BILL No, 35 of 1927,

An Act to amend The Alberta Insurance Act, 1926, (Assented to ,1927,) HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. This Act may be cited as "The Alberta, InsurGJ/lce Act, 1.1126, Amendment Act, 1927," Z. The Alberta Insumnce Act, 1,fJ26. being

chapter 31 of the Statutes of Alberta, 1926, is amended as to

section 2, by adding as paragraph (bbb) immediately after paragraph «(wa), the following: "( bbb) 'Offer to undertake' shall include the setting up or keeping up of a sign 01' inscription referring to insurance, and the distribution or publication of any proposal, circular, card, advertisement, print­ ed form, 01' like document, referring to insurance, 01' any written 01' oral solicitation for insurance,"

Section 11) of the said Act is amended by inserting after the words "of an insurer" the \\'ords "or any agent."

Section 33 of the said Act is amended as to subsection un, by striking out the words "company or society" where they occur thcrein, and substituting therefor the word "in­ surer,"

Section 49 of the said Act is amended as to subsection (1), by adding' at the end of paragraph (

b) thereof, the following proviso: "Provided, however, that no fraternal society need main­ tain any deposit with the Minister, if such society files a declaration of the character described in

section 402, but the Minister may, nevertheless, \'equire the deposit to be madc, if fo], any reason he is not satisfied with the declara­ tion so filed," G.

Section 83 of the said Act is amended as to subsection (5) the],eof, by striking out the word "January" where it first occurs and inserting in lieu thereof the word "Febru­ ary"; and b~c striking out the words "first day of January" and inserting in lieu thereof the words "fifteenth day of February. "

Section 105 of the said Act is amended by striking out subl?ection (2) thereof.

Section 186 of the said Act is amended' by adding as subsections (3), (4), (5) and (6), the following: "

(3) No agent, licensed or unlicensed, shall knowingly issue any contract for fire insurance upon property situated in the Province for an amount which with any existing con­ tracts exceeds the fair value of the property, or of the in­ terest of the insured therein." "( 4) Any insurer and any agent who knowingly effects, and any insured person who knowingly procures, insurance on any building, or property, or interest therein against loss or damage by fire in excess of the insurable value thereof, shall be deemed to be guilty of an offence against this Act, and liable upon

summary conviction before a justice of the peace to a penalty of not less than one hundred dollars or more than two hundred dollars and costs for each such con­ travention. "

(5) Evei'y adjuster licensed under this Act who adjusts any loss by fire to property situated in the Province shall ascertain whether there is any over-insurance upon such property, and the facts and circumstances (so far as prac­ ticable) pertaining to the origin and the caw,e of the fire, and shall report his findings in writing, together/with any circumstances which, in his belief, indicate any offence against the law of this Province or the Dominion of Can­ ada, to the Fire Commissioner and to the Superintendent of Insurance. "

(6) In the event of the total destruction of any insured property with respect to which the total amount of insur­ ance money payable is less than the total amount of insur­ ance thereon, the insurer or insurers shall return to the insured person the total amount of insurance premium paid for the excess of the insurance over the appraised value of the property at the time of the loss, which amount shall be paid. to the insured at the same time and in the same manner as the loss shall be paid: "Provided, however, that this subsection shall not apply where an insured person has knowingly placed insurance in excess of the insurable value of any building, or property, or interest therein contrary to subsection (3) or to insur­ ance on stocks or merchandise: "Provided, further, that no prosecution shall be instituted under subsection (4) without the consent of the Attorney General."

Section 187 of the said Act is amended by adding as subsections (2) and (3) thereof, the following: "

(2) No insurer shall make a contract covering property situate outside of the limits of an incorporated city. town or village, for a term exceeding twelve months, without a written application therefor, signed by the applicant, or, in case of the absence of the applicant. or his inability to make the application, by his agent or by a person having an insurable interest in the property.

3 "

(3) Every aforesaid written application shall set forth the name. address and occupation of the applicant, the de­ scription, location and occupancy of the property to be in­ sUl'ed, its value, particulars of any mortgage, lien or other incumbrance thereoll, the purpose for which and the location in which any moveable property is deposited or used, par­ ticulars of all previous fire .claims made by the applicant, together with the name of the company or companies against whom such claims were made, whether any insurer has cancelled any fire policy 01' refused fire insurance to the applicant, and such other information as the insurer may require. "

Section 191 is hereby struck out and the following substituted therefor: "191.

A policy may contain a limitation of liability clause (or clauses) to the effect that the insurer shall only be liable for a specified proportion of any loss, which may be sus­ tained to any of the property covered by the policy, or to the effect that the insurer shall not be liable for more than a specified percentage of the value of any of the said prop­ erty at the time of such loss, or, in the event of there being any other insurance covering any of the said property, to the effect that the insurer shall only be liable for a rateable pl'oportion of a specified percentage or proportion of any loss to any of the said property or to the effect that the in­ surer shall not be liable for more than a rateable proportion of a specified percentage of the value of any of the property at time of such loss, in which case there shall be printed or stamped on the face of the policy, in conspicuous type, and in red ink, the words: 'This policy contains a limitation of liability clause.' Such clause (or clauses) shall not be deemed to be a variation of any statutory condition."

Section 249 of the said Act is amended by adding a~ subsection (2) thereof, the following: "

(2) In the preceding subsection, the expression 'agent' shall be deemed to exclude an automobile finance or accept­ ance corporation, an automobile dealer, an insurance agent or broker, and any officer or employee of such corporation, dealer, agent or broker."

Section 253 of the said Act is amended- (

a) by striking out the words "or other consideration" where they occur thel'ein; and by inserting after the words "and the term of" the word "the" ; (

b) by adding as subsection (2) thereof, the following: "

(2) Where it is proposed to change the subject matter of the insnrance by substitution or by addition of one or more automobiles, the contract may be amended by an en­ dorsement to that effect on the existing policy, but no con­ tract shall be so amended without a written application con-

4 taining such particulars in reference to the new subject matter as would be required by

section 250 in an application for a contract, and signed in accordance with

section 249."

Section 284 of the said Act is amended by striking out paragraph (

a) thereof, and substituting therefor the following: "(

n) The contract shall be void if, at the time at which it would otherwise take effect, the insured has no insurable interest in the crop insured. " (

b) Where the insured has at the time at which the contract takes effect an insurable interest in the crop insured, it shall not be necessary for the valid­ ity of the contract that any person to whom the in­ surance is payable, whether by the terms of the con­ tract or by assignment, have an insurable interest in the crop insured. " (

c) Each insurer shall before the first day of May in each year, file with the superintendent the rates of , premium to be charged in each township in the Province in respect of its contracts of hail insurance and such rates shall be effective until the first day of May in the succeeding year unless changed in the meantime and notification of any such change made to the superintendent at least ten days before being put into operation. Any person undertaking insur­ ance except at the rate aforesaid, shall be guilty of an offence against this Act. "(

d) Where a rate has been reduced, after notification to the superintendent, the new rate shall be applic­ able to all other contracts issued by the insurer covering property within the township, and the insurer shall return to each 1)erson insured within the area under any existing contract, the amount by which the premium charged on such contract ex­ ceeds the premium at the lower rate. " (

c) Each insurer or its general agent shall before the first day of June in every year, file with the superin­ tendent the rates of commissions payable in·respect of its contracts in Alberta during the year."

Section 285 of the said Act is amended by striking out subsection (2) thereof, and substituting therefor the following: "

(2) A copy of the application or of such part thereof as is material to the contract, shall be endorsed upon 01' attached to the policy when issued by the insurer and shall form part thereof."

Section 400 of the said Act is amended by striking out the word "friendly" where it occurs in the first line thereof, and substituting therefor the word "fraternal."

Section 43() of the said Act is hereby struck out and the following substituted therefor: "430. Upon any exchange complying with the provisions of this Part, ana paying such fee as may be prescribed by the Lieutenant Governor in Council, the Superintendent may issue a license in form B in

schedule C hereto."

Section 443 of the said Act is hereby struck out and the follo\ving substituted therefor; "4:43.-

(1) No pel'son shall act as attorney, or for or on behalf of any attorney, in the exchange of reciprocal con­ tracts of indemnity or inter-insurance, or in acts or trans­ actions in connection therewith, or exchange a reciprocal contract of indemnity or inter-insurance with any other . person unless and until a license has been issued and unless such license is in force. "

(2) Any person who contravenes the provisions of sub­ section (1) hereof, shall be guilty of an offence against this Act."

Section 447 of the said Act is amended- «((.) as to subsection (1) thereof, by adding thereto the following proviso; "Provided, however, that a member of a duly licensed fraternal society, other than a member who receives a salary 01' commission for such purpose, may without a license solicit members of the society 01' c01'poratioll to insure with snch society OJ' corporation," (l») as to subsection (

n) thereof, by striking out the wOl'd "of" where it occurs in the tenth line, and snbstituting therefor the 'word "01',"

Section 457 of the said Act is amended by adding thereto as subsections (4), (5) and (6) thereof, the fol­ lowing: "( 4) On the written complaint of any insurer or any ~eneral agent 01' any agent licensed under this Act, that there has been any violation of the provisions of subsection (3) or when the superintendent deems it necessary without such complaint, the superintendent shall inquire whether or not there has been unfair discrimination in the commissions paid or payable on risks of essentially the same hazard and the provisions of

section 17 shall apply to the inquiry. "

(5) In case any insurer is convicted of a violation of subsection (:3) of this section, every duly appointed agent of the insurer ill the Province shall be entitled to the same commission or compensation for business done during the calendar year in which the discrimination took place, for the insurer, on risks of the same kind or class, taking into consideration the location of the risk and the hazard there­ of, and any agent may recover from the insUl'er in any Court of competent jurisdiction, the amount of increase of compensation, if any, to which he may become entitled under

6 the provisions of this subsection. Risks on which like rates are charged shall be deemed to be of the same kind or class. "( 6) Any agent who knowingly receives any commission or compensation paid or allowed in violation of this

section shall be guilty of an offence and liable upon

summary con­ viction before a justice of the peace to a penalty of not less than one hundred dollars, nor more than two hundred dol­ lars, and costs for each offence."

Section 460 of the said Act is amended by striking out the words "at the end of one year from its date" and suh'stituting therefor the words "on the thirty-first day of December in the year in which it is issued." -21.

Schedule B is amended as to paragraph 18, by strik­ ing out the word "should" where it occurs in the first line, and substituting therefor the word "shall." 22. This Act shall come into force .................. .

No. 35. FIRST SESSION SIXTH LEGISLATURE 17 GEORGE V 1927 BILL

An Act to amend The Alberta Insurance Act, 1926. Received and read the First time ................... . Second time .................. . Third time ................... . HON. MR. BROWNLEE. EDMONTON: w. D. McLEAN, ACTING KING'S PRINTER A.D. 1927 Title: 1927 (6th, 1st) Bill 35,

An Act to amend The Alberta Insurance Act, 1926