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Volume 47, No. 25

B.C. Reg. 571/2004

The British Columbia Gazette,

Part II

December 14, 2004

B.C. Reg. 571/2004, deposited December 13, 2004, pursuant

to the FINANCIAL INSTITUTIONS ACT [Section 289]. Order in Council

1232/2004, approved and ordered December 11, 2004.

On the recommendation of the undersigned, the Lieutenant Governor,

by and with the advice and consent of the Executive Council, orders that, effective

December 31, 2004, the Insurance Licensing Exemptions Regulation,

B.C. Reg. 328/90, is amended as set out in the attached schedule.

— G. M. COLLINS, Minister of Finance; S. BOND, Presiding

Member of the Executive Council.

Schedule

Section 1 of the Insurance Licensing Exemptions Regulation, B.C. Reg. 328/90, is amended by adding the following

definitions:

"credit insurance" means insurance under which an insurer undertakes to pay credit balances or debts of an individual, in whole or in part, on the individual's death or in the event of an impairment or potential impairment of the individual's income or ability to earn an income, but does not include insurance that is included in or incidental to another class of insurance;

"funeral services insurance" means insurance in

respect of a "preneed cemetery or funeral services contract" as defined in the

Cremation, Interment and Funeral Services Act , if the total amount payable

by the insurer under the contract is $15 000 or less;

"funeral director" means a funeral director as

defined in the Cremation, Interment and Funeral Services Act ;

"funeral provider" means a funeral provider as

defined in the Cremation, Interment and Funeral Services Act ; .

Section 1 is amended by repealing the definition of "travel insurance" and substituting the following:

"travel insurance" means

(

a) insurance in respect of a trip by a person away from the place where the person ordinarily resides, without any individual assessment of risk, against

(

i) loss of, or damage to, personal property that occurs while on a trip,

(ii) loss that is caused by the delayed arrival of personal

baggage while on the trip, or

(iii) loss that is incurred from the rental of a motor vehicle while on the trip, or

(

b) insurance in respect of a trip by a person away from the place where the person ordinarily resides,

(

i) against expenses incurred while on the trip that

result from an illness or disability of the person that occurs on the trip,

(ii) against expenses incurred while on the trip that

results from bodily injury to, or the death of, the person caused by an accident

while on the trip,

(iii) whereby the insurer undertakes to pay one or more

sums of money in the event of an illness or the disability of the person that

occurs on the trip, or of bodily injury to or the death of, the person that

is caused by an accident on the trip,

(iv) against expenses incurred by the person for dental

care necessitated by an accident while on the trip, or

(

v) in the event that the person dies while on the trip,

against expenses incurred for the return of that person's remains to the place

where the person was ordinarily resident before death, or travel expenses for

a person to go and pick up that person's remains, or

(

c) insurance against loss that results from the cancellation or interruption of the trip.

3 The following

section is added:

Exemption from

section 170 of the Act

2.1

Section 170 of the Act does not apply to a

travel agent or travel wholesaler who holds a license in respect of travel insurance.

Section 2 is amended

(

a) by renumbering it as subsection (1),

(

b) by repealing subsection (1) (

c) and substituting

the following:

(

c) subject to subsection (2) (a), and with the exception

of an employee of a mortgage broker registered under the Mortgage Brokers

Act , to a person whose only activity as an insurance agent or insurance

salesperson is in connection with credit insurance sold incidentally to the

granting or arranging of credit by that person or that person's employer, ,

(

c) by adding the following paragraphs:

(b.1) to

(

i) a trust company, credit union, extraprovincial trust

corporation, extraprovincial credit union or a bank or the officers or employees

of any of them, or

(ii) a service provider under contract to a trust company,

credit union, extraprovincial trust corporation, extraprovincial credit union

or bank

while acting as insurance agent in connection with credit

insurance, incidental to the ordinary business of the trust company, credit

union, extraprovincial trust corporation, extraprovincial credit union or bank,

(

k) to a person who does not act for compensation or

hope or promise of it,

(

l) to a person who acts only for the purpose of collecting

and receiving premiums for insurance,

(

m) to a person who acts on behalf of a mutual fire insurance

company,

(

n) to a person who acts on behalf of a society that

makes contracts of life insurance, accident insurance or sickness insurance,

(

o) to a person who is an insurer's manager or branch

manager who is in charge of the insurer's head office or branch office in British

Columbia and is paid a salary and not by commissions,

(

p) to a person who is an employee of an insurer or insurance

agent if the employee does not solicit insurance, is paid a salary by the insurer

or insurance agent and does mainly clerical work,

(

q) to a person who is employed in an office of a transportation

company to sell its tickets or carry on business as a ticket agent of the company

in respect of accident insurance against accidents to persons only while travelling,

or in respect of inland transportation insurance or marine insurance against

loss of or damage to baggage of persons only while travelling, if the company

holds a licence issued under rules made by the council in respect of those classes

of insurance, or

(

r) to a person, who by a certificate given to the council

(

i) a reciprocal exchange that has a permit under

section

187, or

(ii) a company registered under the Insurance (Captive

Company) Act ,

is certified as being a full time salaried employee of

the exchange or company who does not act as an insurance agent or insurance

salesperson in any other capacity and who does not receive commissions. ,

(

d) by repealing paragraph (g), (

h) and (

i) and substituting

the following:

(

g) to a motor vehicle dealer or an employee or commissioned

sales representative of a motor vehicle dealer whose only activity as an insurance

agent or insurance salesperson is in connection with vehicle warranty insurance

sold incidentally to the ordinary business of the motor vehicle dealer as such,

(

i) to an employee or a commissioned sales representative

of a person licensed as a travel agent or travel wholesaler under the Business

Practices and Consumer Protection Act if

(

i) the travel agent or travel wholesaler holds a license

in respect of travel insurance issued under the rules made by the council,

(ii) the employee or commissioned sales representative

has passed a course specified by the rules of the council for travel agents

and travel wholesalers,

(iii) the only activity of the employee or commissioned

sales representative as an insurance agent or insurance salesperson is in connection

with travel insurance sold incidentally to the ordinary business of the travel

agent or travel wholesaler, and

(iv) the employee or commissioned sales representative

has completed a minimum of 2 hours of continuing education as specified by the

council. , and

(

e) by adding the following subsection:

(2) Section 171 (2) does not apply to

(

a) a mortgage broker or submortgage broker registered

under the Mortgage Brokers Act whose only activity as an insurance agent or

insurance salesperson is in connection with credit insurance sold incidentally

to the granting or arranging of credit by that mortgage broker or submortgage

broker or the employer of the submortgage broker, on condition that the mortgage

broker or submortgage broker disclose to the person to whom he or she sells

credit insurance

(

i) that there is no obligation to buy the credit insurance,

(ii) that he or she is not a licensed insurance agent

or salesperson and that the person may wish to seek advice from a licensed insurance

agent or salesperson,

(iii) whether it is a group credit insurance policy and,

if so, who the policy holder is, and

how to make a claim, or

(

b) a funeral director or funeral provider or an employee

of either of them, whose only activity as an insurance agent is in connection

with funeral services insurance sold incidentally in the ordinary course of

business of the funeral director or funeral provider, on condition that

(

i) none of them be named the beneficiary under the contract

of funeral services insurance, and

(ii) the funeral director or funeral provider or employee

of either of them disclose to the person to whom he or she sells funeral services

insurance that

(

A) he or she is not a licensed insurance agent or salesperson

and that the person may wish to seek advice from a licensed insurance agent

or salesperson, and

(

B) there is no obligation to buy the funeral services

insurance.

5 Sections 3, 4 and 5 are repealed.

Section 6 is repealed and the following substituted:

Exemption from

section 180 (1) of the Act

Section 180 (1) of the Act does not apply to

a person who

(

a) does not act for compensation or in hope or for the

promise of it,

(

b) is employed as an expert by an insurance adjuster

to make an appraisal or adjustment in a special case,

(

c) is a solicitor or an employee of one in the solicitor's

regular practice of law,

(

d) is an insurance agent licensee acting on behalf of

an insurer,

(

e) is the manager or branch manager in British Columbia

of an insurer authorized to conduct insurance business or is a salaried employee

of that insurer, and who in either case is acting for that insurer, or

(

f) is a government employee or agent in the administration

of any program established under the Insurance for Crops Act or the Farm

Income Insurance Act .

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