to the list a

schedule of unearned premiums refundable showing- in respect of each person whose name appears on the list and who is entitled to a refund,- " (

a) his name and address; " (

b) the particulars of the contract of insurance in respect of which the unearned premium is refund able; " (

c) the date on which the policy was terminated either by the receiver pursuant to

section 72 or by the pro visional liquidator or the liauidator pursuant to

section 168a or was cancelled by the insured person: "(

d) the amount of the unearned premium as calculated by the receiver in accordan,ce with

section 77 a, sub section (2). "

(5) In the case of life insurance, the receiver shall pre pare and attach to the list a

schedule of contract legal re serves showing- in respect of each person whose name ap pears on the list and who is entitled to claim for the legal reserve in respect of his contract,- " (

a) his name and address; " (

b) the particulars of the contract of insurance in re spect of which the legal reserve is payable; " (

c) the amount of the legal reserve calculated by the receiver pursuant to

section 77a, subsection (4). "77d.

(1) Upon completion of the schedules and after having paid or provided reasonable reserves from the de posit to pay the amounts payable pursuant to

section 77, clause (a), the receiver may apply to the court for an order authorizing the payment of such aggregate sum as may be fixed by the court on account of the amounts payable pur suant to

section 77, clause (b). "

(2) Exeept in the case of life insurance, the receiver shall divide the sum mentioned in subsection (1) so as to provide for payment of the claims for loss in full or, if the sum is inadequate, pro rata on account of,- "(

a) the approved claims for losses set out in the

schedule of approved claims for losses; and " (

b) the unapproved claims for losses set out in t~e

schedule of unapproved claims for losses; and shall distribute the portion referred to in clause (

a) at such time .or times as the receiver may determine to the persons entitled thereto and shall retain the portion re ferred to in ,clause (

b) for distribution from time to time as the unapproved claims are approved.

9 "

(3) Except in the case of life insurance, if there ap- Disposition pears to be a surplus remaining after the receiver has paid of surplus or retained a sum that in his opinion is reasonably adequate to pay in full all claims for loss referred to in subsection (2), the re,ceiver shall divide the surplus so as to provide for payment of all unearned premiums in full or, if it is in adequate, among the persons entitled to a refund of un- earned premiums in proportion to the amounts payable as set out in the s,chedule of unearned premiums refundable.

"( 4) In the case of life insurance the receiver shall Distribu~ion d· ·d th fi d ' . . of deposit IVI e e sum xe pursuant to subsectIOn (1) so as to provide for payment of the following amounts in full Of, if the sum is inadequate, pro rata on account of,- "(

a) the approved claims for losses set out in the

schedule of approved claims for losses; " (

b) the unapproved claims for losses set out in the

schedule of unapproved claims for losses; " (

c) the full amount of the legal reserve in respect of each unmatured life insurance Icontract as set out in the

schedule of contract legal reserves; and shall distribute the portions referred to in clauses (

a) and (

c) at Stich time or times as the receiver may determine to the persons entitled thereto and shall retain the portion referred to in clause (

b) for distribution from time to time as the unapproved claims are approved. "77 e. If a claim in respect of a loss that occurred before Claim filed the termination date is filed after the receiver has applied to afi~r afPli - the court under

section 77 d, subsection (1) and before the ~~d~rn or final order of the court discharging the receiver, the claim- ~~~~~~ing ant shall be entitled to share in the distribution of the moneys remaining in the hands of the receiver upon proof of his claim and upon such terms and conditions as the court may direct . . "77/. The receiver administering a deposit may apply to Receiver the court at any time on

summary application for directions ~~~fie~~Y or advice pertaining to any matter arising in the administra- tion.s and tion of the deposit. adVice "77 g. Upon the completion of the distribution of the pro- Final ceeds of the deposit the receiver shall submit his final ac- ac~o~~ting counts to' the court; and the court, on the passing thereof, ~~arg~~f may make an O'rder approving the accounts and discharging receiver the receiver. "77h.

If a claim is made after the ,completion of the dis- Claim a~ter tribution of the proceeds of the deposit and the discharge ~~rgf's\~\~:; ef the receiver, or if there is a claim against the insurer ~ion O~t by an insured person not fully paid by the distribution of eposl the prO'ceeds of the deposit, the claimant is not barred from any recourse he may have against the insurer, and his claim shall be a first lien or charge on the assets of the insurer in winding-up as provided in

section 167, subsection (2) .".

Section 79 amended

Section 80 amended Exemption of insurer to make and maintain deposit 10

Section 79 -is amended,- (

a) by striking out clauses (

a) and (

b) of subsection (1) and by substituting the following: " (

a) the amount of the deposit to be made and maintained by the insurer shall b~ fixed br order of the Lieutenant Governor In CouncIl and the order shall declare what provinces are reciprocating provin,ces with respect to that insurer's deposit; " (

b) the deposit shall be held and administered as security pari passu for the Alberta contracts of the insurer and for its contracts in any recipro cating province;" ; (

b) by adding at the end of ,clause (

e) of subsec~ion (1) the words "and the Superintendent forthwIth shall give notice of the delivery or transfer to the Super intendent of Insurance of each reciprocating province" ; (

c) by striking out the words "or where its deposit be comes liable to administration under this Act," where they occur in clause (

g) of subsection (1); (

d) by striking out clause (

h) of subsection (1) and by substituting the following: "(

h) where the insurer ceases to transact business in, or its license is suspended or cancelled in, a reciprocating province and notice thereof is is given to the Superintendent, the Minister and the Superintendent, upon the request of the Superintendent in the 'recipro,cating pro ince, may take any action that could be taken if the insurer were ceasing to transact business in, or its license were sus1pended or cancelled in, this Province."; (

e) by adding at the end of subsection (2) the words' "and the Superintendent forthwith shall give notice of any change or transfer to the Superintendent of Insurance of each ,reciprocating province".

Section 80 is amended by striking out subsections (1) and (2) and by substituting the following: "80.

(1) Where an insurer has its head office for Canada in another province and there makes a deposit of such amount as may be fixed by the proper authority in that province and under the laws of that province the deposit is held as security pari passu for its Alberta con tracts and its contracts in every reciprocating province, the Minister, upon receipt of a certified copy of an order of the Lieutenant Governor in Council of the province in which the deposit is made fixing the amount of the deposit and declaring that Alberta is a reciprocating province with re spect to that insurer's deposit, and upon receipt of the consent of the insurer to its deposit being so held, shall

11 exempt the insurer from the provisions of this Act requiring it to make and maintain a deposit. "

(2) Where the insurer ceases to transact business in, or Notice of ·t I· . d d II d· the P . th cessation 1 S lCenSe IS suspen e or -cance e In, IS rOVlnce e of business Superintendent shall immediately give notice thereof to the Superintendent .of the province in which the reciprocal de- posit is held and to the Superintendent of ea-ch other reci procating province. "(2a) Where an .order is made for the administration of a ~otice to re-ciprocal deposit held in another province pursuant to the ~~~~~~d provisions of subsection (1), the Superintendent, as soon as is reasonably possible after receipt of notice of the termina- tion date fixed by 'the receiver, shall proceed pursuant to

section 73 to give the noti-ce required by that

section to the insured persons under the Alberta contracts.". 10. The following new

section 80a is added immediately New after

section 80:

section 80a "'80a. At any time before the granting of an order for the Agreements administration of a reeiprocal deposit the Superintendents !~c~r~ties of Insurance of each reeiprocating province may enter into fo~ t t II t f th ·t· d . d reInsurance an agreemen 0 use 'a' or any par 0 e securl leseposlte for the purpose of reinsuring all or any part of the risks of the insurer .outstanding in all or any of those provinces.".

Section 82, subsection (1), clause (

a) is amended by

Section 82 adding immediately after the words "school district" the amended words "or s-chool division". 12,.

Section 86 is amended by striking out the words

Section 86 "first day of April" and by substituting the words "last day amended of February".

Section 137 is struck out and the following is sub-

Section 137 stituted: . amended "137.

(1) No executor, administrator, tutor, curator, Liabilityof committee, guardian or trustee who is entered on the books :~:~~~~a of the cotppa~y as a shharehold~tr and therdeintdetS-crtibedt as !~~r~~~l~ser representIng In any suc capaCI y a name es a e, rus or person, shall be personally liable in respect of the share that he so 'represents, notwithstanding any neglect or om!s- sion on the part of the company to enter the proper descrIp- tion on its books. "

(2) The estate or person so represented shall continue to be liable as if the testator, intestate, minor, ward, lunatic or interdicted person, cestui que trust or .other person were entered in the books of the company as the holder of the shares. "

(3) No person holding stock in the company as collat eral security shall be personally subject to liability as a shareholder; but the person pledging the stock shall be deemed to hold it and shall be liable as a shareholder ac cordingly." .

Section 152 repealed Sections 162 to 168 amended 12

Section 152 is repealed. 15. Sections 162 to 168 inclusive are struck out and the following are substituted: "Liquidation and Winding-up. Windin.g-~p "1-62. A provincially incorporated insurance company is of prOVlllClal-. . • • • f Th C . A t ly inc;orpor- subject to the wIndIng-up proVIsIons .0 e ompan.~es c ated lllsur- except in so far as they may be varIed by the specIal pro-ance • company visions of thIS Act. • Winding-up "163,.

(1) An insurer incorporated in Alberta may also of in.surer be wound up by order of the court on the application of the Superintendent if the court is satisfied that,- Provisional liquidator " (

a) the insurer has failed to exer,cise its corporate powers during any continuous period of four years; or " (

b) the insurer has not commenced business or gone into actual operation within four years after it was incorporated; or " (

c) the insurer has discontinued business for one year after it has undertaken insurance ,contracts within the meaning of this A,ct; or "(

d) the insurer's license has been suspended for one year or more; or " (

e) the insurer has carried on business or entered into a contract or used its funds in a manner or for a purpose prohibited or not authorized by this Act or by its Act of incorporation or by any spe,cial Act applicable thereto; or "(

f) other sufficient cause has been shown. "

(2) No such application shall be made by the Superin tendent without the approval of the Lieutenant Governor in Council. "

(3) Upon the making of an order under this

section the provisions of The Companies Act relating to winding-up of a company, in so far as they are not inconsistent with this Act, shall apply. "LM.

(1) In the case of an insurer incorporated in Alberta,- "(

a) if its license expires and,- "(

i) the insurer fails to renew within the period limited by this Act; or "(ii) a renewal is refused; or " (

b) if its license is cancelled; the Minister may appoint a provisional liquidator who shall take charge of the affairs of the company and may direct that it be wound up forthwith under The Companies Act . . ':

(2) U:nti} a permanent liq?idator is appointed the pro vISIonal lIqUIdator shall exerCIse all the powers of the in surer and none of the officers or servants of the insurer shall make any contract for, incur any liability on behalf

13 of, or expend any moneys of, the insurer without the approval of the provisional liquidator. "

(3) The provisional liquidator shall petition the court W~nding-up for a winding-up order; and if the court is of the opinion or er that it is just and equitable to do so, it may make an order winding-up the company and thereupon the provisions of The Companies Act relating to the winding-up of a com- pany, in so far as they are not inconsistent with this Act, shall apply. "( 4) The provisional liquidator or the liquidator, not- ~alf;l of withstanding the provisions of The Companies Act, but sub- usmess ject to the approval of the court, may sell the business and undertaking of the company as a going concern. "165.

(1) The remuneration to be paid to a provisional if~~~~era liquidator appointed under

section 164, subsection (1) shall ~ro':'disional b fi d b th M· . te hqUl ator e xe y e InIS r. "

(2) The remuneration and all expenses and outlay in fl~,sb~~efor connection with the appointment of the provisional liquid- r~munera ator, together with all expenses and outlay of the provisional ~~;e~~~s of liquidator while he acts in that capacity, shall be borne and ~ro,:,~ional paid by the insurer and shall form a first lien or charge hqUl ator upon the assets of the insurer, other than the deposit, unless otherwise directed pursuant to subsection (3).' "

(3) The Minister, in his discretion, may direct that the remuneration, expenses and outlay shall be paid out of the proceeds of the deposit made by the insurer; and in that case the amount directed to be paid shall have the same priority as the expenses of the receiver administering the deposit as fixed by

section 77, clause (a). "1100.

(1) When an insurer incorporated under or sub- ~1tiC~a~~ j ect to the laws of the Province proposes to cease writing ~q~i~ation insurance or to call a general meeting to consider a resolu- tion for the voluntary liquidation of the insurer under the provisions of The Companies Act, it shall give at least one month's notice in writing thereof to the Superintendent and to the Superintendent of Insurance of each other prov- ince in which the insurer is licensed. "

(2) When an insurer has passed a resolution for volun tary winding-up the insurer ~hall notify the Superintendent thereof and of the date at which contracts of insurance will cease to be entered into by the insurer, and of the name and address of its liquidator. "

(3) The notice under subsection (2) shall also be pub lished by the insurer in two consecutive issues of the official gazette of each province in which the insurer is licensed and in such newspapers and other publications as the Super intendent may require. "167

(1) The provisional liquidator or the liquidator Reinsurar: ce • , of SubsIstmg before any order granting administration of the deposit and contracts before the fixing of a termination date pursuant to

section 168a, may arrange for the reinsurance of the subsisting contracts of insurance of the i:tlsurer with some other insurer licensed in the Province~

14 "

(2) For the purpose of securing the reinsurance the following funds shall be available,- " (

a) the entire assets of the insurer in the Province other than the deposit except the amount reasonably estimated by the liquidator or the provisional liquidator as being required to pay,- "(

i) the costs of the liquidation or winding-up; "(ii) all claims for losses covered by the insurer's contracts of insurance of which notice has been received by the insurer or liquidator or pro visional liquidator before the date on which the reinsurance is effected; "(iii) the claims of the preferred creditors who are the persons paid in priority to other creditors under the winding-up provisions of The Com panies Act; all of which shall be a first charge on the assets of the insurer other than the deposit; "(

b) all or such portion, if any, of the deposit as may be agreed upon pursuant to subsection (3). "

(3) If it appears necessary or desirable to secure rein surance for the protection of insured persons entitled to share in the l)roceeds of the deposit, the Minister, on the recommendation of the Superintendent, or in the case of a re,ciprocal deposit the Superintendents of Insurance of each of the reciprocating provinces may enter into an agreement with the provisional liquidator or the liquidator, whereby, pursuant to

section 66 or

section 80a, all or any part of the securities in the deposit may be used for the purpose of securing the reinsurance. "( 4) Creditors of the insurer, other than the insured per sons and the said preferred creditors, shall be entitled to receive a payment on their claims only if provirsion has been made for the payments mentioned in subsection (2) and for the reinsurance. "

(5) If, after providing for the payments mentioned in subsection (2), the balance of the assets of the insurer, to gether with all or such portion, if any, of the deposit as may be agreed upon pursuant to subsection (3), is insufficient to s~cure the reinsurance of the contracts of the insured per sons in full the reinsurance may be effected for such portion of the full amount of the contracts as may be possible. " (6 ) No contract of reinsurance shall be entered into pursuant to this

section until it is approved by the court. Transfer of "168

(1) I th .. deposit from r. n e WIndIng-up of an insurer that has recej.v~r tOl . made a deposit pursuant to this Act if the person appointed proVIsIon a • • • ' liquidator as ~ecelver to admInIster the deposit pursuant to

section 71, IS. no.t the person ap~ointed as provisional liquidator or the lIqUIdator under thIS Act or The Companies Act or appointed ,as liquidator under the Winding-up Act (Can a?a), ?-s the case may be, the court at any time in its dIscretIon may order that the deposit and the administra-

15 tion thereof be transferred from the receiver to the pro visional liquidator or the liquidator. "

(2) Upon the making of an order pursuant to sub section (1), the provisional liquidator or the liquidator shall administer the deposit for the benefit of the persons entitled to share in the proceeds thereof in accordance with the priorities and other provisions prescribed in this Act. "

(3) The amount payable to the provisional liquidator or the liquidator for administering the deposit and all costs and expenses incurred by him in administering the deposit shall be paid from the proceeds of the deposit in accordance with the priorities fixed by

section 77, dause (a); but the amount payable to the provisional liquidator or the liquidator and all costs and expenses incurred by him in the winding-up of the insurer shall not be paid from the de posit but shall be paid from, and shall be a first charge on, the assets of the insurer except as provided in

section 165, subsection (3). "168a.

(1) If he fails to secure reinsurance, or if in his New sectiQns ° ° °t 0. to bl . dO t t f 168a to 168e opInIon 1 IS Imprac Ica e or lnexpe len 0 arrange or inclusive reinsurance the provisional liquidator or the liquidator - Termination , , date for "(

a) with the approval of the court and subject to such subsisting t b Ob d b th t d contracts erms as may e prescrl eye ·cour ; an " (

b) for the purpose of securing the payment of existing -claims and avoiding further losses; may publish a notice fixing a termination date for the sub sisting contracts of insurance of that insurer; and on and after that date coverage and protection under the Alberta contracts shall cease and the insurer shall not be liable under any such contract for a loss that occurs after that date. "

(2) Where a provisional liquidator or a liquidator has been appointed in another province to wind up an insurer incorporated in that province, if the provisional liquidator or the liquidator fixes a termination date for the contracts of insurance of that insurer, on and after that date coverage and protection under the Alberta contracts shall cease and determine and the insurer shall not be liable under any such contract for a loss that occurs after that date. "

(3) Where a receiver administering a deposit has fixed a termination date pursuant to

section 72, the termination date fixed pursuant to this

section shall apply only to those contracts of insurance not already terminated on the date fixed by the receiver. "108b. The provisional liquidator or the liquidator shall Noti<?e o~ • termma tlOn cause the nohce,- date " (

a) to be publis~ed in the official gazette of each province in which the insurer is licensed, and in such newspapers as the court may direct in order to give reasonable notice of the termination date so fixed; and " (

b) to be mailed to each policy-holder at his address as shown on the books and records of the company.

Provision for payment of claims and costs of winding-up Refunds of unearned premiums Fees, taxes and costs Filing of schedules of receipts, expendi tures, etc. by liquidator 16 "l68c.

(1) The liquidator shall payor set aside from the assets of the insurer sums in his opinion sufficient to pay,- " (

a) the costs of the liquidation or winding-up; " (

b) all claims for losses covered by the insurer's con tracts of insurance that occurred before the ter mination date fixed pursuant to

section 72 or

section 168a and that have not been paid or provided for in the administration of the deposit and of which notice has been received by the insurer or the liquidator; " (

c) the full amount of the legal reserve in respect of each unmatured life insurance .contract; "(

d) the claims of preferred c-reditors who are the per sons paid in priority to other credito~s under the winding-up provisions of The Companw8 Act. "

(2) Except in the case of life insurance, the assets re maining after payment, or making provision for payment, of the amounts mentioned in subsection (1) shall be used to pay the claims of the insured persons for refunds of un earned premiums on a pro rata basis in proportion to the periods of their contracts respectively unexpi-red on the ter mination dates, to the extent that those claims have not been paid or provided for in the administration of the de posit. "

(3) The claims of the insured persons for refunds of unearned premiums shall be calculated,- "(

a) as at the termination date fixed pursuant to'

section 72 or

section 168a; or " (

b) as at the date the insured person cancelled the con tract; whichever date is the earlier. "

(4) The refund of all or a portion of the premium shall not destroy or defeat any other remedy the insured person may have against the insurer in -respect thereof or for any othar cause. "

(5) Nothing in this

section shall prejudice or affect the priority of any mortgage, lien or charge upon the property of the insurer. "l68d. The fees, taxes and costs payable by the in surer to ea,ch province shall be paid out of the assets of the insurer remaining after the reinsurance of the subsisting contracts of insurance of the insurer or after the payment O'f the claims of policy-holders for refund of unearned premiums, as the case may be, and the balance shall be distributed amongst the creditors of the insurer other than the insured persons, preferred creditors and the several provinces. "l68e.

(1) Unless otherwise ordered by the court, within seven days after the close of each period of three months and until the affairs of the insurer are wound up and the accounts are finally closed, the liquidator shall file

17 with the ,court or other authority appointing him and also with the Superintendent, detailed schedules showing in such forms as may be required,- "(

a) receipts and expenditures; and " (

b) assets and liabilities. "

(2) The liquidator, whenever he is 'required to do so by the authority appointing him or by the Minister, shall ex- hibit the office books and vouchers and furnish such other information respecting the affairs of the insurer as may be required. .. "

(3) A liquidator refusing or neglecting to furnish such ;:f~~~rO~or information is guilty of an offence and liable on

summary l~egl,edcttOf t . . f lqUl a or 0 conVIctIon or each such offence to a penalty of not less than furnish fifty dollars or more than two hundred dollars to be re- f~!::~tion covered with costs on behalf of His Maj esty for the use of the Province; and he shall in addition be liable to be dis- missed or removed.".

Section 253. subsection (4) is amended by striking ~~!~~~~53 out the words "Official Guardian of infants" and by sub- stituting the words "Public Trustee".

Section 257, clause (/) is amended by striking out ~:!~d~~57 the words "and designated in the policy" and by substitut- ing the words "and specifically described in the policy and, in respect of the ownership, operation or use of any other automobile which may be within the definition thereof ap- pearing in the policy".

Section 259, subsection (3) is amended,- (

a) by striking out clauses (

b) and (

c) and by sub stituting the following: "(

b) particulars of all a·ccidents, losses or claims arising out of the ownership, use or operation of an automobile by the applicant within the three years preceding the application;"; (

b) by adding immediately after the word "auto mobiles," where it appears in clause (

e) the words "to the knowledge of the applicant,".

Section 259, subsection (4) is amended,- (

a) by striking out -clauses (a), (

b) and (

c) and by substituting the following: " (

a) the name, address and occupation or business of the applicant; "(

b) the description of the automobile to be insured as the described automobile; "(

c) the purchase price to the applicant of the auto mobile so described;"; (

b) by striking out clauses (h), (i), (

j) and (

k) and by substituting the following:

Section 25!J amended

Section 259 amended

Section 264 amended Voidance of policy for misrepresen tation, fraud or violation of condition

Section 271 amended Coverage of owner's pOlicy 18 " (

h) particulars of all accidents, losses or clai!lls arising out of the ownership, use or operatIon of an automobile by the applicant within the three years preceding the application; " (

i) whether any insurer has cancelled any policy of automobile insurance of the applicant, or refused automobile insurance to him; "(

j) whether any license, permit, registration cer tificate or other like authority, issued to the applicant or member of his family and house hold under any law or statute of any province, state Or country relating to automobiles, to the knowledge of the applicant, has been, or con tinued to be, suspended or cancelled within the three years preceding the application; and". (

c) by relettering clause (

l) as clause (k).

Section 264 is amended by striking out subsection (1) and by substituting the following: "264.

(1) Where an applicant for a contract gives false particulars of the described automobile to be insured, to the prejudice of the insurer, or knowingly misrepresents or fails to disclose in the application any fact required to be stated therein or where the insured violates a term or condition of the policy or commits a fraud. or makes a wilfully false statement with respect to a claim under the policy, a claim by the insured shall be invalid and the right of the insured to recover indemnity shall be forfeited.".

Section 271 is struck out and the following is sub stituted: "271.

(1) Every owner's policy shall insure the person named therein, and every other person who, with his con sent, personally drives any automobile specifically described in the policy, against the liability imposed by law upon the insured named therein or upon any such other person for loss or damage,- "(

a) arising from the ownership, use or operation of any such automobile within Canada, the continental United States of America or Alaska, or upon a vessel plying between ports thereof; and " (

b) resulting from,- "(

i) bodily injury to or death of any person; or " (ii) damage to property; or " (iii) both. :'

(2) No!hing. in subsection (1) shall preclude coverage beln~ prOVIded In an owner's policy to the person named thereIn, and such other persons as may be specified therein w~o .with his consent personally drive any other automobile WIthIn the definition thereof appearing in the policy against the liability imposed by law upon the insured named therein or upon any 'Such other person for loss or damage~--

19 "(

a) arising from the ownership, use or operation of any such automobile within Canada, the continental United States of America or Alaska, or upon a vessel plying between ports thereof; and " (

b) resulting from,- "(

i) bodily injury to or death of any person; or "(ii) damage to property; or " (iii) both. " (3) • Any person insured by but not named in a policy Rights of may recover indemnity in the same manner and to the same ~nnamed t t of d th· th· Insured ex en as 1 name ereln as e Insured, and for that pur- pose shall be deemed to be a party to the contract and to have given consideration therefor.".

Section 272, -clause (

a) is amended by striking out

Section 272 the words "or the United States of America" and by sub- amended stituting the words ", the continental United states of America or Alaska".

Section 273 is amended,- (

a) by renumbering the

section as subsection (1) ; (

b) by adding immediately after subsection (1) the following new subsections: "

(2) Where a person is insured under more than one motor vehicle liability poHcy (whether the in surance is first loss insurance or' excess) and a question arises under -clause (

b) of subsection (1) between an insurer and the insured or· between the insurers as to which insurer shall undertake the obligation to defend in the name and on behalf of the insured, whether or not any insurer denies liability under its policy, the insured or any insurer may apply to the Supreme Court of Alberta and the court shall give such directions as may appear proper with respect to the performance of the obligation. "

(3) On an application under subsection (2) the only parties entitled to notice thereof and to be heard thereon shall be the insured and his insurers and no material or evidence used or taken upon such an application shall be admissible upon the trial of an action brought against the insured for loss or damage to persons or property arising out of the use of the automobile in respect to which the insurance is provided. "( 4) An order under subsection (2) shall not affect the rights and obligations of the insurers with respect to payment of any indemnity under their respective policies. "

(5) Where the insured has indemnity under two or more policies and one or more is or are excess insurance by virtue of

section 276b, the insurers

Section 273 amended

Section 274 amended Exceptions to liability of insurer

Section 276 amended Extended coverage 20 shall as between themselves ,contribute to the pay ment of expenses, costs and reimbursement pro vided for in subsection (1) in accordance with their respective liabilities for damages against the in- sured.".

Section 274 is struck out and the following is sub stituted: "274. Subject to

section 276a, the insurer shall not be liable under an owner's policy or a driver's policy,- "(

a) for any liability imposed by any workmen's com pensation law upon the insured; or "(

b) for loss or damage resulting from bodily injury to or the death of,- "(

i) the son, daughter, wife, husband, mother; father, brother or sister of the insured while being carried in or upon, or entering or getting on to, or alighting from the automobile; or "(ii) the insured; or unless the coverage is expressly extended under

section 276; "(c) " (d) "( e) " (

I) to any person, not the owner of the automobile, en gaged in the business of an automobile garage, re pair shop or service station or as an automobile dealer, for loss or damage sustained while engaged in the operation or repair of the automobile; or_ for any loss or damage resulting from bodily in jury to or the death of any person being carried in or upon, or entering or getting on to, or alighting from the automobile; or for loss of or damage to property carried in or upon the automobile or to any property owned or rented by, or in the care, custody or control of the insured; or for loss or damage resulting from bodily injury to or the death of any employee of the insured while engaged in the operation or repair of the auto mobile.".

Section 276 is struck out and the following are sub stituted: "276.

(1) The insurer may, by an indorsement on the policy and in consideration of an additional stated premium, and not otherwise, extend the coverage in the case of an owner's policy or driver's policy in whole or in

part in any or all of the following respects, namely, the matters men tioned in clauses (c), (

e) and (

I) of

section 274. "

(2) The insurer may, by an indorsement on the policy or by provision in the policy and in consideration of an ad ditional stated premium, and not otherwise, extend the cover~ge ~n wh?le o!-, in

part in the case of an owner's policy or driver s polIcy In respect of the matter mentioned in clause (

d) of

section 274.

21 "

(3) The insurer may, in the case of an owner's policy, extend the coverage in whole or in

part in respe,ct of the operation or use of automobiles not owned by or registered in the name of the insured. "

(4) The insurer may, in the ,case of an owner's policy or a driver's policy, extend the coverage to such other matters as the Superintendent may approve. "

(5) No insurer shall extend the coverage under sub section (3) or (4) without the apprDval of the Superintend ent as tOo the form Df the extended coverage, the methDd Df providing therefor and as tOo the necessity Dr Dtherwise Df an additional stated premium for the coverage. "27&.

(1) An insurer issuing an Dwner's policy or a ~7e~ ~e;jiOnS driver's policy may, in consideration of an additional stated 276b premium, in additiDn tOo the Dther insuring agreements Coverage therein, agree tOo pay for each person who sustains bodily ~O:Cessary injury caused by an accident while driving, being carried in med~cal, or upon, Dr entering or getting Dn to Dr alighting from the ~~~:~cal and automDbile specifi,cally described in the policy or within the expenses definitiDn thereDf appearing in the policy within Canada, the continental United States Df America, or Alaska, or upon a vessel plying between pDrts thereof, if the autD- mobile is being used by the insured named in the policy or with his cDnsent, all reasonable expenses incurred, within Dne year from the date of the accident as a result Df the injury, fDr necessary medical, surgical, dental, ambulance, hospital, professional nursing and funeral services.

"

(2) No insurer shall give the insurance under sub section (1) without the approval of the Superintendent as to the terms and conditions thereof. "27'Gb.

(1) Subject to subsection (2), if the insured rn~)?~giYrr;, named in a policy has or places any additional Dr other valid of insurer insurance of his interest in the subject matter Df the con- traet, Dr any part thereof, the insurer shall be liable Dnly fDr its rateable proportiDn of any loss or damage. "

(2) Where a valid motDr vehicle liability policy insures a person named therein and that person is alsD insured under another valid motor vehi,cle liability policy as an un named insured, the first mentiDned policy shall be a first loss insurance and the secDnd mentioned pDlicy shall be ex cess insurance only. "

(3) A copy Df subsections (1) and (2) shall be printed or stamped in conspicuous type, not less in size than ten pDint, upon every motor vehicle liability policy and those subsections shall cDnstitute terms Df the ,contract between the insurer and the insured and subsection (2) shall Dperate a~ between insurers.".

Section 277 is amended by striking out the wDrds

Section ~77 "the last preceding six sections" and by substituting the amende words and figures "section 271, 272, 273, 274, 275, 276, 276a or 276b".

Section 278 amended Contribution among insurers Defence where excess coverage

Section 282 amended New

section 292a "machine" 22

Section 278 is amended,- (

a) by striking out subs~ctions (4) and (5) and by sub stituting the following: "( 4) The insurer may require any other insurers liable to indemnify the insured in whole or in

part in respect of judgments or claims referred to in sub section (1) to be made parties to the action and to contribute ac·cording to their respective liabilities, whether this be rateably or by way of first loss or excess insurance, as the case may be, and the in sured shall, on demand, furnish the insurer with particulars of all other insurance covering the sub ject matter of the contract. "(5) subject to subsection (5a), where a policy provides, or if more than one policy the policies provide for coverage in excess of the limits men tioned in

section 275 or for extended ,coverage in pursuance of subsections (1), (2) and (4) of sec tion 276, nothing in this

section shall, with respect to such excess coverage or extended coverage, pre vent any insurer from availing itself, as against a claimant, of any defence that the insurer is entitled to set up against the insured. "(5a) Where a policy provides for extendedcov erage in respect of loss or damage resulting from bodily injury to, or the death of, any person being carried in or upon, or entering, or getting on to, or alighting from an automobile operated in the busi ness of carrying passengers for compensation or hire subsection (5) shall apply only to that part of such extended coverage,- " (

a) which exceeds any minimum coverage required by this Act; or "(

b) where a greater minimum coverage is required by or pursuant to any other Act of, or in force in, the Province, which exceeds such greater minimum coverage."; (

b) by adding immediately after subsection (7) the fol fowing new subsection: "

(8) An insurer shall be entitled to a vail itself of subsection (7) notwithstanding that another in surer is defending in the name and on behalf of the insured an action to which its insured is a party.".

Section 282 is amended by adding immediately after subsection (3) the following new subsection: . " ( 4) This Part does not 'apply to insurance provided under

section 276a.". 29. The rollowing new

section 292a is' added immediately after

section 292: "292a.

(1) In this

section 'machine' means a vending machine whereby, on depositing therein the premium pay-

2S able for a policy of accident insuran~e, the person to be insured may obtain the policy therefrom. "

(2) Unless it holds a subsisting permit for the purpose ~ermit \? granted by the Superintendent, no insurer shall issue a tS;:ic~t~~ policy of accident insurance through the medium of a machine . • , (

S) The permit shall be in such form as shall be de termined by the Superintendent; and he may alter the form thereof at any time as he may deem to be advisable. " ( 4) . Notwithstanding any other provision of this Act, Ter~~ of the term of a policy issued through the medium of a machine :~fc;ne may be expressed as the duration of a journey, trip, voyage, or flight to be made by the insured by any means of trans portation or conveyance. "

(5) The issue of a policy through the medium of a machine shall constitute delivery thereof for all purposes under this Act.". 30. Sections 462 to 467 inclusive are repe'aled. Sections 462 to 467 inclusive repealed

Section 468, subsection (2) is amended by striking SeCti~~68 out the words "of if" and by substituting the words "or if". amen 32.

Schedule D in the Statutory Conditions, Automobile ~~e~JI~d D is amended,- (

a) by adding the following immediately before

section 1 : (b) "In these statutory conditions, unless the context otherwise requires, the word 'insured' means a person insured by the policy, whether named or not." ; by striking out statutory conditions S and Sa and by substituting the following: "S. Unless permission is expressly given by an indorsement of the policy and in consideration of an additional stated premium, the automobile shall not be rented or leased nor shall it be used,- " (

a) to carry explosives; or " (

b) as a taxicab, public omnibus, livery, jitney, or sightseeing conveyance or for carrying pas sengers for $!ompensation or hire. "Sa. In the case of indemnity afforded by motor vehicle liability policies, the automobile shaH not be used for the towing of a trailer owned or hired by the insured that is not covered by like indemnity by the insurer; nor shall a trailer so covered by the policy be towed by an automobile owned or hired by the insured that is not covered by like indemnity by the insurer. '4S l b.

In cases other than motor vehicle liability policies, the insurer shall not be liable for loss or damage that is caused directly or indirectly by bombardment, invasion, civil war, insurrection, re-

24 bellion, revolution, military o.r usurped Po.wer, or by o.perations of armed forces while engaged in ~o~ tilities, whether war be declared or not, or by cIvIl commotion arising from any o.f the fo.regoing, un less the policy or an indorsement thereon expressly provides otherwise.". (

c) by striking out statutory condition 4 (1) and by substituting the follo.wing: "4.

(1) The insured shall promptly give to the insurer written notice, with all available par ticulars, of any accident involving lo.SS or damage to persons or property, and of any claim made on ac co.unt of accident; shall verify by affidavit or statu to.ry declaration, if 'required by the insurer, that the claim arises out of the operation or use of the auto mobile and that the person operating or responsible for the operation of the automobile at the time of the accident is a person insured by the policy; and shall forward immediately to the insurer every WTit, letter, document or advi,ce received by him from or on behalf of the claimant." ; (

d) by striking out statuto.ry condition 5 (1) and by substituting the following: "5.

(1) Upon the occurrence of loss of or damage to the automo.bile, the insured shall, if the loss or damage is covered by this policy,- "(

a) forthwith give notice thereof, in writing, to. the insurer, with fullest information obtainable at the time, and shall, at the expense o.f the insurer, and as far as reasonably possible, pro. tect the automobile fro.m further loss o.r dam age, and any such further loss or damage accruing directly or indirectly from a failure to pro.tect shall not be recoverable hereunder.

No repairs shall be undertaken o.r any physical evidence of the loss or damage remo.ved witho.ut the written consent of the insurer, except such repairs as are immediately necessary for the protection o.f the automobile from further lo.SS or damage; or until the insurer has had a 'reasonable time to. make the examination pro vided fo.r in statutory condition 7; " (

b) deliver to the insurer, within ninety days of date of the loss or damage, a statutory declara tion stating so far as the insured kno.ws or be lieves, the place, time, cause and amount of the loss o.r damage, the interest of the insured and of all others therein, the incumbrances thereon, all other insurance, whether valid or not, cover ing the automobile, and that the loss or damage did no.t o.ccur through any wilful act or neglect, pro.curement, means or co.nni vance o.f the in-sured."; . (

e) by striking out statutory condition 8;

25 (

f) by renumbering statutory conditions 9 to 12 in clusive as 8 to 11 inclusive. 33. This Act shall come' into force on a date to be fixed ,C~~i~g e by Proclamation of the Lieutenant Governor in Council. n rc

No. 85 FOURTH SESSION ELEVENTH LEGISLATURE 15 GEORGE VI 19,51 BILL

An Act to amend The Alberta Insurance Act Received and read the First time ........ . Second time ...... . Third time HON. MR. GERHART. Title: 1951 (11th, 4th) Bill 85,

An Act to amend The Alberta Insurance Act

Document details

Collection	Alberta — Bills
Citation	L11 S4 6996
Type	bill
Volume / chapter	L11 S4 6996
Language	en
Format	json
Source	PROVINCIAL
Identifier	17a7479890fdb2f3bfd12ba7df19c091cbfdda91

Source file is stored in the law ingest library (json).