Third

Session, 46th General Assembly

Elizabeth II, 2010

BILL 18

AN ACT TO AMEND THE

ACCIDENT AND SICKNESS INSURANCE

ACT, THE AUTOMOBILE INSURANCE ACT, THE INSURANCE ADJUSTERS, AGENTS AND BROKERS ACT, THE INSURANCE CONTRACTS ACT AND THE LIFE

INSURANCE ACT

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

Second Reading .................................................................................................................................

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

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

KEVIN O'BRIEN

Minister

of Government Services

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Acts

contained in it to harmonize the

definitions of the types of insurance that

they regulate with the

definitions of those types of insurance found in the Insurance Companies Act . That Act is

being amended in conjunction with the amendments proposed in this Bill.

A BILL

AN ACT TO AMEND THE ACCIDENT AND SICKNESS INSURANCE ACT, THE AUTOMOBILE

INSURANCE ACT, THE INSURANCE ADJUSTERS, AGENTS AND

BROKERS ACT, THE INSURANCE CONTRACTS ACT AND

THE LIFE

INSURANCE ACT

Analysis

ACCIDENT

AND SICKNESS INSURANCE ACT

S.2 Amdt.

Definitions

S.3 Amdt.

Application of Act

S.12 Amdt.

Statutory conditions

S.14 R&S

Notice of statutory conditions

S.42 Amdt.

Policy from a machine

AUTOMOBILE

INSURANCE ACT

S.2 Amdt.

Definitions

S.34 Amdt.

Medical expense coverage

S.35 Amdt.

Accident benefits

INSURANCE

ADJUSTERS, AGENTS AND BROKERS ACT

S.2 Amdt.

Definitions

S.5 Amdt.

Qualifications and requirements

S.37 Amdt.

Collectors of insurance premiums

S.44 Amdt.

Regulations

INSURANCE

CONTRACTS ACT

S.2 Amdt.

Definitions

S.8 Amdt.

Information to be contained in policy

S.18 R&S

Violations of criminal and other law

LIFE INSURANCE ACT

S.2 Amdt.

Definitions

S.3.1 Added

Undertaking to provide an annuity

S.15 Amdt.

Incontestability

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

ACCIDENT AND

SICKNESS INSURANCE ACT

RSNL1990 cA-2

as amended

(1) Paragraph 2(

a) of the Accident and Sickness Insurance Act is repealed

and the following substituted:

(a) "accident and sickness insurance"

means accident and sickness insurance as defined in the Insurance Companies Act ;

(2) Paragraph 2(

b) of the Act is repealed.

(3) Paragraph 2(

k) of the Act is repealed.

(4) Paragraph 2(

m) of the Act is repealed and the

following substituted:

(m) "fraternal society" means a society,

order or association incorporated for the purpose of making with its members

only and not for profit contracts of life or accident and sickness insurance

under which benefits may be paid only to its members or their beneficiaries in

accordance with its constitution and laws and this Act;

(5) Paragraph 2(

r) of the Act is repealed and the

following substituted:

(r) " insurance "

means accident and sickness insurance;

(6) Paragraph 2(

v) of the Act is repealed and the

following substituted:

(v) " life

insurance" means life insurance as defined in the Insurance Companies Act ;

(7) Paragraph 2(

z) of the Act is repealed.

(1) Paragraph 3(3 )(

a) of the Act is repealed and the following substituted:

(

a) insurance undertaken

by an insurer as part of a contract of life insurance where the insurer

undertakes to pay an additional sum of insurance money in the event of the

death by accident of the person whose life is insured;

(2) Paragraph 3(3 )(

c) of

the Act is repealed and the following substituted:

(

c) insurance undertaken by an insurer as part of

a contract of life insurance where the insurer undertakes to pay insurance

money or to provide other benefits in the event that the person whose life is

insured becomes disabled as a result of bodily injury or disease; or

Section 12 of the Act is amended by deleting

Statutory Condition 4 and substituting the following:

Relation of Earnings

to Insurance

(1) Where the benefits for loss of time

payable under this contract, either alone or together with benefits for loss of

time under another contract, exceed the money value of the time of the person

insured, the insurer is liable only for that proportion of the benefits for

loss of time stated in this policy that the money value of the time of the

person insured bears to the aggregate of the benefits for loss of time payable

under those contracts and the excess premium paid by the insured shall be

returned to him or her by the insurer.

(2) The other contract referred to in statutory

condition 4(1) may include,

(

a) a contract of group

accident and sickness insurance; or

(

b) a life insurance

contract where the insurer undertakes to pay insurance money or to provide

other benefits in the event that the person whose life is insured becomes

disabled as a result of bodily injury or disease.

Section 14 of the Act is repealed and the

following substituted:

Notice of

statutory conditions

14. In

a policy of accident and sickness insurance of a non-renewable type issued for

a term of 6 months or less or in relation to a ticket of travel, the statutory

conditions need not be printed on or attached to the policy where the policy

contains the following notice printed in conspicuous type:

"Notwithstanding another provision

contained in this policy, this contract is subject to the statutory conditions

in the Accident and Sickness Insurance

Act, respecting contracts of accident and sickness insurance."

5. (1) Subsection 42(1) of the Act is amended

by renumbering paragraph (

a) as (a.1) and by adding immediately before paragraph

(a.1) the following:

(a) "insurance" means insurance

undertaken by an insurer as part of a contract of accident and sickness

insurance which insures against loss resulting from bodily injury to, or the

death of, a person caused by an accident or under which the insurer undertakes

to pay a certain sum or sums of insurance money in the event of bodily injury

to, or the death of, a person caused by an accident;

(2) Paragraph 42(1 )( a.1),

subsections (2), (9) and (10), paragraphs (11)(

a) and (

c) and subsection (13)

of the Act are amended by striking out the word "accident".

AUTOMOBILE INSURANCE ACT

RSNL1990 cA-22

as amended

6. Paragraph 2(1 )(

b) of

the Automobile Insurance Act is repealed

and the following substituted:

(b) " automobile

insurance" means automobile insurance as defined in the Insurance Companies Act ;

7. Paragraph 34(1 )(

a) of

the Act is repealed and the following substituted:

(

a) of or insured for a person who sustains bodily

injury or death while driving or being carried in or upon or entering or getting

on to or alighting from or, if not the occupant of another automobile, as a

result of being struck by an automobile owned by the insured named in the

contract in respect of which insurance against liability arising out of bodily

injury to, or the death of, a person caused by an automobile or the use or

operation of an automobile is provided under the contract; and

8. Paragraph 35(1 )(

a) of

the Act is repealed and the following substituted:

(

a) a person who sustains bodily injury or death

while driving or being carried in or upon or entering or getting on to or

alighting from or, if not the occupant of another automobile, as a result of

being struck by an automobile owned by the insured named in the contract in

respect of which insurance against liability arising out of bodily injury to,

or the death of, a person caused by an automobile or the use or operation of an

automobile is provided under the contract; and

INSURANCE ADJUSTERS, AGENTS AND BROKERS ACT

RSNL1990 cI-9

as amended

(1) Paragraph 2(

a) of the Insurance Adjusters, Agents and Brokers Act

is repealed and the following substituted:

(a) "accident and sickness insurance"

means accident and sickness insurance as defined in the Insurance Companies Act ;

(2) Paragraph 2(

b) of the Act is repealed.

(3) Subparagraph 2(c )(

i) of the Act is amended by striking out the word "guarantee" and

substituting the word "surety".

(4) Paragraphs 2(l), (

m) and (

n) of the Act are

repealed.

(5) Paragraph 2(

t) of the Act is repealed and the

following substituted:

(t) " life

insurance" means life insurance as defined in the Insurance Companies Act ;

(6) Section 2 of the Act is amended by deleting

the period at the end of paragraph (cc) and substituting a semicolon and the

word "and" and by adding immediately after paragraph (cc) the following:

( dd ) "surety

insurance" means surety insurance as defined in the Insurance Companies Act .

10. Subsection 5(4) of the Act is repealed and the

following substituted:

(4) Every licensee shall be covered by a policy of

insurance against liability in respect of an occurrence with regard to errors

and omissions, and other insurance, in the amounts that may be prescribed by

the regulations.

11. Subsection 37(1) of the Act is repealed and the

following substituted:

Collectors of

insurance premiums

(1) A

collector of life insurance premiums and premiums for insurance undertaken by

an insurer as part of a contract of accident and sickness insurance which

insures against loss resulting from bodily injury to, or the death of, a person

caused by an accident or under which the insurer undertakes to pay a certain

sum or sums of insurance money in the event of bodily injury to, or the death

of, a person caused by an accident, who does not solicit applications for or

the renewal or continuance of insurance contracts or act or aid in negotiating

those contracts or the renewal of those contacts, may carry on a business

without a licence.

12. Paragraph 44(

h) of the Act is repealed and the

following substituted:

(

h) requiring adjusters,

agents, brokers or representatives to furnish a surety bond or other security

on the form and terms and in the amount that the superintendent prescribes and

requiring a certificate of insurance against liability in respect of an

occurrence with regard to errors and omissions, in the amount the

superintendent prescribes;

INSURANCE CONTRACTS ACT

RSNL1990 cI-12

as amended

(1) Paragraph 2(

a) of the Insurance Contracts Act is repealed and

the following substituted:

(a) "accident and sickness insurance"

means accident and sickness insurance as defined in the Insurance Companies Act ;

(2) Paragraph 2(

d) of the Act is repealed and the

following substituted:

(d) " automobile

insurance" means automobile insurance as defined in the Insurance Companies Act ;

(3) Paragraphs 2(

h) and (

i) of the Act are

repealed.

(4) Section 2 of the Act is amended by adding

immediately before paragraph (

j) the following:

(i.1) "fire insurance" means fire

insurance as defined in the Insurance

Companies Act ;

(5) Paragraph 2(

k) of the Act is repealed.

(6) Paragraph 2(

p) of the Act is repealed and the

following substituted:

(p) " life

insurance" means life insurance as defined in the Insurance Companies Act ;

(7) Paragraph 2(

w) of the Act is repealed.

(8) Section 2 of the Act is amended by deleting

the period at the end of paragraph (

x) and substituting a semicolon and the

word "and" and by adding immediately after paragraph (

x) the following:

(y) " surety

insurance" means surety insurance as defined in the Insurance Companies Act .

14. Subsection 8(2) of the Act is repealed and the

following substituted:

(2) This

section does not apply to a contract of

surety insurance.

Section 18 of the Act is repealed and the

following substituted:

Violations of

criminal and other law

18. Unless

the contract otherwise provides, a violation of a criminal or other law in

force in the province or elsewhere shall not automatically render unenforceable

a claim for indemnity under a contract except where the violation is committed

by the insured or by another person with consent of the insured with intent to

bring about loss or damage but in the case of a contract of life insurance this

section applies only where the insurer undertakes to pay insurance money or to

provide other benefits in the event that the person whose life is insured

becomes disabled as a result of bodily injury or disease.

LIFE INSURANCE ACT

RSNL1990 cL-14

as amended

(1) Paragraph 2(

a) of the Life Insurance Act is repealed.

(2) Paragraph 2(

i) of the Act is repealed.

(3) Paragraph 2(

k) of the Act is repealed and the

following substituted:

(k) "fraternal society" means a society,

order or association incorporated for the purpose of making with its members

only and not for profit contracts of life or accident and sickness insurance in

accordance with its constitution, by-laws and rules and this Act;

(4) Paragraph 2(

u) of the Act is repealed and the

following substituted:

(u) " life

insurance" means life insurance as defined in the Insurance Companies Act ;

20. The Act is amended by adding immediately after

section 3 the following:

Undertaking to

provide an annuity

3.1 For

the purpose of this Act, an undertaking entered into by an insurer to provide

an annuity, or what would be an annuity except that the periodic payments may

be unequal in amount, is considered to be and always to have been insurance,

whether the annuity is for

(

a) a term certain; or

(

b) a term dependent

solely or partly on the happening of an event not related to human life.

21. Subsection 15(3) of the Act is repealed and the

following substituted:

(3) This

section does not apply to a misstatement

of age or to insurance undertaken by an insurer as part of a contract of life

insurance where the insurer undertakes to pay insurance money or to provide

other benefits in the event that the person whose life is insured becomes

disabled as a result of bodily injury or disease.

Earl G. Tucker, Queen's Printer