Alberta Regulation 118/2001

Fair Trading Act

INTERNET SALES CONTRACT AMENDMENT REGULATION

Filed: July 4, 2001

Made by the Minister of Government Services (M.O. C:004/01) on June 27,

2001 pursuant to

section 42 of the Fair Trading Act.

1 The Internet Sales Contract Regulation (AR 81/2001) is amended by this

Regulation.

Section 6(1)(

a) is amended by striking out "5" and substituting "7".

------------------------------

Alberta Regulation 119/2001

Regional Health Authorities Act

ELECTION AND APPOINTMENT OF REGIONAL HEALTH

AUTHORITY MEMBERS AMENDMENT REGULATION

Filed: July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 266/2001) on July 11, 2001

pursuant to

section 21 of the Regional Health Authorities Act.

1 The Election and Appointment of Regional Health Authority Members

Regulation (AR 57/2001) is amended by this Regulation.

Section 1 is repealed and the following is substituted:

Interpretation

1(1) In this Regulation,

(a) "appointed member" means an appointed member

referred to in

section 2(b)(iii);

(b) "candidate" means, subject to subsection (2), a

person who has been nominated in an election under this Regulation and a

declared candidate;

(c) "declared candidate" means a person who has

declared his or her intention to be a candidate in an election under this

Regulation but has not yet been nominated;

(d) "contribution" means any money or real or personal

property that is provided to or for the benefit of a candidate, without

compensation from that candidate or a person on the candidate's behalf;

(e) "elected member" means a person who is or is to be

elected as a member of a regional health authority under this Regulation;

(f) "election campaign period" means the period that

commences on the date that is 2 months before election day and ends on the

date that is 2 months after election day;

(g) "employee organization" means any organization,

other than a trade union, that bargains collectively for any employees in

Alberta, and for the purposes of this

section all branches in Alberta of an

employee organization are deemed to be one organization;

(h) "Minister" means the Minister of Health and

Wellness;

(i) "trade union" means a trade union as defined in the

Labour Relations Code, the Public Service Employee Relations Act or the

Canada Labour Code that holds bargaining rights for employees in Alberta,

and for the purposes of this

section all locals in Alberta of a trade union

are deemed to be one trade union.

(2) A candidate does not cease to be a candidate for the purposes of

sections 11.1 to 11.8 and

section 14.1 of this Regulation or

section 118 as

enacted by

section 7(21) of this Regulation by virtue only of not having

run in the election.

3 The following is added after

section 5:

By-laws and resolutions apply

5.1 If an elected authority, other than a regional health

authority, that is conducting an election under this Regulation has, in

respect of a concurrent election under the Local Authorities Election Act,

passed

(

a) a by-law in respect of voting hours under

section

46(1.1) of that Act,

(

b) a resolution in respect of advance votes under

section 73 of that Act,

(

c) a resolution in respect of voting by incapacitated

electors under

section 79 of that Act,

(

d) a by-law in respect of institutional voting under

section 80 of that Act,

(

e) a by-law in respect of the taking of votes by

voting machines, vote recorders or automated voting systems under

section

84 of that Act, or

(

f) a by-law under

section 161(2) of that Act adopting

a system for conducting an election,

that resolution or by-law applies in respect of the election under

this Regulation.

Section 7(6) is repealed and the following is substituted:

(6) Section 1(

t) does not apply and the following applies instead:

(t) "secretary" means the person who is designated by a

party to an agreement under

section 2 or 2.01 of this Act or under

section

6 of the Election and Appointment of Regional Health Authority Members

Regulation (AR 57/2001) as secretary for the purposes of the provisions of

this Act or that Regulation that are specified in the agreement;

Section 7(12) is amended

(

a) as to

section 21(2) by striking out "and" at the end of clause

(

a) and by adding the following after clause (a):

(a.1) is resident in the electoral district for which the

person wishes to be nominated, and

(

b) as to

section 21(3) in the words preceding clause (

a) by adding

"or (13)" after "subsection (5)";

(

c) as to

section 21(3)(

c) by adding ", or is an employee of such

an independent health service provider" after "services";

(

d) as to

section 21(3)(f)(

i) and (ii) by striking out "clause (f)"

and substituting "clause (e)";

(

e) as to

section 21(14) by striking out "ceases to be" and

substituting "is disqualified from being".

6 The following is added after

section 7(16):

(16.1) Section 33 does not apply and the following applies instead:

Death of candidate

33(1) If a candidate dies after being nominated, the returning

officer shall cause a notice of the death in a form acceptable to the

returning officer to be posted in a conspicuous location in all of the

relevant voting stations.

(2) A ballot cast for a deceased candidate must be treated as

a spoiled ballot.

Section 7(21) is repealed and the following is substituted:

(2) Section 118 does not apply and the following applies instead:

Campaign contributions and expenses

118(1) The Minister of Health and Wellness may by order

directed to a nominated candidate require the nominated candidate to submit

to the Minister audited statements in a form satisfactory to the Minister

that disclose the campaign contributions received and the candidate's

campaign expenses in respect of the election.

(2) The Minister may, in an order under subsection

(2) define "campaign contributions" and "campaign expenses" for the purposes of

the order.

(3) For the purposes of disclosing campaign

contributions, the financial statements referred to in subsection (1)

(

a) must show as an aggregate

amount the total contributions of all contributors who contributed $375 or

less in the aggregate during the election campaign period, and

(

b) must show as separate

amounts, together with the name and address of the contributor, the total

contributions of each contributor who contributed more than $375 in the

aggregate during the election campaign period.

(4) A nominated candidate who receives an order under

this

section shall comply with it in accordance with its terms.

Section 9 is amended

(

a) in subsection (1) by striking out "section 21(2) to (4)" and

substituting "section 21(2)(

a) and (b), (3) and (4)";

(

b) in subsection (3) by striking out "ceases to be" and

substituting "is disqualified from being".

9 The following is added after

section 11:

Election Finances

Registration of candidates

11.1(1) The returning officer for a health region shall maintain a

register of nominated candidates for each election under this Regulation.

(2) The returning officer shall register in the register of

nominated candidates the name of any person who files with the returning

officer a notice that the person has been nominated as a candidate in the

election for the electoral district named in the notice.

(3) A notice referred to in subsection (2) must contain

(

a) the full name and address of the nominated

candidate, and

(

b) the address of the place or places where records of

the nominated candidate are maintained and of the place to which

communications may be addressed.

(4) If there is any change in the information required to be

provided under this section, the nominated candidate shall notify the

returning officer of the change within 30 days and, on receipt of the

notification, the returning officer shall vary the register of nominated

candidates accordingly.

Registration of persons to accept contributions

11.2 A nominated candidate in an election under this Regulation

shall register with the returning officer the names and addresses of all

persons who may accept campaign contributions for the nominated candidate's

campaign.

Record of contributions

11.3(1) A nominated candidate shall ensure that a record of

contributions is kept that shows, with respect to each contribution

received during the election campaign period,

(

a) the date the contribution was received and the

amount of it, and

(

b) the name and address of the person who made the

contribution.

(2) A nominated candidate shall keep a record of all amounts

provided out of the nominated candidate's own funds during an election

campaign period for the purposes of the candidate's campaign.

Prohibited contributions

11.4(1) None of the following shall make a contribution to or for

the benefit of a candidate:

(

a) a person who is normally resident outside of

Alberta;

(

b) an employee organization other than an employee

organization referred to in

section 1(1)(g);

(

c) a trade union other than a trade union referred to

section 1(1)(i);

(

d) a Provincial corporation within the meaning of the

Financial Administration Act;

(

e) a corporation that is not registered to carry on

business in Alberta;

(

f) a corporation that is designated under

section

1(1)(l.1)(iii) of the Election Finances and Contributions Disclosure Act as

a prohibited corporation for the purposes of that Act.

(2) No person, corporation, trade union or employee organization

shall make a contribution to a candidate or a person on a candidate's

behalf at any time other than during an election campaign period.

(3) No person other than

(

a) a declared candidate or a candidate who is

registered under

section 11.1 or

(

b) a person who is registered under

section 11.2

may accept campaign contributions.

(4) No candidate and no person on a candidate's behalf shall accept

a contribution at any time other than during an election campaign period.

(5) In an election campaign period, no person, corporation, trade

union or employee organization shall make contributions to a candidate or

a person on a candidate's behalf in an amount or value in excess of

(a) $1500 for each candidate, or

(b) $7500 in the aggregate, in the case of

contributions to more than one candidate.

(6) No candidate and no person on the candidate's behalf shall

accept contributions

(

a) from a person, employee organization, trade union,

provincial corporation or corporation referred to in subsection (1), or

(

b) in excess of the limit imposed under subsection

(5)(a).

(7) The value of a contribution other than money provided to a

candidate or to a person on the candidate's behalf is the market value of

the contribution at that time.

(8) If any real or personal property is provided to a candidate or

to a person on the candidate's behalf for a price that is less than the

market value at that time, the amount by which the value exceeds the price

is a contribution for the purposes of this Regulation.

(9) Where a candidate borrows money for the purpose of paying

election expenses, any payment on the loan by a person other than the

candidate shall be considered to be a contribution to the candidate for the

purposes of this Regulation unless the candidate fully repays the person

who made the payment on the loan not later than 6 months after election

day.

(10) Where a person co-signs or guarantees a loan referred to in

subsection (9) and makes a payment on the loan, the amount of the payment

shall be considered to be a contribution to the candidate for the purposes

of this Regulation unless the candidate repays the payment within one year.

Disposition of contributions

11.5(1) If a nominated candidate learns that a contribution has been

made in contravention of this Regulation, the nominated candidate shall,

within 45 days of learning of it,

(

a) advise the appropriate returning officer and

secretary of the fact and the circumstances, and

(

b) return the contribution to the person who made it.

(2) Contributions that are not returned as required by subsection

(1)(

b) become the property of the regional health authority.

(3) If a candidate or a person on the candidate's behalf receives an

anonymous contribution, the candidate shall ensure that the contribution is

paid to the regional health authority.

Surplus of contributions over expenses

11.6(1) Any surplus of contributions over expenses held by a

nominated candidate at the end of an election campaign period must be held

in trust to be expended for the nominated candidate's candidacy at the next

election.

(2) Subsection (1) applies whether or not the nominated candidate is

elected or runs in the election.

(3) A nominated candidate who is not nominated at the next general

election or by-election, or who files with the secretary of the regional

health authority for which he or she was a nominated candidate written

notice indicating that he or she does not intend to be a candidate at the

next general election or by-election must, within 7 days after nomination

day for the next general election or by-election or the day the notice is

filed, as the case may be, transfer the surplus to the regional health

authority.

Statement re: election finances

11.61(1) A nominated candidate shall, not later than 4 months after

election day submit to the secretary a statement respecting the nominated

candidate's election finances that contains the information required by and

is in a form acceptable to the Minister.

(2) The secretary shall keep a statement submitted under subsection

(1) for a period of 4 years after election day.

(3) A statement submitted under subsection (1) is a public document

and the secretary

(

a) shall make the statement available for inspection

and copying by any person during normal office hours, and

(

b) may publish or otherwise make available the

statement or information from it in the form and manner the secretary

considers appropriate.

(4) The secretary may charge reasonable fees for services rendered

and things done under subsection (3).

(5) The secretary shall forthwith advise the Minister in writing if

a nominated candidate fails to comply with subsection (1).

Record keeping

11.7 A candidate shall retain the audited financial statements

referred to in

section 118(1) as enacted by

section 7(21) of this

Regulation, the statement referred to in

section 11.61 and all other

financial documents and records that are relevant to the candidate's

election finances in an election until

(

a) in the case of a successful candidate, the expiry

of the candidate's term following the election, or

(

b) in the case of an unsuccessful candidate or a

candidate who does not run in the election, the expiry of what would have

been the candidate's term following the election, had the candidate run in

the election and been successful.

Failure to submit financial statements

11.8(1) Where a nominated candidate fails to submit audited

financial statements as required by

section 118 as enacted by

section 7(21)

of this Regulation, the Minister shall, within 15 days of the failure, send

a notice of default in a form determined by the Minister to the nominated

candidate and the secretary.

(2) A nominated candidate who receives a notice of default may, not

later than 60 days after receipt of the notice, apply to the Court of

Queen's Bench for relief under subsection (3).

(3) On hearing the application the Court may

(

a) dispense with compliance with

section 118 as

enacted by

section 7(21) of this Regulation, or any provision of it, if the

Court considers that the non-compliance is due to circumstances beyond the

control of the nominated candidate and that it is not reasonably possible

to comply with the

section or provision,

(

b) extend the time for compliance with

section 118 as

enacted by

section 7(21) of this Regulation, or any provision of it, if the

Court finds mitigating reasons for non-compliance with the

section or

provision,

(

c) make any order that it considers appropriate to

secure compliance with so much of

section 118 as enacted by

section 7(21)

of this Regulation as the Court considers reasonable in the circumstances,

(

d) refuse the application.

(4) An application to the Court under this

section must be made by

originating notice naming the returning officer as respondent.

(5) The decision of the Court is final.

(6) Where a nominated candidate to whom subsection (1) applies is

elected as a member of a regional health authority, the candidate is

disqualified from being a member on the occurrence of any of the following:

(

a) if the candidate fails to apply for relief in

accordance with subsection (2);

(

b) if the Court refuses the application under

subsection (3)(d);

(

c) if the candidate fails to comply with an order made

under subsection (3)(a), (

b) or (c).

(7) A nominated candidate who is disqualified from being a member by

virtue of the operation of subsection (6) is not eligible to be a member

until the next general election under this Regulation.

10 The following is added before

section 12:

Oath of office

11.9 No member may carry out any power, duty or function as a member

unless the member has first taken an oath of office prescribed by the Oaths

of Office Act.

Section 12 is repealed and the following is substituted:

Disqualifica-tion

12 A member is disqualified from being a member if

(

a) the member ceases to be a Canadian citizen;

(

b) the member acquires the status of a person referred

to in

section 21(3) or (4) as enacted by

section 7(12) of this Regulation;

(

c) in the case of an elected member or a member who is

appointed under

section 31(1)(

b) as enacted by

section 7(16) of this

Regulation or under

section 14 to fill a vacancy among elected members, the

member ceases to be resident in the electoral district for which the member

was elected or appointed;

(

d) in the case of an appointed member, the member

ceases to be resident in the health region.

Resignation on disqualification

12.1(1) An elected member who is disqualified by reason of the

operation of

(a)

section 21(14) as enacted by

section 7(12) of this

Regulation, or

(

b) section 11.8(6) or 12

must resign immediately.

(2) If the elected member does not resign immediately,

(

a) the regional health authority may apply by

originating notice to a judge of the Court of Queen's Bench for

(

i) an order determining whether the person

is disqualified from being a member, or

(ii) an order declaring the person to be

disqualified from being a member,

(

b) an elector of the health region in respect of which

the person was elected who

(

i) files an affidavit showing reasonable

grounds for believing that a person is disqualified from being a member,

and

(ii) pays into court the sum of $500 as

security for costs

may apply by originating notice to a judge of the

Court of Queen's Bench for an order declaring the person to be disqualified

from being a member.

(3) An application under this

section may only be made within 3

years of the date the disqualification is alleged to have occurred.

(4) An application under this

section may be started or continued

whether or not an election has been held between the time the

disqualification is alleged to have occurred and the time the application

is or was commenced and whether or not the person in respect of whom the

application is being brought

(

a) resigns before or after the election,

(

b) was re-elected in the election,

(

c) was not re-elected or did not run in the election,

(

d) has completed a term of office.

Decision on disqualification application

12.2 After hearing an application under

section 12.1 and any

evidence, either oral or by affidavit, that is required, the judge may

(

a) declare the person to be disqualified and a

position on the regional health authority to be vacant,

(

b) declare the person able to remain a member, or

(

c) dismiss the application.

Appeal

12.3(1) The decision of a judge under

section 12.2 may be appealed

to the Court of Appeal.

(2) A person who is declared disqualified under

section 12.2 and

appeals that declaration remains disqualified until the appeal is finally

determined.

(3) If, on the final determination of the appeal, the

disqualification is set aside, the Court must reinstate the person as a

member for any unexpired portion of the term of office for which the person

was elected and require any person who has been elected or appointed to

fill the balance of that term to vacate the office.

(4) If on the final disposition of the appeal the disqualification

is set aside but the term of office for which the person was elected has

expired, the person must not be reinstated but is eligible to be elected or

appointed as a member if otherwise qualified.

Reimburse-ment of costs and expenses

12.4 The regional health authority may reimburse the person in

respect of whom an application under

section 12.1 was made for any costs

and expenses that the regional health authority considers reasonable, other

than costs that have already been awarded to the person by the judge, if

(

a) the application is dismissed, or

(

b) an order is issued declaring the person able to

remain a member.

Section 13 is amended by renumbering it as

section 13(1) and by adding

the following after subsection (1):

(2) The prohibition in subsection (1) applies regardless of whether

the nominated person runs in the election.

Section 14(2) is repealed and the following is substituted:

(2) A person is not eligible to be appointed under subsection

(1) unless on the date of the appointment the person meets the requirements of

section 21(2) to (4) as enacted by

section 7(12) of this Regulation or

section 9(1), as the case may be.

14 The following is added after

section 14:

Inquiry by Minister

14.1(1) For the purpose of determining and ensuring compliance with

this Regulation, the Minister or a person designated by the Minister for

that purpose may inquire into the business and affairs of a nominated

candidate or member of a regional health authority relative to all

financial matters of the nominated candidate or member in respect of an

election.

(2) For the purposes of an inquiry under this

section the Minister

or designated person has the powers of a commissioner under the Public

Inquiries Act.

Offences

14.2(1) A person, corporation, trade union or employee organization

who makes a contribution in contravention of

section 11.4(1) is guilty of

an offence and liable to a fine of not more than

(a) $1000 in the case of an individual, or

(b) $10 000 in the case of a corporation, trade union

or employee organization.

(2) A person, corporation, trade union or employee organization who

contravenes

section 11.4(2) or (5) is guilty of an offence and liable to a

fine of not more than

(a) $1000 in the case of an individual, or

(b) $10 000 in the case of a corporation, trade union

or employee organization.

(3) A person who contravenes

section 11.4(3), (4) or (6), 11.3 or

11.61 is guilty of an offence and liable to a fine of not more than $1000.

(4) A person who

(

a) makes a false statement to a candidate or a person

authorized to accept contributions in respect of the nature, circumstances

or amount of a contribution, or

(

b) makes a false statement in financial statements or

other statements, documents or records referred to in

section 11.7

is guilty of an offence and liable to a fine of not more than $1000.

(5) A person who obstructs or interferes with any person lawfully

carrying out any duty or exercising any power pursuant to this Regulation

is guilty of an offence and liable to a fine of not more than $1000.

(6) A person who contravenes

section 118(4) as enacted by

section

7(21) of this Regulation is guilty of an offence and liable to a fine of

not more than $1000.

Minister's consent to prosecution

14.3 No prosecution for an offence under this Regulation may be

commenced or maintained without the consent of the Minister.

Order for payment

14.4(1) Where a person, corporation, trade union or employee

organization is convicted of an offence under

section 11.4(5), the Minister

may by notice in writing direct the convicted person, corporation, trade

union or employee organization to pay an amount equal to the amount by

which the contribution limit in

section 11.4(5) was exceeded to the

relevant regional health authority within the time specified in the notice.

(2) If the person to whom a notice is directed under subsection

(1) fails to pay the amount as required, the regional health authority may

recover the amount in an action in debt.

Section 15 is repealed.

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Alberta Regulation 120/2001

Insurance Act

MISCELLANEOUS PROVISIONS REGULATION

Filed: July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 267/2001) on July 11, 2001

pursuant to sections 15, 16 and 826 of the Insurance Act, SA 1999 cI-5.1.

Table of Contents

Definitions 1

Prescribed accident benefits 2

Employee benefit plan exemptions 3

Household appliance insurance exemption 4

Mennonite Aid Union exemption 5

Definition of financial institution 6

Financial responsibility cards 7

Transitional 8

Repeal 9

Expiry 10

Coming into force 11

Definitions

1 For the purposes of the Act,

(a) "base capital" means

(

i) shares that

(

A) are non-cumulative, non-retractable,

non-redeemable and, if convertible, are only convertible into common

shares, and

(

B) have been issued and paid for,

(ii) contributed surplus, and

(iii) retained earnings;

(b) "total assets" means total assets calculated by adding the book

value of all assets on an unconsolidated basis, and for that purpose book

value must be calculated in accordance with the principles, standards and

practices in effect under

section 219 of the Act.

Prescribed accident benefits

2 The prescribed accident benefits for the purposes of

section 33 of the

Act are the benefits provided for in

section 629 of the Act or in

regulations made under

section 629(9)(c).

Employee benefit plan exemptions

3(1) The following are the medical care and sickness and accident benefits

that are prescribed for the purposes of

section 15 of the Act:

(

a) any medical care or goods or services that are not provided

under the Alberta Health Care Insurance Act or are provided after the

limits for that care or those goods or services under the Alberta Health

Care Insurance Act have been reached;

(

b) income replacement payments that are payable in respect of

disability resulting from sickness or accident and are payable for a period

of not more than 2 years or, in the case of the Alberta School Employees

Benefit Plan, for a longer period approved by the Minister.

(2) The following entities are prescribed for the purposes of

section

15(3)(

b) of the Act:

(

a) Asbestos Workers' Insurance Benefit Trust Fund of Alberta;

(

b) Bricklayers and Allied Craftsmen Insurance Benefit Trust Fund

of Alberta;

(

c) CHQR Sick Benefit Society;

(

d) Ironworkers Health and Welfare Trust Fund of Canada;

(

e) Labourers' Health and Welfare Trust Fund of Western Canada;

(

f) Alberta School Employees Benefit Plan;

(

g) International Union of Operating Engineers Local 955 Trust

Fund.

(3) It is a condition of maintaining an exemption under subsection

(2) that the organization obtain the Minister's approval before the

organization increases the benefit level or the scope of benefits provided

under the plan it operates.

(4) Where an organization increases the benefit or the scope of benefits

provided under the plan it operates without obtaining the Minister's

approval as required under subsection (3), the Minister may reinstate the

exemption if

(

a) the organization applies for the approval as directed by the

Minister,

(

b) the Minister gives the approval, and

(

c) the Minister is satisfied that the failure to apply for

approval as required under subsection (3) was due to oversight or some

other acceptable reason in the Minister's opinion.

Household appliance insurance exemption

4(1) In this section,

(a) "household appliance" includes home entertainment equipment and

personal computers, but does not include

(

i) furnaces,

(ii) air conditioners,

(iii) hot water tanks, or

(iv) swimming pool heating units;

(b) "household appliance insurance" means a contract of insurance

that indemnifies a person who has an interest in a household appliance

against the appliance's malfunction, failure or breakdown.

(2) The Act does not apply to household appliance insurance if the total

consideration payable for the insurance is $200 or less.

Mennonite Aid Union exemption

5 The Act does not apply to the mutual aid plan operated by the Mennonite

Aid Union if

(

a) the constitution and by-laws of the Mennonite Aid Union and any

amendments to the constitution or by-laws are filed with the Superintendent

of Insurance within a time period acceptable to the Superintendent,

(

b) the constitution and by-laws of the Mennonite Aid Union remain

in force and the plan is operated in accordance with the constitution and

by-laws, and

(

c) each member who is a resident of Alberta is notified within 15

days of the member's making, varying or renewing a property valuation that

(

i) the plan is exempt from the Act, and

(ii) the plan is not covered by the Property and

Casualty Insurance Compensation Association.

Definition of financial institution

6(1) In this section,

(a) "foreign financial institution" means an entity that is

incorporated or formed other than by or under

an Act of the Parliament of

Canada or of the legislature of a province and that

(

i) is engaged in the trust, loan or insurance

business, the business of a cooperative credit society or the business of

dealing in securities, or

(ii) is otherwise generally engaged primarily in the

business of providing financial services;

(b) "securities dealer" means a dealer within the meaning of the

Securities Act.

(2) For the purposes of the following provisions of the Act "financial

institution" includes a securities dealer and a foreign financial

institution:

section 110(3)(b);

section 111(a), (c);

section 374(1)(b);

section 439(1)(c);

section 440(g), (j);

section 441(2).

(3) For the purposes of the following provisions of the Act "financial

institution" includes a securities dealer:

section 309(3)(a), (c);

section 355(2).

(4) For the purposes of

section 415(a)(i)(F)(II) and (III) and (ii)(A)(

I) and (III) of the Act, "financial institution" includes a foreign financial

institution.

Financial responsibility cards

7(1) Where a licensed insurer issues a financial responsibility card under

section 822 of the Act, the insurer

(

a) shall provide a separate card in respect of each vehicle

insured under the motor vehicle liability policy,

(

b) shall, on the request of the insured, provide a copy of the

card for each person who commonly drives a vehicle insured under the motor

vehicle liability policy, and

(

c) shall, on the request of the insured, provide a copy of any

card issued within the previous two years.

(2) For the purposes of

section 822(3) of the Act, when an owner's policy

is cancelled, the insurer shall inform the former insured that

(

a) it is an offence to use or be in possession of a financial

responsibility card or a copy of a financial responsibility card relating

to a motor vehicle liability policy that has lapsed or been cancelled,

(

b) it is an offence to operate a motor vehicle that is not an

insured motor vehicle, and

(

c) the former insured is required by law to destroy the financial

responsibility card and every copy of the card issued to him.

(3) For the purposes of

section 822(3) of the Act, when an insurer gives a

notice of renewal in circumstances under which the renewal is conditional

on the payment of a further premium failing which the policy will lapse, be

cancelled or not be renewed, the insurer shall inform the insured in an

attachment to the notice that

(

a) it is an offence to use or be in possession of a financial

responsibility card or a copy of a financial responsibility card relating

to a motor vehicle liability policy that has lapsed or been cancelled,

(

b) it is an offence to operate a motor vehicle that is not an

insured motor vehicle, and

(

c) the insured is required by law to destroy the financial

responsibility card and every copy of the card issued to the insured when

the insured ceases to maintain the financial responsibility in respect of

which the card was issued.

(4) A power of attorney referred to in

section 824(1)(

b) of the Act must

authorize the Superintendent to accept service of any notice or process for

the unlicensed insurer in any action or proceeding against it arising out

of a motor vehicle accident in Alberta.

(5) In an undertaking referred to in

section 824(1)(

b) of the Act, the

unlicensed insurer shall undertake

(

a) to appear in any action or proceeding against it or its insured

arising out of a motor vehicle accident in Alberta, and of which it has

knowledge,

(

b) on receipt from the Superintendent of any notice or process

referred to in subsection (4), to forthwith cause the notice or process to

be served on its insured,

(

c) not to set up to any claim, action or proceeding under a motor

vehicle liability policy issued by it any defence that it would be

prevented from setting up if the policy had been issued in Alberta in

accordance with the law of Alberta relating to motor vehicle liability

policies, including any defence as to the limit or limits of liability and

prescribed accident benefits, and to satisfy up to the limits of liability

stated in the policy and, in any event, to an amount not less than the

limits of liability fixed in

Part 5, Subpart 5 of the Act, any judgment

rendered against it or its insured by a court in Alberta which has become

final in any such action or proceeding, and

(

d) not to issue Canada non-resident interprovince motor vehicle

liability insurance cards to persons other than persons who are

non-residents of Canada and who are insured with the unlicensed insurer

under a contract of motor vehicle liability insurance.

(6) Any municipal corporation in Alberta that has power to assess and

collect property taxes under the Municipal Government Act is a prescribed

corporation for the purposes of

section 825 of the Act.

(7) Where the Superintendent issues a financial responsibility card to a

corporation under

section 825 of the Act, the Superintendent

(

a) shall provide a separate card in respect of each motor vehicle

registered in the name of the corporation,

(

b) shall, on the request of the corporation, provide a copy of the

card for each person who commonly drives a motor vehicle registered in the

name of the corporation, and

(

c) shall, on the request of the corporation, provide a copy of any

card previously issued to the corporation.

Transitional

8 An association or entity that would be exempt from the Act but for the

applicable time period over which income replacement payments must be paid

under

section 3(1)(

b) of this Regulation, is nevertheless exempt from the

Act but must bring itself into compliance with

section 3(1)(

b) within one

year after the coming into force of this Regulation.

Repeal

9(1) The Exemption Regulation (AR 287/96) is repealed.

(2) The Definition of Capital Regulation (AR 286/96) is repealed.

Expiry

10 For the purpose of ensuring that this Regulation is reviewed for

ongoing relevancy and necessity, with the option that it may be repassed in

its present or an amended form following a review, this Regulation expires

on May 1, 2006.

Coming into force

11 This Regulation comes into force on the coming into force of any

provision of the Insurance Act (SA 1999 cI-5.1).

------------------------------

Alberta Regulation 121/2001

Insurance Act

CLASSES OF INSURANCE REGULATION

Filed: July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 268/2001) on July 11, 2001

pursuant to

section 16 of the Insurance Act, SA 1999 cI-5.1.

Table of Contents

Interpretation 1

Classes of insurance 2

Licences 3

Repeal 4

Expiry 5

Coming into force 6

Interpretation

1(1) In this Regulation,

(a) "accident insurance" means insurance by which the insurer

undertakes, otherwise than incidentally to some other class of insurance

under the Act, to pay insurance money in the event of accident to the

person insured, but does not include insurance by which the insurer

undertakes to pay insurance money both in the event of death by accident

and in the event of death from another cause;

(b) "accident and sickness insurance" means a class of insurance

consisting of accident insurance and sickness insurance;

(c) "accidental death insurance" means insurance undertaken by an

insurer as part of a contract of life insurance, whereby the insurer

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

the death by accident of the person whose life is insured;

(d) "aircraft insurance" means insurance against loss of or damage

to an aircraft and against liability for loss of or damage to property or

injury to or death of persons caused by an aircraft or by the use or the

operation of an aircraft;

(e) "automobile insurance" means insurance

(

i) against liability arising out of

(

A) injury to or death of a person, or

(

B) loss of or damage to property,

caused by an automobile or the use or operation of

an automobile, or

(ii) against loss of or damage to an automobile and the

loss of use of an automobile,

and includes insurance otherwise coming within the class of

accident insurance if the accident is caused by an automobile or the use or

operation of an automobile, whether liability exists or not, and the

contract also includes insurance described in subclause (i);

(f) "boiler and machinery insurance" means insurance against loss

of or damage to property and against liability for loss of or damage to

property or injury to or death of persons through the explosion, collapse,

rupture or breakdown of, or accident to, boilers or machinery of any kind;

(g) "burglary insurance" means insurance against loss or damage

through burglary, housebreaking, robbery or theft;

(h) "credit insurance" means insurance against loss to the insured

through the insolvency or default of a person to whom credit is given in

respect of the provision of goods;

(i) "crop insurance" means insurance against loss of or damage to

growing crops from risks or perils to which such crops may be exposed, but

does not include hail insurance;

(j) "disability insurance" means insurance undertaken by an insurer

as part of a contract of life insurance whereby 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;

(k) "employers' liability insurance" means insurance, not being

insurance incidental to some other class of insurance under the Act,

against loss to an employer through liability for accidental injury to or

death of an employee arising out of or in the course of the employee's

employment, but does not include workers' compensation insurance;

(l) "explosion insurance" means insurance against loss of or damage

to property of any kind caused by explosion, bombardment, invasion,

insurrection, riot, civil war or commotion or military or usurped power;

(m) "fidelity insurance" means

(

i) insurance against loss caused by a breach of trust,

(ii) insurance against loss caused by the improper

performance of the duties of an office;

(n) "fire insurance" means insurance, not being insurance

incidental to some other class of insurance under the Act, against loss of

or damage to property through fire, lightning or explosion due to ignition;

(o) "forgery insurance" means insurance against loss sustained by

reason of forgery;

(p) "general liability insurance" means a class of insurance

consisting of employers' liability insurance, liability insurance, public

liability insurance and workers' compensation insurance;

(q) "guarantee insurance" means the undertaking

(

i) to perform an agreement or contract or to discharge

a trust, duty or obligation on the default of the person liable for the

performance or discharge, or

(ii) to pay money on default or in lieu of the

performance or discharge or where there is loss or damage through the

default,

and includes insurance against loss or liability for loss due

to the invalidity of the title to any property or of any instrument or to

any defect in the title or instrument, but does not include credit

insurance;

(r) "hail insurance" means insurance against loss of or damage to

crops caused by hail;

(s) "inland marine insurance" means marine insurance in respect of

subjects of insurance at risk above the harbour of Montreal;

(t) "inland transportation insurance" means insurance, other than

marine insurance, against loss of or damage to property

(

i) while in transit or during delay incidental to

transit, or

(ii) when, in the opinion of the Superintendent, the

risk is substantially a transit risk;

(u) "legal expense insurance" means

(

i) insurance against the cost incurred by a person for

legal services rendered to that person, including fees or other costs

incurred relative to the provision of such services, or

(ii) any arrangement which provides, directly or

indirectly, legal services to a person, but does not include such an

arrangement made directly with an active member of the Law Society of

Alberta;

(v) "liability insurance" means insurance against liability for

loss of or damage to property or injury to or death of persons arising from

an accidental cause and not provided for by any other class of insurance

under the Act;

(w) "life insurance" means an undertaking by an insurer to pay

insurance money

(

i) on death,

(ii) on the happening of an event or contingency

dependent on human life,

(iii) at a fixed or determinable future time, or

(iv) for a term dependent on human life,

and without limitation, includes

(

v) accidental death insurance but not accident

insurance,

(vi) disability insurance, and

(vii) an undertaking to provide an annuity, or what would

be an annuity except for the fact that the periodic payments are unequal in

amount, for a term dependent solely or partly on a human life;

(x) "livestock insurance" means insurance, not being insurance

incidental to any other class of insurance under the Act, against loss

through the death or sickness of or an accident to an animal;

(y) "loss of employment insurance" means insurance against the

involuntary loss of employment by a person where the loss of employment

benefit is limited to an amount equal to all or part of the debt of the

person;

(z) "marine and inland marine insurance" means a class of insurance

consisting of marine insurance and inland marine insurance;

(aa) "marine insurance" means insurance against losses incidental to

marine adventure and may include, by the express terms of a contract or by

usage of trade, protection against losses on inland waters or by land or

air that are incidental to any sea voyage;

(bb) "mortgage insurance" means insurance against loss caused by

default on the part of the borrower under a loan secured by a mortgage on

real property, a hypothec on immovable property or an interest in real or

immovable property;

(cc) "plate glass insurance" means insurance, not being insurance

incidental to some other class of insurance under the Act, against loss of

or damage to plate, sheet or window glass, whether in place or in transit;

(dd) "property damage insurance" means insurance against loss or of

damage to property that is not included in or incidental to some other

class of insurance under this Act;

(ee) "property insurance" means a class of insurance against loss of

or loss of use of or damage to real or personal property, and includes

burglary insurance, explosion insurance, extended perils insurance under

section 37 of the Act, fire insurance, forgery insurance, inland

transportation insurance, livestock insurance, plate glass insurance,

property damage insurance, sprinkler leakage insurance, theft insurance and

weather insurance;

(ff) "public liability insurance" means insurance against liability

for loss of or damage to the property of others or injury to or death of

persons that is not included in or incidental to some other class of

insurance defined by or under this Act;

(gg) "sickness insurance" means insurance by which the insurer

undertakes to pay insurance money in the event of sickness of the person

insured, but does not include disability insurance;

(hh) "sprinkler leakage insurance" means insurance against loss of

or damage to property through the breakage or leakage of sprinkler

equipment or other fire protection systems, or of pumps, water pipes, or

plumbing and its fixtures;

(ii) "steam boiler insurance" means insurance

(

i) on steam boilers and pipes, engines and machinery

connected with or operated by steam boilers, against explosion, rupture and

accident, and

(ii) against personal injury, loss of life and

destruction of or damage to property resulting from such explosions,

ruptures and accidents;

(jj) "surety insurance" means insurance whereby an insurer

guarantees

(

i) to perform a contract or an undertaking on default

of the person liable for the performance, or

(ii) to pay a penalty or to indemnify for any default in

the performance of a contract or undertaking,

but does not include credit insurance or mortgage insurance;

(kk) "theft insurance" means insurance against loss or damage

through theft, wrongful conversion, burglary, housebreaking, robbery or

forgery;

(ll) "title insurance" means insurance against loss or damage

resulting from

(

i) a defect in the title to real property,

(ii) the existence of a lien, encumbrance or servitude

on real property,

(iii) a defect in the execution of a mortgage, hypothec

or deed of trust in respect of real property, or

(iv) any other matter affecting the title to real

property or the right to use and enjoyment of real property;

(mm) "vehicle warranty insurance" means the sub-class of boiler and

machinery insurance that comprises insurance against loss of or damage to a

motor vehicle arising from its mechanical failure, but does not include

automobile insurance or insurance incidental to automobile insurance;

(nn) "weather insurance" means insurance against loss or damage

through windstorm, cyclone, tornado, rain, hail, flood or frost, but does

not include hail insurance;

(oo) "workers' compensation insurance" means insurance of an

employer against the cost of compensation prescribed by statute for bodily

injury, disability or death of a worker through accident or disease arising

out of or in the course of the worker's employment.

(2) An undertaking referred to in subsection (1)(w)(vii) is deemed always

to have been life insurance.

Classes of insurance

2(1) The following are the classes of insurance for the purposes of the

Act and the regulations:

(

a) accident insurance;

(

b) accident and sickness insurance;

(

c) accidental death insurance;

(

d) aircraft insurance;

(

e) automobile insurance;

(

f) boiler and machinery insurance;

(

g) burglary insurance;

(

h) credit insurance;

(

i) crop insurance;

(

j) disability insurance;

(

k) employers' liability insurance;

(

l) explosion insurance;

(

m) fidelity insurance;

(

n) fire insurance;

(

o) forgery insurance;

(

p) general liability insurance;

(

q) guarantee insurance;

(

r) hail insurance;

(

s) inland marine insurance;

(

t) inland transportation insurance;

(

u) legal expense insurance;

(

v) liability insurance;

(

w) life insurance;

(

x) livestock insurance;

(

y) loss of employment insurance;

(

z) marine and inland marine insurance;

(aa) marine insurance;

(bb) mortgage insurance;

(cc) plate glass insurance;

(dd) property damage insurance;

(ee) property insurance;

(ff) public liability insurance;

(gg) sickness insurance;

(hh) sprinkler leakage insurance;

(ii) steam boiler insurance;

(jj) surety insurance;

(kk) theft insurance;

(ll) title insurance;

(mm) weather insurance;

(nn) workers' compensation insurance.

(2) For the purposes of the Act and the regulations, vehicle warranty

insurance

(

a) is a sub-class of boiler and machinery insurance, and

(

b) is deemed to be a class of insurance.

Licences

3 A licence may be granted to an insurer to carry on any of the classes

of insurance referred to in

section 2.

Repeal

4 The Classes of Insurance Regulation (AR 325/78) is repealed.

Expiry

5 For the purpose of ensuring that this Regulation is reviewed for

ongoing relevancy and necessity, with the option that it may be repassed in

its present or an amended form following a review, this Regulation expires

on May 1, 2006.

Coming into force

6 This Regulation comes into force on the coming into force of any

provision of the Insurance Act (SA 1999 cI-5.1).

Alberta Regulation 122/2001

Insurance Act

INSURANCE AGENTS AND ADJUSTERS REGULATION

Filed: July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 269/2001) on July 11, 2001

pursuant to sections 77, 498 and 849 of the Insurance Act, SA 1999 cI-5.1.

Table of Contents

Interpretation 1

Part 1

Insurance Agents

Classes and Levels of Certificates

of Authority

Classes of certificate 2

Life insurance certificate 3

Ministerial restrictions 4

Certificates for individuals 5

Certificates for businesses 6

Licence from outside Alberta 7

Educational qualifications for life and accident and

sickness insurance agents 8

Educational qualifications for general insurance agents 9

Designated representative 10

Incompetence 11

Restricted Certificates

Information provided by consumer 12

Information from non-insurance transaction 13

Insurance application 14

Disclosure 15

Loan offers 16

Information certificate 17

Right of rescission 18

Part 2

Adjusters

Levels of Certificates of Authority

Classes of certificates 19

Holding one level 20

Requirements

Eligibility for certificate 21

Educational qualifications and restrictions

for insurance adjusters 22

Operating from more than one office 23

Designated representative 24

Condition 25

Part 3

General

Prescribed Matters

Prescribed amounts 26

Prescribed enterprises 27

Special Broker

Condition 28

Continuing Education

Continuing education program 29

Continuing education requirements 30

Records 31

Course credit 32

Financial Guarantee

Errors and omissions insurance 33

Existing insurance 34

Amount of insurance 35

Exception to financial guarantee requirements 36

Part 4

Transitional Provisions, Repeals,

Expiry and Coming into Force

Transitional 37,38

Repeal 39

Expiry 40

Coming into force 41

Interpretation

1(1) In this Regulation,

(a) "accident and sickness certificate" means a certificate of

authority to act as an accident and sickness insurance agent;

(b) "Act" means the Insurance Act (SA 1999 cI-5.1);

(c) "business" means a body corporate, partnership or sole

proprietorship, but does not include an insurer;

(d) "conflict of interest position" means a situation where an

insurance agent or an adjuster has an incentive to act other than in the

best interest of the client;

(e) "former Insurance Act" means the Insurance Act (RSA 1980 cI-5);

(f) "freight forwarding company" means a corporation that carries

on business offering freight forwarding services, including services

related to the carriage, consolidation, storage, handling, packing or

distribution of transported goods;

(g) "general insurance" means any class of property and casualty

insurance, other than accident and sickness insurance;

(h) "general insurance agent" means an insurance agent for general

insurance;

(i) "general insurance certificate" means a certificate of

authority to act as a general insurance agent;

(j) "individual" does not include an individual who is the sole

proprietor of a sole proprietorship;

(k) "life insurance certificate" means a certificate of authority

to act as a life insurance agent;

(l) "personal information" means information about an identifiable

individual but does not include the name, title, business address or

business telephone number of the individual;

(m) "property and casualty insurance" means any class of insurance

other than life insurance;

(n) "restricted certificate" means a restricted insurance agent's

certificate of authority issued under

section 454 of the Act;

(o) "sales finance company" means a corporation, other than a

financial institution, that provides consumer loans, and, for the purposes

of this Regulation, a corporation that provides or arranges to provide

credit;

(p) "travel insurance" means insurance provided to an individual

(

i) in respect of a trip by the individual away from

the place where the individual ordinarily resides, without any individual

assessment of risk, against

(

A) loss that results from the cancellation

or interruption of the trip,

(

B) loss of, or damage to, personal

property that occurs while on the trip, or

(

C) loss that is caused by the delayed

arrival of personal baggage while on the trip,

(ii) in respect of a trip by the individual away from

the province in which the individual ordinarily resides,

(

A) against expenses incurred while on the

trip that result from an illness or the disability of the individual that

occurs on the trip,

(

B) against expenses incurred while on the

trip that result from bodily injury to, or the death of, the individual

caused by an accident while on the trip,

(

C) whereby the insurer undertakes to pay

one or more sums of money in the event of an illness or the disability of

the individual that occurs on the trip, or of bodily injury to, or the

death of, the individual that is caused by an accident while on the trip,

(

D) against expenses incurred by the

individual for dental care necessitated by an accident while on the trip,

(

E) in the event that the individual dies

while on the trip, against expenses incurred for the return of that

individual's remains to the place where the individual was ordinarily

resident before death, or for travel expenses incurred by a relative of

that individual who must travel to identify that individual's remains.

(2) In subsections (3) and (5),

(a) "creditor's group insurance" means insurance effected by a

creditor whereby the lives or well-being or the lives and well-being of a

number of its debtors are insured severally under a single contract;

(b) "group travel insurance" means travel insurance effected by an

entity named pursuant to

section 454 of the Act.

(3) The following are prescribed contracts of group insurance for the

purposes of the definition of insurance agent under

section 1(bb)(

v) of the

Act:

(

a) creditor's group insurance;

(

b) group travel insurance.

(4) Without limiting the generality of

section 5(1)(

f) or (2)(d), an

individual is deemed to be in a position to use coercion or undue influence

in order to control, direct or secure insurance business if the individual

is an officer or employee of a deposit-taking institution other than a

special purpose trust company within the meaning of the Loan and Trust

Corporations Act or sales finance company, unless the individual is acting

under a restricted certificate.

(5) In sections 14 and 15, "credit-related insurance" means

(

a) creditor's group insurance, or

(

b) insurance effected by a creditor against the risk of default by

a debtor due to involuntary loss of employment.

(6) In

Part 2, a reference to an Associate or Fellow of the Insurance

Institute of Canada, includes a Chartered Insurance Professional or a

Fellow Chartered Insurance Professional, as the case may be.

PART 1

INSURANCE AGENTS

Classes and Levels of Certificates

of Authority

Classes of certificate

2(1) The following classes and levels of insurance agent's certificates of

authority are established for individuals:

(

a) levels 1 and 2 life insurance;

(

b) accident and sickness;

(

c) levels 1 and 2 general insurance.

(2) The following classes of insurance agent's certificates of authority

are established for a business:

(

a) life insurance;

(

b) accident and sickness;

(

c) general insurance.

(3) A holder of an insurance agent's certificate of authority must comply

level of certificate of authority and may act as an insurance agent only

for the class of insurance authorized by the certificate.

(4) No individual may hold more than one level of insurance agent's

certificate of authority in each class.

(5) An insurance agent's certificate of authority for general insurance

authorizes an insurance agent to sell travel insurance.

Life insurance certificate

3(1) A holder of a level 1 life insurance certificate of authority

(

a) may act as an insurance agent only for the licensed life

company that recommends that the holder be issued a life insurance

certificate of authority, and

(

b) may not complete any replacement of a contract within the

meaning of the Replacement of Life Insurance Contracts Regulation unless

the disclosure statement required by that Regulation is countersigned by a

level 2 life insurance agent.

(2) It is a prescribed requirement for obtaining life insurance from

another insurer that an insurance agent who holds a level 1 insurance

agent's certificate of authority, before acting as an insurance agent for

that other insurer, obtain the written consent, in each case, of the

insurer who recommended the agent under

section 458 of the Act.

Ministerial restrictions

4 The Minister may, as a condition of an insurance certificate of

authority, limit the holder to the sale of a class of insurance and

specified policies.

Certificates for individuals

5(1) In addition to the requirements of the Act, the requirements to be

met by an individual in respect of a new insurance agent's certificate of

authority are as follows:

(

a) the individual must have the educational qualifications set out

by this Regulation with respect to the class and level of certificate of

authority being applied for;

(

b) the individual must be mentally competent;

(

c) the individual must be trustworthy;

(

d) the individual must not have been convicted of any offence the

nature of which, in the opinion of the Minister, would render the

individual unfit to receive a certificate of authority;

(

e) the individual must not have the status of a conditionally

discharged or undischarged bankrupt;

(

f) the individual must not be in a position to use coercion or

undue influence in order to control, direct or secure insurance business;

(

g) the individual must not be engaged in another occupation or

business that would place the individual in a conflict of interest position

when acting as an insurance agent.

(2) In addition to the requirements of the Act, the requirements to be met

by an individual to retain an insurance agent's certificate of authority or

for a certificate of authority that is being renewed or reinstated are as

follows:

(

a) the individual must have met the continuing education

requirements set out in

section 30;

(

b) the individual must be mentally competent;

(

c) the individual must not have the status of an undischarged

bankrupt or, if the individual has the status of an undischarged bankrupt,

the Minister is satisfied that the bankruptcy is not related to the

individual's activities as an insurance agent, as a registrant under the

Securities Act, or as a mortgage broker with the meaning of the Real Estate

Act;

(

d) the individual must not be in a position to use coercion or

undue influence in order to control, direct or secure insurance business;

(

e) the individual must not have been convicted of any offence the

nature of which, in the opinion of the Minister, would render the

individual unfit to receive a certificate of authority;

(

f) the individual must not be engaged in another occupation or

business that would place the individual in a conflict of interest position

when acting as an insurance agent.

Certificates for businesses

6(1) In addition to the requirements of the Act, the requirements to be

met by a business in respect of a new insurance agent's certificate of

authority are as follows:

(

a) the business must satisfy the Minister that the business is

registered under the Business Corporations Act or under the Partnership

Act, if applicable;

(

b) the business must not have been convicted of any offence the

nature of which, in the opinion of the Minister, would render the applicant

unfit to receive the certificate of authority;

(

c) no director, officer, partner, shareholder with a significant

interest or employee of the business is in a position to use coercion or

undue influence in order to control, direct or secure insurance business;

(

d) if the business is formed or incorporated in another province

or territory it must provide evidence that it is licensed in that province

or territory by the appropriate licensing authority as an insurance agent.

(2) In addition to the requirements of the Act, the requirements to be met

by a business to retain an insurance agent's certificate of authority or

for a certificate of authority that is being renewed or reinstated are as

follows:

(

a) the business must not have been convicted of any offence the

nature of which, in the opinion of the Minister, would render the applicant

unfit to receive the certificate of authority;

(

b) no director, officer, partner, shareholder with a significant

interest or employee of the business is in a position to use coercion or

undue influence in order to control, direct or secure insurance business.

Licence from outside Alberta

7 If an individual or business from another jurisdiction obtains an

insurance agent's certificate of authority in Alberta, and the licence

issued by the appropriate licensing authority in that jurisdiction is

conditions on the certificate of authority issued in Alberta.

Educational qualifications for life and accident and sickness insurance

agents

8(1) An individual is not eligible to apply for a level 1 life insurance

certificate of authority unless within the previous 12 months the

individual has met the educational requirements and passed an examination

both of which have been approved by the Minister.

(2) An individual is not eligible to apply for a level 2 life insurance

certificate of authority unless the individual has held a level 1 life

insurance certificate of authority for at least 2 years and has passed an

examination approved by the Minister.

(3) An individual is not eligible to apply for an accident and sickness

certificate of authority unless within the previous 12 months the

individual has met the educational requirements approved by the Minister

and has passed an examination approved by the Minister.

(4) An individual who fails the examination referred to in subsection (1),

(2) or (3) is allowed to rewrite that examination 2 further times at any

time, but a 3rd or subsequent rewriting is not allowed unless a period of

at least 6 months has elapsed since the date of the previous rewriting.

(5) Despite subsections (1) to (3), an individual is not required to pass

an examination referred to in those subsections if

(

a) the individual is not a resident of Alberta and is licensed to

act as an insurance agent in the individual's home jurisdiction for the

class of insurance being applied for and provides evidence from the

appropriate licensing authority of the home jurisdiction certifying that

the individual has satisfactorily completed courses in life insurance or

accident and sickness insurance, as the case may be, and passed an

examination that is equivalent to the examination referred to in subsection

(1), (2) or (3), as the case may be, and the Minister is of the opinion

that the courses and examinations are equivalent,

(

b) the individual held a certificate of authority for the same

class and level as is being applied for in the 2-year period before the

receipt by the Minister of the application for a certificate of authority,

(

c) the individual was licensed in another jurisdiction within the

previous 12 months as an insurance agent in a class and level equivalent to

those being applied for, is resident in Alberta, and provides evidence from

the appropriate licensing authority of that jurisdiction certifying that

the individual meets the course or examination requirements of clause (a).

(6) The Minister may issue an insurance agent's certificate of authority,

period not exceeding 180 days to an applicant who has not written an

examination if the applicant is

(

a) the surviving spouse, next of kin or personal representative of

a deceased agent who at the time of the agent's death held a subsisting

certificate of authority, or

(

b) the spouse, relative, employee, legal guardian or committee of

an insurance agent who, at the time of becoming disabled through sickness,

incapacity, injury or other similar circumstances, held a subsisting

certificate of authority.

Educational qualifications for general insurance agents

9(1) An individual is not eligible to apply for a level 1 general

insurance agent's certificate of authority for any class of insurance

unless within the previous 12 months the individual has passed an

examination respecting general insurance approved by the Minister.

(2) An individual is not eligible to apply for a level 2 general insurance

agent's certificate of authority unless, within the previous 12 months,

(

a) in the case of an individual who does not hold a level 1

certificate of authority, the individual has passed the general insurance

examination referred to in subsection (1) and one of the examinations

referred to in clause (b), and

(

b) in the case of an individual who holds a level 1 certificate of

authority, the individual has passed

(

i) the general insurance examination for commercial

lines approved by the Minister, or

(ii) the general insurance examination for personal

lines approved by the Minister.

(3) An individual who fails the examination referred to in subsection

(1) or (2) is allowed to rewrite that examination 2 further times at any time,

but a 3rd or subsequent rewriting is not allowed unless a period of at

least 6 months has elapsed since the date of the previous rewriting.

(4) An individual may elect to write either examination referred to in

subsection (2)(

b) at each attempt, but subsection (3) applies as if the

same examination were being attempted each time.

(5) It is a condition of every level 1 general insurance agent's

certificate of authority that the holder must qualify for a level 2 general

insurance certificate of authority within 36 months after obtaining the

level 1 certificate of authority, and if the condition is not met, the

certificate of authority is cancelled.

(6) Subject to the Act, on qualifying for and on application for a level 2

general insurance certificate of authority under subsection (5), the

insurance agent's certificate of authority is to be issued in accordance

with the Act.

(7) If the Minister is satisfied that a holder of a level 1 general

insurance certificate of authority has not complied with the condition set

out in subsection (5), the individual who held the certificate of authority

is ineligible to hold a general insurance agent's certificate of authority

for 12 months after the cancellation.

(8) Despite subsections (1) and (2), an individual is not required to pass

an examination referred to in those subsections if

(

a) the individual is not a resident of Alberta and is licensed to

act as a general insurance agent in the individual's home jurisdiction and

provides evidence from the appropriate licensing authority of that

jurisdiction certifying that the individual has passed examinations that

are equivalent to the examination referred to in subsections (1) or (2), as

the case may be, and the Minister is of the opinion that the examinations

are equivalent,

(

b) the applicant held a certificate of authority in the same class

and level as is being applied for in the 2-year period before the receipt

by the Minister of the application for a certificate of authority,

(

c) the individual intends to carry on business as an insurance

agent only for hail insurance or livestock insurance, or

(

d) the individual was licensed in another jurisdiction within the

previous 12 months as an insurance agent in a class and level equivalent to

those being applied for, is resident in Alberta, and provides evidence from

the appropriate licensing authority of that jurisdiction certifying that

the individual meets the examination requirement of clause (a).

(9) The Minister may issue an insurance agent's certificate of authority,

period not exceeding 180 days to an applicant who has not written an

examination if the applicant is

(

a) the surviving spouse, next of kin or personal representative of

a deceased agent who at the time of the agent's death held a subsisting

certificate of authority, or

(

b) the spouse, relative, employee, legal guardian or committee of

an insurance agent or the representative of a committee of insurers who, at

the time of the agent's disability through sickness, incapacity, injury or

other similar circumstances, held a subsisting certificate of authority.

Designated representative

10(1) This

section establishes the requirements to be met by a designated

representative of a business that holds an insurance agent's certificate of

authority.

(2) A designated representative of a business must

(

a) be an individual,

(

b) hold an insurance agent's certificate of authority that is of

the same class as the insurance agent's certificate of authority held by

the business, and

(

c) have responsibility for the management and supervision of the

business.

(3) The designated representative of a business that holds a life

insurance agent's certificate of authority must hold a level 2 life

insurance agent's certificate of authority.

(4) The designated representative of a business that holds a general

insurance agent's certificate of authority must have at least 24 months'

experience in general insurance within the 36 months before being

designated as a designated representative and

(

a) hold a level 2 general insurance agent's certificate of

authority, or

(

b) have established eligibility for a level 2 general insurance

agent's certificate of authority within the previous 12 months before being

designated as a designated representative.

Incompetence

11 If the Minister is satisfied that a holder of an insurance agent's

certificate of authority has demonstrated incompetence to act as an

insurance agent, one of the conditions that the Minister may impose under

section 480(1) of the Act is that the certificate of authority will not be

renewed or reinstated unless the individual who holds the certificate of

authority takes a written examination, or courses, approved by the Minister

and achieves a mark specified by the Minister.

Restricted Certificates

Information provided by consumer

12(1) The holder of a restricted certificate

(

a) may not use personal information given by a person buying

insurance unless it is used for the purpose for which it is given and the

person signs a consent that meets the requirements of subsection (2), and

(

b) may not release the information described in clause (

a) to

someone who is not an employee of the holder unless the person signs a

consent that meets the requirements of subsection (3).

(2) The consent referred to in subsection (1)(

a) must be identified as a

consent to the person who is the subject of the information and

specifically identify the purpose for which the information may be used by

the restricted certificate holder.

(3) The consent referred to in subsection (1)(

b) must be identified as a

consent to the person who is the subject of the information and

specifically identify the information to be released, to whom the

information is to be released and the purpose for which the released

information may be used.

(4) Subsection (1)(

b) does not apply if the personal information

(

a) is released to another person as required by law, or

(

b) is released to the insurer on behalf of which the holder of the

restricted certificate is marketing insurance.

Information from non-insurance transaction

13(1) If a holder of a restricted certificate receives, for the purposes

of a non-insurance transaction, personal information pertaining to a

person's insurance coverage, the holder may not

(

a) release the information to another person except for the

purposes of the non-insurance transaction or a similar subsequent

transaction, or

(

b) use the information for a purpose except for the purpose of the

non-insurance transaction or a similar subsequent transaction.

(2) Subsection (1) does not apply if the release or use of the information

pertaining to the person's insurance coverage is required by law.

Insurance application

14(1) When a holder of a restricted certificate negotiates or enters into

a transaction with a person for credit-related insurance at the same time

as a credit arrangement is being negotiated or entered into with the

person, the holder must provide the person with a separate application for

the insurance coverage.

(2) A holder of a restricted certificate must, on request, provide a

person making an application for insurance with a copy of the completed

insurance application.

Disclosure

15(1) A holder of a restricted certificate, at the time the person applies

for insurance coverage, must

(

a) provide to a person buying insurance

(

i) a

summary of the terms, including limitations and

restrictions, of the insurance offered, and

(ii) a

summary of the circumstances under which the

insurance commences or terminates and the procedures to follow in making a

claim,

and

(

b) notify a person buying insurance that the policy will be sent

to the person, or in the case of a contract of group insurance, a

certificate will be sent to the person.

(2) A holder of a restricted certificate who is marketing credit-related

insurance, at the time of application for insurance coverage

(

a) must provide to a person buying insurance

(

i) a statement that sets out the right to rescind the

insurance contract and obtain a full refund of the premium pursuant to

section 18, and

(ii) a statement that the duration of the insurance is

less than the term of the amortization period of any related loan, or that

the amount of the insurance is less than the indebtedness, if that is the

case,

and

(

b) must inform a person buying insurance that the person may

contact the insurer for further information or clarification, the name of

the insurer that is providing the insurance and how that insurer may be

contacted.

(3) The insurer on behalf of which the holder of the restricted

certificate is marketing insurance must ensure that procedures are in place

to effect the requirements of this section.

(4) Where a holder of a restricted certificate receives any compensation,

inducement or benefit from an insurer, directly or indirectly, for selling

insurance, the holder of a restricted certificate must disclose that fact

to any person who is considering buying insurance from that holder.

Loan offers

16(1) A holder of a restricted certificate may not, when offering to make

a loan to, or arrange a loan for, a person, inform the person that the

person must, or require the person to, purchase insurance before the loan

can be made.

(2) Despite subsection (1), a holder of a restricted certificate may, when

offering to make a loan to, or arrange a loan for, a person, inform the

person that the person must, or require the person to, purchase insurance

if the insurance is to protect the lender against default of the borrower

and the insurance is from an insurer licensed to do business in Alberta.

(3) For the purpose of subsection (2), a holder of a restricted

certificate may not inform the person that the person must, or require the

person to, purchase insurance from the holder or an insurer or insurance

agent, specified by the holder.

Information certificate

17 A holder of a restricted certificate must

(

a) ensure that purchasers or potential purchasers of insurance are

informed that they are contracting or considering contracting with an

insurer and not with the holder, and

(

b) ensure that written documentation is provided to the purchaser

of insurance evidencing the insurance and setting out the information

required to be disclosed by clause (

a) and

section 15(1)(

b) within 30 days

of the insurance coming into force.

Right of rescission

18(1) A person who buys life insurance through the holder of a restricted

certificate has 10 days, or any longer period specified in the policy or

certificate, after receiving the written documentation referred to in

section 17 to rescind the insurance.

(2) A person who rescinds insurance in accordance with subsection (1) is

entitled to receive from the insurer a refund of the whole premium that has

been paid.

PART 2

ADJUSTERS

Levels of Certificates of Authority

Classes of certificates

19(1) The Minister may issue an adjuster's certificate of authority to a

business for the purpose of

section 460(1) of the Act.

(2) The following levels of adjusters' certificates of authority are

established for individuals for the purposes of

section 460(2) of the Act:

(

a) level 1 adjuster;

(

b) level 2 adjuster;

(

c) level 3 adjuster.

(3) It is a condition of each adjuster's certificate of authority that the

on the adjuster's certificate of authority.

(4) The Minister may issue an adjuster's certificate of authority limited

to adjusting hail insurance losses.

Holding one level

20 No individual may hold more than one level of adjuster's certificate

of authority.

Requirements

Eligibility for certificate

21(1) In addition to the requirements of the Act, the requirements to be

met by an individual in respect of a new adjuster's certificate of

authority are as follows:

(

a) the individual must have the educational qualifications set out

by this Regulation with respect to the level of certificate of authority

being applied for;

(

b) the individual must be mentally competent;

(

c) the individual must be trustworthy;

(

d) the individual must not have been convicted of any offence the

nature of which, in the opinion of the Minister, would render the

individual unfit to receive the certificate of authority;

(

e) the individual must not be engaged in another occupation or

business that would place the individual in a conflict of interest position

when acting as an adjuster.

(2) In addition to the requirements of the Act, the requirements to be met

by an individual to retain an adjuster's certificate of authority or for a

certificate of authority that is being renewed or reinstated are as

follows:

(

a) the individual must not be engaged in another occupation or

business that would place the individual in a conflict of interest position

when acting as an adjuster;

(

b) the individual must be mentally competent;

(

c) the individual must not have been convicted of any offence the

nature of which, in the opinion of the Minister, would render the

individual unfit to receive a certificate of authority;

(

d) the individual must have met the continuing education

requirements set out in

section 30.

(3) In addition to the requirements of the Act, the requirements to be met

by a business in respect of a new adjuster's certificate of authority,

renewal of an adjuster's certificate of authority or reinstatement of an

adjuster's certificate of authority and for retaining an adjuster's

certificate of authority are as follows:

(

a) the business must not have been convicted of any offence the

nature of which, in the opinion of the Minister, would render the business

unfit to receive the certificate of authority;

(

b) the business must not be engaged in another business activity

that would place the business in a conflict of interest position when

acting as an adjuster;

(

c) the business must satisfy the Minister that the business is

registered under the Business Corporations Act or under the Partnership

Act, if applicable.

Educational qualifications and restrictions for insurance adjusters

22(1) An individual is not eligible to apply for a level 1 adjuster's

certificate of authority unless, within the previous 12 months, the

individual has passed an examination approved by the Minister.

(2) An individual who fails the examination referred to in subsection

(1) is allowed to rewrite that examination 2 further times at any time, but a

3rd or subsequent rewriting is not allowed unless a period of at least 6

months has elapsed since the date of the previous rewriting.

(3) An individual is not eligible to apply for a level 2 adjuster's

certificate of authority unless the individual

(

a) has successfully completed 6 courses of the Insurance Institute

of Canada for a designation as an Associate of the Insurance Institute of

Canada, of which one course must be C-17 (Claims 1), and

(

b) has acted as an adjuster for at least 24 consecutive months.

(4) It is a condition of a level 1 and level 2 adjuster's certificate of

authority that the holder be subject to the direct supervision of a holder

of a level 3 adjuster's certificate of authority and that all reports in

relation to the adjustment of claims by the holder of the level 1 or level

2 adjuster's certificate of authority be approved and countersigned by that

holder of a level 3 adjuster's certificate of authority.

(5) An individual is not eligible to apply for a level 3 adjuster's

certificate of authority unless the individual has successfully met the

level 2 requirements and

(

a) is an Associate or Fellow of the Insurance Institute of Canada,

(

b) has successfully completed the C-32 (Bodily Injury Claims) and

C-46 (Claims 2) courses of the Insurance Institute of Canada, and

(

c) has acted as an adjuster for at least 60 consecutive months

within the 10-year period immediately preceding the date of application.

(6) Despite subsection (1), an applicant is not required to pass an

examination referred to in that subsection if the applicant held an

adjuster's certificate of authority in the 2-year period before the receipt

by the Minister of the application for an adjuster's certificate of

authority.

(7) Despite subsections (1), (3) and (5), an individual is not required to

complete a course, program or pass an examination referred to in those

subsections if

(

a) the individual is not a resident of Alberta and is licensed as

an insurance adjuster in the individual's home jurisdiction and provides

evidence from the appropriate licensing authority of that jurisdiction

certifying that the applicant has satisfactorily passed insurance courses,

programs and examinations that are equivalent to the courses, and program

and examination referred to in subsections (1), (3) and (5) and the

Minister is of the opinion that the courses, programs and examinations are

equivalent;

(

b) the individual is applying for an adjuster's certificate of

authority limited to adjusting hail insurance losses only;

(

c) the individual had at least 10 years of claims adjusting

experience prior to January 1, 1990 and passed both an examination approved

by the Minister under subsection (1) and an oral examination approved by

the Insurance Adjusters' Council.

Operating from more than one office

23 A business that acts or offers to act as an adjuster and operates from

more than one office must have in each office at least one adjuster who

holds a level 2 adjuster's certificate of authority.

Designated representative

24(1) This

section establishes the requirements to be met by a designated

representative of a business and a sole proprietorship who holds an

adjuster's certificate of authority.

(2) A designated representative of a business must

(

a) be an individual,

(

b) be an Associate or Fellow of the Insurance Institute of Canada,

(

c) hold a level 3 adjuster's certificate of authority, and

(

d) have responsibility for the management and supervision of the

business.

(3) In order for a sole proprietor to hold an adjuster's certificate of

authority, the sole proprietor must meet the requirements of subsection

(2).

(4) Subsection (2)(

b) and (

c) do not apply to a designated representative

of a business who is issued an adjuster's certificate of authority under

section 19(4).

Condition

25 If the Minister is satisfied that the holder of an adjuster's

certificate of authority has demonstrated incompetence to act as an

adjuster, one of the conditions that the Minister may impose under

section

480(1) of the Act is that the adjuster's certificate of authority will not

be renewed or reinstated unless the individual who held the adjuster's

certificate of authority takes an examination or courses approved by the

Minister and achieves a mark specified by the Minister.

PART 3

GENERAL

Prescribed Matters

Prescribed amounts

26(1) The prescribed amount for the purpose of

section 460 of the Act is

$15 000 in the case of contracts covering damage to property including

automobiles.

(2) The prescribed amount for the purpose of

section 65 of the Act is $10

Prescribed enterprises

27 The following are prescribed enterprises under

section 454 of the Act:

(

a) sales finance companies;

(

b) customs brokers licensed under the Customs Act (Canada);

(

c) freight-forwarding companies.

Special Broker

Condition

28(1) It is a condition of a special broker's licence that the special

broker must disclose to the prospective insured before the insurance

transaction is entered into that the insurer underwriting the insurance is

not licensed in Alberta.

(2) It is a condition of a special broker's licence that, in the case of

surety insurance, the special broker must disclose if the insurance is to

be provided by an unlicensed insurer

(

a) to the principal, before the surety insurance is issued, and

(

b) to the obligee, within 7 days of the surety insurance being

issued.

Continuing Education

Continuing education program

29(1) The Accreditation Committee for the purposes of this

Part is the

Accreditation Committee appointed by the Minister pursuant to the

Government Organization Act.

(2) The Minister may, based on the recommendations of the Accreditation

Committee, approve continuing education courses for a certificate and

continuing education providers and the hours and means of calculating the

hours of the courses for the purposes of this Part, subject to any terms

and conditions imposed by the Minister.

(3) The Minister must maintain a list of courses approved as continuing

education courses for a certificate and a list of persons approved as

continuing education providers and may require information from the

continuing education providers that is necessary for the purposes of this

Part.

Continuing education requirements

30(1) Commencing February 16, 2002, an individual who holds an insurance

agent's certificate of authority must each year complete at least 15 hours

of the continuing education courses approved under

section 29 with respect

to the certificate of authority.

(2) Subsection (1) does not apply to an individual who holds an insurance

agent's certificate of authority limited to hail insurance or livestock

insurance.

(3) Commencing June 1, 2002, an individual who holds an adjuster's level

1, 2 or 3 certificate of authority must each year complete at least 15

hours of the continuing education courses approved under

section 29 with

respect to the adjuster's certificate of authority.

(4) Subsection (1) does not apply to a non-resident individual who holds a

certificate of authority to operate in Alberta if the individual is a

resident of and is registered in another jurisdiction that has a continuing

education requirement satisfactory to the Accreditation Committee.

Records

31 An individual who holds a certificate of authority must maintain a

record of continuing education requirements completed by that person and

must provide a copy of the record when requested by the Minister.

Course credit

32 If an individual holds more than one certificate of authority, any of

the completed continuing education courses approved under

section 29 for a

certificate completed by the individual may be applied to the continuing

education requirements of the certificates that person holds, if the

courses are approved for those certificates.

Financial Guarantee

Errors and omissions insurance

33(1) The financial guarantee required by the Act is a policy of insurance

against errors and omissions that meets the requirements of this section.

(2) The policy must be issued by a licensed insurer and be in a form and

contain the terms, conditions,

definitions and exclusions approved by the

Minister including the period after the term of the policy in which claims

may be made.

(3) The policy must provide coverage for errors and omissions for which a

claim is made during the term of the policy.

(4) If a claimant has a claim resulting from a judgment or from an

agreement between the insurer and the claimant against the insured for an

error or omission, the insurer must pay the proceeds from the policy

directly to the claimant and may recover any amount equating to the

deductible from the insured under a reimbursement agreement between the

insurer and the insured.

(5) The insurer must provide 60 days' advance notice to the Minister by

certified mail of the cancellation or non-renewal of the policy or any

change whereby the policy does not meet the form and contents required

under subsection (2).

Existing insurance

34 If an insurance agent offers financial services other than insurance

and has errors and omissions insurance in respect of the other financial

services, the policy of errors and omissions insurance required by

section

33 in respect of the insurance agent must be separate and distinct from the

errors and omissions insurance in respect of the other financial services,

but may be provided within one policy of insurance.

Amount of insurance

35(1) The errors and omissions insurance required in respect of an

individual who holds a certificate of authority, other than a restricted

certificate, must provide coverage of at least $500 000 per claim, and the

policy must be issued in the individual's name or in the name of the

business of which the individual is an employee or independent contractor,

and the insurance must provide coverage for the employee or individual

contractor, as the case may be.

(2) The errors and omissions insurance required in respect of a business

that holds a certificate of authority, other than a restricted certificate,

must provide coverage of at least $500 000 per claim, and the insurance

referred to in this subsection is separate and distinct from the insurance

referred to in subsection (1).

(3) The errors and omissions insurance required in respect of a business

that holds a restricted certificate must provide coverage of at least $500

000 per claim multiplied by the number of employees of the business who act

or offer to act as insurance agents, up to a maximum of 5.

Exception to financial guarantee requirements

Section 465 of the Act does not apply to a business that

(

a) holds a restricted certificate, and

(

b) is a deposit-taking institution.

PART 4

TRANSITIONAL PROVISIONS, REPEALS,

EXPIRY AND COMING INTO FORCE

Transitional

37(1) Despite

section 22(1), (3) and (5) and subject to this section, on

the coming into force of this Regulation, an adjuster's certificate of

authority under

Part 16 of the former Insurance Act

(

a) that is a level 1 certificate of authority is continued as a

level 1 certificate of authority;

(

b) that is a level 2 or 3 certificate of authority is continued as

a level 2 certificate of authority;

(

c) that is a level 4 certificate of authority is continued as a

level 3 adjuster's certificate of authority;

(

d) that is a level 5 certificate of authority is continued as a

level 3 adjuster's certificate of authority and the holder is deemed to be

a designated representative until May 31, 2002 and is deemed to meet the

requirements of

section 24(2)(

b) as long as the holder is the designated

representative of the business that employs the holder when this Regulation

comes into force.

(2) An adjuster who held a certificate of authority within the one-year

period immediately before the coming into force of this Regulation may

apply for a new certificate of authority at any time within one year of the

date on which the certificate of authority was no longer in force and may

be issued a new certificate of authority at the level specified in

subsection (1) as if the adjuster held a certificate of authority on the

date this Regulation comes into force, provided that the adjuster meets the

requirements of

section 21(2).

Transitional

38(1) On the coming into force of this Regulation, a recommendation under

section 511 of the former Insurance Act is deemed to be a recommendation

under

section 458 of the Insurance Act (SA 1999 cI-5.1), in the case of

life insurance or under

section 459(1), (2), (3)(

b) or (4) of the Insurance

Act (SA 1999 cI-5.1), in the case of property and casualty insurance.

(2) On the coming into force of this Regulation, an individual who holds a

certificate of authority that requires a recommendation of a designated

representative under

section 459(3)(

a) or 464 of the Act is deemed to be

recommended by the designated representative of the business that the

individual represents.

(3) On the coming into force of this Regulation, an individual who is

designated under

section 508(3) of the former Insurance Act is deemed to be

the designated representative of the business under

section 456 of the

Insurance Act (SA 1999 cI-5.1).

Repeal

39 The Insurance Agents and Adjusters Regulation (AR 32/89) is repealed.

Expiry

40 For the purpose of ensuring that this Regulation is reviewed for

ongoing relevancy and necessity, with the option that it may be repassed in

its present or an amended form following a review, this Regulation expires

on May 1, 2006.

Coming into force

41(1) This Regulation, except for sections 33 to 36, comes into force on

the coming into force of any

section of the Insurance Act (SA 1999 cI-5.1).

(2) Sections 33 to 36 come into force on the coming into force of

section

465 of the Insurance Act (SA 1999 cI-5.1).

Alberta Regulation 123/2001

Insurance Act

RECIPROCAL INSURANCE EXCHANGE REGULATION

Filed: July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 123/2001) on July 11, 2001

pursuant to

section 106 of the Insurance Act, SA 1999 cI-5.1.

Table of Contents

Definition 1

Automobile insurance 2

Fire insurance 3

Guarantee fund 4

Expiry 5

Definition

1 In this Regulation, "Act" means the Insurance Act (SA 1999 cI-5.1).

Automobile insurance

2(1) For the purpose of

section 82(2)(

a) of the Act, the prescribed number

of automobiles is 500.

(2) For the purpose of

section 82(2)(

b) of the Act, the prescribed limit

is $1 000 000.

Fire insurance

3 For the purpose of

section 83 of the Act,

(

a) the prescribed number of separate fire insurance risks in

Alberta or elsewhere is 75, and

(

b) the prescribed aggregate amount is $1 500 000.

Guarantee fund

4 For the purpose of the formula set out in

section 100(1) of the Act, C

is $50 000.

Expiry

5 For the purpose of ensuring that this Regulation is reviewed for

ongoing relevancy and necessity, with the option that it may be repassed in

its present or an amended form following a review, this Regulation expires

on May 1, 2006.

Coming into force

6 This Regulation comes into force on the coming into force of any

section of the Act.

Alberta Regulation 124/2001

Insurance Act

PROVINCIAL COMPANIES REGULATION

Filed: July 11, 2001

Made by the Lieutenant Governor in Council (O.C. 271/2001) on July 11, 2001

pursuant to

section 123 of the Insurance Act, SA 1999 cI-5.1.

Table of Contents

Part 1

Protection and Maintenance of Assets

Definitions 1

Procedures to safeguard assets 2

Record of securities 3

Safeguarding of securities 4

Accounts 5

Registration of securities 6

Bonding and insurance 7

Part 2

Investments

Interpretation 8

Method of valuation 9

International agencies 10

Meaning of "connected" 11

Investment maximums 12

Exceptions to prohibited investments 13

Leasing and related agreements 14

Limitation on shareholding 15

Meaning of "interest in real property" 16

Additional interest in real property 17

Exception to s424 of Act 18

Prescribed subsidiaries 19

Limits on equity acquisitions 20

Part 3

Transactions with Related Parties

Interpretation 21

Meaning of "related party" 22

Prescribed matters under s439 of Act 23

Prescribed securities under s440(

e) of Act 24

Prescribed conditions under s440(

g) of Act 25

Prescribed qualifications and purposes under

s440(

j) of Act 26

Permitted transactions under s440(

m) of Act 27

Related party transactions prescribed limits 28

Part 4

Repeal, Expiry and Coming into Force

Repeal 29

Expiry 30

Coming into force 31

Schedule

PART 1

PROTECTION AND MAINTENANCE OF ASSETS

Definitions

1 In this Part,

(a) "Act" means the Insurance Act (SA 1999 cI-5.1);

(b) "bond" means a contract of insurance by which an insurer agrees

to indemnify an insured for loss arising out of the act of a third party;

(c) "security" has the meaning given to it in the Securities Act.

Procedures to safeguard assets

2 The board of directors of a provincial company must ensure that there

are written procedures in place designed to safeguard assets owned or held

by the company and that the procedures are followed by the company.

Record of securities

3 A provincial company must maintain an up-to-date record that identifies

securities owned or held by the company.

Safeguarding of securities

4(1) A provincial company must ensure that securities owned or held by the

company

(

a) are kept secure and in a manner that prevents unauthorized

access to them, and

(

b) are stored in the custody

(

i) of the company, or

(ii) of an entity that is authorized by the law of the

jurisdiction where the entity is carrying on business to act as a

custodian, depository or clearing agency for securities.

(2) Subsection (1) does not apply in respect of a security that is

(

a) under the control of the government of a jurisdiction in which

the provincial company is carrying on business,

(

b) pledged as collateral for indebtedness or potential

indebtedness of the provincial company, or

(

c) in transit or being held temporarily by a court or a legal

agent of the provincial company.

(3) A provincial company must not place a security in the custody of an

entity referred to in subsection (l)(b)(ii) unless the company has entered

into a written custodial agreement with that entity.

Accounts

5 A provincial company must, on a daily basis, hold any net amount

received by it as a result of any security transaction in an account in

Canada kept by the company

(

a) in the company,

(

b) with a bank,

(

c) with Alberta Treasury Branches,

(

d) with any of the following that is incorporated by or under an

Act of Canada or a province:

(

i) a loan corporation or a trust corporation;

(ii) a credit union;

(iii) an entity that is engaged primarily in dealing in

securities, including portfolio management and investment counselling,

(

e) with any other trust corporation that is incorporated by or

under

an Act of Canada or a province and that is authorized to hold money

in trust by a law of that jurisdiction,

(

f) with the government of a province in which the company is

carrying on business, or with an agency of that government that is

authorized to act as a custodian, or

(

g) with The Canadian Depository for Securities Limited.

Registration of securities

6(1) A provincial company must ensure that each security owned or held by

it is registered in the name of the provincial company on the register of

the entity that issued the security.

(2) Subsection (1) does not apply in respect of a security that

(

a) cannot be registered in the company's name for any reason that

is beyond the control of the company,

(

b) is under the control of the government of a jurisdiction in

which the company is carrying on business,

(

c) is held by the company as collateral or for safekeeping,

(

d) is registered in the name of a nominee of the company or of

another entity referred to in

section 4(1)(b)(ii),

(

e) is held under a book entry, certificateless or immobilization

system,

(

f) is held temporarily by

(

i) an agent of the company,

(ii) a liquidator,

(iii) a trustee, or

(iv) the issuer of the security

for purposes of reorganization, amalgamation, liquidation or

voting, or

(

g) is held by the company in bearer form or in registered form in

a name other than the company's name, if the security is otherwise

protected against loss, fraud, theft and destruction.

Bonding and insurance

7(1) A provincial company must acquire and at all times maintain one or

more bonds issued by an entity holding a licence that indemnify the company

for any loss in respect of assets owned or held by the company arising out

of a dishonest or criminal act of an officer or employee of the company.

(2) A provincial company must acquire and at all times maintain one or

more insurance policies that indemnify the company for

(

a) any loss arising out of damage to, or the destruction or

mysterious disappearance of, assets owned or held by the company, or

(

b) any loss arising out of any other usual contingency affecting

assets owned or held by the company.

(3) A bond referred to in subsection (1) or an insurance policy referred

to in subsection (2) must provide that it may not be cancelled or

terminated by the insurer or the insured until at least 30 days after the

receipt by the Superintendent of a written notice from the insurer or the

insured, as the case may be, of that person's intention to cancel or

terminate the bond or insurance policy.

(4) The bond or insurance policy must be in an amount that is fixed by the

directors of the provincial company having regard to

(

a) the nature and value of the assets owned or held by the

company,

(

b) the arrangements and procedures applicable to the handling and

safeguarding of the assets owned or held by the company, and

(

c) any other factors that might affect the extent of any loss that

the company might sustain.

PART 2

INVESTMENTS

Interpretation

8(1) In this Part,

(a) "Act" means the Insurance Act (SA 1999 cI-5.1);

(b) "generally accepted accounting principles" means the generally

accepted accounting principles, including the accounting recommendations,

of the Canadian Institute of Chartered Accountants set out in the Handbook

published by that Institute, as amended from time to time;

(c) "securities dealer" means a body corporate that is registered

as a dealer under the Securities Act or in a similar capacity under

comparable legislation of another jurisdiction in Canada.

(2) The

definitions in

section 415 of the Act apply to this Part.

(3) The aggregate prescribed amount for the purpose of

section

415(a)(i)(

A) of the Act is $250 000.

Method of valuation

9 For the purpose of

section 44(4) of the Act, the assets of a provincial

company, including investments, must be valued in accordance with generally

accepted accounting principles.

International agencies

10 For the purposes of sections 415(a)(i)(

B) and 415(a)(ii)(

B) of the

Act, the following are prescribed international agencies:

(

a) Asian Development Bank;

(

b) Inter-American Bank;

(

c) International Bank for Reconstruction and Development;

(

d) International Finance Corporation;

(

e) European Bank for Reconstruction and Development.

Meaning of "connected"

11 For the purpose of

section 415(

b) of the Act, a person is connected to

another person if

(

a) one of them is an affiliate of the other, or

(

b) in respect of a loan by a third party to both of those persons

or an investment by a third party in both of those persons,

(

i) the loans or investments are for the same purpose,

(ii) the expected source of repayment on the loans or

investments is the same, or

(iii) the security for the loans or investments is the

same,

and those persons are not to a material extent financially independent of

each other.

Investment maximums

12(1) Subject to subsection (2), the prescribed percentage for the purpose

section 418(1) of the Act is 5%.

(2) For commercial loans, the prescribed percentage for the purpose of

section 418(1) of the Act is 2%.

Exceptions to prohibited investments

13 The other prescribed investments for the purpose of

section 418(2)(

e) of the Act are the following:

(

a) any deposit with or any debt obligation or acceptance of any of

the following where the deposit, debt obligation or acceptance has a

residual maturity of less than one year:

(

i) a bank;

(ii) Alberta Treasury Branches;

(iii) a loan corporation or trust corporation

incorporated by or under

an Act of Canada or a province;

(iv) a credit union incorporated under the Credit Union

Act;

(

b) any deposit with any of the following that control the

provincial company:

(

i) a bank;

(ii) Alberta Treasury Branches;

(iii) a loan corporation or trust corporation

incorporated by or under

an Act of Canada or a province;

(iv) a credit union incorporated under the Credit Union

Act;

(

c) any foreign exchange, interest rate, equity or commodity

contract with any of the following where the contract has a residual

maturity of less than one year:

(

i) a bank;

(ii) Alberta Treasury Branches;

(iii) a loan corporation or trust corporation

incorporated by or under

an Act of Canada or a province;

(iv) a credit union incorporated under the Credit Union

Act;

(

d) any foreign exchange, interest rate, equity or commodity

contract, in the normal course of business, with a financial institution

that controls the provincial company or is affiliated with the provincial

company;

(

e) any direct obligation of and that portion of any obligation

fully and unconditionally guaranteed by any of the following:

(

i) a municipality or Metis settlement or an agency of

a municipality or Metis settlement;

(ii) a government that is a member of the Organization

of Economic Development and Cooperation or an agency of that government;

(iii) an international agency listed in

section 10.

Leasing and related agreements

14(1) In this section,

(a) "agreement" means

(

i) a security agreement as defined in the Personal

Property Security Act, or

(ii) a financial lease agreement, being an agreement for

a lease of personal property in which credit is extended by the lessor to

the lessee for the purpose of enabling the lessee to meet the lessee's

obligations under the lease;

(b) "property" means the personal property to which an agreement

relates.

(2) A provincial company must not beneficially own shares in a financial

leasing corporation described in

section 15(

b) unless

(

a) the aggregate of

(

i) the book value of all of the property that is

subject to agreements held by the financial leasing corporation, and

(ii) all amounts owing as receivables in respect of such

agreements

is equal to at least 80% of the assets of the subsidiary, and

(

b) the financial leasing corporation meets the requirements of the

agreements.

(3) A provincial company may enter into or acquire agreements only if the

following requirements are met:

(

a) the company must not direct its customers or potential

customers to particular dealers in the property;

(

b) at no time may the aggregate of the estimated residual values

of all the property of the company, excluding motor vehicles, leased under

the financial lease agreements exceed 10% of the aggregate of the costs of

acquisition of that leased property to the company;

(

c) the estimated residual value of property leased under a

financial lease agreement must not exceed,

(

i) in the case of motor vehicles, 50% of their cost of

acquisition, or

(ii) in the case of any other property, 20% of its cost

of acquisition to the company;

(

d) the agreement must be entered into or acquired for the purpose

of extending credit to the lessee or purchaser;

(

e) the property that is the subject of the agreement must be

selected by the lessee or buyer and

(

i) must be acquired by the company at the request of

the lessee or buyer, or

(ii) must have been acquired by the company through the

operation of an earlier agreement;

(

f) the agreement must yield a return that

(

i) will compensate the company for not less than its

full investment in the property,

(ii) is reasonable, taking into account

(

A) the term of the agreement and the other

(

B) the technological obsolescence of the

property, and

(

C) the rate of return sought by other

lessors in respect of similar agreements in respect of similar property and

and

(iii) is calculated by taking into account

(

A) rental charges paid by the lessee or

purchaser,

(

B) estimated tax benefits of the agreement

to the company, including tax credits and capital cost allowance claims,

and

(

C) the amount of,

(

I) where the lessee or

purchaser or a third party who is dealing at arm's length with the company

has, on or before the commencement of the agreement, contracted to purchase

the property or unconditionally guaranteed the resale value of the property

at the date of expiry of the agreement, the purchase price or the resale

value so guaranteed, or

(II) in any other case, but

subject to clause (c), the estimated residual value of the property;

(

g) the agreement must contain a provision

(

i) assigning and conveying to the lessee or purchaser

the benefit of all warranties, guarantees or other undertakings made by a

manufacturer or supplier relating to the property, or

(ii) setting out the responsibilities of the company

with regard to the warranties, guarantees or other undertakings referred to

in subclause (i);

(

h) the agreement must substantially transfer to the lessee or

purchaser the benefits and risks incidental to the operation of the

property and must not place responsibility on the part of the company to

install, promote, service, clean, maintain or repair the property;

(

i) where the lessee or purchaser defaults in the manner set out in

the agreement and the default is not waived or the agreement, including any

renewals or extensions of it, expires, the company must

(

i) liquidate its interest in the property, or

(ii) enter into a new agreement in respect of that

property within 2 years of that default or expiry or, where proceedings in

respect of that property have prevented the company from complying with

that requirement within that period, within 2 years of the completion of

those proceedings.

(4) An agreement may be renewed on its expiry and may be extended during

its term.

Limitation on shareholding

15 The following are prescribed bodies corporate for the purpose of

section 421(3)(

e) of the Act:

(

a) a factoring corporation, being a body corporate whose

activities are limited to acting as a factor in relation to accounts

receivable, including the lending of money and the raising of money for the

purpose of financing those activities;

(

b) a financial leasing corporation, being a body corporate that

enters into or acquires agreements as defined in

section 14(1)(

a) of this

Regulation;

(

c) an information management corporation, being a body corporate

that carries on the business of

(

i) the collection, manipulation and transmission of

information that is primarily financial or economic in nature, or

(ii) the sale of related software;

(

d) an investment counselling corporation, being a body corporate

that is registered as an investment counsel under the Securities Act or in

a similar capacity under comparable legislation in another jurisdiction in

Canada;

(

e) a mutual fund corporation, being a body corporate whose

activities are limited to the investing of the funds of the body corporate

or a body corporate that is an issuer of securities that entitle the holder

to receive, on demand or within a specified period after demand, an amount

computed by reference to the value of a proportionate interest in the whole

or in a part of the net assets, including a separate fund or trust account,

of the issuer of those securities;

(

f) a mutual fund distribution corporation, being a body corporate

that is registered as a mutual fund dealer under the Securities Act or in a

similar capacity under comparable legislation in another jurisdiction in

Canada;

(

g) a portfolio management corporation, being a body corporate that

is registered as a portfolio manager under the Securities Act or in a

similar capacity under comparable legislation in another jurisdiction in

Canada;

(

h) a real property brokerage corporation, being a body corporate

whose activities are limited to acting as an agent for vendors or

purchasers of real estate;

(

i) a real property corporation, being a body corporate that is

primarily engaged in holding, managing or otherwise dealing with

(

i) real property, or

(ii) shares of a body corporate or ownership interests

in an unincorporated entity that is primarily engaged in holding, managing

or otherwise dealing with real property, including another real property

corporation or a real property holding vehicle;

(

j) a real property holding vehicle, being a limited partnership or

a trust that is primarily engaged in holding, managing or otherwise dealing

with

(

i) real property, or

(ii) shares of a body corporate or ownership interests

in an unincorporated entity that is primarily engaged in holding, managing

or otherwise dealing with real property, including a real property

corporation or another real property holding vehicle;

(

k) a securities dealer;

(

l) a service corporation, being a body corporate whose activities

are limited to the provision of management services to

(

i) a provincial company,

(ii) a financial institution that is affiliated with a

provincial company, or

(iii) a body corporate in which a provincial company or

financial institution that is affiliated with a provincial company holds or

beneficially owns, separately or in the aggregate, more than 50% of the

issued and outstanding voting shares;

(

m) a specialized financing corporation, being a body corporate

that is primarily engaged in providing specialized business management in

making investments or providing financing or advisory services.

Meaning of "interest in real property"

16 For the purposes of sections 427 and 429 of the Act, "interest in real

property" means

(

a) an interest in real property that, under the generally accepted

accounting principles, would be shown as real property owned by the

provincial company in its financial statements,

(

b) an ownership interest, including shares, in a real property

corporation or a real property holding vehicle that is not a joint venture

and in which the provincial company or a subsidiary of the company that is

not a financial institution has a substantial interest,

(

c) a debt obligation issued by a real property corporation or a

real property holding vehicle that is not a joint venture and in which the

provincial company or a subsidiary of the company that is not a financial

institution has a substantial interest, and beneficially owned by the

company or a subsidiary of the company that is not a financial institution,

(

d) a loan to a real property corporation or a real property

holding vehicle that is not a joint venture and in which the provincial

company or a subsidiary of the company that is not a financial institution

has a substantial interest, where the loan is made by the company or a

subsidiary of the company that is not a financial institution,

(

e) a loan to

(

i) a real property corporation or a real property

holding vehicle in which a financial institution controlled by the

provincial company has a substantial interest, where the loan is made by

the company or a subsidiary of the company that is not a financial

institution, and

(ii) a real property corporation or a real property

holding vehicle that is controlled by a real property corporation or a real

property holding vehicle described in subclause (

i) where the loan is made

by the provincial company or a subsidiary of the company that is not a

financial institution,

(

f) a debt obligation issued by a real property corporation or a

real property holding vehicle described in clause (

e) and beneficially

owned by the provincial company or a subsidiary of the company that is not

a financial institution,

(

g) a debt obligation issued by a real property corporation or a

real property holding vehicle that is not a joint venture and in which the

provincial company or a subsidiary of the company that is not a financial

institution has a substantial interest, and beneficially owned by a third

party and guaranteed by the company or a subsidiary of the company that is

not a financial institution, or

(

h) a loan made by a third party to a real property corporation or

a real property holding vehicle and guaranteed by the provincial company or

a subsidiary of the company that is not a financial institution,

but does not include an interest in real property owned by a financial

institution or by an entity controlled by the financial institution, where

the financial institution is controlled by the provincial company.

Additional interest in real property

17(1) In this section,

(a) "designated entity" means an entity other than

(

i) a joint venture,

(ii) a financial institution, or

(iii) an entity that is controlled by a financial

institution;

(b) "real property corporation" means a body corporate described in

section 15(i);

(c) "real property holding vehicle" means a limited partnership or

trust described in

section 15(j);

(d) "related real property entity", in respect of a provincial

company, means

(

i) a real property corporation or a real property

holding vehicle, other than a designated entity controlled by the company,

in which the company or a designated entity controlled by the company

beneficially owns sufficient shares or ownership interests to cause the

company or designated entity to have a substantial interest in the real

property corporation or real property holding vehicle, or

(ii) a real property corporation or a real property

holding vehicle that is controlled by a real property corporation or a real

property holding vehicle described in subclause (i).

(2) For the purposes of sections 427 and 429 of the Act, where a

provincial company or a designated entity controlled by a provincial

company makes a loan to, or beneficially owns or guarantees the debt

obligation of, a third party, the loan or debt obligation is an interest of

the company in real property if it is secured by

(

a) real property beneficially owned by a third party in

conjunction with

(

i) the company,

(ii) the designated entity,

(iii) a related real property entity of the company,

(iv) a financ