Bill 88 (Legislature 2, Session 4)

L2 S4 10693

Alberta — Bills

. ~ . BILL No. 88 of 1913.

An Act respecting Insurance Companies. (Assented to 1913.) HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

SHORT TITLE. 1. This Act may be cited as ·'The Alberta InsuranceBhort tit.te Act."

INTERPRETATION. 2. In this Act, unless the context otherwise requires - 1ntorpretaion (a) "Province" and "Legislature" means respectively Pro~·ioce h P . d h L , l . ,\ bl f Alb LeJ<tRlnture t e rovmce an t e egis ative :·\.ssem y o erta; (b) "Treasurer" means the treasurer of the province Treli8urer or any member of the Executive Council to whom from time to time may be transferred, either for a limited period or otherwise, the powers and duties which are by this Act assigned to the treasurer; (c) "Company" mean~ and includes any corporation, Company or any society or association, incorporated or unincor porated, or any partnership or any underwriter, except as provided by the third

section of this 'Act, that under- takes or effects for valuable consideration, or agrees or offers so to undertake or effect, in the province, any contract of indemnity, guarantee, suretyship, insurance, endow- ment, tontine, or annuity on life, or any like contract which accrues payable on or after the occurrence of some contingent event; (d) "Offer to undertake any contract." includes the ~J;..!:~k~ setting up of a sign or inscription containing the name of ""Y contract the company, and the distribution or publication of any proposal, circular, card, advertisement, printed form or like document in the name of the company, or any written or oral solicitation in the company's behalf; (e).

"Contract'' means and includes any contract orcontrart agreement, sealed, written or oral, the subject matter of which is within the intent of paragraph (

c) hereof; (f) "Written," as applied to any instrument, includes Written written or printed, or partly written and partly printed; (g) "Provincial company" means a company incorpor- ~~~~~~· ated by or under any Act of the Legislature of Alberta; (h) ''Canadian company" means a company incorporatedganadian or legally constituted in the Dominion of Canada, other nmpany than a company included under paragraph (

g) hereof;

2 (i) "Inland marine insurance" means marine insurance ~maud marine in respect of subjects of insurance at risk in Canada above m.ourunce the harbour of Montreal; • " • • • Mutual (j) "Mutual msurance means msurance given m con-inaurnnre sideration of a premium note or undertaking with or with- out any immediate cash payment thereof; and the expres- sion "mutual company" means a company empowered solely to transact mutual insurance; l '' • Cub-mutulll (k) "Cash-mutua company means a company organ-aomp .. ny ized to transact mutual insurance, but empowered to under- take contracts of insurance on both the cash plan and the premium note or mutual plan; (l) "Guarantee Insurance" means the guaranteeing of f:..U:.:~:::;· the fidelity of persons in positionR of trust; or the due performance of contracts; (m) "Accident Insurance" means insurance against bod- t,C::~!. ily injury and death by accident, including the liability of employers for injuries to persons in their employment; ( n) "Plate glass insurance" means insurance against f~~"~'::• the breaking of plate or other glass, either local or in tran- sit; ( ) "S b 'l • " • · t Steam boiler o team 01 er msurance means msurance agams iDIIUruncP loss or damage to life, person or property caused by the explosion of steam boilers; Inland (p) ''Inland transportation insurance'' means insur- ~nsport.Rtion ance against loss or damage to goods, wares, merchandise msurnncc or property of any kind, including matter transmitted by mail, in transit otherwise than by water, from place to place in Canada; ( ) "S' k · " · · l Sickneso :z IC ness msurance means msurance agamst oss in.ouranee through illness not ending in death, or disability not aris- ing from accident or old age; ( ) "A b'l · " · .

Automobile r utomo I e msurance means msurance agamst inaurnnce accidental injury or death to the driver of an automobile, including insurance against loss or damage from accident to or injury suffered by an employee or other person caused by an automobile for which the owner is liable; and insur- .ance against loss or damage to property from an accident caused by an automobile except by fire. and insurance against loss or damage to an automobile by accident. hur- glary or theft; ( s) "Investment insurance" means insurance againsPnve•t.mcnt loss of either principal on interest, or both, of moneys maurnnce lent, invested or secured on mortgages or debentures, and loss of deposits and loans of every kind to any person or persons, or corporation at home or abroad, and includes insurance against loss of rentals by any cause except fire; (t) " F · " t • Foreign oreign company means any company no mcor- company porated by or under the authority of the Legislature of this Province; ( u) " License" means license or certificate of registra tion; (v) "Licensed" means licensed or registered.

APPLICATION OF ACT. 3. The provisions of this Act shall not apply to a company Al'plication licensed by the Dominion of Canada except as to sect1ons o Art

3 numbered two, four, five, seven to eleven inclusive, thirteen to twenty-four inclusive, forty to forty-two inclusive, fifty-seven to sixty inclusive, and seYenty-six to eighty two inclusive. LICENSES. 4:. No company shall undertake or solicit, or agree or ~~~:~:;:ry offer to undertake, any contract within the intent of .the second

section of this Act, whether the contract be original or renewed, except the renewal from time to time of life assurance policies, or accept, or agree or negotiate for any premium or other consideration for the contract, or pro secute or maintain any action or proceeding in respect of the contract, except such actions or proeeedings as arise in winding up the affairs of the company, without in each such case having first obtained from the treasurer, and hold- ing a license or a renewal of such licem;e, under the pro Yisions of this Act. 5. No such license shall be granted - (

a) To a joint stock company undertaking fire, or fire ~':~~~:ition, and inland marine , or fire and accident, or life, or life ~~~~~"i•t-up and accident, or guarantee or suretyship insurance, or hail insurance, unless the amount of its authorized capital stock shall be at least $500,000, and unless the company shall furnish to the superintendent satisfactory evidence that of the said capital stock at least $200,000 has been bona fide subscribed for and taken up, anrl that at least $25,000 of the said subscribed stock has been paid up; (

b) To a joint stock company undertaking accident, or sickness, or sickness and accident, or liYe-stock insurance, with or without insurance on vehicles, unless the amount of its authorized capital stock shall be at least $200,000, of which $100,000 at least shall be shown to have been bona fide subscribed for and taken up, and at lf•ast $10,000 paid up; (

c) To a joint stock company (not being one of those referred to in sub-section (

d) hereof) undertaking only inland marine insurance, or inland transportation insurance, or insurance against any loss of or damage to property by accidental causes, including explosions, or by reason of larcency, housebreaking or burglary, or any two of said kinds of insurance, unless the amount of its authorized capi ital stock shall be at least $100,000, of which at least $50,000 shall be shown to have been bona fide subseribed for and taken up, and at least $10,1)00 paid up; (

d) To a joint stock company undertaking bicycle or vehicle insurance, or plate glass insurance, or both, unless the amount of its authorized capital stock shall be at least $25,000, of which $12,000 at least shall be shown to have been ~ona fide subscribed for and taken up, and at least $3,000 paid up.

(2) This seetion shall not apply to any company now licensed until after two years from the coming into force of this Act. 6. A license under this Act may be granted to a company Licenses other than a company incorporated under the authority to grnup• of the Parliament of Canada to carry on the business of- (

a) Life insurance in all its branches; or

4 (

b) Fire, storm, cyclone, tornado, hail, inland marine, inland transportation and sprinkler leakage insurance; or (

c) Plate glass, live stock, explosion, steam boiler, bur glary, theft, automobile and vehicle, guarantee, accident and sickness insurance; or (

d) Mortgage. investment and title insurance, or any kind or kinds of insurance not included in any of the foregoing groups. 7. A company licensed to carry on the kind or kinds of com.paoy may business in any one of the groups mentioned in

section 6 :e 1 ~":'=e for of this Act with the exception of group (a), and may take grnu"" out one, two or three licenses, as the case may be, to carry on the kind or kinds of business in one, two or three of the remaining groups, excepting group (a), upon paying an addi- tional license fee for each such additional license according to the scale fixed by

section 58 of this Act, and may com- bine any of the kinds of business for the carrying on of which it has received a license or licenses. No such company shall carry on any such business in this province without being specially licensed to do so under this section. 8. The license shall be in such form as may be from" time Form uf to time determined by the treasurer; and it "shall specify lie.rn,., the business to be carried on by the company and shall expire on the thirty-first day of December in each year, but shall be renewable from year to year. 9.

Every company incorporated by the Legislative Assem- ~r"'f~t~~~onror bly of Alberta or licensed or registered under The Alberta ~!i~~=;~~ he Insurance Act, or transacting any business of life insurance !>Y lire in this province, shall maintain a reserve for the protection:.~~;!':,~!. of its policyholders, computed on the basis of the reserve required under the provisions of The Insurance Act of Canada. for the time being in force. 10.

All foreign insurance companies, licensed to tran- Foreign. sact any business of life insurance in the Province of Alberta, ::.r'd'::;'osit shall deposit with the Provincial Treasurer the reserve •••erve required by

section 9 on all its Alberta policies. 11.

Every company, incorporated or licensed by the Leg- ~!:~ies islative Assembly of Alberta, under The Alberta Insurance must j"k• Act, transacting any busineRs of life insurance in this prov- !~'::rent 1 wl ince, shall annually, on or before the first day of April, lli.~~;::,.:n.,., " furnish to the superintendent of insurance a statement pohrte.• of the value of all its policies in force at the thirty-first day of December of the preceding year, certified to by a duly qualified actuary, such valuation to be computed on the basis of the reserve required under the provisions of The 8 . .• . upennteouent Insurance Act of Canada; and, once m every five years, ohall ~ake ft ( h di • f h M" • ) h valuatiOn or o ener at t e scret10n o t e rmster , t e super- every intendent of insurance shall have a valuation made of all fh·e yenr• said policies then in force by a duly qualified actuary, who shall be appointed by the Minister. 12.

So soon as a company applying for a license has I!mu• or deposited with the treasurer the securities hereinafter been•• mentioned and has otherwise conformed to the require ments of this Act, the treasurer may issue the license.

.5 13. Every company which takes out and holds a license Ri11hta of shall have the same powers and rights of carrying on its ~~~f:;Y business in this province as if it had been incorporated ~:'t.~~ by

an Act of the Legislature of this province. 14. Insuranc~ lic~nsees of the Dominion of Canada ~h~ll, {?.:!~;~" upon due applicatiOn and upon proof of such Doirumon license subsisting, and upon otherwise conforming to the provisions of this Act., applicable to Dominion licensees, be entitled to be registered under this Act. 15.

Every company, on first obtaining such license, ~oticc that shall forthwith give notice thereof in The Alberta Gazette, ~:'t!i':ed and at least one newspaper in the City of Edmonton and shall continue the publication thereof once each week for the space of four weeks, and shall give the like notice for the same period when the company ceases to carry on buo;;iness in Alberta. 16.

The treasurer shall cause to be published vearly Yearly in The Alberta Gazette, a List of companies licensed 'under &;b~~=~:.,. of this Act, with the amount of the deposit, if any, made by~~:;:';:,!;.,.. each company; and upon a new company being licensed or registered, or upon the license or certificate of a company being withdrawn, he shall publish a notice then~of in The Alberta Gazette for the space of two weeks. DOCUME~TS TO BE I•'ILED. 1 ~.

Before the issue of a lice~se, or a certifica.te of ~e~s- ~b!m3~ trat10n, to a company not mcorporated by provmCial ~?·• iaauc authority, the company shall file in the office of the treas- o ""~n ... urer the documents provided for in the three next following subsections, that is to say : (

a) A certified copy of the Act of incorporation, or other ~~;!'r instrument of association of the company; chnrter (

b) A power of attorney containing the matters herein- Ptotwer o! f • df h h • d aome) a ter mentwne rom t e company to t e supermten ent to !DliP"•tor f · f h · d h • 'f f h of msurancc o msurance or t e provmce, un er t e sea1, 1 any, o t e company, and signed by the president and secretary or other proper officer thereof, in the presence of a witness who shall make oath or affirmation as to the due execution thereof; and the official positions in the company held by the officers signing such power of attorney shall be sworn to or affirmerl by some person cognizant of the facts m~ces- sary in that behalf; provided that whenever the company has, by such power of attorney, under the seal of the com- ~~~~'!.~!~n Pany appointed a aeneral agent for Canada and has of .. ttornc>· ' "' 1 by general thereby authorized such general agent to appoint chief 't!'·nt 1for officers or agents of the company in the various provinces •mnr" of Canada, then, after filing with the Provincial Treasurer a copy of the said first mentioned document, duly certified by a notary public to be a true copy thereof, powers of attorney executed by the said general agent for Canada under his seal, in the presence of a witness who has by oath or affirmation duly verified the execution thereof, shall be deemed sufficiently executed by the company for all the purposes of this Act; (

c) In the case of companies not licensed under The~t" .. ~~i~:t Insurance Act of Canada. a statement, in such form as may of compftDY be required by the treasurer, of the condition and affairs

6 of the company on the thirty-first day of December then next preceding, or up to the usual balancing day of the company (but such day shall not be more than twelve months before the filing of the statement). 18.

Such power of attorney shall declare at what place :,:~,rr::;;r in the province the chief agency or head office is or is to be •hall declare established, and shall expressly authorize the said super intendent of insurance to receive at his office, in the Govern- ment buildings, service of process in all actions, suits and proceedings against the company in the province in respect of any liabilities incurred by the company therein, and shall declare that service of process for or in respect of such liabilities in the said superintendent of insurance, at his said office, shall be legal and binding on the company to all intents and purposes whatsoever. 19.

No foreign insurance company now doing business~:'i&n . .,. in this province, or hereafter admitted to do business, ~JE'=:nt directly or indirectly, and not having its head office within }to atto':"eY this province, or incorporated under the laws of this prov- or .., ........ ince, shall issue policies, take risks or transact any business in this province until it shall have first appointed, in writ- ing, the superintendent of insurance (or his successor in office) to be the true and lawful attorney for such company for this province, and upon whom all lawful processes, in any action or proceeding against the company may be served. · 20.

The said power of attorney shall stipulate and agree !t':;~.~! shall upon the part of the company that any lawful process in Invite sor.iee • on attorney any action agamst the company, which is served upon the binding on said s.~.ttorney, shall be of the same legal force and validity oompllny as if served upon the company, and that such authority shall continue in force so long as any liabilities remain Duplicate outstanding against the company in the province.

Dupli- ~~~~e~~ to cates of said power of attorney, duly filed as aforesaid, shall ::reri'~r with be filed by the company at Edmonton in the office of the Supreme Court I ~~~-c erk of the Rupreme Court. 21.

"'benever any legal process is served upon the !'tfe~ri:;,:~~~l"' superintendent of insurance as attorney for a foreign shall notify ' comtmny company, under the provisions of this Act, he shall forth- with notify the company of such service by letter, contain ing a copy of such process, prepaid and directed to its secretary, or, in the case of a foreign country, to its resident manager, if any, in Canada, or to such other person as may have been previously designated by the company by writ ten notice filed in the office of the superintendent of insur ance as the person to whom the same should be sent.

The superintendent of insurance shall keep a record of the day and hour of the service of process on him. 22. There shall be no judgment for default of appearance ~Yo j,:}~~r:ent or defence or action taken as a consequence of such service :!i::: ~r,~~n unless and until an affidavit is filed in the court, out of which or by which such process is issued, showing that the said attorney has duly notified the company affected by such process in accordance with the requirements of

section 21 of the sen·ice upon him of such process . •

• 7 23. Duplicates of such powers of attorney, duly verified gue!i~!d" as aforesaid, shall be filed by the company at Edmonton i~ or'k in the office of the clerk of the Supreme Court. o r er 24.

Every company licensed under The Alberta Insurance word• to Act to do a fire insurance business in Alberta shall cause :.::,~~":!r to be printed, stamped or written, in plain letters, across ;mtter on the face of every policy, interim receipt or other insuring;~":.; fir•· document covering fire loss, issued by or on behalf of such d.:'.!'u'":,~~nt company, on property of any kind, either real or personal, in Alberta, or which on the face of such policy, interim receipt or other insuring document is stated to be in Alberta, the words "Licensed under 'The Alberta Insurance Act' " or "Registered under 'The Alberta I nRurance Act' " as the case may be.

SECURITIES. 25. Every company shall, before the original issue or nepo.•It .. r the renewal of the license, lodge with the treasurer either oec•mtw• in cash or in any stock, debentures or other securities in which trustees may invest trust money, the initial or renewal deposits respectively hereinafter stated. . . . . Initial 26. The ~tJ~l d~pos1t to be !Dade by any company ~~~.~~dn,·ita before the or1gmal 1ssile of the hcense shall be the sum appointed for such company in the twenty-eighth

section of this Act, and such deposit shall be accompan1ed•by an affidavit of at least two of the principal officers of the com- pany that the said securities are absolutely the property of the company and are free from lienR and incumbrances of any nature whatsoever . . 27. Before the annual renewal of licenses the amount !:::il':.!tment of deposit required of every company shall, on or bet ore or drposit the first day of January in each year, be re-adjusted in terms of the two next following sections . 28.

If on the preceding thirty-first day of December :~;:~~;~ 1 " 1 in any year the company's total contingent liability or amount at risk does not exceed one million five hundred thousand dollars, then- (

a) Every joint stock company, if provincial, shall keep on deposit with the treasurer $10,000, and, if a Canadian or foreign company, $20,000, except a plate glass insurance company, which shall rlcposit $3,000; (

b) Every benevolent, provident, industrial or co-oper ative society not incorporated by or under the authority of

an Act of the Parliament of Canada, shall keep ·on deposit with the Treasurer $10,000, but if doing only sickness and funeral benefit insurance, or one of them, the amount of the deposit shall be $2,000; (

c) Every provincial mutual fire or fire and inland marine company, insuring mercantile or manufacturing risks, shall keep on deposit with the Treasurer five thousand dollars; and every provincial cash-mutual fire, or fire and inland-marine, company, insuring mercantile or manu facturing risks, five thousand dollars. 29. If on the preceding thirty-first day of December in Security . any year the company's total contingent liability or the ~h:: :~:bed amount of risk exceeds one million five hundred thousand ii~.; •

8 dollars, then for each additional one million five hundred thousand dollars, or fraction thereof, each company enum erated in the next preceding

section shall, if a Canadian or foreign company, keep on deposit with the Treasurer, by way of additional SE'curity, a :;;um equal to one-half of the initial deposit; and, if a provincial company, shall keep on deposit two hundred dollars for every one hundred thousand dollars, or fraction thereof, by which said total contingent liability or amount at risk is exceeded. 30.

Notwithstanding the provisions of its charter of ~i~~:l'n~l .. , incorporation, every co~pany hereto! ore or hereafter·~~.,':-~~"" chartered under the authority of the Legtslature of Alberta, ~Y thi• Art shall be governed only by this Act in regard to deposits to be made with the Treasurer or the Government of Alberta, and shall not be required to make or continu9 any further or other deposit or dE!posits than such as are required by this Act. 31.

Securities of the Dominion of Canada, or securities Dominion . d b f th • f C ad h ll b t d and provinc illl ISSUe y any o e provmces o an a, s a e accep e oecurit.ieo at their market value at the time when they are deposited. :~,'::rkrt 32. Municipal and school debentures, legally and pro- !'~~;r.:t'pa, perly issued in the province, shall be accepted at their market ~~ge:'t': value at the time when they are deposited. :~,':,'!'rket 33. The other securities above specified shall be accepted ~~'!:1~~·~ 11 at such valuation and on such conditions as the Treasurer other.,. d. Bf"CUn leM may rrect. 34.

If the market value of any of the securities which have Tr .... urer way been deposited by any company declines below the value de::,~~ further at which they were deposited, the Treasurer may, from time to time call upon the company to make a further deposit, so that the market value of all the securities deposi- ted by any company shall be equal to. the amount which they are required to deposit by this Act. 35.

Where any company desires to substitute other secur- ~r:!';;:~: ities for securities deposited with the Treasurer, the Treas- ::i~w: urer if he thinks fit may permit the substitution to bf'l made. by TreRSUrer 36.

A company may deposit in the hands of the Treasurer e;':,:::'~' any sums of money or securities of the kind prescribed by ~~~f.-':!1 the twenty-eighth se~ttion of this Act beyond the sum here inbefore required; and such further sums of money or secmi- ties shall be dealt with as if the same had been part of the original deposit; and no part of the additional deposit shall be withdrawn except with the sanction of the Lieu tenant Governor in Council. 37.

A company having made a deposit under this Act Withdra .w.al shall be entitled to withdraw the deposit, with the sanction~ ":~';,~:ir. f th L• te t Q · C il h • • licensed by o e 1eu nan overnor m ounc , w enever It IS Dominion made to appear to the satisfaction of the Lieutenant Gov- ernor in Council that the company is carrying on its business of insurance under license from the Dominion of Canada. 38.

If from the annual statements, or from an examin- pe!icie~ey ation of the affairs and condition of any company, it appears::':'~. that the re-insurance value of all its risks outstanding good in Alberta, together with any other liabilities in Alberta,

9 exceeds its assets in Alberta, including the deposit in the hands of the Treasurer, then the company shall be called upon by the Trea.Surer to make good the deficiency at once, and, on failure so to do, its license shall be cancelled, and its corporate powers shall thereupon cease and deter mine, except for the purpose of winding up its affairs. In the case of life companies, such re-insurance value shall be calculated on the basis used by the insurance branch of the Department of Finance at Ottawa. 39.

Except in cases with respect to which it may be ~=""Jevo•it otherwise provided by the Lieutenant Governor in Council, so long as any company's deposit is unimpaired and no notice of any final judgment or order to the contrary is served upon the Treasurer, the interest upon securities forming the deposit shall be handed over to the company, when re<'eiwd by him. 40.

EYery foreign company shall file with the Treasurer ~~mpfinies in the name of its general agent through whom all its fire ;~[ao;h business in the province is written or reported, and who ¥'reS:u~~~ alone shall be authorized by that company to sign or coun- ~:;:,~a~ror tersign policies, or if a company has no general agent in ~\!';r.:!uts this prodnce the names of all agents having authority to cou.n!.e..,.ign pohcws sign or countersign policies, for such company, all such agents or general agents to be residents of the province; a company may cancel the appointment of its agent or agents and appoint another agent or other agents, when and as it sees fit, provided notice of such change is given to the Provincial Treasurer. 41.

No foreign company shall issue any policy unless the same is signed or countersigned by a resident of this province previously named to the Provincial Treasurer as the agent. of that company in accordance with

section 40 of this Act. 42. Any foreign company which issues a policy not signed or countersigned by a resident of this province, named as agent under

section 40 shall be liable to a penalty of not less than two hundred dollars and not more than five hundred dollars for each policy so issued; and failing pay ment of the said penalty upon the request of the Treasurer its license or certificate of registration shall be cancelled . .. •> Wh f ') k h d • d Iosutlieienc} 'tO• ere a company ai s to ma ·e t e epos1ts un er or se•·urity this Act at the time required, or where written notice has ~':~··• lic•n••· been served on the Treasurer of an undisputed <'laim aris- ing from loss insured against in Alberta remaining unpaid for the space of sixty days after being due, or of a disputed claim after legal valid discharge being unpaid, so that the amount of securities representing the deposit of the company is liable to be reduced by sale of any portion thereof, the license of the company shall ipso facto be null and void and shall be deemed to be cancelled as in the twentv-first

section of this Act provided; but the license may in the two · last mentioned cases be renewed, and the company may again transact business, if within six months after notice to the Treasuret of the company's failure to pay any undis puted claim or the amount of any final judgment as provided in this section, such undisputed claim or final judgment upon or against the company in Alberta is paid and satisfied, and the company's deposit is no longer liable to be reduced below the amount required by this Act.

10 ADMINISTRATION OF SECURITIES. «. The securities deposited with the Treasurer shall For what be subject to administration only in respect of any contract =r~ti'e. which fall!'l within the second

section of this Act, and which ~~lni•ter.d further has for its subject some property in the province, or property in transit to and from the province, or the life, safety, health, fidelity or insurable interest of some resident of the province, or where the contract itself makes the payment thereunder primarily payable to some resident of the proYince. 4.5. Any company shall be liable upon the applica- ~~~;fti~~ion tion of any creditor or policy holder, to have its deposits upon ~uilure in the hands of the Treasurer administered in manner :,~~tutc<t hereinafter mentioned upon the failure of the company claim to pay, any undisputed claim arising under any contract within the laRt preceding

section for the sp~ce of sixty days after being due, or, if disputed, after final judgment and tender of a legal valid diRcharge, and (in either case) after notice thereof, to the Treasurer. In the event of such administration, all deposits of the company held by the Treasurer shall be applied pro rata towards the payment of all claims dul:v authenticated against the company, ~~:~~~r~~ as well as in respect of unearned premiums, such being claims and premiums under the compact aforesaid; and the distribution of the proceeds of such deposits may be made by order of a iudge of the ~upreme Court of Alberta. 46.

In any case where a claim accruing on the occur- ~~~~.~~ ence of an'-' event is by the terms of the contract payable when cJ"i"' J • • payable "" on proof of such occurence without any stipulated delay, proof of the notice required in the last preceding

section shall not ~f'",~;~~c· b · 'l f h 1 f • d f h • withflnt dehw e given unti a ter t e apse o sixty ayR rom t e time · when the claim becomes due. • 47. Before an application is made to a judge of the~~;.~~.~~ Supreme Court of Alberta for the administration of a com-~! c~~~:.'i~.~on pany's deposit with the Treasurer at least ten davs' notice admini•~n•ti•m f h • d d li • h 11 bel d h • of ""JlOSII .s o t e mten e app catiOns a serve on t e Treasurer; and the notice shall designate the day named for the hear- ing of the application. 48.

Upon granting an order for administration as afore- ~l'f.~.~i~-·~~"'t said, the Court shall appoint a receiver, who may be an officer of the Court, who shall forthwith call upon the com- pany to furnish a statement of all its outstanding contracts, being within the second and forty-fourth sections of this Act, and upon all claimants under such contracts to file their claims; and upon the filing of the claims before the receiver the parties interested Rhall have the right of con testation thereof, and the right of appeal from the decision of the receiver to the Court as aforesaid, according to the practice of the Court; and in case of any such administra- tion, the claimants aforesaid shall be entitled to claim for a part of the premiums paid proportionate to the unexpired ~~tributi"n period of their contracts respectively, and such unearned of ••••t• premiums shall rank, in the distribution of assets, with judgments obtained and claims accrued; and upon the com- pletion of the

schedule to be prepared by the receiver of all judgments against the company upon said outstanding contracts, and of all claims for unearned premiums, or for surrender of policies, the Court shall cause the securitieR

11 held by the Treasurer for the company, or any part of them, to be sold in such manner and after such notice and formali ties as the Court appoints; but all the proceeds thereof, after paying expenses incurred, shall be distributed pro rata amongst the claimants according to the schedule, and the balance, if any, shall be surrendered by the company. But if any claim arises within the forty-fourth

section of this Act, after the statement of the said outstanding con tracts has been obtained from the company as hereinbefore provided, and before the final order of the Court for the distribution of the proceeds of the securities, the holder of such claim upon due proof thereof shall be entitled to share in such distribution. 4:9.

As to any claim arising after the distribution of the q1ni~· n!Lor proceeds of the securities and as to any balance of claims ~::,L·~~~;t against the company not fully paid and met by such dis tribution, the holders of such claims shall not be barred from any recourse they may have against the <'Ompany. 50.

The court, by the order appointing a receiver or by Power• thnt any subsequent order, may authorize the receiver to e:ter- ~gz.~.u cise, in respect of the accounts of the company, all or any i.:' :..~:~~· ' of the powers which a Judge of the Supreme Court of of tllki~g Alberta would have if he were taking an account of the arc·nun " claims against the said deposit, and every receiver so auth orized shall possess the said powers, as well as the powers usually enjoyed by a receiver appointed under an order of the said Court. SURRENDER OF SECURITIES.

Wh h d b · Delivery 51. ere a company as cease to transact usmess of securiti ... in Alberta, and has given written notice to that effect ~.~i~pany to the Treasurer, it shall re-insure all such outstanding busin'"'" contracts as are within the forty-fourth

section of this Act, with some company or companies licensed to do business in Alberta, or obtain a discharge of such contracts; and its securities shall not be delivered to the company until the same is done to the satisfaction of the Treasurer. 52. When a company has ceased to transact business Prr,n~cnt in Alberta after the notice hereby required and its license by ; .. ny has in consequence been withdrawn, the company shall pay !~:!e!i":'o the losses arising from policies not re-insured or surrendered <In hmrinr•• as if the license had not been withdrawn. 53.

Ujxm making application for securities, the company Appli•~•Lion shall file with the Treasurer a list of all contracts within ~·;r.:~:;~:ri~~~ the forty-fourth

section of this Act which have not been re-insured as provided by the fifty-first

section of this Act, or have not been discharged; and it shall at the same time publish in the Alberta Gazette a notice that it has applied to the Treasurer for the release of its securities on a certain day, not less than three months after the date of the notice, and calling upon all claimants, contingent or actual, oppos- ing the release, to file their opposition with the Treasurer on or before the day so named; and after that date, if the Treasurer is satisfied that the company has ample assets to meet its liabilities under the forty-fourth

section of this Act, all the securities may be released to the company by an order of the Lieutenant Governor in Council, or a suffi- cient amount of them may be retained to cover the claims -

12 filed, and the remainder may be released; and thereafter from time to time, as such opposing claims lapse or proof is adduced that they have been satisfied, further releases may be made on the authority aforesaid. CHANGE OF NAME. M.

Where a company incorporated under the pro- Chllngeofname visions of a special or general Act of the Legislature of Alberta is desirous of adopting a name differing from that by which it was incorporated; or where, in the opinion of the Lieu- tenant Governor in Council, the name by which such company was incorporated may be easily confounded with that of any other existing company, the Lieutenant Governor in Council upon being satisfied that a change of name will not work or effect any improper purpose, may by order in . council change the name of the company to some other name to be set forth in the order in council; but no such change of name shall affect the rights or obligations of the company; and all proceedings which might have been commenced or continued by or against the company by its former name may be commenced and continued by or against the company by its new name.

M. The Lieutenant Governor in Council may require ~';:i;'~:,~~n the same notice to be given upon any application for such !~!~:''l!'. change of name as is required on an application for letters 0 "'''" patent under "The Alberta Jm.nt Stock Cbmpanies Act." 56. Notice of any change of name shall be forthwith Notire or • d b h • 1 • f Th Albe onrh rhBnp:e mserte y t e company m at east one Issue o e rta Gazette. RECORDS TO BE KEPT IN TREASURY DEPARTMENT. 57.

There shall be kept in "the office of the Treasurer a !~~~ri~~~ record of the several documents filed by every company•md docum!'nt• • • to be kept m under this Act, and under the heading of the company TrCIUiury shall be entered the securities deposited on its account Depnrtment with the Treasurer, naming in detail the several securities, their par value, and value at which they are received as deposited; and before the issue of a new license, or the renewal of a license to a company, the requirements of the law shall be complied with by the company, and the state- ment of its affairs must show that it is in a condition to meet its liabilities; and a record of the licenses and certi- ficates of registration as they are issued or renewed shall also be kept in the office of the Treasurer.

FEES. 58. Each company shall pay to the Treasurer the follow- Fr"" ing fees: (

a) For recording and filing in the office of the Treas urer the documents required by the seventeenth

section of this Act, $10.00; (

b) For initial license or certificate of registration to do business or renewal thereof: (1) $300.00 for fire or life insurance; (2) $200.00 for hail, accident and guarantee insurance; (3) $100.00 for mutual insurance;

13 (4) $100.00 for all kinds of insurance not mentioned in this

section and mentioned in clauses (b), (c), or (

d) of

section 6 of this Act: Provided that for the remainder of the year 1913 only three-fourths of the fees in the foregoing

schedule shall be paid. SERVICE OF PROCES5. 59. After such certified copies and power of attorney ae;,::"o':: are filed as aforesaid, any process in anv action, suit or pro- Rcensed ceeding against the company, in res~ct of any liabilities compllmt •• incurred in the province, may be served upon its attorney appointed pursuant to the seventeenth

section of this Act, and such service shall be deemed to be serYice on the com- pany: Provided, howeYer, that nothing herein contained shall render invalid service in any other mode in which the com pany may be lawfully serYed. PLACE OF PAYMEKT OF LIFE POLICY. 60.

The moneys payable under any policy of life unsur- Life cr,H~y ance already issued, or that may hereafter be issued by a ~~=r~ ;r company that has already obtained, or may hereafter ~:::r::: therr obtain a license unrler the provisions of this Act, or any Act, for which this Act is substituted, shall, in all cases, be payable in this province, when the assured resides therein, notwithstanding anything contained in any such policy or the fact that the head office of th!:' company is not within this proyince. BOOKS TO BE KEPT BY COMPANIES. 61.

Each company shall keep such a classification of its Books to .... contracts and such registers and books of account as may ~:~~P~~ie• from time to time be directed or authorized by the Treas- urer; and if it appears at any time to the Treasurer that such books are not kept in such business-like way as to make at any time a proper showing of the affairs and standing of the company, he shall thereupon nominate a competent accountant to proceed under his directions to audit such books, and to give such instructions as will enable the officers of the company to keep them correctly thereafter, the expense of the accountant to be borne by the company to which he is sent, and shall not exceed ten dollars per day and necessary travelling expenses; the account for such audit and instructions shall be certified and approved by the Treasurer, and thereupon shall be payable forthwith by the company. 62.

Where the company has a share or stock capital, the ~~~cr company shall keep a stock register, in which register all the transfers of the stock shall be accurately kept, and it shall at all reasonable times be open to the examination of any shareholder and the Treasurer. The entries in such register shall include the following particulars: - (

a) The register number of the s~ares transferred; (

b) The amount of subscribed stock transferred; (

c) The amount heretofore paid up on said stock;

14 (

d) The names and address of the transferor and transferee; (

e) The date of transfer, and date of confirmation or disallowance by the board of directors. 63. The books and records required to be kept by the two Afplic .. tion last preceding sections shall include only contracts within ~ •• ~';ding the forty-fourth

section of this Act. sectmn• ANNUAL STATEMENT. 64. It shall be the duty of the com pan~ t.o prepare an- :~~~ut.• nually, on the first day of January or. Within one month thereafter, a statement of the condition and affairs of the company on the thirty-first day .of December then next preceding, exhibiting the assets, liabilities, receipts and expenditures, in such form and with such items and details as shall from year to year be required by the Provincial Treasurer and to cause such statement to be deposited in the office of the Provincial Treasurer, such statement to be accompanied by a statutory declaration to the effect shown in the form in

schedule A to this Act to be made by the president or vice-president and secretary or trea.c;urer. 65. In the case of fire insurance companies other than !:n':P~.ti~~"""• those transacting purely non-hazardous mutual business, !"mf~,~~~·: a copy of such

summary statement shall be published in a newspaper published in the city. town or district in which the head office of the company is located, on or before the fifteenth day of February in every year and proof of publi- cation shall be filed with the Superintendent of Insurance on or before the fifth day of March next following, in default of which the Ruperintendent shall cause such publication to be made at the expense of the company. 66. Every company licensed under this Act transacting ~~!~r:~~~t fire or inland marine insurance, or both, shall, in addition ·~'ir b-rtouut to the information required to be given in the statement ~po:. ~~: .. rr .. ·rl in this

section referred to, include therein a statement premunns showing the total liability of the company, if an Alberta Company, in respect of unearned preminums upon all its outstanding unmatured policies, and if not an Alberta company, in respect of unearned premiums upon all its outstanding unmatured policies of insurance upon property in Alberta. 67. Every company shall, when required by the Pro-~o:;~:";.,. vincial Treasurer, make prompt and explicit answer in reply ;!J•::;:~~i:erl to any inquiries in relation to its transactions. information CANCELLATION OF SUSPENSION OF LICENSES. 68.

If at any time it appears to the Treasurer that the ~r"ii~~~~:ion assets of any company are insufficient to justify its contin- uance of business, or are such that it is unsafe for the public to effect insurance with it, he ~shall make a special report on the affairs of the company to the Lieutenant-Governor in-CounciJ.; and if, after full consideration of the report and a reasonable time being given to the company to be heard. and if, after such further inquiry and investigation (if any) as the Lieutenant-Governor-Council may see fit to make, the Lieutenant-Governor-in-Council concurs in the report of the Treasurer, an order in council may issue, suspending

15 or cancelling the license of the company and prohibiting the company from doing any further business, and there after it shall not be lawful for the company to do any further business in Alberta until the suspension or prohibition is removed by the Lieutenant-Governor-in-Council. 69.

Notice of the suspension or cancellation of anv license Notice ?r and prohibition from doing any further business ·shall be ~~·~.~~~~~~~·•inn published in the Alberta Gazette; and thereafter any person transacting any business on behalf of the company, except for winding up its affairs, shall be deemed for each offence to be liable to the penalty provided by this Act. 70 Th · IJ t• 1 f th Effrct nf • e suspensiOn or cance a ton or non-renewa o e eu•pension. license of any company, under "The Insurance Act of:,"~~~;~:cwnl Canada "shall ipso •acto in the respective cases operate '!r Dominion J 1 hc~·n~w as a suspension or cancellat\on of registry under this Act, without notice from the Treasurer; provided that, if the company's license shall be revived under " The In surance Act of Canada" the Treasurer shall, on proof of such revival and payment of the fee hereinbefore provided for, grant said company a new certificate of registration.

FORFEITURE OF CORPORATE POWERS. 71.

The corporate powers of any company, whether !~o~~~~te incorporated under a special or a general Act of the Legis- ~~~~~~=.~Y lature of Alberta, shall be forfeited by non-user during any continuous period of four years, ending after the coming into force of this Act, whether commencing before or after such coming into force, or if, after a company had under- taken contracts within the intent of this Act., such company discontinues business for one year, or if its license remains suspended for one year, or if its license is cancelled, other- wise than by mere effiuxion of time and is not renewed within the period limited by this Act; and thereupon the company's corporate powers shall ipso facto cease and determine, except for the sole purpose of winding up its affairs; and a Judge of the Supreme Court of Alberta, upon the petition of the Attorney-General or of any person interested, may, by judgment or order, limit the time within which the company shall settle and close its accounts, and may for this specific purpose, or for the purposes of liquidation generally, appoint a receiver.

LIQUIDATION 72.

When a company purposes to go into voluntary J:<ot!c,. '!r liquidation, at least one month's notice in advance shall be h11"''1"'"'n given to the Treasurer; the like notice shall also be pub- lished by the company in two consecutive issues of The Alberta Gazette, and in some newspaper should the Treasurer so require; and the notice shall state the date at which contracts shall cease to be taken by the company, also the name and address of the company's liquidator, or the intention of the company to apply on a stated date for the appointment of a liquidator. 7 A th · din f 1 h I fi Rc-iDBuranc•• 3. t e wm g up o a mutua or cas -mutua re at windin 11 insurance company, after notice has been given as required, ~~ ~~'l:~!~uftl by the fifty-first

section of this Act, it shall be lawful for rompnnics the directors of such company to re-insure out of the reserve

16 fund ·the unexpired contracts for which premiums or premium notes have been taken, but such re-insurance shall be effected with some company licensed to transact business in the province, and approved by thE' Treasurer. I 74.

"''ben any company is wound up, each person con- RPhmcls tracted with on the cash plan shall be entitled to a refund from the company of the unearned proportion of the cash premium calculated from the date at which the company according to the notice as provided for by this Act, ceased to undertake contracts; but this shall not destroy or defeat any other remedy such person may have against the comp- pany in respect thereof or for any other cause. 75.

Every receiver, assignee or liquidator of a company st .. t.ements shall, until the affairs of the company are wound up and the ~.ieceipts accounts are finally closed, within seven days after the close :'b.:''M!d" of each month , file with the Court or other authority ap- hy ••·•·eivrr pointing him, and also with the Treasurer, detailed schedules showing in such forms as may be required receipts and ex penditures, and also assets and liabilities, and he shall , whenever, by the authority appointing him or by thP Treasurer, required so to do, exhibit the office books and vouchers, and furnish such other information respecting the company's affairs as "may be required; and any receiver, assignee or liquidator refusing or neglecting to furnish such information shall, for each offence, be subject to a penalty of not less than fifty dollars nor more than two hundred dollars, to be recovered on behalf of His Majesty for the use of the Province; and he shall in addition render himself liable to be dismissed or removed.

PENALTIES. 76. Any director , officer, agent, employee, or other ;,~~~tie• person who in contravention of the fourth

section of this ••·ction 4 Act undertakes or effects, or agrees or offers, to undertake, or solicit, any contract, or collects any premium, on behalf of any company, without the company being licensed or registered under this Act, or if such license or certificate of registration has been suspended or cancelled without renewal or revival thereof, shall be liable to a penalty of two hundred dollars for every such contravention of this Act. 77. Any violation of the sixty-fourth

section of this Act ~d:~tie• shall subject the company violating the same to a penaltyseetion 64 of two hundred dollars for every violation, and to an addi- tional sum of one hundred dollars for every month during which the company neglects to file such statutory declara- tion and statement as are therein required; if such penalties are not paid, the Lieutenant-Governor-in-Council may order such company's license to be suspended or cancelled, as may be deemed expedient. 78. Any violation of

section twenty-four of this Act Penalty for shall subject the company violating the same to a penalty =;:.to of $25.00 for every such violation, to be recovered on con- ""ction 24 viction therof before a justice of the peace. If such penalties are not paid the Lieutenant-Governor-in-Council may order such company's license to be suspended or cancelled, as may be deemed expedient. Any company, or any officer or agent of any company, causing any policy, interim receipt, ~C ... -

.. 11 or other insuring document against fire loss to be printed, published m· issued falsely bearing the words "Licensed under "The Alberta Insurance Act," or "Registered under The Alberta Int~urance Act,., as the case may be, or to the like effect, shall be liable to a penalty of $200.00 for each offence, such penalty to be recovered on conYiction before a police magistrate, or two justice~ of the peace, or a judge of any district court. 79. Any penalty imposed by this Act, when recovered, :?ri~';::;~r;:~~ shall belong; to the Province of Alberta. 80.

All penalties imposed by this Act may be recovered Proct.-dur~ tor by and before any police magistrate or two justices of the:'.::.'i~r.~: o peace; the information or complaint shall be laid or made in writing within one year from the commi~sion of the offence. 81.

Except . as he~einafter mentioned, it shall be dee~ed ::,ro.e,e~~u~~ an offence agamst this Act for any person, firm or corporatiOn in 1oomP."0 >' 1 . . un vss liren~Jet to m~ure or cause to be msured any property whatever, or ... .,i•tcred real or personal, situate in, or described in any policy, interim receipt, or insuring document as situate in any part of Alberta against firf' loss in any company not licensed or registered under the provisions of "The Alberta Insurance Act.

" \ _ fi. • d ffi. f Persons not 82 •• ~11y person, rm or corporatiOn, an every o cer o insuring with or agent or employee of any such person, firm, or C()rpora-:;:c~o~~;pan) tion having any actual knowledge of the facts, procuring¥~~~~:;:! any insurance against fire on any property, real or personal, under oath of • Alb d 'bed . 1. . . • all thr m erta, or escr1 m any po Icy, mterim receipt orpardticul.a6••r . • • d • t • f Alb • an pn) h msurmg ocument as Situa e m any part o erta, m any.per cent. · company not licensed or registered under ·'The Albertaf.~~uro Insurance Ad,'' shall forthwith, and not ·later than oneo~·v~~r::. month from the effecting or any such insurance or of the receipt of any such policy, interim receipt or insuring qocument issued by or on behalf of sueh insuring company, which ever shall be first in point of time, notify the Treasurer of the Province of Alberta in writing under oath of the terms of such insurance, thP company with which such insurance is placed, and the amount of premium paid or payable or premium note:.. given or to be given, or mutual liability assumed in connection therewith, and shall pay to such Provincial Treasurer, for the benefit of the Province of Alberta with such notice a sum equal to fifty per cent. of the premium paid or payable or premium note given or to be given, or mutual liability assumed, in connection with such insurance and shall be liable in an action brought by or in behalf of the Provincial Treasurer for the amount of the said fifty per sent. of any such premium. 83.

It shall be competent for the Provincial Treasurer, ~~;~i~··iou "' or the Lieutenant-Governor-in-Council, on application made ~'t:':::l'';.~ith by or on behal.f of any person, firm, or corporatio!l, to perf!Ut :;:·~::~ contracts of msurance to be made or entered mto outside or ~ep;i\terP< t of Alberta with insurance companies not licensed or registered un• ··• · et under the said Act, under such regulations and reRt.rir- tionR a~ may be deemed expedient and neceRRary.

18 84. All sums of money payable to the Provincial Treasur er under this Act, or under "The Alberta Insurance Act" or any amendments thereof, shall be recovered by action in the proper court brought in the name of the Provincial Treasurer of Alberta, by his name of office. Th L. Q .

C .1 h h Lieuten11nt 80. e teutenant- overnor-m- ounc1, w enever e!Jovernor. h 11 d · d" t • m Council s a eem It expe 1en , may appomt any one or more may nppoint qualified persons, not being officers of any other fire insurance :.r:r:e %to company, to examine into the affairs of any fire insurance !~'h~~air• company doing business in this Province. and it shall be :,S,::~':,~~ the duty of the officers or agents of any such company to cause its books to be opened for the inspection of the person or persons appointed, and otherwise facilitate such examina- tions; and for that purpose such person or persons shall have power to exall)ine, under oath, such officers and agents; and whenever it shall appear from such examination that the assets and financial position of such company are such as not to justify the continuance in business of any such company, its license may be cancelled by the Treasurer, and in the case of a company incorporated by or under any statute of this Province, the Attorney General may apply in a

summary mannP.r, on motion to a Judge of the Supreme Court of Alberta, for an order requiring such company to show 'cause why the business of the company should not be closed; and the Court or .Judge may thereupon proceed to Proceedio~• hear the allegations and proofs of the respective parties, :.:;~~e• and in case it shall appear to the satisfaction of the Court or :.~i.: ::,.i•• .Judge that the assets and funds of the company are not :::~Pt~ctory sufficient as aforesaid, or that the interests of the public so require, the Court or Judge may decree a dissolution of ~aid Company's affairs and may appoint a receiver to take possession of, collect, and get in the assets and effects of the said company, and may order and direct that the affairs of the said company shall be wound up under the order and direction of the Court, and do all other matters and things necessary or requisite in the premises. 86.

Such receiver shall have full power, under the authori- ~:;:-:;~('" 1 ity of a Judge of the Supreme Court of Alherta, to make all !;~~i~~~{l,y such assPssments on the premium notes or undertakings tbr Court held by the said company as may be necessary to pay its debts and claims against it, as the directors would have authority to make, and the notice of assessment may be given in the same manner as is hereinbefore provided; and the said receiver shall have the like rights and remedies upon and in consequence of the non-payment of such assess- ments a:" are given to the company or the directors thereof, and such receiver may receive a surrender of any policy of said company or cancel !tDY policy in all cases where the directors are authorized to receive the surrender of or l'an<'el policies. 87.

The court or any judge by which or whom such bowm nf receiver is appointed may also, upon his application, examine J.:'d';! or by a reference or otherwise, as it or he may deem proper, into the proceedings and acts of said company in the two last preceding sections referred to; and if it shall appear upon such Pxamination that the directors or officers of such company, or any of them, haYe in any mannPr misapplied or improperly disposed of the funds, property or effects of such company. it shall he lawful for the Court or .Judge to

19 order and decree that such persons as may be found guilty of such misapplication or improper disposition shall pay the amount thereof to such receiver, and to enforce such order or decree by execution or by attachment, or by such proc(:'ss of the court a.c; shall ~em expedient. 88.

Every company incorporated by the Legislative Cmnput.ntinn A bl f Alb I• d . d d " Th of mtcrcsl ssem y o erta or Icense or registere un er e fnr n"•.-n ·c Alberta Insurance Act, " or transacting any business of life :;,',.\';tnin•·•t insurance in this province, shall maintain a reserve for the ~ri~~~~·o···· protection of its policy holders, computed on the basis of compnni·- the reserve required under the provisions of '' The Insuranr,P Act of Canada", for the time being in force. INSPECTION OF INSURANCE COMPANIES LICENSED BY THE PROVINCE 89.

The Lieutenant-Governor-in-Council may appoint an Appointment. of auper.nten•lr.nt. officer to be called the superintendent of insurance, who shall of i""'"""'"' act under the instructions of the Provincial Treasurer, and his duties shall include examining into anr:l reporting . . to the Provincial Treasurer from time to time upon all H•• ohol.ll'" matters connected with insurance in this province f.ialnn· 90.

The salary of the superintendent shall be such sum · per annum as the Lieutenant-Governor-in-Council shall from time to time determine; and the Lieutenant-Governor- Deputy nnd in-Council may provide from time to time such assistance ''""'"'"" 1 " as may be found necessary, and may appoint a deputy of such superintendent. 91.

The superintendent shall keep on file the various ~:;.~~~~ocnt. documents required by this Act to be filed in his office, and shall keep a record of all licenses issued by the Provincial ~.~;~~~~-of Treasurer and shall personally or by deputy, visit the head or ?hief office in Alberta of every such company at least ~mce ~~;:;~ion m every vear, and shall carefully examme the condition of every d d . "' compBny an an affairS of each company and report thereon to the annual report P · · } T }} • · h' tt • to Pro,·iocinl rovmCia reasurer as to a matters reqmrm~ IS a , ent10n Tro•n•urcr and der-ision. 92.

In order to facilitate the inspection of an insurance Prdtluclinn of • • hooks nnd company's books and papers, the company may be reqmred ~~·"irsffi~ by the superintendent, with the approval of the Lieutenant- in 'Xn~.r~.~ Governor-in-Council, to produce the said books and papers at the head or chief office of the insurance company in Alberta, or at such other convenient place as the superin tendent may direct. The officer or officers of the company who have custody of the books shall be entitled to be paid by the company for the actual expenses of such attendance. 93.

The superintendent shall from such examination ~n'P~~~vi':-!:l~lt prepare and lay before the Provincial Treasurer an annual Tr .. a•urer report of the condition of every company's businE'.ss, asP br . ascertained from such inspection, and such report may be u:'er:~rtoon published forthwith after the completion thereof. Officers of 94.

It shall be the duty of the officers or agents of the fo'!'pany to company to cause their books to be open for the examination :.~J:.~~~ioo,.. of the superintendent, and otherwise to facilitate the exami- nation so far as may be in their power; and the superin- tendent or his deputy, shall have power to examine under !:~~"w oath any offirer or agent of the company rehttive to its unrlrr nolle business.

20 95. It shall also be the duty of the officers and agents of ~~me . the company to furnish the superintendent, on his request, : t':i~shod with full information as to the total liability of the company, :f.~.ie:.~~'d if an Alberta company, in respect of unearned premiums h)· hm• upon all outstanding unmatured policies, and if not an Alberta company, in respect of unearned premiums upon all its outstanding unmatured policies of insurance upon property in Alberta. 96.

A report of all .companies so inspected shall be entered :!~%.~",~ 1 in a book kept for that purpose, with notes and memoranda, h" krnt showing the condition of each company; and where a special examination. has been made, a. s~ecial written repo~ shallsneeinl be commumcated to the Provmmal Treasurer, statmg the .. :u•mination superintendent's opinion of the condition and financial ~~~~~utar standing of the company, and all other matters desirable oompllll)" to be made known to the Provincial Treasurer. 97.

Every director, officer, manager, agent, collector, i.,~"f~f~~· au~ tor or employee of a company, ~ho, knowingly makes or ~~tr~i'~Bil 1 asststs to make any untrue entry m any of the company's !-" pcfn!-it books, or who refuses or neglects to make any proper entry lORper.tJOn, P.lr. therein, or to exhibit the same or to allow the same to be inspected, and extracts to be taken therefrom, shall be guilty of an offence punishable, on

summary conviction before any police magistrate or two justices of the peace, by a fine not exceeding fifty dollars, and, in default of payment, by imprisonment for a term not exceeding six months. 98.

If it appears to the superintendent that the assets of~~~~"~ .. ~enort any company are not sufficient to justify its continuance ~i:~~:ny of business, or that the company is unsafe for the public to unsouo<l effect insurance with, he shall make a special report on the affairs of the company to the Provincial Treasurer to that effect. 99 After full consideration of such report and a reasonable Consid"rutinn • of Rllme by time being given to the company to be heard, and if, after ~rovincinl such further inquiry and investigation, (if an.y), as he may .L;~·:~;~~ to k h P . . l T 1eutenant see proper to rna e, t e rovmma reasurer reports to ao,·er!'or in h Li G .

C '1 h h . h Cnnnrtl t e eutenant- overnor-m- ounc1 t at e agrees wtt the superintendent in the opinion expressed in his report, then, if the Lieutenant-Governor-in-Council also concurs in such opinion, an order in council may issue suspending or cancelling the license of the COmpany, Or prohibitingSuspe1ysi~n or the company from doing any further business, and thereafter ~'('ji:,~.:,.::on it shall not be lawful for the company to do any further business in Alberta, until the suspension or prohibition is removed by the Lieutenant-Governor-in-Council. 100.

Notice of the suspension or cancelling of any license, Pnhli~ntinn or prohibition from doing any further business, shall be of nohre published in The Alberta Gazette; and thereafter any person transacting any business in behalf of the company, Prohibition except for winding up its affairs pursuant to this or any of busincs.• • thf'rf•nft.rr other Act, shall be deemed to have been gutlty of an offence punishable on

summary conviction before any justice of the peace by a fine not exceeding $25.00. 101. Wherever the affairs of any insurance company doing In spcci"1 business in Alberta appear to require the same, the superin- l';otor 1 d • h th 1 f th L' G • with approva ten ent, wtt e approva o e 1eutenant- overnor-m- ot Lieute'!8o"t C il h f h h b Governor 10 ounc , may, at t e expense o t e company, ave a stracts council to value &~~~~eta and linhiliti••

21 prepared of its books and vouchers and a valuation made of the assets and liabilities; and the certificate of the superin tendent, approved of by the Provincial Treasurer, shall be conclusive as to the expenses to be paid by the company in respect thereof. 102. Neither the superintendent, nor any officer under~r;~"b:;otlrot him, shall be interested as a shareholder, directly or indirect- ....... , . holdur • • 0 UltiUr&O<'e ly, many msurance company. compnny 103.

Towards defraying the expenses of the office of thee':~;~~~· superintendent a sum not exceeding $5,000.00 shall be an-;.,~ •. ·~~ nually contributed by the companies required to whom omce icenses have been grai)ted under this Act. 1o.t. The amount to be annually contributed by the~';,~ insurance companies under the provisions of the last :!.e:;:~les preceding

section shall be assessed pro rata and based on the gross annual premium income as shown by the books of the several companies on the thirty-first day of December next preceding. 105. All sums payable under this Act to the Provincial :~~· ;::a;:ent TreasurE-r shall be so paid before the issue of a renewal of the license, and, in any disputed case, the Provincial Treas- ~~!ci!.i' or urer's certificate, or approval of an account certified by the Treuaurer"" . t.o amount to supermtendent, shall, as to the amount so payable by each be • · onclwoi\· ~ or any company, be held to be conclusive.

IMPAIRMENT OF C.t\.PITAL AND PAYMENT OF DIVIDENDS. 106. Every company licensed to carry on the business of !::::~a:,~:i~ fire insurance or inland marine insurance, or both, shall at :::;~ all times maintain assets in Alberta at least equal in value to t.,ohc;~~~t h I f h d . II din lia •ht•~• t e tota o t e unearne premmms upon a outstan gupon.unearnffi unmatured policies upon property in Alberta, calculated ~';lr~r;::h~ pro rata for the times unexpired, together with the amount liabilities of matured claims for losses in Alberta, and all its other liabili~ies of every kind in Alberta. 107.

No dividend shall be paid by any such company :?~~-i~e~• while its paid up capital is impaired or while its assets are r:;';.i~ment less than the amount required by the next preceding section, ol Cllt>ital nor shall any dividend be paid which would reduce its assE'ts below the said amount or impair its capital. 108. If it apperu·s to the superintendent at any time that ~~r:~~ir the assets of any such COJllpany fall below the requirements :-:;::.~i:.t.XP of

section lOti he shall report the fact to the Treasurer, and state whether or not the company appears to him to have paid any dividend in contravention of the last preceding section, and thE' Treasurer, after a full consideration of the matter and after giving the company a reasonable oppor- tunity to be heard, may either recommend the cancellation of the company's license by the Lieutenant-Governor-in- Council, who may upon such recommendation order the cancellation of the same, or the Treasurer may, upon such c n . terms and conditions as he may deem proper, limit a time lii~~.,:~rou within which such company shall make good the deficiency, ~o~~ught up and upon the company's failure to make good such de-lo stundnrd ficiency within the time so limited, such license shall be cancelled by the Lieutenant-Governor-in-Council upon the report of the Treasurer recommending the same.

22 109. If at any time it be found that t~e assets of &:nY such ~~=t.sper company are less than the amount reqwred by

section 106, C!""t. too low, by an amount equal to twenty per cent. or more of the total =::u:: be amount of the said unearned premiums, calculated 88 afore-~~~ or said, or that the company has paid any dividends in contra- vention of

section 107, it shall be the duty of the Treasurer to report the same to the Lieutenant-Governor-in-Council, whereupon the company's license shall be cancelled by order of the Lieutenant-Governor-in-Council. 110.

Chapter 7 of 2 - 3, George V, intituled "The Hail Insurance Act," is hereby repealed. 111. This Act shall come into force on the first day of April, 1913.

SCHEDULE . • The follow~g is the

schedule referred to in this Act:

ScHEDULE A. (Section J<'ORM OF DECLARATION TO ACCOMPANY THE ANNUAL STATEMENT. \\re, .............................................. . and .. ............ . ..... and . . ................ ...... . . of .................... company, do solemnly declare that we are the above described officers of the said company, and that we have, each of us individually the means of verifying the correctness of the statement within contained (or hereunder annexed) of the affairs of the said company; and that, on the ..... .... . ...... day of ... . ........ last, all the above described assets were the absolute property of the said company, free and clear from any liens or claims thereon, except as above stated, and that the foregoing statement, with the schedules and explanations hereunto annexed and by us subscribed, are a full and correct exhibit of all the liabilities, and of the income and expenditure, and of the general conditions and affairs, of the said com- pany, on the said . . ........... . .. day of ............ last, and for the .............. year ending on that day.

And we make this solemn declaration conscientiously believing it to be true, and knowing that it is of the same force and effect as if made under oath, and by virtue of "The Canada Er,idence Act, 1893." Declared before me at the ... ............. this . . . . ... . day of ................ A.D., 19 .. . (Signatures).

.. ·- No. SS FOURTH SESSION SECOND LEGISLATURE 3 GEORGE V 1913 . r BILL

An Act respecting Insurance Companie8. Received and read the First time .... . .. .. . ..... . . . . . Second time .. · ..... . . . .... .. . . Third time ...... .. ........ .. EDMONTON: .J •• W. Jarnav, Govemmont Printer 1 91 J Title: 1913 (2nd, 4th) Bill 88,

An Act respecting Insurance Companies

Document details

Collection	Alberta — Bills
Citation	L2 S4 10693
Type	bill
Volume / chapter	L2 S4 10693
Language	en
Format	json
Source	PROVINCIAL
Identifier	1a93251cbcf75c9da274d668a0f60c26c8e68ac1

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