Third

Session, 46th General Assembly

Elizabeth II, 2010

BILL 16

AN ACT TO AMEND THE

INSURANCE COMPANIES ACT

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

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

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

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

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

HONOURABLE KEVIN O'BRIEN

Minister

of Government Services

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Insurance Companies Act

to authorize the

Lieutenant-Governor in Council to make regulations respecting the underwriting,

rating and market conduct practices of property and casualty insurance

companies;

to add a provision to clarify

that an insurer shall not decline to issue, refuse to renew or terminate a

contract or refuse to provide or continue coverage on a ground prescribed in

the regulations; and

to add a provision to clarify that an insurer shall not use a ground

in a risk classification system that is prohibited in the regulations.

A BILL

AN ACT TO AMEND THE INSURANCE COMPANIES ACT

Analysis

Ss.95.1 to 95.3 Added

95.1 Application

95.2 Prohibited

practices

95.3 Prohibited grounds

S.107 Amdt.

Regulations

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

RSNL1990 cI-10

as amended

1. The Insurance

Companies Act is amended by adding immediately after

section 95 the

following:

Application

95.1 Sections

95.2 and 95.3 apply to all classes of insurance except automobile insurance.

Prohibited practices

95.2 An

insurer shall not decline to issue, refuse to renew or terminate a contract or

refuse to provide or continue coverage or an endorsement in respect of a

contract on a ground prescribed in the regulations.

Prohibited

grounds

95.3 An

insurer shall not use a ground in its risk classification system that is prohibited

in the regulations.

Section 107 of the Act is amended by adding

immediately after paragraph (e.1) the following:

(e.2) prescribing the grounds an insurer is

prohibited from using under

section 95.2 to decline to issue, to refuse to

renew or to terminate a contract or to refuse to provide or continue coverage

or an endorsement in respect of a contract;

(e.3) prescribing the grounds an

insurer is prohibited from using under

section 95.3 in a risk classification

system;

(e.4) for the purpose of paragraph (e.2) or (e.3),

prescribing different prohibited grounds for different classes of insurance;

Earl G. Tucker, Queen's Printer