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Part II .

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Automobile Insurance Underwriting Practices Regulations

made under subsection 159A(2) of the

Insurance Act

R.S.N.S. 1989, c. 231

O.I.C. 2003-279 (June 24, 2003), N.S. Reg. 125/2003

as amended by O.I.C. 2012-274 (August 20, 2012), N.S. Reg. 162/2012

Citation

1 These regulations may be cited as the Automobile Insurance Underwriting Practices

Regulations .

Definitions

(1) In these regulations,

(a) “antique vehicle” means a motor vehicle that is registered as an antique vehicle

pursuant to the Motor Vehicle Act and the regulations made under it;

(b) “reconstructed vehicle” means a reconstructed vehicle as defined in the Motor

Vehicle Act .

(2) Unless the context otherwise requires, words defined in

Part VI of the Act have the

same meaning when used in these regulations.

Application

(1) Subject to subsection (2), these regulations apply to all contracts on and after August

1, 2003.

(2) Section 5 applies to all contracts and applications for automobile insurance on and

after July 1, 2003.

Prohibited underwriting practices

(1) An insurer must not

(

a) refuse to issue a contract;

(

b) refuse to renew a contract;

(

c) terminate a contract; or

(

d) refuse to provide or continue any coverage or endorsement in respect of a

contract,

on any of the grounds set out in subsection (2).

(2) The prohibited grounds for refusal or termination for the purposes of subsection (1)

are

(

a) the age of the insured, the applicant, or any other person who is or would be an

insured under the contract;

(

b) the sex or marital status of the insured, the applicant, or any other person who

is or would be an insured under the contract;

(

c) the age of the vehicle that is or would be insured under the contract, unless the

vehicle

(

i) is an antique vehicle,

(ii) is a reconstructed vehicle, or

(iii) has been substantially modified for enhanced performance;

(

d) whether the insured, the applicant, or any other person who is or would be an

insured under the contract

(

i) is or has been insured by the Facility Association, whether or not the

insured, applicant, or other person has completed any minimum period of

insurance coverage previously required by the Facility Association,

(ii) has been declined insurance or refused a renewal of insurance by an

insurer,

(iii) has claimed under a policy of automobile insurance as a result of an

accident for which the insured, applicant, or other person was not at fault,

(iv) has an unsatisfactory claims record, if the claims record includes any

claim resulting from an accident for which the insured, applicant, or

other person was not at fault,

(

v) failed to make any payment to an insurer, other than the first payment of

a periodic payment plan, unless the payment was made more than 30

days after the date on which it was due,

(vi) had a lapse in coverage under a contract of automobile insurance for less

than 24 months, unless the lapse resulted directly or indirectly from the

suspension of the driver’s license of the insured, applicant or other

person,

(vii) possesses a characteristic that is unrelated to the underwriting risk that is

or would be assumed under the contract,

(viii) has made an inquiry about coverage under a contract that did not result in

a claim for payment or indemnification under that contract,

Subclause 4(2)(d)(viii) added: O.I.C. 2012-274, N.S. Reg. 162/2012.

(ix) has made a notification of an incident that did not result in a claim for

payment or indemnification under a contract.

Subclause 4(2)(d)(ix) added: O.I.C. 2012-274, N.S. Reg. 162/2012.

Reasons

(1) An insurer that

(

a) refuses to issue a contract;

(

b) refuses to renew a contract;

(

c) terminates a contract;

(

d) refuses to provide or continue any coverage or endorsement in respect of a

contract; or

(

e) changes the classification of risk assumed under a contract, if the change

results in an increased premium,

must provide the insured or the applicant with notice of the refusal, termination or

change, together with clear written reasons that are sufficient to permit the insured or

the applicant to determine why the insurer acted as it did without the need to refer to

any other information.

(2) An insured or applicant who considers that an insurer has not complied with

subsection (1) may refer the matter to the Superintendent.