First

Session, 49th General Assembly

Elizabeth II, 2020

BILL 4 1

AN ACT TO AMEND THE

INSURANCE CONTRACTS ACT

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE SARAH

STOODLEY

Minister of Digital

Government and Service Newfoundland and Labrador

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Insurance Contracts Act to provide

increased protection for innocent co-insured policy holders.

A BILL

AN ACT TO AMEND THE INSURANCE CONTRACTS ACT

Analysis

S.18.1 Added

Recovery

by innocent persons

S.28 Added

Regulations

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

RSNL1990 cI-12

as amended

1. The Insurance

Contracts Act is amended by adding immediately after

section 18 the

following:

Recovery by

innocent persons

18.1

(1) Notwithstanding

section 18, where a contract contains a term or condition excluding coverage

for loss or damage to property caused by a criminal or intentional act or

omission of an insured or any other person, the exclusion applies only to the

claim of a person

(

a) whose act or omission caused the loss or

damage;

(

b) who abetted or colluded in the act or

omission;

(

c) who

(

i) consented to the act or omission, and

(ii) knew or ought to have known that the act or

omission would cause the loss or damage, or

(

d) who is not a natural person.

(2) Nothing in subsection (1) allows a person whose

property is insured under the contract to recover more than the person's

proportionate interest in the lost or damaged property.

(3) A person whose coverage under a contract would

be excluded but for subsection (1) shall

(

a) co-operate with the insurer in respect of the

investigation of the loss, including submitting to an examination under oath

where requested by the insurer;

(

b) in addition to producing any documents

required by the contract, produce for examination, at a reasonable place and

time specified by the insurer, all documents in the person's possession or

control that relate to the loss; and

(

c) comply with any other requirements prescribed

by the regulations.

2. The Act is amended by adding immediately after

section 27 the following:

Regulations

28. The

Lieutenant-Governor in Council may make regulations

(

a) prescribing requirements with which persons

shall comply for the purpose of paragraph 18.1(3)(c); and

(

b) generally to give effect to the purposes of

this Act.

Queen's Printer