Bill 109 — Fourth Session, 16Th Legislature, 20 Elizabeth Ii the Legislative Assembly of Alberta Bill 109 An Act To Amend the Alberta Insurance Act (Legislature 16, Session 4)

L16 S4 4946

Alberta — Bills

1971 Bill 109 Fourth Session, 16th Legislature, 20 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 109

An Act To Amend The Alberta Insurance Act THE HON. MR. HOLOWACH First Reading Second Reading Third Reading ............................. . Printed by L. S. Wall, Queen's Printer, Edmonton

BILL 109 1971

AN ACT TO AMEND THE ALBERTA INSURANCE ACT (Assented to ,1971) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: 1. The Alberta Insurance ~4ct is hereby atnended . • ' 2.

Section

j) is a1nended by adding the following clause after clause 13: 13.1 "Commission" m'eans the Alherta Securities Com mission;

Section 137 is amended by striking out subsection (2) and by substituting the following:

(2) Notwithstanding any provision in its special Act of incorporati'on, a ,company may, with the approVial of the Lieutenant Governor in Council, reorganize its share capi tal to create shar,es of $1 each or any multipl<e thereof but not more than $100.

Section 166, subsection (1) 1,S amended by striking out clause (d).

Section 216 is amended by adding the following sub

section after subsection (4):

(5) This

section appHes to contracts of life insurance.

Section 300 is amended by adding the folowing sub

section after subsection (4):

(5) The premium for the insurance required under this

section shall be shown separately on the n10tor vehicle lia bility policy from the premium for any additional or other benefits under the policy. 7. The following sections are added after

section 300:

Explanatory Notes l. This Bill will amend

chapter 187 of the Revised Statutes of Alberta 1970. 2. Definition moved from

section 166 (1) (d). 3.

Section 137(2) presently reads:

(2) Not\vithstanding any provision in its special Act of incorporation, a company incorporated before April 15, 1964 may, with the approval of the Lieute'nant Governor in Council, rec,rganize its share capital to create shares of any multiple of $5 but not less than $10 nor more than $100. The amendment will permit any insurer, whenever incorporated, to reorganize its share capital by reducing the par value of its shares. 4.

Section 166(1)(

d) presently reads: 166.

(1) In this section, (d) "Commission" means the A,lberta Securities Commission; Definition moved to

section 2. 5.Section 216 refers to the filing of various matters with the Superintendent and reports by the Superintendent to the Minister. The amendment is made for clarification.

Section 300 presently reads: 300.

(1) Every contract evidenced by a motor vehide liability policy insures, in respect 00£ anyone acc.ide'nt, to the limit of at least $35,000, exclusive of interest andco'sts, against liability resulting from bodily injury to or the death 'of ,one 0'1' more persons and ]oss of or damage to property.

(2) The contract shall be interpreted to mean that where, by reason of any Oone accident, liability results from bodily injury or death and fro.m loss of or damage to property, (

a) claims against the insured arising out of bodily injury or death have priority to the extent of $30,000 over c:laims arising out ,of 100ss of ;0'1' damage tOo property, and (

b) claims against the insured arising out Oof loss of or damage to pr,operty have priorty to the extent of $5,000 over claims arising :out of bodily injury or death.

(3) The insurer may, instead of specifying a limit in the policy for am inclusive amount, specify a limit of liability of at least $35,000, exclusive of interest and costs, against liability resulting from bodily injury to or the death of one or more persons and a limit of lirubility of at least $35,00, exclusive of interest and costs, against Hability for loss ,of or damage to property.

(4) Nothing in this Part precludes an insurer, with respect to a limit or limits in excess of those specified in subsecti'on (1) .or (3), from increasing ,or reducing the Emit or limits specified in the contract with respect to the use or operati,on of the automObile by a named person, but no reduction is effective for a limit less than that required under subsection (1) 0'1' (3). 7. Accident insurance benefits to form part of motor vehicle insurance policy.

300.1

(1) On and lafter April 1, 1972 every contract evidenced by a motor vehicle liability policy (whether made or renewed before, on or after that date) insures in respect of anyone accident involving an automobile, for accident ins:ur1anee benefits tlO at least the amounts spelCified in this section.

(2) The insurer shall pay death benefits upon the death of an insured person based on the age and status of the dec,eased insured person at the date of the accident in a hous'eih'01d where tJhe spouse or dependent relative of the dec-ea,sled survive (hereinafter clalHed athe pr~ncipial sum") in accordance with the following table: Status of Deceased at date of Accident ;::; ~ ;;:::(;D~ oj...;:) '-1-.,'0 .~ go ;::: I:

l) I:

l) Age of De,ceased at O...s::: ~~~ ~;, I:l) ~.~ ~C/;J ..., C/;J ~~ Date of Accident ~ ;;l 0 0 :::; ~o p"~o I:

l) I:

l) b::~ r./J &-1 ~ Q~ Up to age 4 years $ $ $ 500 5 to 9 years 1,000 10 to 17 years 5,000 2,500 1,500 18 to 64 years 5,000 2,500 1,000 65 to 69 years 3,000 1,500 1,000 70 years and over 2,000 1,000 500 (3) vVhere the head of the household dies, in addition to the principal Sluns parid in accordance with sub8'2ction (1), the insurer shaH pay 20 per Icent of the principal sum payable for the death of the head of the househo1d, f'Or each survivor other than the first.

(4) In addition to subsections (2) and (3), where the head of the household dies, and (

a) there are two or n10re survivors, the insurer shall pay one per eent of tfue totlal of t1he principal sum and the slUm payra1ble under subsect:on (3), or (

b) where there is one survivor, the insurer shall pay one percent 'Of ifue principal Slum payable for the death 'Of the head 'Of ,the 'horusehold, per week for a period of 104 weeks or until (

c) in the case of clause (a), the death of all survivors, or (

d) in the case of clause (b), the death of the survivor whichever occurs first.

(5) The insurer shall pay actual funeral costs up to a maximunl of $500 in respect of the death of each insured person as a result of an automobile accident.

(6) In the event of total disability of an insured per son, the insurer shall pay, except for the first seven days, 2

(a) $50 peir week if 80 per Icent 'Of Ithe in3IUred perslo-n's gross earnings are more than $50, O'r (b) $40 pelr week if 80 percent of the inslUr,ed person':3 gross earningsa1re I}e'ss :than $40 per week, OIr (

c) whe-r8 80 per cent IOf the insured peTslon's groEI:' ea.rnings a,re between $40 'and $50 per week, then that sum for a period of 104 weeks or until the injury ceases to be a total disability, whichever period is the shorter, provided that (

d) the insured person was employed at the date of the aceident, and (

e) the total disability prevents him from performing every duty pertaining to his occupation or employ ment.

(7) Section 313 applies to the accident insurance bene fits under this secti'On.

(8) The rates for the accident insurance benefits speci fied in this

section shall be the same for every policy issued by an insurer in Alberta subject to the provisions relating to the increase of rates contained in

section 321.4.

(9) The rates for the accident insurance benefits in this

section shall be shown separately on the motor vehicle liability policy from the rates for any additional or other benefits under the policy.

(10) In this

section "survivor" means spouse and de pendent relJatives. 300.2 The Lieutenant Governor in Oouncil may m'ake regulations (

a) prescribing the exclusions, conditions, restrictions and terms and conditions permitted with respect to the accident insurance benefits to be provided under

section 300.1, and (

b) defining any word or expression used in secbe: 300.1. 8. The following section8 are added after se,ction .J,?1: 321.1

(1) Tlhe Lieuentanrt Gove'fI1:or in OounC'iil may es tablish a board to be known as the "Alberta Automobile Insurance Board" (hereafter called "the Board") consist ing of such men1bers as the Lieutenant Governor in Coun cil appoints.

(2) The Lieutenant Governor in Council may (

a) designate one of the members of the Board as chairman and another as vice-chairman, and (

b) fix the rem.uneration and provide for the payment of exp2nses to be paid to the members who are not emploY'ees of the Government. 3

8. Alberta Automobile Insurance Board. 3

(3) In accordance with The Public Service Act there n1ay be appointed such staff and other persons as may be required by the Board.

(4) Subject to the approval of the Lieutenant Governor in Council, the Board may from time to time appoint one 01' more experts or persons having special technical or other knowledge to inquire into and report to the Board in respect of any matter before the Board or in respect of which the Boal'd deems it neC'2ssary to have inforrnatiol1 for the prop'2r carrying out of its duties.

(5) A person appointed by the Board pursuant to sub section (4) shall be paid such remuneration as may be pre scribed by the Lieutenant Governor in Council.

(6) A majority of members constitute a quorum of the Board for the purpose of exercising its powers and per forming its duties.

(7) An order, dil'ection, approval or other instrument that the Board is permitted or required to make, may be made on its behalf by thecihairm,an, vice-chairmlan OIr any other member of the BOIard.

(8) An order, d'irection, approval or 'Other instrument purporting Ito be signed by the ,clhaiirman, vice-chairman or a ,member of the Board on behailf of the Board shall be admiitted in evidence in any procee~:Ungs as prim'a facie proof (

a) that the order, direction, approval or instrument is the act of the Board or a quorum thereof, and (

b) that the person s,igning it was authorized to do so without proof of the appointment of the person signing as a member of the Board, or his designation as chairman or vice-clhairman, as the ease may be, or IOf his signature.

(9) The Board may make rules governing its proce dures.

(10) T'hecha'irman, viee-c:halirmranand every other mem her of the Board has the power of a commissioner under The Public Inquiries Act. 321.2

(1) In this

section and

section 321.3, 321.4, 321.5 and 321.6 "n1inimU1TI insurance" means the insurance re ferred to in

section 300, subsection (1) and

section 300.l. 4

(2) The Board has the power (

a) to investigate any matter it thinks fit respecting auton10bile insurance in Alberta, including rates, benefits and availability of auton10bile insurance, and (

b) to prohibit any rate for the minimum insurance above the rate filed pursuant to

section 321.4 and to prohibit any change which would have the effect of increasing the rate for the minimum insurance

for any insured person or class of insured persons in Alberta unless the -increase or change has first been approved by the Board under

section 321.4. 3.21.3

(1) In this selCtion and sections 321.2, 321.4, 321.5 and 321.6 "rates" means the price charged for a motor vehicle liability policy or any coverage under that policy.

(2) On or before July 1, 1971 every insurer of auto mobiles shall file with the Board its full

schedule of rat'es in effect on AprH 1, 1971 applicable to 'every motor vehicle liabiE tyinsurance policy issued by the insurer showing separately the rates charged for the minimum insurance (if any).

(3) Every insurer licensed after April 1, 1971, shall file wjth the Board its full

schedule of rates it intends shall be lapplicable to eve'ry motor veihi'cle Ii1ability insurance policy to be issued by it, showing separately the r~tes pro posed to be eharged for tlhe mini'mum insurance. 321.4 (1) 011 or beforre January 1, 1972, 0'r such later date as the Minister may allow, every ,insurer shall file with the Board the rates it proposes to charge for the minimum insurance on and after April 1, 1972, whether or not rthe rates 'are included in the r1ates filed under 'Sec tion 321.3, subsection (2).

(2) On and after April 1, 1972, no insurer shall charge the proposed rates filed under subsection (1) or the pro posed rates filed under

section 321.3, subsection (3) or any other rate for the minimum insurance, unless the proposed rates have been first approved by the Board in writing.

(3) Where an insurer receives approval of his pro posed rates for the minimum insur2.nce he may not in crease the rates or in any manner change the rates which would have the effect of increasing the rates payable for the minimum illisiUrance wi,thout first (

a) applying to the Board, and (

b) receiving its approval pursuant to subsection (5).

(4) Where the Board is not satisfied that an insurer has filed all the matters referred to in this section, or re quires additional details or information, it may, by order directed to tlhe insure'r, require the additional information and details.

(5) Where an insurer wishes to increase any rates for the minimum insurance or make any change that would have the effect of increasing the rates for any insured person or class of insured persons, it shall apply to the Board for approval of the increase and the Board in its discretion by order may (

a) approve the increase or such lesser increase as it sees fit, or 5

(

b) prohibit the increase. 321.5

(1) An insurer who (

a) fails to file its rates, pursuant to

section 321.3, subsection (2) or

section 321.3, subsection (3), or (

b) fails to file the rate it proposes to charge pursuant to

section 321.4, subs'2ction (1), or (

c) charges the proposed rate prior to its approval contrary to

section 321.4, subsection (2), or (

d) increases or changes the rate payable for the mini n1um insurance contrary to

section 321.4, sub section (3), or (

e) in any manner fails to comply with an order or d'ireCition 'of the Board, lOr (

f) fails to comply with the regulations is guil>ty of an offenoeantd Hable oln :summary conv~_ction to a fine of not more than $5000.

(2) Where an insurer is convicted of a second or sub sequent offence under this

section the Minister may sus pend the licence of the insurer.

(3) Where the Minister suspends the licence of an in surer the Minister -shall report the suspension to the Lieu tenant Governor in Council who may (

a) remove the suspension with or without conditions, or (

b) confirm the suspension for a stated time or until such conditions as he may impose have been met, or both, or (

c) termina te the licence. 321.6

(1) The Lieutenant Governor in Council may make regulations (

a) establishing a plan for the equitable assignm'ent of risks and empower the Board to dir,ect an insurer to accept an assignment of risk, and (

b) to permit rating bureaus to file on behalf of one or more insurers named by the Board, schedules of rates or an application for an increase in rates for the minimum insurance.

(2) Regulations made under subsection (1), clause (

b) do not relieve an insurer on whose behalf a rating bureau is acting from ensuring that the provisions of this Part relating to filing and approval of rates are complied with. 321.7

(1) The Board sinaIl mlake land suhmit to the Min ister ,an ,annuaJl report on the 'Operation of the Board.

(2) The Minister shall .lay vhe report before the Legis lative Assembly if it is then in session or if it is not, within 15 days of the 'Opening of the next foUowing session. 6

321.8

(1) Except ,as provided in rijhi,s

section (

a) every decision, order, approval, regulation, direc tion or proceeding of the Hoard is fi'nlall, 'and (

b) no decision, order, approval, regulation, direction or proceeding of the Board shall be questioned or reviewed, restrained or removed by prohibition, inj unction, certiorari or any other process or pro eeeding lin any Icourt.

(2) Upon a question of jurisdiction or upon a question .of ~aw, an alppeal Ees from the Boalrd to the Appellate Division of the Supr'eme Court of Alberta.

(3) Leave to appeal shall be obtained from a judge of the court of appeal upon application made within one month after the making of the decision, order, approval, regula tion, direction or proeeeding sought to be appealed from, or within such further time as the judge under special cir cumstances may allow and upon notice to the parties and to the Board and upon hearing such of them as appear and desire to be heard and the costs of the application are in the discretion of the judge. 9. This Act comes into j01'ce on the day upon 'Which it is assented to. 7

7 Title: 1971 (16th, 4th) Bill 109,

An Act To Amend The Alberta Insurance Act

Document details

Collection	Alberta — Bills
Citation	L16 S4 4946
Type	bill
Volume / chapter	L16 S4 4946
Language	en
Format	json
Source	PROVINCIAL
Identifier	a2c5f5807503b0bcc7be4da313146891d1e7bd2f

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