Bill No. 55 of 1947. A BILL TO AMEND THE ALBERTA HAIL INSURANCE ~CT .,. • 1 NoTE. SectioJl 5 of the above Act whfeh is amended by sectto~ 1 ol the Bill sets out the powe:rs and duties of the Boant Paragraph (

a) authorizes the- Board to acqui~. hold and' dispoae of personal property in addition to real prope~. Paragraph (

b) providee in terms for the appointment of d Manage!'. Up to the present time the Manager has been a.ppoi»ted under the general p<>wer to appoint officers, etc. The change made by paragraph (

e) is made Becessary' by the amendment made to paragraph (b}. The changes made by

section 2 of the Bill are not sQb~tantial. Seetion S of the Bin amends

section 11 of the Act in two respects: (a} The. authority of the Board as to the policies issued i.s made mont, specific by the additi~ af the words "and the terms and conditions thereof'' to subsection (1) of

section 11; (b}lt substitutes a new paragraph (

d) of subsection (a)­ of the same

section dealing with the partial payment of lois clause. The change is made for the purpose of clarification. The WOFds in lines three-t& six "or the percentage of the losa after deduction of a percentaae specified in the policy iJJ either .ease te be-eale\l'Jated as a percentage of the insurance­ are substituted fo:r- the worda "w the amount of the loss after dectuetiQn of a sum sP,eCified in. the polief''.

Section 4 of the Bill amends

section 12 of the Act in four respeets: (

a) It does away with the Decesaity of an agent of SA ap.~ic.ant for inluranee who signs an application being · au.thorized in writing • (

b) It amends subsection (6) which declares that the ripts ami liabilities of the applicaDt and the Board shall be those. ~ out in the Aet. The amendment ~xtends theM to those. set out in the application; (

c) Tbe change made by the n.ew suhsection (8) ~ ~ maki! it unnecessary. fQr the applicant to make a casll pay­ ment with any application after the first in each year.

ii (

d) It adds a new subsection (9) which enables the Board to accept an applicatio -n so as to make a valid contract in cases where the applicant has made a mistake in the legal description of his land.

Section 5 of the Bill amends

section 15 of the Act in two respects.: (

a) The only material chAnge by the new subsection (1) of

section 15 is the insertion of the words "to the extent of ten per cent or more" in line 2. As under the Act no insur­ ance is payable where a croll is not damaged to the extent of at least ten per cent there should be no obligation on the insured to make the claim provided for in the subsection; - (

b) Paragraph (

b) introduces a new subsection (3a). Subsection (3) of

section 15 provides that where a claimant does not reside within two miles of the damaged crop be shall furnish the name of an agent who does reside within two miles. The purpose of the new subsection (3a) is to make it unnecessary for the Board or the adjuster, where the nam~ of an agent is not fu-rnished, to endeavour to secure concurrence in the ad~uster's report.

Section 6 of the Bill amends

section 16 of the Act in four respects: (

a) The only material change made in subsection (1) of

section 16 is as to the last five lines which are substituted for the following words in the subsection now in force: "thereafter shall report to the Board in writing the amount and extent of the damage and shall recommend to the Board the- amount which, in his opinion, ahould be payable in respect of the damage" ; (

b) and (

c) The amendments made by these para~aphs are made necessary by the above amendment to subsection (1); ' I (

d) introduces .a new subsection (7) authorizing the Board to defEtr the determination <>f the percentage of damage.! etc., to a later dat~ in the then current year.

Section 7 of the Bill amends

section 17 of the Act in two respects. The amendment made· "by paragraph (

a) makes the ch~ges rE(nd~red necessary by the earlier amendments clarifying the provisions as to the partial payment <>f loss clause (Section 3 (

b) of the Bill). Paragraph (

c) of

section '17 of the Act provides that no insurance shall be payable where the crop is damaged by hail after it has been cut. This provision is struck out by tHe amendment rpape by paragraph .(

b) of se~tion 7 of ~he bill.

Section 19 of tbe Act amended by

section 8 of the Bill deals with accounts to be kept by the Board and requires all sums received by the Board t'o be placed in a special trust account in a bank or a treasury branch and provides that the cost of operations for each year shall be apportioned to the several hail insurance areas and be a first charge on

iii the special trust account. Further provision is made for transferring a portion of a balance in the Trust Account before the twenty-eighth day of Februa:ry in any year to the credit of any area, to the credit of a General Reserve Account, while subsection (3) provides that a further portion of such a balance may be transferred to the credit of an area whose credits are insufficient to pay expenses and claims. The amendment is to provide that

section 19 shall no longer be operative when the Board's reserves have reached the sum of five hundred thousand dollars, it being considered that the provisions contained in it would no longer be necessary. The new

section 20a of the Act enacted by

section 9 of the Bill gives the Board authority in its discretion to distribute annual surpluses to persons insured in any year.

Section 21 of the Act provides that colle~tions made after the twenty-eighth day of February in any year on old premiums shall be placed in a General Reserve Account.

Section 10 of the Bill enacts subsection (2) providing that this

section shall be inoperative when reserves amount to five hundred thousand dollars for the same reason as for the amendment to

section 19 above. The new

section 21a is inserted by

section 11 of the Bill to make it clear that if and when sections 19 and 21 become inoperative, the provision requiring funds to be deposited in a bank or treasury branch will still be in force.

Section 12 of the Bill enacts a new

section 24 and one change is to enable the Board to employ a firm of chartered accountants instead of individuals, if it desires, to make the annual audit. It also provides for "an audit" of the books, etc., instead of a "full and complete audit." W. S. GRAY, Legislative Counsel. (This note does not form any part of the Bill but -is offered in explanation of its p1·ovisions.)

BILL No. 55 of 1947.

An Act to amend The Alberta Hail Insurance Act. (Assented to '1947.) HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta. enacts as follows : .. 1. The Alberta Hail Insurance Act, being

chapter 203 of the Revised Statutes of Alberta, 1942, is hereby amended as to

section 5,- (

a) by adding immediately after the word "real" where the same occurs in paragraph (

b) thereof the words "and personal"; (

b) by adding immediately after paragraph (

f) thereof the following new paragraph: "(/f) to appoint a Manager and to prescribe his powers and duties and the terms and con­ ditions of his employment;" ; (

c) by striking out the words "to employ su~h officers, adjusters, agents and servants as the Board deems necessary", where the same occur in paragraph (

g) thereof, and by substituting therefor the words "to employ such other officers and such adjusters, agents and servants as the Board deems necessary." 2. The said Act is further amended by striking out sections 7 and 8 thereof and by substituting therefor the fQllowing: "7. The Chairman shall preside at all meetings of the Board and shall have power to sign on behalf of the Board all orders made by the Board and to perform and do all acts and things authorized by the Board. "8.

The Board shall appoint one of the members of the Board as the Vice-Chairman of the Board and in the absence of the chairman the Vice-Chairman shall have all the powers, functions and duties which are by this Act or by the Board conferred upon the Chairman." 3. The said Act is further amended as to

section 11,­ (

a) by striking out subsection (1) thereof and by sub­ stituting therefor the following: "11.- ( 1) The Board may from time to time prescribe the kind or kinds of policies which it will issue and the terms and conditions thereof.";

2 (

b) by striking out paragraph (

d) of subsection (2) thereof and by substituting therefor the following: "(

d) contain a partial payment of loss clause to the effect that the Board shall pay only an agreed portion of any loss which may be sustained or the percentage of the loss after deduction of a percentage specified in the policy in either case to be calculated as a percentage of the insur­ ance and not exceeding the amount of the in­ surance, in which case there shall be printed or stamped upon the face of the policy in conspicuous type in red ink the words 'This policy contains a partial payment of loss clause' ;". • 4. The said Act is further amended as to

section 12,­ (

a) by striking out the words "authorized in writing for the purpose" where the same oc~ur in the second and third lines of subsection (2) thereof; (

b) by adding immediately after the word "Act", where the same occurs in subsection ( 6) thereof, the words "and in the application"; (

c) by striking out subsection (8) thereof and by substituting therefor the following: "

(8) No application shall be deemed to have been made unless and until the applicant has delivered to the Board or to a duly authorized agent of the Board the written application for insurance required by the provisions of this Act and, in the case of a first application in any year, has paid to the B<>ard or to an authorized agent of the Board a sum of not less than five dollars or such greater amount as may from time to time be prescribed by the Board either generally or in respect of any spe~ified class of application or in respect of any applications or class of application~ with respect to crops in any specified area or areas and no first application in 1, • any year shall be accepted by the Board unless and until the applicant has paid the prescribed sum to the Board or to an authorized agent of the Board."; (

d) by adding immediately after subsection (8) thereof the following new subsection: "

(9) When the legal description of the parcel or parcels of land as given in any application is in­ correct and the applicant has no interest in the said parcel or parcels of land or any of them, and such application is accepted by the Board, the contract constituted thereby shall be valid and shall be read and construed as having referen.ce to crops growing on lands owned by or in which the applicant has an interest provided always that the amount of in­ surance per acre shall not exceed the amount stated in the application and shall not exceed the amount

pUrc1iasabh~ with IJ:!espect to' land's owned by or in t which t1ie applicant has an interest with the aDiolint of pretlrlum mentioned in his application and provided fitrtner ' that nd error or om1ssion in the legal description of any parcel of land shall invalidate the contract." - t • 1 5. The said Act is further ·amended as to se~tion 1'5,­ (a) !W st~~g out. sub,section (1) the~of and by sub­ stitUting the following: , ;1~.-

(1) WQen any ..prop in res:pE~Ct to which iJl~)lri}n~e has been ef~ected undet this Act is dimagep to the extent of ten per cent or more, the I 8J1plicant !Wall witlifn three d&y~ after the date UPoit which the 1083 occurs send by registered mail in, a ~repaid cpver addressed to 'Fhe Alberta Hail 1 In~rance Bo~rd, Calpry, Alberta, a notice of claim of loss in such form as may be prescribed by the Boar.cV'; (

b) by adding immediately after subsection (3) thereof the following new subsection: '"(Sa) When the claimant fails to furnish the n~me of a person as provided in subsection (3), it shall not be incumbent upon the Board or the adjuster to endeavour to 11ecur,e the written con­ cu~rence 'of the eladmant or of anyone en his behalf to the report of the .Board's adjuster.". I, 6. The said Act is further amended as to

section 16,- X •(

a) liy striking ou1f suBsection (1) thereof an~ by Sbb- ,,. ,, sti~ut'ing there1ofi th'i! following: ' . "16.-

(1) Upon receipt of any clai~ in coil- J lformicy witH ·section 15, the Board shall cause an adjusiler to inspect the ~rops td which the claim &. ' I relates and the adjuSter snallt proceed to inspect the crops and to interview the claimant or in the absence of the claimant, his agent, if any, and thereafter 1 sJ:mll r~P\lti ~o the :Soard in writing the per~ntage > of ·~ Q.ainage and shB:.JJ.reconimend to the Board the A i>ercentage' of thelinsurance which i:rl his o~lhion .should be paid 4.n respect of the damage or m: the 'alternative, tl\at the determination of the percen~ge of the damage and the amount payable in respect the&&£ be defer"Nfd to a later-date.tl; (

b) by s'triking out the words "the amount and extent of the damage", where the same occur in subsection (3) thereof, and by substituting therefor the 1 words 'the percentage Of the damage" ; (

c) by ''striking out the words "as to the amount of the loss sustained by any claimant,, where tlie same occur in subsection (6) tliereof ; and by substituting 1 therefor the words ,"as to the percentage of the h r • daniage suffered by any. claimant" ; (

d) by adding immediately at the end thereof the following new subsection:

4 "

(7) The Board may in its discretion defer to a later date in the then current year the determination of the percentage of damage to any crop and the amount payable in respect thereof." 7. The said Act is further amended as to

section 17,- (

a) by striking out the words "The amount payable in respect of any claim shall in no case exceed the amount set out in the accepted application as the maximum amount payable, nor shall the amount . exceed an amount which represents the actual amount of the damage done by hail to the crop to which the application relates", where th~ same occur in the first six lines thereof, and by substituting therefor the words "The amount payable in respect of any claim shall, subject to the provisions of this Act and to any partial payment of loss clause and any provision for the deduction of a percentage of the loss contained in the policy, be the same per­ centage of the amount for which the crop damaged is insured as the percentage of damage by hail except only that when the percentage of damage is in excess of ninety per cent the percentage of damage shall be deemed to be one hundred per cent but in no case shall the amount payable exceed the amount set out in the accepted application"; (

b) by striking out paragraph · (

c) thereof. 8. The said Act is further amended as to

section 19 by adding immediately at the end thereof the following new subsection; "

(5) This

section shall not be operative when and so long as the assets of the Board exceed its current and deferred liabilities by the sum of at least five hundred thousand dollars." 9. The said A.ct is further amended by adding im­ mediately after

section 20 thereof the following new section: "20a. If in any fiscal year a surplus is realized, the Board may and is hereby empowered in its discretion to distribute such surplus or any portion thereof among applicants or classes of applicants for insurance during such fiscal year on such basis as the Board may from time to time determine." 10. The said Act is further amended as to

section 21 by adding immediately at the end thereof the following new subsection: "

(2) This

section shall not be operative when and so long as the assets of the Board exceed its current and de­ ferred liabilities by the sum of at least five hundred thousand dollars."

5 11. The said Act is further amended by adding im­ mediately after

section 21 thereof the following new section: "21a. Notwithstanding the provisions of subsection (5) of

section 19 and subsection (2) of

section 21 all sums received by the Board in respect of hail insurance under­ taken by the Board shall at all times be deposited in a bank or treasury branch." 12. The said Act is further amended as to

section 24 by striking out the same and by substituting therefor the following: "24.-

(1) The Board shall not later than the fifteenth day of May in each year appoint a chartered accountant or a firm of chartered accountants who or which shall have been first approved by the Minister as a suitable person or firm as auditor or auditors and the person or firm so appointed shall not at the time of appointment or so long as the appointment continues be employed by the Board in any other capacity. "

(2) The auditor shall proceed as soon as possible after the thirty-first day of March of each year to make an audit of the books, records and accounts of the Board for the year ended on the said thirty-first day of March and shall prepare and deliver to the Board and to the Minister a full and complete report of the audit." 13. This Act shall come into force on the day upon which it is assented to.

~ No. 55 FOURTH SESSION TENTH LEGISLATURE 11 GEORGE VI 1947 BILL A Bill to amend The Alberta Hail Insurance Act Received and read the First time ............. .......... . Second time: .................................... . Third time ................... . HON. MR. MANNING. EDMONTON: A. Shnltka, Klng'11 Printer 1947 Title: 1947 (10th, 4th) Bill 55,

An Act to amend The Alberta Hail Insurance Act