Bill 35 — First Session, 20Th Legislature, 32 Elizabeth Ii the Legislative Assembly of Alberta Bill 35 Hail and Crop Insurance Amendment Act, 1983 (Legislature 20, Session 1)

L20 S1 3655

Alberta — Bills

1983 BILL 35 First Session, 20th Legislature, 32 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 35 HAIL AND CROP INSURANCE AMENDMENT ACT, 1983 THE MINISTER OF AGRICULTURE First Readmg Second Reading Committee of the Whole Third Reading Royal Assent

Bin 35 BILL 35 1983 HAIL AND CROP INSURANCE AMENDMENT ACT, 1983 (Assented to , 1983) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as foUows: 1 The Had arui Crop Insurance Act is ameruied by this Act. 2

Section 1 is amended by renumbering it as

section 1(1) and by adding the following after subsection (1):

(2) If the corporation makes accidental fire insurance available as authorized by

section 12, references in Parts 1 and 2 to hail insurance, haU and haU damage shaU, in so far as the circum stances require, be read as also referring to accidental fire insur ance, accidental fire and accidental fire damage respectively. 3

Section 2 is amended by adding "and consisting of the members of its board of directors" after " "Alberta HaU and Crop Insurance Corporation" ", 4

Section 4 is amended by adding the following after subsection (4):

(5) In the case of members of the corporation who are members of the Legislative Assembly, the acceptance of travelling and liv ing expenses payable under subsection (4) must be authorized by the Lieutenant Govemor in Council, 5

Section 7(2)(

b) is amended by striking out "defray the current expenditures" and substituting "meet the obUgations".

Explanatory Notes 1 This Bill will amend

chapter H-1 of the Revised Statutes of Alberta 1980. 2

Interpretation. 3

Section 2 presently reads: 2 There is hereby created a corporation with the name "Alberta Hail and Crop Insurance Corporation". 4

Section 4(4) presently reads:

(4) The corporation may pay the directors travelling and living expenses while absent from their ordinary place of business in the course of their duties at the rates that may be determined by the corporation. 5

Section 7(2)(

b) presently reads:

(2) The corporation may (

b) borrow from time to time money required to defray the current experuiitures of the corporation, and for that purpose may (

i) hypothecate, pledge and mortgage its property, rights, assets and prospective revenues, arui (ii) execute bills, notes, contracts or other documents that are the evidence of or the security for money so borrowed,

Section 11(

d) is ameruied by adding "haU" before "insurance" wherever it occurs. 7

Section 12 is amended (

a) in subsection (1), by striking out "as mentioned in this sec tion"; (

b) in subsections (1) and (2), by adding "accidental" before "6ic" wherever it occurs; (

c) by repealing subsection (3). 8

Section 13(

a) is amended by striking out "faciUties for" 9

Section 15 is amended (

a) in subsection (2)(b) (

i) by striking out "harvested other than by the straight com bine method," (ii) by adding "and" at the end of subclause (

i) and by re pealing subclause (iii); (

b) by repealing subsection (2)(c); (

c) in subsection (3), by striking out "in red mk".

Section 11(

d) presenUy reads: 11 In this Part, (d) "policy" means the contract between the corporation and an ap plicant for insurance, constituted by a written application for insur ance the acceptance of which by the corporation has become effective. 7

Section 12 presently reads: 12(1) This Part applies only with respect to haU and fire insurance as mentioned in this section.

(2) The corporation shall provide the means whereby insurance may be made available (

a) for insuring crops against damage by hail, and (

b) for insuring crops against damage by fire during the time they are insured by the corporation against damage by hail.

(3) If the corporation makes fire insurance available as authorized by subsection (2), references in this Part to hail insurance and to hail damage shall, in so far as the circumstances require, be read as also referring to hail and fire insurance arui to fire damage. 8

Section 13(

a) presently reads: 13 For the purpose of discharging the duties imposed on the corporation by this Part, the corporation may (

a) do all acts arui things that are requisite and necessary for or inci dental to the purpose of providing facilities for hail insurance pursuant to this Part, 9

Section 15 presently reads: 15(1) The corporation may from time to time prescribe the kiruis of policy that it will issue and the terms arui coruiitions thereof.

(2) Without restricting the generality of subsection (1), any policy may (

a) fix different expiry dates for insurance effected pursuant to this Part, having regard to the rates to be paid to the corporation, (

b) fix the amounts of the reductions in premiums which the corpo ration is hereby authorized to make in respect of any insured crop, or any part of it, harvested other than by the straight combine method, which reductions may differ (

i) as between different kiruis of crop, (ii) as between different hail insurance areas, and (iii) as between different harvesting methods, (

c) fix a date on or before which applications are to be made on forms prescribed by the corporation for any reduction in premium to which an applicant claims to be entitled in respect of any crop or any part ofU harvested otherwise than by the straight combine method, and

Section 16 is amended (

a) in subsection (1) by striking out "the corporation at its head office" arui substituting "an office of the corporation in Alberta or an authorized agent of the corporation"; (

b) in subsection (2) (

i) by striking out "shaU be in writing and", (ii) by adding "and" at the end of clause (

e) arui by repealing clause (f); (

c) in subsection (4) (

i) by striking out "A" and substituting "The", (ii) by renumbering clause (

a) as clause (a.l), and (iii) by adding the following before clause (a.l): (

a) ensure that every appUcation received by a branch office or agent of the corporation is forwarded forthwith to the corporation's head office, 11

Section 17(1) is amended (

a) by striking out "sendmg" and substituting "submitting"; (

b) by repealing clause (

a) and substituting the following: (

a) to an office of the corporation in Alberta or an authorized agent of the corporation; (

c) in clause (

b) by adding "personal deUvery or" after "by" 12

Section 18 is repealed and the following is substituted: 18(1) From the date of issue of the poUcy the corporation has a Uen for unpaid premiums on that poUcy, mterest on those pre miums and charges with respect to the poUcy.

(

d) contain a partial payment of loss clause to the effect that the corporation will pay only (

i) an agreed portion of any loss that is sustained, the portion not to exceed the amount for which the crop is insured, or (

U) the percentage represented by the loss less a percentage spec ified in the policy, the percentage in both cases being a percentage of the amount for which the crop is insured.

(3) When the policy contains a provision as mentioned in subsection (2)(d). there must be printed or stamped on the face of the policy in conspicuous type in red ink the words "This policy contains a partial payment of loss clause". 10

Section 16 presently reads in part: 16(1) A person having an insurable interest in a crop growing on any parcel or parcels of land in Alberta may apply for insurance uruier this Part by delivering an application therefor to the corporation at its head office.

(2) The application shaU be in writing and shaU be signed by the applicant or his agent arui shall set out (

e) the nature of the insurable interest of the applicant, (

f) the amount of any prior encumbrance by way of lien on the crops growing on the parcel or parcels of land referred to in clause (b), and

(4) A corporation shaU (

a) consider every application for insurance as soon as possible after it has been received by the corporation at its head office, arui (

b) proceed to accept or reject the application as the corporation in its absolute discretion decides, but in no case shaU the acceptance become effective prior to 12 noon of the day following the date on which the application was made. 11

Section 17(1) presently reads: 17(1) A person who has effected the insurance with the corporation in respect of a crop may apply to the corporation for the cancellation of his insurance in whole or in part by sending in writing an application for cancellation signed by the applicant or his authorized agent (

a) to the corporation at its head office, (

b) by fully prepaid registered post, and (

c) not later than August 1 in the year in which the insurance was effected. 12

Section 18 presently reads: 18(1) On and after the date of an application to the corporation or the date on which a premium or other amount is charged against the applicant uruier this Part, the corporation has, for the amount of any unpaid pre mium and for aU amounts charged to the applicant uruier this Part, a lien

(2) The lien is on (

a) aU crops grown by the applicant or in which the appUcant has an interest in the year for which the premium is payable, and in each of the next ensuing 3 years, and (

b) aU amoimts payable to the appUcant pursuant to any claim for loss or damage imder any poUcy issued by the corpora tion.

(3) Subject to the Crop Liens Priorities Act, the Uen created by this

section has priority over aU other Uens, encumbrances, claims and demands and the amount of the Uen may be paid by deduc tion from or offset against the amoimt payable to the appUcant imder any poUcy issued by the corporation.

(4) Payment of the premium, interest and charges due to the corporation in respect of a poUcy is enforceable by seizure and sale of the crops and of other goods and chattels of the appUcant to the same extent and in the same manner (with aU necessary modifications) as is provided by the Municipal Taxation Act for the recovery by distress of taxes owing to a municipal district.

(5) The charges chargeable in respect of the seizure and sale are those payable to a sheriff under the Seizures Act.

(6) A person who is the grower of or entitled to a crop that is subject to a Uen under this

section and who either by himself, his servant or agent directly or indirectly seUs, ships or othenvise disposes of any of the crop (

a) without having made due provision for satisfying the Uen, or (

b) without the consent in writing of the corporation or a person authorized by the corporation to give that consent, is guUty of an offence and Uable to a fine in an amount not less than the aggregate of aU sums owing by that person to the cor poration on the day the offence occurred and not more than that amount plus $500.

(7) A person who, knowing that a crop is subject to a Uen under this section, buys, seUs, receives or disposes of any of that crop and does not apply the proceeds or value of it to satisfy the Uen on it, is guUty of an offence and liable to a fine of not more than $500.

(8) A fine imposed on a person under subsection (6) shaU, up to the aggregate of aU sums owing by the person to the corporation on the day the offence occurred, be paid to the corporation in satisfaction of sums owing to the corporation on that date, and any balance shaU be appUed m accordance with the

Summary Convictions Act.

(9) A prosecution under subsection (6) or (7) does not affect any right of the corporation to recover money owing to it.

(

a) on aU crops grown by the applicant or in which the applicant has an interest, (

i) in the year in which the application is made, arui (ii) in each of the next ensuing 3 years, and (

b) on all amounts payable (

i) in respect of any claim for loss by damage from haU to the insured crops under the policy on or in respect of which the pre mium or charges are unpaid, arui (ii) in terms of any other policy issued to the applicant, or in which the applicant has an interest. and the lien referred to in clause (

a) has, subject only to the Crop Liens Priorities Act, priority over aU other liens, encumbrances, claims arui de mands whatsoever.

(2) Payment of the premium due to the corporation in respect of an ap plication or an amount that may be charged under this Part against the applicant is enforceable by seizure and sale of the crops and of other goods and chattels of the applicant to the same extent arui in the same manner (with aU necessary modifications) as is provided by the Municipal Taxa tion Act for the recovery by distress of taxes owing to a municipal district.

(3) The seizure arui sale referred to in subsection (2) may be made arui carried out by a person designated in writing by the chairman, the general manager or the secretary of the corporation or by an appointee of the chairman, the general manager or the secretary for the purpose.

(4) The charges chargeable in respect of the seizure arui sale are those payable to a bailiff uruier the Seizures Act.

(5) The lien referred to in subsection (l)(

b) may in the discretion of the corporation be enforced by the corporation deducting or offsetting the amount of its claim from or against any amounts payable in terms of the policy or policies referred to in subsection (l)(b), or any of them.

(6) A person who is the grower of or entitled to any crop that is subject to a lien under subsection (l)(

a) arui who either by himself, his servant or agent directly or indirectly sells, ships or otherwise disposes of any of the crop (

a) without having made due provision for satisfying the lien, or (

b) without the consent in writing of the corporation or of some person authorized by the corporation for that purpose, is guilty of an offence and liable to a fine which shaU not be less than the aggregate of all sums owing by that person to the corporation on the day on which the offence occurred nor more than the amount of that aggregate arui the additional sum of $100 and in defauh of payment to imprison ment for a term of not more than one year

(7) A person who (

a) has knowledge that any crop is subject to a lien uruier subsection (l)(a), and (

b) buys, sells, receives or disposes of any of the crop arui does not apply the proceeds or value of it to satisfy the lien on it.

(10) A prosecution under subsection (6) or (7) may be com menced within 1 year from the date of the commission of the alleged offence but not afterwards. 13

Section 19(1) is amended (

a) by striking out "send, by registered maU and" and substitut ing "submit, by personal deUvery to or registered maU", and (

b) by striking out "the corporation at its head office" and sub stituting "an office of the corporation in Alberta" 14

Section 22(1) is repealed and the following is substituted: 22(1) Subject to this Part and any partial payment of loss clause, the amoimt payable on a claim under this Part shaU be the same percentage of the amoimt for which the crop is insured as the percentage of damage by haU as ascertained by the corporation.

(1.1) When the percentage damage ascertained under subsection (1) exceeds 70%, an additional amount shaU be paid over and above the amount ascertained under subsection (1) that is equal, as a percentage of the amount for which the crop is msured, to the difference between the percentage damage ascertained under subsection (1) and 70%, to a maximum of either 10% or such lesser percentage as wiU render the combined percentages under subsection (1) and this subsection 100%. 15

Section 23 is amended by striking out "No" and substituting "Except pursuant to this Part, no". 16

Section 24 is repealed and the following is substituted: 24 AU money received by the corporation with respect to hail msurance undertaken by the corporation shaU be deposited into a trust account at a bank or a treasury branch and aU money

is guilty of an offence and liable to a fine of not more than $500 and in defauh of payment to imprisonment for a term of not more than 3 months.

(8) A fine imposed on a person under subsection (6) shall, up to the aggre gate of aU sums owing by the person to the corporation, be paid to the corporation and the balance shaU be applied in accordance with the Sum mary Convictions Act.

(9) The taking of proceedings under subsections (6) and (7) or either of them does not prejudice or affect the corporation's rights to recover in any other way money owing to the corporation.

(10) A prosecution under subsection (6) or (7) may be commenced within 18 months of the commission of the alleged offence, but not thereafter 13

Section 19(1) presenUy reads 19(1) When a crop insured under this

Part is damaged by hail (

a) to the extent of 10% or more, if the policy contains no partial payment of loss clause, or (

b) to the extent that the percentage of damage exceeds the percentage deductible in terms of the policy, if the policy contains a partial pay ment of loss clause, the applicant shall within 3 days after the date on which the damage occurs send, by registered mail and in a prepaid envelope addressed to the corporation at its head office, a notice of claim of loss in the form that may be prescribed by the corporation. 14

Section 22(1) presently reads: 22(1) The amount payable in respect of a claim shall, subject to this Part arui to any partial payment of loss clause, be the same percentage of the amount for which the crop damage is insured as the ascertained percent age of damage by hail, except only that when the ascertained percentage of damage is in excess of 90%, the percentage of damage shaU be deemed to be 100%. 15

Section 23 presently reads: 23 No money payable by the corporation in respect of a claim for dam age to crops by hail is subject to garnishment, attachment, seizure or other legal process. 16

Section 24 presently reads: 24(1) AU sums received by the corporation in respect of haU insurance undertaken by the corporation shaU be deposited in a special trust account in a bank or a treasury branch.

required to be paid by the corporation pursuant to such an in surance shaU be paid out of that trust account. 17 Sections 25 and 26 are repealed.

(2) Accounts shaU be maintained in the books of the corporation which designate the interest of each haU insurance area in the special trust ac count.

(3) The cost of the corporation's operations for each year (

a) shall be apportioned to the several hail insurance areas in a man ner approved by the corporation, and (

b) as so apportioned by the corporation, constitutes a first charge on the interest of each area in the special trust account.

(4) After the payment of the cost of operations for the year into a general operating account to be kept in a bank or a treasury branch, the balance of the funds of each area in the special trust account shaU be available for the payment of the claims payable by the corporation in respect of damage to crops in those areas.

(5) If there is at any time on or before February 28 in any year a balance in the special trust account standing to the credit of any area after provid ing for the payment of all sums payable thereout on account of (

a) the cost of the operations of the corporation, arui (

b) claims for crop damage, the corporation may in its discretion transfer an amount not exceeding 50% of the balance to the credit of a general reserve account.

(6) Funds in the general reserve account shall be available for the payment of claims or for any other expenditures of the corporation that the corpo ration considers proper.

(7) The corporation on or before February 28 in any year may in its discretion transfer a further amount not exceeding 50% of the balarwe referred to in subsection (5) to the credit of any areas whose share of the balance in the special trust account is insufficient to pay in fuU all sums payable thereout on account of the expenses of the corporation, arui claims for crop damage, attributable to those areas.

(8) The amounts so transferred shaU be credited at the discretion of the corporation and shall be regarded as additional furuis available for pay ment of the expenses of the corporation, and claims for crop damage, attributable to those areas.

(9) This

section does not operate when the assets of the corporation exceed its current and d^erred liabilities by the sum of $500 000 or more. 17 Sections 25 and 26 presently read: 25(1) Notwithstaruiing anything in this Part, the corporation may (

a) issue a type of policy containing a clause or clauses (

i) limiting the amount available for the payment of claims for damage to crops insured by that type of policy in any year to the amount standing to the credU of the special account authorized by clause (

d) after providing for such portion of the cost of opera tions of the corporation for the year as the corporation in its discretion may fix, but in no case shaU the portion exceed 25% of the premiums charged on those policies issued in the year

18 Sections 29 and 30 are repealed.

(ii) providing for distribution of the amount that is available in the year on a pro rata basis in the event of that amount being insufficient to pay in fuU aU claims for damage to crops insured by those policies in the year and (iii) providing that the amount paid on the distribution is to con stitute arui be final settlement ofaU claims. (

b) fix the rates to be paid by the corporation in respect of that type of policy, which rates may vary as the corporation in its discretion decides having regard to the prevailing risk of had damage, (

c) insure crops in any year in terms of that type of policy to the maximum amount per acre fixed by the corporation for the year not withstaruiing that the crops have been insured under another type of policy issued by the corporation, arui (

d) set up a special account, the funds of which shaU be used for the payments provided for in clause (

a) and into which shaU be paid aU sums received in respect of the type of policy authorized by this section.

(2) AU collections made after February 28 in any year with respect to policies authorized by this

section issued in previous years shaU be credited to the special account but shaU not be available for distribution on account of claims for losses in any previous year

(3) If the corporation decides to discontinue the issue of the type of policy authorized by this section, any amount at the time standing to the credit of the special account shaU be transferred to the credit of the general reserve account of the corporation.

(4) The right of the corporation to insure crops in the manner provided in subsection (l)(

c) is without prejudice to the right of any person having an insurable interest in the crops to insure under another type of policy issued by the corporation uruler this Part. 26(1) The corporation may make payment of claims in full before Novem ber 1 of the year in which the claims arise.

(2) If payment of claims in any area is not made before November 1 of the year in which the claims arise the corporation shall on November 1 make payment of not less than 50% of each claim in that area arui shaU make payment on or before March 1 next following of the balance of each claim on a pro rata basis, if necessary, having regard to the balance of the share of the special trust account available for the area.

(3) The payments provided for in subsection (2) constitute final settlement ofaU claims for crop damages in the year and no portion of future furuis of any area or of the corporation shaU be made available for application on claims that were settled on a pro rata basis. 18 Sections 29 and 30 presently read: 29(1) Collections made after February 28 in any year on premiums relat ing to the business of the previous year shaU be deposited in the general reserve account to be kept at a bank or a treasury branch.

(2) The funds in the general reserve account may be used for the payment of claims or for any other experuiitures of the corporation that it considers proper

Section 31 is repealed and the following is substituted: 31 The Lieutenant Govemor in CouncU may authorize the Provincial Treasurer, on terms and conditions that the Lieuten ant Govemor in CouncU may prescribe, (

a) to guarantee on behalf of the Govemment the payment of money borrowed by the corporation for the purpose of meeting any of its obUgations, with interest and other chai^ges on the borrowing, and (

b) to advance to the corporation out of the General Revenue Fund money required by the corporation for the purpose of meeting any of its obUgations. 20

Section 39 is repealed and the following is substituted: 39

Section 18 appUes with respect to insurance under this Part.

(3) This

section does not operate while the assets of the corporation exceed its current and deferred liabilities by the sum of $500 000 or more. 30 Notwithstanding

section 24(9) and

section 29(3). aU sums received by the corporation in respect of had insurance undertaken by the corporation .shaU at aU times be deposited in a bank or treasury branch. 19

Section 31 presently reads: 31 The Lieutenant Governor in CouncU may authorize the Provincial Treasurer (

a) to guarantee on behalf of the Government, on the terms arui con ditions prescribed by the Lieutenant Governor in CouncU, the due payment of any money borrowed by the corporation for the purpose of meeting the current operating expenditures of the corporation, and (

b) to advance to the corporation from time to time out of the General Revenue Fund the sums that may be required by the corporation for the purpose of meeting the current operating expenses of the corpora tion (

i) on the security, (ii) at the rate of interest, and (iii) on the terms and conditions, that may be prescribed by the Lieutenant Governor in Council 20

Section 39 presently reads: 39(1) When the total premium payable to the corporation in respect of a policy is not paid, the corporation has on and after the date of the policy or the date on which the amount is charged to the applicant, as the case may be, a lien on all crops grown by the applicant, or in which he has an interest in the year for which the premium is payable, and in each of the next ensuing 3 years, for the amount of the unpaid premium, arui the lien, subject only to the Crop Liens Priorities Act, has priority over all other liens, encumbrances, claims arui demands whatsoever

(2) When the total premium payable to the corporation in respect of a policy is not paid, the corporation has a lien on aU amounts payable in respect of any claim for loss or damage to the insured crops uruier the policy in respect of which the premium is unpaid, arui on all amounts payable in terms of any other policy in which the applicant has an interest, arid the amount of the corporation's claim may in the discretion of the corporation be deducted from or offset against any amounts payable in terms of those policies, or any of them.

(3) Payment of the premium due to the corporation in respect of a policy is enforceable by seizure arui sale of the crops arui of other goods arui chattels of the applicant to the same extent arid in the same manner (with aU necessary modifications) as is provided by the Municipal Taxation Act for the recovery by distress of taxes owing to a municipal district.

(4) The seizure arui sale referred to in subsection (3) may be made arui carried out by a person designated in writing by the chairman, general manager or secretary of the corporation or by an appointee of the chair man, general manager or secretary for the purpose.

Section 41 is amended by striking out "No" and substituting "Except pursuant to this Part, no". 22

Section 3 shall be deemed always to have been in force. In accordance with

section 4(1) of the

Interpretation Act, this Bill, except

section 3, comes into force on the date it receives Royal Assent.

(5) The charges chargeable in respect of the seizure and the sale shaU be those payable to a bailiff under the Seizures Act.

(6) A person who is the grower of or entitled to a crop that is subject to a lien uruier subsection (1) who either by himself, his servant or agent di rectly or indirectly sells, ships or otherwise disposes of any of the crop (

a) without having made due provision for satisfying the lien, or (

b) without the consent in writing of the corporation or a person au thorized by the corporation is guilty of an offence arui liable to a penalty which shaU not be less than the aggregate ofaU sums owing by that person to the corporation as at the day on which the offence occurred and shall not exceed the amount of that aggregate arui the additional sum of $100 and in default of payment to imprisonment for a term of not more than one year.

(7) A person who, having knowledge that a crop is subject to a lien uruier subsection (1), buys, sells, receives or disposes of any of that crop and does not apply the proceeds or value thereof in satisfying the lien on it, is guilty of an offence and liable to a fine of not more than $500, and in default of payment to imprisonment for not more than 3 months.

(8) A penalty imposed on a person uruier subsection (6) arui paid shall, up to the aggregate of all sums owing by the person to the corporation, be paid to the corporation, and the balance shall be applied in accordance with the

Summary Convictions Act.

(9) The taking of proceedings under subsections (6) and (7) or either of them does not prejudice or affect in any way the corporation's rights to recover money owing to it.

(10) Proceedings under subsection (6) or (7) may be commenced within one year from the date of the commission of the alleged offence and not afterwards. 21

Section 41 presently reads: 41 No money payable by the corporation in respect to claims for crop losses is subject to garnishment, attachment, seizure or other legal process. 22 Commencement. Title: 1983 (20th, 1st) Bill 35, Hail and Crop Insurance Amendment Act, 1983

Document details

Collection	Alberta — Bills
Citation	L20 S1 3655
Type	bill
Volume / chapter	L20 S1 3655
Language	en
Format	json
Source	PROVINCIAL
Identifier	aad24547fc9e6889a1c8d6e04c17a1a2ebf54658

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