© Published by Alberta King’s Printer Alberta King’s Printer Suite 700, Park Plaza 10611 - 98 Avenue Edmonton, AB T5K 2P7 Phone: 780-427-4952 E-mail: kings-printer@gov.ab.ca Shop on-line at kings-printer.alberta.ca Province of Alberta Office Consolidation Revised Statutes of Alberta 2000

Chapter I-3 Current as of May 14, 2026 INSURANCE ACT

Copyright and Permission Statement The Government of Alberta, through the Alberta King’s Printer, holds copyright for all Alberta legislation. Alberta King’s Printer permits any person to reproduce Alberta’s statutes and regulations without seeking permission and without charge, provided due diligence is exercised to ensure the accuracy of the materials produced, and copyright is acknowledged in the following format: © Alberta King’s Printer, 20__.* *The year of first publication of the legal materials is to be completed.

Note All persons making use of this consolidation are reminded that it has no legislative sanction, that amendments have been embodied for convenience of reference only. The official Statutes and Regulations should be consulted for all purposes of interpreting and applying the law.

Regulations The following is a list of the regulations made under the Insurance Act that are filed as Alberta Regulations under the Regulations Act. Alta. Reg.

Amendments Insurance Act Adverse Contractual Action ........................... 28/2015 ........... 177/2020, 87/2023 Automobile Accident Insurance Benefits .................................................... 352/72 ............. 233/78, 12/81, 273/82, 409/87, 171/88, 178/89, 306/91, 114/95, 4/98, 36/98, 121/2004, 259/2006, 149/2011, 127/2012, 39/2016, 72/2018, 180/2020, 202/2020 Automobile Insurance Premiums ................... 117/2014 ......... 74/2018, 181/2020, NOTE: AR 226/2025 comes into 275/2020, 150/2023, force on December 31, 2026 226/2025, 227/2025 Automobile Insurance Rate Board Fees ......... 179/2005 ......... 187/2006, 118/2008, 29/2015, 177/2020, 141/2023 Classes of Insurance ....................................... 144/2011 ......... 225/2013, 159/2014, 177/2020, 140/2023 Complaint Resolution ..................................... 259/2004 ......... 206/2014, 179/2017 Diagnostic and Treatment Protocols .............. 116/2014 ......... 203/2020 Direct Compensation for Property Damage ...................................... 132/2021 Fair Practices .................................................. 128/2001 ......... 96/2006, 145/2011, 183/2011, 129/2012, 225/2013, 39/2016, 45/2018, 126/2019, 177/2020, 56/2026 Home Warranty Insurance ............................. 225/2013 ......... 159/2014, 143/2018 Insurance Agents and Adjusters ..................... 122/2001 ......... 293/2002, 9/2003, 93/2003, 109/2003, 376/2003, 128/2004, 196/2005, 94/2006, 19/2009, 36/2010, 88/2011, 144/2011, 145/2011, 199/2012, 125/2019, 15/2020, 20/2022, 224/2025 Insurance Councils ......................................... 126/2001 ......... 27/2002, 10/2003, 104/2006, 68/2008, 198/2009, 164/2010,

148/2011, 31/2012, 62/2013, 39/2016, 45/2018, 177/2020, 21/2022, 218/2022, 225/2025 Insurance Enforcement and Administration ......................................... 101/2022 ......... 150/2023, 158/2025 NOTE: AR 228/2025 comes into 228/2025 force on Dec 31, 2026 Minor Injury ................................................... 123/2004 ......... 260/2006, 35/2011, 39/2016, 73/2018, NOTE: AR 214/2025 s25 comes into force 204/2020, 125/2024, on the coming into force of s45(17) of the 211/2024, 199/2025, Health Statutes Amendment Act, 2025 214/2025 Miscellaneous Insurance Provisions .............. 120/2001 ......... 180/2001, 213/2001, 187/2002, 287/2003, 374/2003, 257/2005, 91/2006, 15/2007, 203/2010, 100/2011, 146/2011, 2/2016, 142/2018, 133/2021, 291/2025 Provincial Companies .................................... 124/2001 ......... 340/2003, 90/2006, 241/2007, 18/2008, 17/2009, 79/2011, 39/2016, 45/2018, 178/2020, 25/2026 Reciprocal Insurance Exchange ..................... 123/2001 ......... 92/2006, 39/2016, 45/2018, 179/2020, 26/2026 Recovery of Insurance Administration Costs ......................................................... 102/2022 Replacement of Life Insurance Contracts .................................................. 127/2001 ......... 9/2003, 95/2006, 154/2010, 39/2016, 45/2018, 177/2020, 27/2026 Transitional (Insurance Amendment Act, 2008 —

Part 5) ................................. 185/2011 ......... 103/2017

1 INSURANCE ACT

Chapter I-3 Table of Contents

Interpretation 1

Definitions 2 Adjuster 3 Affiliate 4 Beneficial ownership 5 Control 6 Holding body corporate 7 Ordinarily resident in Canada 8 Significant interest 9 Subsidiary 10 Substantial investment 11 Incorporated Application 13 Mutual bene fit societies 14 Benefits provided under authority of federal Act 15 Benefit plans for medical care, accident and sickness benefits 15.1 Employee benefit schemes for income replacement 16 Regulations Crown Immunity 16.1 Crown immunity

Part 1 Licensing of Insurers and Reciprocal Insurance Exchanges Subpart 1 Licensing of Insurers Insurer’s Duty to be Licensed 17 Undertaking insurance and carrying on business

RSA 2000

Chapter I-3 INSURANCE ACT 2 18 Requirement for licence Licensing Requirements 19 Types of insurers 20 Application requirements 21 Names 23 First licence of provincial company 24 Ability to carry on class of insurance 25 Base capital 26 Compliance with market conduct laws 27 Issuing licence 28 Notice of licence 29 Expiry 30 Renewal of licence 31 Duty on expiration of licence 32 Terms and conditions 33 Automobile insurance Classes of Insurance 34 Classes of insurance 35 Restriction on classes of insurance 36 Prohibited activities 37 Scope of insurance Attorney for Service 39 Attorney for service 40 Attorney ’s change of address 41 Change in attorney 42 No attorney for service Reporting Requirements 43 Annual financial statements 44 Annual return 45 Change in officials 46 Report on business particulars 47 Records to be filed 48 Audit of records 49 Other information — licensed insurers 50 Additional information Suspension, Cancellation and Other Actions Affecting Insurers’ Licences 51 Federally authorized companies

RSA 2000

Chapter I-3 INSURANCE ACT 3 52 Extra-provincial companies 53 Cancellation on request 54 Sanctions affecting licences 55 Non-payment of claims 56 Effect of cancella tion or suspension 57 Provisional liquidator 58 Remuneration of provisional liquidator Municipal Licensing Fees 59 Exemption from certain fees Regulations 60 Regulations Subpart 2 Exceptions Unsolicited Insurance 61 Unsolicited insurance Reinsurance 62 Reinsurance Special Brokers 63 Insurance through special broker 64 Certificate of authority 65 Financial guarantee 66 Application for special broker ’s licence 67 Issuing certificates 68 Terms and conditions 69 Expiration 70 Status of certif icate of authority 71 Reporting requirements 72 Payments in respect of premiums 73 Records 74 Financial guarantee not in force 75 Using different names 76 Release of financial guarantee Regulations 77 Regulations

RSA 2000

Chapter I-3 INSURANCE ACT 4 Subpart 3 Licensing of Reciprocal Insurance Exchanges 78

Definitions 79 Licence required 80 Exception 81 Classes of insurance 82 Automobile insurance 83 Property insurance 84 Application for licence 85 Name of exchange 86 Issuing licence 87 Notice of licence 88 Premium deposit 89 Management of exchange 90 Term of licence 91 Annual return 92 Signing contracts 93 Court action 94 Attorney for service 95 Attorney ’s change of address 96 Change in attorney for service 97 No attorney for service 98 Requirements for property insurance 99 Amount of reserve 99.1 Temporary exclusion from premium calculation 100 Guarantee fund 101 Deficiency 102 Investments 103 Contracts 104 Reinsurance 105 Suspension or cancellation of licence 105.1 Information to Minister 106 Regulations

Part 2 Provincial Companies Subpart 1 Status and Powers of Provincial Companies 107 Capacity of provincial company 108 Constructive notice 109 Authority of directors, officers and agents 110 Main business

RSA 2000

Chapter I-3 INSURANCE ACT 5 111 Networking 112 Life insurance 113 Security interests 114 Beneficial interests 115 Debt obligations 116 Guarantees Segregated Funds 117 Segregated funds restricted to life companies 118 Where segregated funds required 119 Creation and maintenance of segregated funds 120 Transfers from segregated funds 121 Claims against segregated funds 122 Restriction of claims Regulations 123 Regulations Subpart 2 Incorporation, Fundamental Changes and Dissolution of Provincial Companies 124 Alberta insurers Division 1 Incorporation 125 Application 126 Factors to be considered 127 Incorporation 128 Contents of certific ate of incorporation 129 Notice of incorporation 130 First directors 131 Effective date of incorporation Division 2 Organization and Commencement after Incorporation 132 First directors ’ meeting 133 Calling shareholders ’ meeting 134 Term of first directors 135 Carrying on of business 136 Expenses charged to capital 137 No payments until licensed 138 Deposits and investments 139 Time limit to acquire licence

RSA 2000

Chapter I-3 INSURANCE ACT 6 140 Allowed disbursements Division 3 Continuance into Alberta 141 Restriction on continuance 142 Continuance from another jurisdiction 143 Certificate of continuance 144 Effect of certificate of continuance 145 Notice of continuance 146 Effects of continuance Division 4 Continuance out of Alberta 147 Continuance in another jurisdiction 148 Requirements for other jurisdiction ’s law 149 Abandoning application 150 Certificate of discontinuance Division 5 Mutualization 151 Conversion into mutual provincial company 152 Regulations 153 Payment Division 6 Demutualization 154 Conversion into provincial company with common shares 155 Regulations Division 7 Change of Name, Financial Year and Terms and Conditions 156 Change of name and financial year 157 Changing terms and conditions 158 Proposal to amend Division 8 Amalgamation 159 Amalgamation 160 Amalgamation agreement 161 Minister ’s approval 162 Regulations 163 Policyholder and shareholder approval 164 Joint application to Minister

RSA 2000

Chapter I-3 INSURANCE ACT 7 165 Certificate of amalgamation 166 Effect of certificate 167 Transitional 168 Notice to ot her jurisdiction Division 9 Provincial Company Amalgamating Under the Laws of Another Jurisdiction 169 Amalgamation agreement 170 Notice of intention 171 Participating policyholder and shareholder approval 172 Abandoning voting agreement 173 Application to Minister 174 Certificate of discontinuance Division 10 Transfer of Business and Fundamental Reinsurance 175

Interpretation 176 Notice of intention 177 Participating policyholder and shareholder approval 178 Abandoning agreement 179 Application to Minister 180 Federal and extra-provincial companies Division 11 Dissolution and Revival 181 Application 182 Insolvent provincial companies 183 Returns to Minister Simple Dissolution 184 No property and no liabilities 185 Property and liabilities 186 Application 187 Approval of Minister required 188 Certificate of dissolution Court Supervised Liquidation 189 Court supervision — voluntary liquidation 190 Court supervision — involuntary liquidation 191 Application by provisional liquidator 192 Effect of Court supervision 193 Powers of Court

RSA 2000

Chapter I-3 INSURANCE ACT 8 194 Cessation of business and powers 195 Vacancy in liquidator ’s office 196 Duties and powers of liquidator 197 Reliance on statements 198 Examination of others 199 Costs of liquidation 200 Final accounts 201 Right to distribution of money 202 Final order 203 Certificate of dissolution General 204 Continuation of actions 205 Limitations on liability 206 Where creditor cannot be found 207 Custody of records after dissolution Revival 208 Revival Division 12 Dissolution and Revival of Mutual Provincial Companies 209 Insolvent mutual provincial companies 210 Regulations Division 13 General 211 Names 212 Regulations 213 Use of “insurance” in names 214 Rights preserved 215 Effective date of certificates Subpart 3 Head Office, Records and Financial Statements 216 Head office 217 Records 218 Access to records 219 Standards of financial reporting 220 Approval of annual financial statements 221 Distribution of fi nancial statements 222 List of shareholders 223 Use of list

RSA 2000

Chapter I-3 INSURANCE ACT 9 224 Dealing in lists 225 Information to be given to Minister by provincial companies 226 Records as evidence 227 Certificate of company as evidence 228 Notices to policyholders, shareholders, directors Subpart 4 Capital Structure 229 Definition 230 Application of Business Corporations Act Requirements for Shares 231 Non-par-value shares 232 Classes of shares 233 Mutual provincial companies — shares 234 Issue of shares 235 Capital account 236 Shares in series 237 Shareholder ’s pre-emptive right Changes to Shares 238 Changing shares 239 Class vote 240 Proposal to amend 241 Restriction on subordinated indebtedness Other Matters 242 Conversion privileges, options and rights 243 Prohibited shareholdings 244 Restrictions on acquisition of shares 245 Acquisition of own shares 246 Alternative acquisition of own shares 247 Redemption of shares 248 Donated and escrowed shares 249 Reduction of share capital 250 Adjustment of capital account 251 Enforceability of contract to purchase shares 252 Commission on sale of shares 253 Payment of dividend 254 Lien on share 255 Restrictions on issue, transfer 256

Interpretation 257 Constraints on ownership

RSA 2000

Chapter I-3 INSURANCE ACT 10 258 Previous approval obtained 259 Shares to underwriter 260 Exception for small holdings 261 Increasing large holdings 262 Minister ’s approval 263 Minister ’s right to information 264 Exemption 265 Bylaws re shareholder information 266 Reliance on information Subpart 5 Participating Policyholders and Shareholders Division 1 Meetings and Voting 267 Place of meetings 268 Calling meetings 269 Record date 270 Notice of meeting 271 Notice of adjourned meeting 272 Special business 273 Waiver of notice 274 Policyholder and shareholder proposals 275 Refusal of proposal 276 Policyholder and shareholder lists 277 Quorum 278 One shareholder meeting 279 Meeting by electronic means 280 One share — one vote 281 One participating policyholder — one vote 282 Changing policyholders ’ right to vote 283 Proposal to amend 284 Representative participating policyholder or shareholder 285 Joint voting policyholders or shareholders 286 Voting by hands or ballot 287 Resolution instead of meeting 288 Requisitioned meetings 289 Meeting called by Court 290 Disputed elections and appointments 291 Notice to Minister 292 Triennial solicitation of policyholders

RSA 2000

Chapter I-3 INSURANCE ACT 11 Take-over Bids — Compulsory Purchase 293 Application of Business Corporations Act Participating Policies and Dividends 294 Participating Account 295 Allocation of income 296 Allocation of expenses 297 Filing of allocation method 298 Review of allocation method 299 Regulations 300 Declaration of policy dividend or bonus Division 2 Proxies and Proxy Solicitation 301

Definitions 302 Appointing proxyholder 303 Deposit of proxies 304 Mandatory solicitation 305 Soliciting proxies 306 Attendance at meeting 307 Duty of registrant 308 Restraining order Subpart 6 Directors and Officers Duties 309 Duty to manage 310 Duty of care Qualifications and Number of Directors 311 Minimum number of directors 312 Disqualified persons 313 No requirement to hold shares or policies 314 Affiliated directors Election and Tenure of Directors 315 Number of directors 316 Changing number of directors 317 Proposal to amend 318 Term of directors 319 Determining election of directors 320 Cumulative voting

RSA 2000

Chapter I-3 INSURANCE ACT 12 321 Class or series of shares 322 Re-election of directors Incomplete Elections and Director Vacancies 323 Void election or appointment 324 Ceasing to hold office 325 Removal of director 326 Statement of director 327 Circulation of statement 328 Shareholders or policyholders filling vacancy 329 Directors filling vacancy 330 Vacancy among shareholders ’ or policyholders’ directors 331 Class vacancy 332 Unexpired term Meetings of the Board 333 Meeting of directors 334 Notice of meeting 335 Quorum 336 Resident Canadian majority 337 Electronic meeting 338 Resolution instead of meeting 339 Dissent of director 340 Meeting required by Minister Bylaws 341 Bylaws 342 Policyholder or shareholder proposal of bylaw 343 Minister to receive bylaws 344 Entitlement to copies of bylaws Committees of the Board 345 Committees 346 Audit committee 347 Conduct review committee Authority of Directors and Officers 348 Chief executive officer 349 Appointment of officers 350 Delegation 351 Remuneration 352 Validity of acts 353 Right to attend meetings

RSA 2000

Chapter I-3 INSURANCE ACT 13 Conflicts of Interest 354 Disclosure of interest 355 Voting 356 Continuing disclosure 357 Avoidance standards 358 Application to Court Liability and Indemnification 359 Liability for incorporation expenses 360 Liability for other matters 361 Contribution 362 Limitation 363 Liability for wages 364 Reliance on statement 365 Indemnification of directors and officers 366 Directors ’ and officers’ insurance 367 Application to Court for indemnification Subpart 7 Insider Trading 368

Interpretation 369 Application 370 Civil liability Subpart 8 Auditors 371 Definition 372 Appointment of auditor 373 Designated individual 374 Qualifications of auditor 375 Revocation of auditor ’s appointment 376 Declaration of vacancy by Court 377 Ceasing to hold office 378 Filling vacancy 379 Statement of auditor 380 Duty of replacement auditor 381 Right to attend meetings 382 Right to information 383 Auditor ’s report 384 Requiring new financial statements 385 Report on director ’s statement 386 Report to officers 387 Auditor of subsidiaries

RSA 2000

Chapter I-3 INSURANCE ACT 14 388 Calling meeting 389 Notice of errors 390 Auditor ’s report and extended examination 391 Protection from liability Subpart 9 Actuaries 392 Definition 393 Notice of appointment 394 Designated individual 395 Qualifications of actuary 396 Certain officers precluded 397 Chief financial officer 398 Revocation of actuary ’s appointment 399 Declaration of vacancy by Court 400 Ceasing to hold office 401 Filling vacancy 402 Statement of actuary 403 Duty of replacement actuary 404 Right to information 405 Actuary ’s valuation 406 Special valuation 407 Actuary ’s report 408 Report to directors 409 Report on matters requiring rectification 410 Actuary ’s procedures 411 Protection from liability 412 Regulations Subpart 10 Adequacy of Assets, Capital and Liquidity 414 Capital and liquidity Subpart 11 Investments 415

Definitions 416 Prudent investment standards 417 Policies and procedures 418 Prohibited investments 419 Restriction on residential mortgages 420 Limitation on ownership of unincorporated body 421 Limitation on shareholding 422 Duty to prov ide information

RSA 2000

Chapter I-3 INSURANCE ACT 15 423 Divestment order Portfolio Limits 424 Exclusion from portfolio limits 425 Lending limit — life companies 426 Lending limit — property and casualty companies 427 Limit on real property interest 428 Limits on equity acquisitions 429 Aggregate limit 430 Assets transactions 431 Retaining investments 432 Regulations Subpart 12 Transactions with Related Parties 433

Interpretation 434 Meaning of related party 435 Designated related party 436 Transactions contemplating related party status 437 Prohibited transactions, gu arantees and investments 438 Exceptions to the prohibition 439 Permitted transactions 440 Transactions requiring directors ’ approval 441 Procedures for approvals by directors 442 Disclosure 443 Transactions requiring Ministerial approval 444 Limits on permitted transactions 445 Review and approval procedures 446 Duty to report contraventions 447 Reliance on information 448 Onus of proof 448.1 Personal information 449 Applications to Court 450 Regulations Subpart 13 Reinsurance 450.1

Definitions 450.2 Limited partnership 450.3 Duties of provincial company 450.4 Application re compliance

RSA 2000

Chapter I-3 INSURANCE ACT 16

Part 3 Insurance Agents and Adjusters 451

Definitions Insurance Agents 452 Insurance agent ’s certificate 453 Exception 454 Restricted insurance agent ’s certificate 455 Representation 456 Designated representative for businesses 457 Restricted certificate holder s — designated individual 458 Recommendations —life insurance 459 Recommendations — property and casualty insurance Adjusters 459.1 Insurer’s liability for employee 460 Adjuster ’s certificate 462 Representation 463 Designated representative for businesses 464 Recommendation Certificates of Authority 465 Financial guarantee 466 Names 467 Application for certificate 468 Refusing certificates — general grounds 469 Issuing certificates 470 Terms and conditions 471 Expiration 472 Reinstating certificates 473 Ceasing to be worker 474 Changes in designated representative 475 Cancellation of recommendation by insurer — businesses 476 Cancellation of recommendation by designated representative 477 Cancellation of recommendation by insurer — employees 478 Financial guarantee not in force 479 Notice of automatic suspension 480 Sanctions affecting certificates 480.1 Minister’s order 481 Demand for information 482 Appeal 482.1 Evidentiary provisions

RSA 2000

Chapter I-3 INSURANCE ACT 17 483 Consequence of revocation 484 Exemption from municipal licence fee Duties and Prohibitions 485 Screening procedures 486 Knowledgeable personnel 487 Information 488 Insurance broker 489 Advertising 490 Disclosure of business name 491 Representative ’s duty of disclosure Notices 492 Notices Insurance Councils 493 Insurance councils 494 Delegated powers 495 Bylaws of insurance councils 495.1 Insurance council rules 496 Winding-up of insurance councils Regulations and Fees 498 Regulations 498.1 Fees, levies, penalties and charges

Part 4 Market Conduct 499 Dealing with unauthorized insurance agents 500 Amount of premium 501 Premium refunds 502 Payments to agent 503 Agent receiving premiums 504 Agent trustee of premiums 505 Additional fees 506 Providing copies of policies 506.1 Providing policy information 507 Prohibiting use of certain forms 508 Disclosure of name 509 Unfair practices 510 Dealing with unauthorized insurers 511 Regulations 511.1 Insurance as collateral security

RSA 2000

Chapter I-3 INSURANCE ACT 18 511.2 Life insurance policies

Part 5 Insurance Contracts Subpart 1 General Insurance Provisions 512 Definition 513 Application of Subpart 514 Contract made in Alberta 515 Contract must be consistent with Act 516 Terms, etc., of contract 517 Contents of contract 518 Policy in accordance with terms of application or proposal 519 Dispute resolution 520 Relief from forfeiture 521 Waiver and estoppel 522 Effect of delivery of policy 523 Insurer to furnish forms 524 When action may be brought 525 Consolidation of actions 526 Limitation of actions 527 Application of Limitations Act 528 Payment of insurance money 529 Payment to payee domiciled or resident abroad 530 Notice 531 Furnishing of copy to insured 532 Insurance against loss through negligence 533 Claim for indemnity 534 Execution against insured unsatisfied 535 Assignment of premium refund 536 Payment into Court by insurer 537 Filing of copy of policy, etc., with Superintendent 538 Title insurance 539 Mortgagees and other payees 540 Statutory conditions 541 Recovery by innocent persons 542 Premium notes — mutual insurance 543 Limitation of liability clause 544 Rateable contributions 545 Special stipulations 546 Subrogation of insurer to rights of recovery 547 Electronic communications

RSA 2000

Chapter I-3 INSURANCE ACT 19 548 Regulations 548.1 Home warranty insurance contracts Subpart 2 Automobile Insurance 549

Definitions 550 Application of Subpart Approval of Forms 551 Approval of forms Application and Policy 552 Agents 553 Application for insurance 554 Misrepresentation, fraud or violation of condition 555 Adverse contractual action 556 Statutory conditions 557 Conditions not part of policy 558 Limitation of actions 558.1 Right to call expert witnesses Motor Vehicle Liability Policies 559 Coverage of owner’s policy 560 Coverage of non-owner’s policy 561 Effect of lien on automobile 562 Territorial limits 563 Rights on unnamed insured 564 Liability of insurer 565 Liability arising from contamination 566-569 Exceptions to liability of insurer 570 Reductions of automobile accident claim awards 571 Limits of motor vehicle liability policy 572 Crown’s Right of Recovery Act 573 Accident insurance benefits 574 Stipulation in motor vehicle liability policy 575 Excess insurance 576 Agreements re deductible amounts 577 Coverage under motor vehicle liability and nuclear energy hazard liability policies 578 Determining which insurer is liable 579 Rights of creditors 580 Regulations re notice of legal representation 581 Payment as release of claim

RSA 2000

Chapter I-3 INSURANCE ACT 20 582 Notice of action again st insured to insurer 583 Regulations re disclosure of policy limits 584 Physical damage cover 585 Adjustment of claim with insured 585.1 Direct compensation for property damage 585.2 Prejudgment interest Limited Accident Insurances 586 Uninsured motorist 587 Medical expenses, etc. 588 Accident insurance benefits 589 Demand for particulars of insurance 590 Recovery by unnamed insured 591 Priority of payments 592 Payment of insurance money into Court 593 Limitation re commencement of action 594 Demand on claimant for particulars 595 Variations in policy Other Insurance 596 Proportioning liability of insurer Minor Injuries 597 Minor injury Automobile Insurance Rate Board 598

Definitions 599 Rate Board established 600 Powers and duties of Board 601 Annual report Premiums for Basic and Additional Coverage 602 Premiums 604 Procedures 604.1 Board guidelines 608 Regulations 609 Application of Government approved industry plan 611 Withdrawal from business Subpart 3 Fraternal Societies 613

Definitions 614 Policy

RSA 2000

Chapter I-3 INSURANCE ACT 21 615 Group insurance policy 616 Rules deliverable on demand 617 Member’s liability 618 Notice to members Subpart 4 Hail Insurance 619

Definitions 620 Application of Subpart 621 Crops insurable 622 Insurable interest 623 Application for contract 624 Information to appear on face of policy 625 Additional information required 626 Dispute resolution 627 Delivery of application to insurer 628 Effective date of contract 629 Incorrect amount of premium 630 Refund of premium 631 Policy in accordance with application 632 Expiration of hail insurance policies 633 Partial payment of loss clause 634 Notice of cancellation or alteration 635 Adjustment of loss 636 Statutory conditions Subpart 5 Life Insurance 637

Definitions 638 Application of Subpart 1 Application of Subpart 639 Annuity deemed life insurance 640,641 Application of Subpart Issuance and Contents of Policy 642 Issuance of policy 643 Particulars in policy 644 Particulars in group policy 645 Particulars in group certificate Formation of Contract 646 Lack of insurable interest

RSA 2000

Chapter I-3 INSURANCE ACT 22 647 Persons insurable 648 Termination of contract by Court 649 When contract takes effect 650 Remittance for premium 651 Payment of premium by beneficiary 652 Disclosure of material facts 653 Failure to disclose 654 Non-disclosure and misrepresentation by insurer 655 Misstatement of age 656 Misstatement of age in group insurance 657 Suicide clause 658 Reinstatement of contract 659 Termination and replacement of group contract Beneficiaries 660 Designation of beneficiary 661 Irrevocable designation 662 Designation in will 663 Trustee for beneficiary 664 Predeceased or disclaiming beneficiary 665 Enforcement of payment by beneficiary or trustee 666 Insurance money not part of estate Dealings with Contract 667 Assignment of insurance 668 Entitlement to dividends 668.1 Amounts held under life insurance policies 669 Third party policies 670 Effect of assignment 671 Enforcement of right re group life insurance 672 Enforcement of right re creditor’s group insurance 673 Capacity of minor Proceedings Under Contract 674 Proof of claim 675 Payment of insurance money 676 Action for payment 677 Limitation of actions 678 Persons to whom insurance money payable 679 Declaration as to sufficiency of proof 680 Declaration of presumption of death 681 Court order re payment of insurance money 682 Order stays pending action

RSA 2000

Chapter I-3 INSURANCE ACT 23 683 Order re furnishing of further evidence 684 Order for payment into Court 685 Simultaneous deaths 686 Commutation of instalments of insurance money 687 Insurer holding insurance money 688 Court may order payment 689 Fixing of costs 690 Insurance money payable to minor 691 Payment to representative Miscellaneous Provisions 692 Presumption against agency 693 Information as to notices 694 Regulations Subpart 6 Accident and Sickness Insurance 695

Definitions 696 Application of Subpart 1 Application of Subpart 697 Application of Subpart 698 Application of Subpart to group insurance Issuance and Contents of Policy 699 Issuance of policy 700 Particulars in policy 701 Particulars in group policy 702 Termination and replacement of group contract 703 Particulars in group certificate 704 Exceptions or reductions 705 Statutory conditions 706 Omission or variation of conditions 707 Notice of statutory conditions 708 Limitation of actions 709 Declaration as to sufficiency of proof 710 Declaration of presumption of death 711 Court order re payment of insurance money 712 Order stays pending action 713 Order re furnishing of further evidence 714 Termination for non-payment

RSA 2000

Chapter I-3 INSURANCE ACT 24 Formation of Contract 715 Lack of insurable interest 716 Persons insurable 717 Termination of contract by Court 718 Capacity of minor 719 Disclosure of material facts 720 Failure to disclose 721 Reinstatement of contract 722 Pre-existing conditions 723 Misstatement of age Beneficiaries 724 Designation of beneficiary 725 Irrevocable designation 726 Designation in will 727 Trustee for beneficiary 728 Predeceasing or disclaiming beneficiary 729 Enforcement of payment by beneficiary or trustee 730 Persons to whom insurance money payable 731 Insurance money not part of estate Dealings with Contract 732 Assignment of insurance 733 Entitlement to dividends 734 Third party policies 735 Enforcement of right re group insurance 736 Enforcement of right re creditor’s group insurance 737 Simultaneous deaths 738 Order for payment into Court 739 Insurance money payable to minor 740 Payment to representative 741 Payments not exceeding $10 000 Proceedings under Contract 742 Payment of insurance money 743 Action for payment 744 Insurer giving information 745 Undue prominence 746 Relief from forfeiture or avoidance 747 Disability benefits 748 Presumption against agency 749 Regulations

RSA 2000

Chapter I-3 INSURANCE ACT 25 Subpart 7 Transitional 750 Transitional matters

Part 6 Enforcement and Administration Subpart 1 Enforcement 754 Definition Division 1 Determining Compliance and Examinations 755 Exercising examiner ’s powers 756 Annual examinations 757 Special examination 758 Demand for information 759 Entry into premises 760 Court order 761 Examiner ’s report 762 Protection from liability Division 2 Appraisal of Assets 763 Appraisal of assets Division 3 Ministerial Orders 764 Minister ’s order to comply 765 Compliance undertakings 766 Protecting property 767 Order for compliance Division 4 Taking Control of Assets 768 Order for possession and control 769 Powers of Minister — provincial companies 770 Powers of Minister — extra-provincial company 771 Application to the Court 772 Termination of possession and control 773 Payment of expenses of proceeding

RSA 2000

Chapter I-3 INSURANCE ACT 26 Division 5 Remedial Actions 774

Definitions 775 Derivative action 776 Relief by Court from oppression or unfairness 777 Notice of application 778 Costs 779 Stay, etc., of application or action Subpart 2 Offences and Penalties 780,781 Offences 782 Statements of financial standing 783 False or deceptive statements 784 Trafficking in life insurance policies 785 Liability of directors and officers 786 General penalty 787 Limitation on prosecution 788 Order to comply and make restitution 789 Administrative penalties 790 Regulations Subpart 3 Administration, Appeals and General Matters Administration 791 Delegation of powers 792 Superintendent of Insurance 792.1 Guidelines and inte rpretation bulletins 793 Examiners 794 Insurance Register 795 Inspection and copies of Register 796 Extension of time 797 Approval and consent 798 Orders, etc., binding on successors 799 Publication by Minister 800 Matters under oath 801 Fees 801.1 Regulations 802 Penalty 803 Forms 804 Filing by electronic means 805 Priority of Government claim

RSA 2000

Chapter I-3 INSURANCE ACT 27 Appeals 806 Review by review board 807 Recording of evidence 808 Consent to apply to Court directly 809 Application to Court 810 Stay General 811 Published notice as evidence 812 Certificate evidence 813 Copies of documents as evidence 814 Photocopies of documents 815 Court applications 816 Confidentiality of information 816.1 Privileged information 816.2 Insurance compliance self-evaluative audit Compensation Associations 817 Agreements with compensation associations 818 Compensation association regulations 819 Compensation associations 819.1 General Insurance OmbudService Regulations 820 Regulations

Part 7 Financial Responsibility Cards 821

Definitions 822 Owner ’s policy 823 Non-Alberta policy — licensed insurer 824 Non-Alberta policy — unlicensed insurer 825 Fund maintained by corporation 826 Regulations

Part 8 Transitional Provisions, Consequential Amendments, Repeals and Coming into Force Subpart 1 Transitional Provisions 827

Definitions 828 Continuation of licensed special Act companies

RSA 2000

Section 1

Chapter I-3 INSURANCE ACT 28 829 Continuation of unlicensed special Act companies 830 Certificate of continuance 831 Effect of certificate of continuance 832 Effect of continuation 833 Application of

Part 2, Subpart 2, Division 2 834 Bylaws 835 Shares with nominal or par value 836 Paid-up capital 837 Deemed consent — significant interest 838 Voting by participating policyholder 839 Appointment of directors and officers continued 840 Directors ’ remuneration 841 Participating policies 842 Bylaws 843 Deemed bylaws 844 Auditor 845 Actuary 846 Triennial solicitation of policyholders 847 Continuation of licenc es and certificates 848 Application of

section 501 849 Regulations Subpart 2 Consequential Amendments 850-870 Consequential amendments Subpart 3 Repeals 871 Repeal of Acts 872 Repeal of Acts on Proclamation 873 Repeal of

section Subpart 4 Coming into Force 874 Coming into force HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows:

Interpretation

Definitions 1 In this Act,

RSA 2000

Section 1

Chapter I-3 INSURANCE ACT 29 (a) “adjuster” has the meaning set out in

section 2; (b) “affiliate” has the meaning set out in

section 3; (c) “agency contract” means a contract between an insurance agent and an insurer in which the insurance agent agrees to act as an insurance agent in respect of insurance issued by the insurer, but does not include the arrangement that an insurance agent has with an insurer that is the service carrier for the Government approved industry plan under

section 609; (d) “automobile” includes a trolley bus and a self-propelled vehicle, and the trailers, accessories and equipment of automobiles, but does not include watercraft, aircraft or railway rolling stock that runs on rails; (e) “base capital” means base capital as defined in the regulations; (f) “beneficial ownership” has the meaning set out in

section 4; (g) “body corporate” means any body corporate with or without share capital, wherever or however formed; (h) “certificate of authority” means an insurance agent’s certificate of authority or an adjuster’s certificate of authority; (i) “chief agency” means, (

i) in respect of a provincial company, the head office of the company, and (ii) in respect of an insurer that is not a provincial company, the main office of the company in Alberta; (i.1) repealed 2 002 cA-4.5 s45; (j) “contract of insurance” in cludes any policy, certificate, interim receipt, renewal receipt or writing evidencing the contract, whether sealed or not, and a binding oral agreement; (k) “control” has the meaning set out in

section 5; (l) “Court” means the Court of King’s Bench; (m) “debt obligation” means a bond, debenture, note or other evidence of indebtedness whether secured or unsecured;

RSA 2000

Section 1

Chapter I-3 INSURANCE ACT 30 (n) “deposit-taking institution” means (

i) ATB Financial or a bank, credit union, loan corporation or trust corporation, or (ii) a member institution of the Canada Deposit Insurance Corporation or of any other deposit insurance or guarantee plan prescribed under

section 1(1)(

l) of the Loan and Trust Corporations Act; (o) “director” means an individual occupying the position of director of a body corporate regardless of the name given to the position, and “directors” refers to the directors of a body corporate as a body; (p) “electronic media” means electr onic media as defined in the regulations; (q) “entity” means a body corporate, an unincorporated body, the Crown in right of Canada or in right of a province or territory, an agency of the Crown, a foreign government and any agency of a foreign government, but does not include an individual; (r) “examiner” means an examiner appointed under

section 793; (s) “extra-provincial company” means an insurer that is incorporated in a province or territory other than Alberta and that is authorized by that province or territory to carry on the business of insurance in that province or territory; (s.1) “extra-prov incial Crown insurer” means an insurer that (

i) is formed by or under the laws of another province or territory, (ii) has an exclusive right to perform an insurance activity in that province or territory, and (iii) is beneficially owned or controlled by His Majesty in right of that province or territory; (t) “federally authorized company” means an insurer that is a company, society or foreign company as defined in the Insurance Companies Act (Canada) approved by order under that Act to carry on business or to insure risks in Canada; (u) “financial institution” means

RSA 2000

Section 1

Chapter I-3 INSURANCE ACT 31 (

i) a bank, (ii) ATB Financial, (iii) a loan corporation or trus t corporation incorporated by or under

an Act of Canada, a province or a territory, (iv) a credit union incorpor ated by or under

an Act of Canada, a province or a territory, (

v) a federally authorized company, an extra-provincial company or a licensed provincial company, and (vi) any other prescribed entity; (v) “fraternal society” means a body corporate that is a not for profit society, order or association formed for the purpose of making, with its members only, contracts of life, accident or sickness insurance in accordance with its constitution, bylaws and rules and this Act; (w) “head office”, in respect of an insurer, means the place where the chief executive officer of the insurer transacts business; (x) “holding body corporate” has the meaning set out in

section 6; (y) “incorporator”, in respect of a provincial company, means a person who applies for the incorporation of the company; (z) “instrument of incorporation” means the certificate, special Act, charter, letters patent or other document incorporating, amalgamating or continuing a body corporate, and includes all amendments to it; (aa) “insurance” means the un dertaking by one person to indemnify another person against loss or liability for loss in respect of certain risk or peril to which the object of the insurance might be exposed or to pay a sum of money or other thing of value on the happening of a certain event and, without limiting the generality of the foregoing, includes life insurance; (bb) “insurance agent” means a person who, for compensation, (

i) solicits insurance on behalf of an insurer, insured or potential insured,

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Chapter I-3 INSURANCE ACT 32 (ii) transmits an application for insurance from an insured or potential insured to an insurer, (iii) transmits a policy of insurance from an insurer to an insured, (iv) negotiates or offers to negotiate insurance on behalf of an insurer, insured or potential insured or the continuance or renewal of insurance on behalf of an insurer or insured, or (

v) enrolls individuals in pr escribed contracts of group insurance, but does not include an insurer; (cc) “insurance agent’s certif icate of authority” includes a restricted insurance agent’s certificate of authority; (dd) “insurance council” means an insurance council referred to in

section 493; (ee) “insurance money” includes all insurance money, benefits, surplus, profits, dividends, bonuses and annuities payable by an insurer under a contract of insurance; (ff) “insurer” means any person that undertakes or effects, or agrees or offers for valuable consideration to undertake or effect, a contract of insurance, including the underwriters or syndicates of underwriters operating on the plan known as Lloyd’s, but does not include a person who exchanges with other persons reciprocal contracts of indemnity or inter-insurance as part of a reciprocal insurance exchange; (gg) “licence” means a licence under this Act unless the provision in which the term is used specifies otherwise; (hh) “licensed provincial comp any” means a provincial company that holds a valid and subsisting licence or that holds an unexpired licence that has been suspended; (ii) “life company” means an insurer that is permitted to insure (

i) only those risks falling within the class of life insurance, or (ii) only those risks falling within the class of life insurance and accident and sickness insurance or another class of insurance specified in the regulations under

section 35(2);

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Chapter I-3 INSURANCE ACT 33 (jj) “market conduct activities” means activities that are carried out in the course of or for the purpose of the marketing, sale or distribution to the public of, or the performance of, any contract of insurance or service that an insurer offers to the public; (kk) “Minister” means the Mini ster determined under

section 16 of the Government Organization Act as the Minister responsible for this Act; (ll) “motor vehicle liability polic y” means a policy or part of a policy evidencing a contract insuring (

i) the owner or driver of an automobile, or (ii) a person who is not the ow ner or driver of an automobile where the automobile is being used or operated by the person’s employee or agent or any other individual on the person’s behalf, against liability arising out of bodily injury to or the death of an individual or loss or damage to property caused by an automobile or the use or operation of an automobile; (mm) “mutual provincial comp any” means a provincial company that does not have common shares and that is formed for the purpose of issuing participating policies; (nn) “non-owner’s policy” means a motor vehicle liability policy insuring a person solely in respect of the use or operation by the person or on the person’s behalf of an automobile that the person does not own; (oo) “officer” means (

i) in relation to a body corporate, a chief executive officer, president, vice-president, secretary, controller, treasurer and any other individual designated as an officer of the body corporate by bylaw or by resolution of the directors of the body corporate, and (ii) in relation to any other entity, any individual designated as an officer of the entity by bylaw, by resolution of the members of the entity or otherwise; (pp) “owner’s policy” means a motor vehicle liability policy insuring a person in respect of the ownership, use or operation of an automobile owned by the person and within the description or definition of automobile in the policy and,

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Chapter I-3 INSURANCE ACT 34 if the contract so provides, in respect of the use or operation of any other automobile; (qq) “participating policy” means a policy issued by an insurer that entitles its holder to participate in the profits of the insurer; (rr) “participating policyholder” means the holder of a participating policy; (ss) “person” means an individual, entity or personal representative; (tt) “personal representative” me ans an executor, administrator, guardian, committee, trustee, assignee, receiver or liquidator; (uu) “policy” means an instru ment evidencing a contract of insurance; (vv) “premium” means the single or periodical payment to be made for insurance, and includes dues, assessments and other consideration; (ww) “premium note” means an instrument given as consideration for insurance by which the maker of the instrument undertakes to pay the sum or sums that may be legally demanded by the insurer, the aggregate of those sums not to exceed an amount specified in the instrument; (xx) “professional advisor” means (

i) an auditor, (ii) an actuary, (iii) a lawyer, accountant, apprai ser, architect or engineer, or (iv) any other person whose membership in a profession would tend to lend credibility to a statement made or opinion given by that person, and includes an individual who is a member of or who works in a professional capacity for a partnership, body corporate or other association of persons that is a professional advisor; (yy) “property” that is the su bject of a contract of insurance includes

RSA 2000

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Chapter I-3 INSURANCE ACT 35 (

i) profits, earnings and other pecuniary interests, and (ii) expenditure for rents, interest, taxes and other expenses and charges and expenditures in respect of inability to occupy the insured premises, but only to the extent provided for in the contract; (zz) “property and casualty company” means an insurer that is not a life company; (aaa) “provincial company” mean s an insurer incorporated under this Act; (bbb) “provincial life company” means a provincial company that is a life company; (ccc) “provincial property and casualty company” means a provincial company that is a property and casualty company; (ddd) “proxy” means a completed and executed form of proxy by means of which a participating policyholder or shareholder appoints a proxyholder to attend and act on behalf of the participating policyholder or shareholder at a meeting of participating policyholders or shareholders; (eee) “proxyholder” means the person appointed by proxy to attend and act on behalf of a participating policyholder or shareholder at a meeting of participating policyholders or shareholders; (fff) “reciprocal insurance exchange” means a group of subscribers exchanging reciprocal contracts of indemnity or inter-insurance with each other through a principal attorney as defined in

section 78(b); (ggg) “relative”, when used with respect to individuals, means related by blood, marriage or adoption or by virtue of an adult interdependent relationship; (hhh) “reporting issuer” means a reporting issuer within the meaning of that term in the Securities Act; (iii) “security” means (

i) in relation to a body corp orate, a share of any class of shares of the body corporate or a debt obligation of the body corporate, and includes a warrant of the body corporate, but does not include a deposit with a

RSA 2000

Section 1

Chapter I-3 INSURANCE ACT 36 deposit-taking institution or any instrument evidencing such a deposit, and (ii) in relation to any other entity, any ownership interest in or debt obligation of the entity, but does not include a policy; (jjj) “security interest” means an interest in or charge on property by way of mortgage, lien, pledge or otherwise taken by a creditor or guarantor to secure the payment or performance of an obligation; (kkk) “significant interest” has the meaning set out in

section 8; (lll) “special broker” means a person who, for compensation, negotiates or offers to negotiate insurance, or the continuance or renewal of insurance, with unlicensed insurers in respect of any matter or thing in Alberta; (mmm) “special resolution” means a resolution passed by a majority of not less than 2/3 of the votes cast by the participating policyholders or shareholders who voted in respect of that resolution or signed by all the participating policyholders or shareholders entitled to vote on that resolution; (mmm.1) “spouse” means the spouse of a married person but does not, for the purposes of sections 256, 314 and 434, include a spouse who is living separate and apart from the person if the person and spouse have separated pursuant to a written separation agreement or if their support obligations and family property have been dealt with by a court order; (nnn) “subsidiary” has the meaning set out in

section 9; (ooo) “subsisting” means, in resp ect of a licence or certificate of authority, that the licence or certificate has not expired and has not been cancelled; (ppp) “substantial investment” has the meaning set out in

section 10; (qqq) “Superintendent” means th e Superintendent of Insurance appointed under this Act; (rrr) “total assets” means total assets as defined in the regulations; (sss) “unincorporated body” means a trust, partnership, fund or other unincorporated association or organization;

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Section 2

Chapter I-3 INSURANCE ACT 37 (ttt) “valid” means, in respect of a licence or certificate of authority, that the licence or certificate is not under suspension and has not been cancelled; (uuu) “voting share” means a shar e of any class of shares of a body corporate carrying voting rights under all circumstances or by reason of an event that has occurred and is continuing or by reason of a condition that has been fulfilled. RSA 2000 cI-3 s1;2002 cA-4.5 s45;2005 c27 s2; 2008 c19 s2;2014 c8 s17;2017 c22 s26;AR 217/2022 Adjuster 2(1) For the purposes of this Act, “adjuster” means a person who, for compensation, (

a) directly or indirectly solicits the right to negotiate the settlement of a loss under a contract of insurance on behalf of an insured or insurer or a reciprocal insurance exchange, or (

b) negotiates the settlement of a loss under a contract of insurance on behalf of an insured or insurer or a reciprocal insurance exchange.

(2) For the purposes of this Act, an adjuster does not include (

a) a lawyer when practising law, (

b) a trustee of property or an agent of an owner of or person having an insurable interest in property who negotiates a settlement of a loss under a contract of insurance in respect of the property, (

c) an insurer, or (

d) an employee of an insured who negotiates the settlement of a loss under a contract of insurance on behalf of the insured. 1999 cI-5.1 s2 Affiliate 3(1) An entity is affiliated with another entity if one of them is controlled by the other or both of them are controlled by the same person.

(2) The affiliates of an entity are deemed to be affiliated with all other entities with which the entity is affiliated. 1999 cI-5.1 s3

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Section 4

Chapter I-3 INSURANCE ACT 38 Beneficial ownership 4(1) A security or other interest is beneficially owned by a person when it is held (

a) directly by that person, or (

b) through a personal representative or other intermediary for the use or benefit of that person otherwise than as a security interest.

(2) A person is deemed to own beneficially securities that are beneficially owned by an entity controlled by that person.

(3) If a person owns securities in a corporation that itself owns securities in a body corporate, in determining the person’s beneficial ownership of securities in the body corporate for the purposes of subsection (2) no regard is to be taken of the securities of the body corporate that are owned by the corporation. 1999 cI-5.1 s4 Control 5(1) A person controls a body corporate if the person holds or beneficially owns securities of the body corporate to which are attached more than 50% of the votes that may be cast to elect directors of the body corporate and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate.

(2) A person controls an unincorporated body if the person holds or beneficially owns more than 50% of the beneficial interest, however designated, into which the body is divided and the person is able to direct the affairs of the entity.

(3) Despite subsections (1) and (2), a person controls an entity if the person has, in relation to the entity, any direct or indirect influence that, if exercised, would result in control in fact of the entity.

(4) A holding body corporate is deemed to control any entity that is controlled or deemed to be controlled by a subsidiary of the holding body corporate.

(5) An entity that controls another entity is deemed to control any entity that is controlled or deemed to be controlled by the other entity. 1999 cI-5.1 s5

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Section 6

Chapter I-3 INSURANCE ACT 39 Holding body corporate 6 A body corporate is the holding body corporate of a body corporate that is its subsidiary. 1999 cI-5.1 s6 Ordinarily resident in Canada 7 An individual is ordinarily resident in Canada if the individual is (

a) a Canadian citizen ordinarily resident in Canada, (

b) a Canadian citizen who does not live in Canada but is a member of a prescribed class of individuals, or (

c) a permanent resident within the meaning of the Immigration and Refugee Protection Act (Canada) and ordinarily resident in Canada, except a permanent resident who has been ordinarily resident in Canada for more than one year after the time at which the individual first became eligible to apply for Canadian citizenship. RSA 2000 cI-3 s7;2008 c19 s3 Significant interest 8 A person has a significant interest in a class of shares of a body corporate where the aggregate of (

a) any shares of that class beneficially owned by the person, and (

b) any shares of that class beneficially owned by entities controlled by the person exceeds 10% of all of the outstanding shares of that class of shares of the body corporate. 1999 cI-5.1 s8 Subsidiary 9 A body corporate is a subsidiary of another body corporate if (

a) it is controlled by (

i) that other, (ii) that other and one or more bodies corporate each of which is controlled by that other, or (iii) 2 or more bodies corpor ate each of which is controlled by that other, or

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Section 10

Chapter I-3 INSURANCE ACT 40 (

b) it is a subsidiary of a body corporate that is that other’s subsidiary. 1999 cI-5.1 s9 Substantial investment 10(1) A person has a substantial investment in a body corporate when (

a) the voting rights attached to the aggregate of any voting shares of the body corporate beneficially owned by the person exceed 10% of the voting rights attached to all of the outstanding voting shares of the body corporate, or (

b) the aggregate of any sh ares of the body corporate beneficially owned by the person represents ownership of more than 25% of the shareholders’ equity of the body corporate.

(2) A person has a substantial investment in an unincorporated body where the person beneficially owns more than 25% of all the ownership interests, however designated, into which the body is divided. 1999 cI-5.1 s10 Incorporated 11(1) When this Act or the regulations refer to a body corporate in relation to the jurisdiction in which it was incorporated or to the legislation under which it was incorporated, “incorporated” includes amalgamated and continued.

(2) This

section does not apply to Divisions 1 and 2 of

Part 2, Subpart 2. 1999 cI-5.1 s11 12 Repealed 2008 c19 s4. Application Mutual benefit societies 13(1) In this section, “mutual benefit society” means a body corporate formed for the purpose of providing sick, disability or funeral benefits for its members.

(2) This Act does not apply to a mutual benefit society if, (

a) in the case of sick or disability benefits, the society provides benefits of $12 or less per week, and

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Section 14

Chapter I-3 INSURANCE ACT 41 (

b) in the case of funeral benefits, the society provides benefits of $400 or less in respect of one funeral. 1999 cI-5.1 s13 Benefits provided under authority of federal Act 14 This Act does not apply to (

a) a body corporate that has, by or under the authority of

an Act of the Parliament of Canada, created a fund for paying a gratuity on the event of death, sickness, infirmity, casualty, accident or disability or on any change of physical or mental condition, or (

b) a body corporate that has, by or under the authority of

an Act of the Parliament of Canada, an insurance and provident society or association or an insurance or guarantee fund in connection with the body corporate. 1999 cI-5.1 s14 Benefit plans for medical care, accident and sickness benefits 15(1) This Act, except

section 570, does not apply to a prescribed entity to the extent of its provision to participants of prescribed benefits relating to medical care, accident and sickness benefits.

(2) For the purposes of this

section and

section 15.1, “participant” includes a beneficiary or dependant of a participant. RSA 2000 cI-3 s15;2003 c19 s30;2005 c27 s3;2008 c19 s5 Employee benefit schemes for income replacement 15.1(1) In this section, “non-accountable entities” means entities that are not accountable organizations within the meaning of

section 10 of the Sustainable Fiscal Planning and Reporting Act.

(2) Subject to any regulations made under subsection (3), this Act, except

section 570, does not apply to an entity to the extent of its provision to its participants of prescribed benefits whose subject-matter is income replacement due to disability, sickness or disease, provided that no death benefit is payable.

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

a) applying this Act to prescr ibed classes of non-accountable entities in respect of their provision to their participants of benefits referred to in subsection (2), and (

b) respecting such provision of those benefits by those classes, and in particular, in relation to each such class,

RSA 2000

Section 16

Chapter I-3 INSURANCE ACT 42 (

i) the nature and sufficiency of its financial resources as a source of continuing financial support for the financial obligations implicit in providing the benefits, (ii) the availability of financial statements, prepared comparably to those referred to in

section 219(1), to participants, (iii) the degree of segregation of any assets relating to the provision of the benefits, or offer of the benefits, to participants from the assets of the entity, (iv) the adequacy of any capital or reserves maintained by the entity to support the provision or offer of the benefits, and (

v) the extent to which matters referred to in this subsection are to be disclosed to participants, and the timing of any such disclosure.

(4) Notwithstanding subsection (3)(b)(v), where a non-accountable entity provides benefits referred to in subsection (2) that are not underwritten by an insurer, it shall disclose to its participants, prior to or at the time that the benefits are offered, that the benefits are not underwritten by an insurer and that the benefits would be payable from the net income, retained earnings or other financial resources of the non-accountable entity. 2003 c19 s30;2005 c27 s4;2008 c19 s6;2013 cF-14.5 s26; 2015 cF-14.7 s19;2023 c3 s12 Regulations 16 The Lieutenant Governor in Council may make regulations (

a) defining base capital, electronic media and total assets for the purposes of this Act; (

b) respecting any matter that is to be prescribed under sections 1 to 15.1; (

c) establishing the classes and subclasses of insurance for the purposes of this Act; (c.1) defining, enlarging or restricting the meaning of any word or phrase used in this Act but not defined in this Act; (c.2) further defining any word or phrase that is defined in this Act; (

d) exempting from the application of this Act (

i) a specific contr act of insurance,

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Section 16.1

Chapter I-3 INSURANCE ACT 43 (ii) any type of contract of insurance that indemnifies a person who has an interest in a product against the product’s malfunction, failure or breakdown, or (iii) contracts of insurance is sued by a specified person or class of persons who operate on a non-profit basis; (

e) respecting the terms and conditions that must be met to maintain an exemption under clause (d). RSA 2000 cI-3 s16;2003 c19 s31;2008 c19 s7;2026 c8 s4(2) Crown Immunity Crown immunity 16.1(1) In this section, (a) “Crown” means the Crown in right of Alberta and includes a Minister of the Crown and agents and employees of the Crown; (b) “reform amendments” means the amendments made to this Act by the Insurance Amendment Act, 2003 (No. 2) and the Insurance Amendment Act, 2005, and any regulations, orders in council, ministerial orders or board orders made pursuant to or by virtue of those amendments.

(2) No liability attaches to the Crown for any loss or damages that have arisen or may arise in respect of the reform amendments.

(3) All existing and future causes of action in law or in equity against the Crown in respect of the reform amendments, including, without limitation, Alberta Court of King’s Bench action number 0403-14323 and the claims made in that action, are extinguished without costs.

(4) Nothing in this

section acknowledges, admits, validates or recognizes a cause of action referred to in subsection (3). 2005 c27 s5;AR 217/2022

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Chapter I-3 INSURANCE ACT 44

Part 1 Licensing of Insurers and Reciprocal Insurance Exchanges Subpart 1 Licensing of Insurers Insurer’s Duty to be Licensed Undertaking insurance and carrying on business 17(1) An insurer undertaking a contract of insurance that is made in Alberta, whether the contract is original or renewed, except the renewal from time to time of life insurance policies, is, for the purposes of this Act, undertaking insurance in Alberta.

(2) An insurer is, for the purposes of this Act, carrying on business in Alberta if the insurer (

a) undertakes or offers to undertake insurance in Alberta, (

b) sets up or causes to be set up in Alberta any sign or inscription that contains the name of the insurer or that refers to insurance, (

c) carries on market conduct activities in Alberta, (

d) solicits or negotiates insurance in Alberta orally or in writing or by electronic media or any other medium of communication or by vending machines, (

e) issues or delivers any policy of insurance or interim receipt in Alberta, (

f) collects or receives or negotiates for or causes to be collected or received or negotiated for any premium for a contract of insurance in Alberta, (

g) inspects any risk in Alberta, (

h) adjusts any loss under a cont ract of insurance in Alberta, (

i) prosecutes or maintains in Alberta any action or proceeding in respect of a contract of insurance, or (

j) is listed in a telephone directory for any part of Alberta.

(3) Any body corporate or unincorporated body that receives in Alberta contributions from its members out of which any gratuities or benefits are paid directly or indirectly on the death of any of its

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Section 18

Chapter I-3 INSURANCE ACT 45 members is, for the purposes of this Act, an insurer carrying on business in Alberta. 1999 cI-5.1 s17 Requirement for licence 18(1) Except as provided for in this Act, no insurer may carry on business in Alberta unless the insurer holds a valid and subsisting licence.

(2) Except as provided for in this Act, no insurer may insure a risk in Alberta unless the insurer holds a valid and subsisting licence for a class of insurance that covers that risk.

(3) Except as provided for in this Act, no person may enter into or renew a contract of insurance to insure a risk in Alberta with an insurer unless (

a) the insurer holds a valid and subsisting licence, and (

b) the licence held by the insurer authorizes the insurer to undertake a class of insurance that covers the risk that is insured. 1999 cI-5.1 s18 Licensing Requirements Types of insurers 19(1) Only the following insurers are eligible for a licence under this Part: (

a) a provincial company; (

b) an extra-prov incial company; (b.1) an extra-provincial Crown insurer or an affiliate of an extra-provincial Crown insurer; (

c) a federally authorized company; (

d) an insurer made up of underwriters or syndicates of underwriters operating on the plan known as Lloyd’s or any other plan approved by the Minister.

(2) Despite subsection (1), a fraternal society is eligible for a licence under this Part only if (

a) the fraternal society is a fe derally authorized company, or

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Section 20

Chapter I-3 INSURANCE ACT 46 (

b) the fraternal society is in corporated under the laws of a province other than Alberta. RSA 2000 cI-3 s19;2005 c27 s6;2009 c7 s6 Application requirements 20(1) An application for a licence must (

a) be filed with the Minister, (

b) specify the classes of insura nce that the applicant wishes to be authorized to undertake, and (

c) contain the information, material and evidence required by the Minister.

(2) An application for a licence must be accompanied with (

a) a plan for the conduct and development of the business of the company, (

b) in the case of an applicant other than a provincial company, a certified copy of its instrument of incorporation and bylaws, (

c) if the applicant is a federally authorized company, a certified copy of the order under the Insurance Companies Act (Canada) approving the company to carry on business or to insure risks in Canada, (

d) if the applicant is an extra-provincial company, a certified copy of its authority to carry on business from the jurisdiction in which the company is incorporated and a certified copy of the latest audited financial statements of the company, (

e) copies of all policy forms and forms of application for insurance proposed to be used by the applicant in Alberta, (

f) the appointment of an individual as its attorney for service and the consent of the individual to act as the attorney for service, and (

g) the address of its chief agency in Alberta.

(3) After filing an application for a licence, the applicant must provide to the Minister any additional information, material and evidence the Minister considers necessary.

(4) An application by a provincial company for its first licence after its incorporation under this Act must

RSA 2000

Section 21

Chapter I-3 INSURANCE ACT 47 (

a) set out the sums of money paid or to be paid by the company in connection with its incorporation and organization, and (

b) contain evidence satisfactor y to the Minister that the directors have performed their duties under

section 309. 1999 cI-5.1 s20 Names 21(1) No insurer may be licensed with a name that does not meet the requirements of

section 211(1) and the regulations under

section 212.

(2) Subject to this Act and the regulations, an insurer may be licensed with a name in an English form, a French form, an English form and a French form or a combined English and French form, and it may be legally designated in Alberta by any such name.

(3) Where an insurer has a name that contravenes subsection (1), the Minister may license the insurer if it undertakes either to change its name to a name that does not contravene subsection (1) or to carry on business in Alberta under a name that does not contravene subsection (1).

(4) Where, through inadvertence or otherwise, an insurer becomes licensed with a name that contravenes subsection (1), the Minister may order as a condition of being licensed that the insurer carry on business under a name specified in the order. 1999 cI-5.1 s21 22 Repealed 2005 c27 s7. First licence of provincial company 23 Before issuing the first licence to a provincial company, the Minister must be satisfied that (

a) the meeting of shareholders referred to in

section 133 has been held, (

b) the expenses of incorporation or organization that have been paid or are to be paid by the company are reasonable, (

c) the management, directors or persons who hold a significant interest in any class of shares of the company are fit as to character, and

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Section 24

Chapter I-3 INSURANCE ACT 48 (

d) the management and dir ectors have the competence and experience suitable for involvement in the operation of a financial institution. 1999 cI-5.1 s23 Ability to carry on class of insurance 24 Before issuing the first licence to an insurer, the Minister must be satisfied that the insurer has the capacity and power to carry on the classes of insurance that it has specified in its application. 1999 cI-5.1 s24 Base capital 25(1) Before issuing a licence to or renewing a licence of a provincial or extra-provincial company or federally authorized company, the Minister must be satisfied that (

a) the amount of the company’ s base capital is at least, (

i) for life companies, $5 000 000 or any greater amount specified by the regulations, and (ii) for property and casualty companies, $3 000 000 or any greater amount specified by the regulations, and (

b) the company’s base capital is adequate, taking into account the nature of the business that it proposes to engage in, the expected volume of its business and any restrictions on its business.

(2) If, at any time during a year, a provincial or extra-provincial company or federally authorized company that is licensed ceases to have an adequate base capital as required under subsection (1)(a), the company must promptly (

a) give written notice of that fact to the Superintendent, and (

b) cease to undertake or to of fer to undertake insurance in Alberta until the Superintendent gives written notice to the company that the Superintendent is satisfied that the company’s base capital once again meets the requirements of subsection (1)(a). RSA 2000 cI-3 s25;2003 c40 s2;2013 c18 s2 Compliance with market conduct laws 26 The Minister may refuse to issue a licence to or renew a licence of an insurer if the Minister is satisfied that the insurer is

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Section 27

Chapter I-3 INSURANCE ACT 49 not complying with the laws respecting market conduct activities of other jurisdictions in which it is licensed. 1999 cI-5.1 s26 Issuing licence 27 An insurer that applies for a licence under this Subpart or to renew such a licence is entitled to the licence if the Minister is satisfied that (

a) the requirements of this Act and the regulations relating to the licence have been met, and (

b) the insurer is in compliance with this Act and the regulations. 1999 cI-5.1 s27 Notice of licence 28(1) The Minister must publish a notice of the licence of an insurer in The Alberta Gazette.

(2) This

section does not apply to a renewal of a licence. 1999 cI-5.1 s28 Expiry 29 The term of a licence is the term determined under the regulations. RSA 2000 cI-3 s29;2013 c18 s3 Renewal of licence 30 An application for a renewal of a licence must (

a) be filed with the Minister, (

b) specify the classes of insura nce that the applicant wishes to be authorized to undertake, and (

c) contain the information, material and evidence required by the Minister. 1999 cI-5.1 s30 Duty on expiration of licence 31(1) An insurer must not allow its licence to expire unless (

a) the insurer gives the Minister 30 days’ notice of its intention not to renew its licence, and (

b) the insurer provides the Mini ster with a statutory declaration stating that

RSA 2000

Section 32

Chapter I-3 INSURANCE ACT 50 (

i) the insurer has no unpaid claims in respect of the insurer’s contracts of insurance made in Alberta, (ii) all of the insurer’s contracts of insurance made in Alberta are discharged or expired or have been transferred or assigned to another licensed insurer, and (iii) the insurer has no outsta nding fees or taxes payable to the Government.

(2) When an insurer does not renew its licence, the Minister must publish a notice in The Alberta Gazette stating that the licence of the insurer has expired and setting out any information about the insurer or its business in Alberta that the Minister considers appropriate. 1999 cI-5.1 s31 Terms and conditions 32(1) The Minister may, when issuing or renewing a licence, or at any time during the term of a licence, impose on the licence any terms or conditions that are consistent with this Act that the Minister considers appropriate.

(2) Before imposing terms or conditions under this section, the Minister must notify the insurer of the proposed terms or conditions and provide the insurer with an opportunity to make representations to the Minister. RSA 2000 cI-3 s32;2005 c27 s8 Automobile insurance 33 An insurer’s licence to undertake automobile insurance in Alberta is subject to the following conditions: (

a) in any action in Alberta against the licensed insurer or its insured arising out of an automobile accident in Alberta, the insurer must appear and must not set up any defence to a claim under a contract made outside Alberta, including any defence as to the limit or limits of liability and prescribed accident benefits under the contract, that could not be set up if the contract were evidenced by a motor vehicle liability policy issued in Alberta; (

b) in any action in another pr ovince or territory against the licensed insurer or its insured arising out of an automobile accident in that province or territory, the insurer must appear and must not set up any defence to a claim under a contract evidenced by a motor vehicle liability policy issued in Alberta, including any defence as to the limit or limits of

RSA 2000

Section 34

Chapter I-3 INSURANCE ACT 51 liability and prescribed accident benefits under the contract, that could not be set up (

i) if the contract were evidenced by a motor vehicle liability policy issued in the other province or territory, or (ii) under a scheme of no fault insurance that has been established by statute in the other province or territory. 1999 cI-5.1 s33 Classes of Insurance Classes of insurance 34(1) A licence issued by the Minister must set out the classes of insurance that the licensee is authorized to undertake.

(2) If a question arises as to the class of insurance into which any specific contract of insurance or form of policy falls, the Minister may determine the question and that determination is final for the purposes of this Act. 1999 cI-5.1 s34 Restriction on classes of insurance 35(1) Subject to subsection (2), no licence may be issued that authorizes the licensee to undertake life insurance and any other class of insurance.

(2) A licence may be issued that authorizes the licensee to undertake life insurance and (

a) accident and sickness insurance, or (

b) any other prescribed class of insurance in the prescribed circumstances. 1999 cI-5.1 s35 Prohibited activities 36(1) Except as permitted under this Act and the regulations, no licensed insurer may (

a) carry on business as an information management corporation as defined in the regulations, except in relation to the main business of an insurer; (

b) carry on business as a financial leasing corporation as defined in the regulations; (

c) accept deposits;

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Chapter I-3 INSURANCE ACT 52 (

d) carry on the business of offeri ng services to the public as or accepting or executing the office of (

i) executor or administ rator or trustee, or (ii) guardian or trustee of a mino r’s estate or of the estate of a mentally incompetent person; (

e) carry on any other activity that is prescribed for the purposes of this subsection.

(2) Nothing in this

section prevents a subsidiary of a insurer from engaging in the activities described in subsection (1). 1999 cI-5.1 s36 Scope of insurance 37 An insurer licensed to undertake property insurance may, under a contract falling within

Part 5, Subpart 1, insure an automobile against loss or damage. RSA 2000 cI-3 s37;2008 c19 s8 38 Repealed 2008 c19 s9. Attorney for Service Attorney for service 39(1) Every insurer licensed under this Subpart must have an attorney for service who meets the requirements of subsection (2).

(2) The attorney for service must be an individual who is resident in Alberta.

(3) Service of any document in a legal action, suit or proceeding on an insurer may be effected by (

a) delivering the document to its attorney according to the Minister’s records, (

b) delivering the document to the address of its attorney according to the Minister’s records, or (

c) sending the document by recorded mail to that address.

(4) A document sent by recorded mail to the attorney’s address in accordance with subsection (3)(

c) is deemed to be served 7 days from the date of mailing unless there are reasonable grounds for believing that the attorney did not receive the document at that time or at all.

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Chapter I-3 INSURANCE ACT 53

(5) Every licensed insurer must ensure that its attorney’s office is open during normal business hours. RSA 2000 cI-3 s39;2016 c23 s3 Attorney’s change of address 40 An attorney for service who changes addresses must, before the change occurs, notify the Minister of the date of the change and the new address. 1999 cI-5.1 s40 Change in attorney 41(1) If the attorney for service of an insurer dies or resigns or if an insurer revokes the appointment of its attorney for service, the insurer must, as soon as is reasonably possible, provide the Minister with (

a) the appointment of its new attorney for service, and (

b) the consent of the individu al to act as the attorney for service.

(2) An attorney for service of an insurer who intends to resign must (

a) give not less than 60 days’ notice to the insurer, and (

b) send a copy of the notice to the Minister. 1999 cI-5.1 s41 No attorney for service 42 If an insurer does not have an attorney for service, service on the insurer may be effected by serving the Superintendent. 1999 cI-5.1 s42 Reporting Requirements Annual financial statements 43(1) Every insurer licensed under this Act must within 180 days after the end of the insurer’s financial year provide the Minister with a copy of the insurer’s audited financial statements for the financial year.

(2) Every licensed provincial company that has a subsidiary must within 180 days after the end of the subsidiary’s financial year provide the Minister with a copy of the subsidiary’s audited financial statements for the financial year.

(3) The Minister may, by written notice, require the holding body corporate of a licensed provincial company to provide the Minister with the holding body corporate’s annual audited financial

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Chapter I-3 INSURANCE ACT 54 statements and the annual audited financial statements in respect of any of the holding body corporate’s subsidiaries.

(4) Every licensed insurer must provide, on written request without charge, one copy of the insurer’s latest audited financial statements to a person who is resident in Alberta and who is a policyholder. 1999 cI-5.1 s43 Annual return 44(1) Every licensed provincial company must file an annual return within the time period specified in subsection (2) that meets the requirements of subsections (3) and (4).

(2) The annual return must be filed (

a) in the case of a provincial company that is limited by the Minister to the reinsurance of risks, within 105 days after the end of the calendar year in respect of which the return is prepared, or (

b) in the case of any other provincial company, within 60 days after the end of the calendar year in respect of which the return is prepared.

(3) The annual return must (

a) set out the provincial company’s name and the address of its head office, the names and residential addresses of its directors, the names of its officers and auditor, the name and address of its attorney for service and, if the company’s records are held outside Alberta under

section 217(4), the address at which those records are located, (

b) set out the assets, liabilities, receipts and expenditures of the company for the calendar year and be audited in a manner that is satisfactory to the Minister, (

c) set out particulars of the business done in Alberta during the calendar year, (

d) be accompanied with the actuary’s valuation referred to in

section 405, (

e) set out any other information considered necessary by the Minister, and (

f) be approved and signed by the president, vice-president or managing director or other director appointed for the purpose by the board of directors and by the secretary or manager of the company.

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(4) The assets of a provincial company must be valued in accordance with the method established by the regulations under

section 432(f). RSA 2000 cI-3 s44;2016 c18 s10 Change in officials 45 If the directors, officers or auditor of a provincial company change, or if the residential addresses of the directors change, the company must notify the Minister of the new names or addresses within 15 days of the change. 1999 cI-5.1 s45 Report on business particulars 46(1) Every insurer, other than a provincial company, licensed under this Act for all or part of a year (the “reporting year”) must submit to the Minister before the last day of February of the year following the reporting year a report that sets out the particulars of the insurer’s insurance business written in Alberta during the reporting year.

(2) Instead of submitting the report referred to in subsection (1) to the Minister, the Minister may allow an insurer to submit the report to an official of a government in Canada who has an information sharing agreement with the Minister. 1999 cI-5.1 s46 Records to be filed 47(1) Every licensed insurer that carries on in Alberta the business of automobile insurance or any other class of insurance designated by the Minister must prepare and file with the Minister, or with a statistical agency designated by the Minister, (

a) a record of its premiums and of its loss and expense costs in Alberta, and (

b) a record of any other information required by the Minister, in a manner and according to a system of classification that the Minister approves.

(2) A statistical agency designated by the Minister must compile the data in the records filed under subsection (1) in a manner approved by the Minister and submit the compiled data to the Minister.

(3) The reasonable remuneration and expenses of the statistical agency designated by the Minister are payable by the insurers whose data is compiled and, if there is a dispute with respect to the amount payable, the Minister’s decision is final.

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Chapter I-3 INSURANCE ACT 56

(4) An amount determined by the Minister under subsection (3) is a debt owing to the statistical agency by the insurer specified by the Minister and may be recovered from the insurer by the agency in an action for debt. RSA 2000 cI-3 s47;2008 c19 s10 Audit of records 48(1) If at any time it appears to the Minister that an insurer is not keeping records in a manner that shows correctly the experience of the insurer in Alberta as required by

section 46 or 47, the Minister may hire an accountant (

a) to audit the books and records of the insurer, and (

b) to give instructions that will enable the officers of the insurer to comply with those sections.

(2) The reasonable remuneration and expenses of the accountant that are approved by the Minister for an audit of an insurer under subsection (1) must be paid by the insurer.

(3) If the amount approved under subsection (2) is not paid by the insurer, the Minister may pay the amount and then recover it from the insurer in an action for debt. 1999 cI-5.1 s48 Other information — licensed insurers 49 Every licensed insurer, other than a provincial company, must provide the Minister with (

a) a copy of any change to its instrument of incorporation within 7 days of the making of the change; (

b) notice of its being subject to an arrangement in a jurisdiction in which it is licensed other than Alberta that is in the nature of a compliance undertaking, and a copy of the compliance undertaking, within 7 days of the making of the arrangement. RSA 2000 cI-3 s49;2013 c18 s4 Additional information 50 A licensed insurer must provide to the Minister, within the time specified by the Minister, (

a) any information that is required by the Minister to enable the Minister to respond to inquiries on the company’s market conduct activities;

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Chapter I-3 INSURANCE ACT 57 (

b) any information that is required by the Minister for analytical or policy-making purposes. RSA 2000 cI-3 s50;2008 c19 s11 Suspension, Cancellation and Other Actions Affecting Insurers’ Licences Federally authorized companies 51(1) In this section, “order” means an order under the Insurance Companies Act (Canada) that approves a federally authorized company to carry on business or to insure risks in Canada.

(2) If the order of a federally authorized company is rescinded, the licence of the company under this Act is automatically cancelled.

(3) The Minister must revive the licence of a federally authorized company that has been cancelled under this

section if the company obtains a new order before the licence would have expired.

(4) If the authority to insure a class of risks is deleted from the order of a federally authorized company, that class of insurance is automatically deleted from the licence of the company under this Act.

(5) The Minister must restore the class of insurance to the licence of the federally authorized company referred to in subsection (4) if the class of insurance is restored to the company’s order before the licence has expired. 1999 cI-5.1 s51 Extra-provincial companies 52(1) If the licence of an extra-provincial company is cancelled or suspended with or without conditions under the laws of the jurisdiction under which the company is incorporated, the Minister must, (

a) if the jurisdiction cancelle d the licence, cancel the licence held by the company under this Act, or (

b) if the jurisdiction suspende d the licence, suspend the licence on the same conditions.

(2) If under the laws of the jurisdiction under which an extra-provincial company is incorporated terms, conditions or restrictions are imposed on its licence to carry on business in that jurisdiction, the licence held by the company under this Act is automatically subject to the same terms, conditions or restrictions unless the Minister provides otherwise under subsection (3).

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Chapter I-3 INSURANCE ACT 58

(3) If the Minister suspends a licence under subsection (1) or if subsection (2) applies, the Minister may make any modifications to the terms, conditions or restrictions imposed under the laws of the other jurisdiction that the Minister considers necessary to take into account circumstances in Alberta.

(4) If under the laws of the jurisdiction under which an extra-provincial company is incorporated a class of insurance is deleted from its licence issued in that jurisdiction, the class of insurance is automatically deleted from the licence held by the company under this Act.

(5) The Minister may revive the licence of an extra-provincial company that has been cancelled under subsection (1), delete or vary terms or conditions imposed on the licence of an extra-provincial company under subsection (2) or (3) or restore to the licence of an extra-provincial company a class of insurance that is deleted under subsection (4) if the revival, deletion, variance or restoring occurs in the jurisdiction in which the extra-provincial company is incorporated. 1999 cI-5.1 s52 Cancellation on request 53(1) The Minister may, on the request of a licensed insurer, cancel the insurer’s licence.

(2) The Minister must not cancel the licence of an insurer under subsection (1) unless the Minister is satisfied that (

a) the insurer has no unpaid claims in respect of the insurer’s contracts of insurance made in Alberta, (

b) all of the insurer’s contracts of insurance made in Alberta are discharged or expired, or have been transferred or assigned to another licensed insurer, and (

c) the insurer has no outstanding fees or taxes payable to the Government.

(3) The Minister must publish a notice of the cancellation of a licence under this

section in The Alberta Gazette. 1999 cI-5.1 s53 Sanctions affecting licences 54(1) Where (

a) a licensed insurer or other person denies the Minister, the Superintendent or an examiner access to any information, records, documents or property that the Minister,

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Chapter I-3 INSURANCE ACT 59 Superintendent or examiner is authorized by this Act to have access to, (

b) the holding body corporate of a licensed provincial company fails to forward to the Minister audited financial statements in accordance with a notice under

section 43(3), (

c) a licensed insurer or other person contravenes (

i) an order of the Minister, (ii) a decision of a review board under

section 806, or (iii) an order of the Cour t under

section 767 or 809, (

d) a licensed insurer is convicted of an offence under

section 511.1(7) or 605, (

e) grounds exist for the possession and control of the assets of a provincial company by the Minister, (

f) a provincial company is carrying on or soliciting business in any jurisdiction other than Alberta without first being authorized to do so under the laws of that jurisdiction, (

g) a licensed insurer fails to comply with any term or condition to which its licence is subject, (

h) a licensed insurer does not, for a period of 5 years or more, engage in the business of insurance, (

i) a licensed insurer fails to comply with the provisions of

Part 4, or (

j) the amount of a licensed ex tra-provincial company’s base capital at any time falls below the respective amount specified in or under

section 25(a), the Minister may cancel, suspend or refuse to renew the licence of the insurer, or may impose terms or conditions on its licence.

(2) Where the Minister proposes to act under subsection (1), the Minister must give notice of that intention to the licensed insurer.

(3) If, in the Minister’s opinion, the public interest may be prejudiced or adversely affected by any delay in acting under subsection (1), the Minister may, without notice, cancel or suspend the licence of the insurer or impose terms or conditions on its licence.

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Chapter I-3 INSURANCE ACT 60

(4) The Minister must forthwith give notice to the insurer of any action taken under subsection (3).

(5) An insurer that receives a notice under subsection (2) or (4) and who wishes to have a hearing before the Minister must serve a written request for the hearing on the Minister within 15 days after receipt of the notice.

(6) If an insurer requests a hearing in accordance with subsection (5) in respect of an action taken by the Minister under subsection (3), the Minister may, after giving the insurer an opportunity to be heard, confirm the action taken or modify or reverse the action taken.

(7) If an insurer requests a hearing in accordance with subsection (5) in respect of the Minister’s proposed action under subsection (1), the Minister may, after giving the insurer an opportunity to be heard, take any of the proposed actions set out in the notice with or without modifications or decide not to take any of those actions.

(8) The Minister must publish in The Alberta Gazette notice of every cancellation or suspension of a licence under this section. RSA 2000 cI-3 s54;2003 c19 s32;2008 c19 s12 Non-payment of claims 55(1) The Minister must cancel the licence of an insurer if the Minister is satisfied that (

a) a judgment arising out of a contract of insurance made in Alberta has been issued against the insurer, and (

b) the judgment has become fina l in the regular course of law, is enforceable in Alberta and has remained unpaid for 30 or more days after becoming final.

(2) The Minister may revive a licence that has been cancelled under subsection (1) if the judgment against the insurer is paid within 6 months after the cancellation and the licence would not have expired. 1999 cI-5.1 s55 Effect of cancellation or suspension 56(1) When an insurer’s licence is cancelled under this Subpart, the insurer may carry on business in Alberta only to the extent that it is necessary for the winding-up of its business in Alberta.

(2) When an insurer’s licence is suspended under this Subpart, the insurer may carry on business in Alberta only in accordance with the terms and conditions of the suspension.

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(3) When a class of insurance has been deleted from an insurer’s licence under this Subpart, the insurer must cease to undertake or to offer to undertake that class of insurance in Alberta. 1999 cI-5.1 s56 Provisional liquidator 57(1) The Minister may appoint a provisional liquidator to be in charge of the affairs of a provincial company if (

a) the company fails to renew its licence without complying with

section 31, (

b) the company’s application to renew its licence is refused, or (

c) the company’s licence is can celled in circumstances other than those set out in

section 53.

(2) Until a permanent liquidator is appointed by the Court, the provisional liquidator has all of the powers of the insurer, and none of the officers or directors of the provincial company may enter into a contract or incur any liability on behalf of the company without the approval of the provisional liquidator.

(3) A provisional liquidator of a provincial company must apply to the Court under

section 190 for an order winding up the company.

(4) Despite subsection (3), a provisional liquidator of a provincial company may, with the approval of the Court, sell the business of the company as a going concern. 1999 cI-5.1 s57 Remuneration of provisional liquidator 58(1) The Minister is responsible for establishing the remuneration of a provisional liquidator.

(2) The remuneration of a provisional liquidator of a provincial company and the provisional liquidator’s costs and expenses while acting as the provisional liquidator are payable by the company and are a first lien or charge on the assets of the company. 1999 cI-5.1 s58 Municipal Licensing Fees Exemption from certain fees 59 An insurer that holds a licence under this Act is exempt from the payment of any licence fee for the transaction of the business of insurance imposed by a municipality or Metis settlement. 1999 cI-5.1 s59

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Chapter I-3 INSURANCE ACT 62 Regulations Regulations 60 The Lieutenant Governor in Council may make regulations (

a) specifying an amount of base capital for life or property and casualty companies for the purposes of

section 25(a); (a.1) respecting the term of licen ce for the purpose of

section 29; (

b) respecting any matter that is to be prescribed under this Subpart; (

c) respecting the issuance of a licence to an extra-provincial Crown insurer or an affiliate of an extra-provincial Crown insurer including, without limitation, regulations suspending or modifying the application or operation of any one or more provisions of this Act in respect of the extra-provincial Crown insurer or the affiliate, as the case may be. RSA 2000 cI-3 s60;2005 c27 s9;2013 c18 s5 Subpart 2 Exceptions Unsolicited Insurance Unsolicited insurance 61(1) Despite

section 18, an insurer that is not licensed may undertake insurance in Alberta with an insured if (

a) the insurance is effected without any solicitation whatsoever on the part of that insurer, and (

b) the insured, not later than 30 days after signing the contract of insurance or receiving any policy, interim receipt or insuring document issued by or on behalf of the insurer, whichever occurs first, (

i) notifies the Superintendent in writing under oath of the terms of the insurance, the insurer with whom the insurance is placed and the amount of premium paid or payable or premium notes given or to be given in connection with the insurance, and (ii) at the same time pays to the Minister a charge equal to 10% of the premium paid or payable or premium notes given or to be given in connection with the insurance.

(2) If the charge referred to in subsection (1)(b)(ii) is not paid within 30 days from the time it becomes payable, a sum equal to

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Chapter I-3 INSURANCE ACT 63 10% of the charge remaining unpaid becomes a penalty that forms a part of the charge and is recoverable with the charge.

(2.1) Repealed 2022 c11 s2.

(3) Despite

section 18, a person may enter into or renew a contract of insurance to insure a risk in Alberta with an unlicensed insurer if the requirements of subsection (1)(

a) and (

b) have been met.

(4) This

section does not apply to a contract of insurance that may be evidenced by a motor vehicle liability policy. RSA 2000 cI-3 s61;2005 c27 s19;2008 c19 s13; 2022 c11 s2 Reinsurance Reinsurance 62(1) In this section, “Alberta contract” means a contract of insurance made in Alberta, but does not include a contract of reinsurance.

(2) Despite

section 18, an insurer, other than a provincial company, that is not licensed may enter into a contract as the insurer that reinsures risks in respect of an Alberta contract if the insurance business in Alberta of the insurer is restricted to the reinsurance of risks.

(3) Despite

section 18, a licensed insurer that is the insurer under an Alberta contract may, subject to the regulations, enter into a contract of reinsurance in respect of the Alberta contract with an insurer referred to in subsection (2). 1999 cI-5.1 s62 Special Brokers Insurance through special broker 63(1) Despite

section 18, an insurer that is not licensed may undertake insurance in Alberta with an insured if (

a) the insurance cannot be obtained from licensed insurers, (

b) the insurance is effected th rough a person who holds a valid and subsisting special broker’s licence for that class of insurance, (

c) before the insurance is under taken the special broker obtains from the proposed insured a signed and dated document (

i) describing the nature and amount of the insurance required, and

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Chapter I-3 INSURANCE ACT 64 (ii) stating that the insurance cannot be obtained from licensed insurers and specifying the licensed insurers who refused the proposed insured’s application, and (

d) before the insurance is undertaken the special broker discloses in writing to the proposed insured that the insurance will be placed with an unlicensed insurer.

(2) Despite

section 18, a person may enter into or renew a contract of insurance to insure a risk in Alberta with an unlicensed insurer if, subject to subsection (2.1), the requirements of subsection (1)(

a) to (

d) have been met. (2.1) Subsection (1)(

c) and (

d) do not apply if (

a) the special broker is an affiliate of the insurance agent that places the insurance, and (

b) the insurance is placed outside Alberta.

(3) This

section does not apply to a contract of insurance that may be evidenced by a motor vehicle liability policy.

RSA 2000 cI-3 s63;2008 c19 s14 Certificate of authority 64 No person may be issued a special broker’s licence for a class of insurance or have a special broker’s licence renewed for a class of insurance unless the person holds an insurance agent’s certificate of authority, other than a restricted insurance agent’s certificate of authority, for that class of insurance. 1999 cI-5.1 s64 Financial guarantee 65 No person may be issued a special broker’s licence or have a special broker’s licence renewed unless the person maintains a financial guarantee in a form satisfactory to the Minister in the prescribed amount. 1999 cI-5.1 s65 Application for special broker’s licence 66(1) An application for a special broker’s licence or to renew a special broker’s licence must (

a) be filed with the Minister, (

b) specify the classes of insu rance in respect of which the applicant wishes to transact business,

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Chapter I-3 INSURANCE ACT 65 (

c) contain the information, material and evidence required by the Minister, and (

d) be accompanied with proof that the financial guarantee referred to in

section 65 is being maintained.

(2) After filing an application, the applicant must provide to the Minister any additional information, material and evidence the Minister considers necessary. 1999 cI-5.1 s66 Issuing certificates 67 An applicant who applies for a special broker’s licence or a renewal of a special broker’s licence is entitled to the licence if the Minister is satisfied that the requirements of this Act and the regulations relating to the licence have been met. 1999 cI-5.1 s67 Terms and conditions 68(1) The Minister may issue a special broker’s licence subject to terms and conditions provided for in the regulations.

(2) Every holder of a special broker’s licence must comply with the terms and conditions to which the licence is subject. 1999 cI-5.1 s68 Expiration 69 A special broker’s licence expires on December 31 of the year in which it is issued or renewed. 1999 cI-5.1 s69 Status of certificate of authority 70(1) When a person’s insurance agent’s certificate of authority expires, the person’s special broker’s licence is automatically cancelled.

(2) When a person’s insurance agent’s certificate of authority is suspended or cancelled, the person’s special broker’s licence is automatically suspended.

(3) The Minister must reinstate a person’s special broker’s licence that has been suspended under subsection (1) or (2) for a class of insurance if (

a) the person submits an application for reinstatement to the Minister, (

b) before the special broker’s licence would have expired, the certificate of authority is reinstated or the person is issued an

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Section 71

Chapter I-3 INSURANCE ACT 66 insurance agent’s certificate of authority for that class of insurance, and (

c) the Minister is satisfied that the person is in compliance with the requirements of this Act and the regulations relating to special brokers. 1999 cI-5.1 s70 Reporting requirements 71 A licensed special broker must within 10 days after the end of each month submit to the Minister a return containing the following information with respect to the insurance effected under

section 63 by the broker during the month: (

a) the names of the insured; (

b) the nature of the insurance; (

c) the names of the unlicensed insurers; (

d) the amount of insurance placed with each unlicensed insurer and the rate and amount of premium paid to each unlicensed insurer. 1999 cI-5.1 s71 Payments in respect of premiums 72(1) In respect of all premiums on insurance effected by a licensed special broker, the special broker must pay to the Minister the taxes on premiums that would be payable if the premiums had been received by a licensed insurer, and the payment must accompany the monthly return provided for in

section 71.

(2) If the amount referred to in subsection (1) is not paid within 30 days from the time it becomes payable, a sum equal to 10% of the amount remaining unpaid becomes a penalty that forms a part of the amount referred to in subsection (1) and is recoverable with the amount. RSA 2000 cI-3 s72;2008 c19 s15;2022 c11 s3 Records 73 A special broker must keep a separate account of insurance effected by the special broker. 1999 cI-5.1 s73 Financial guarantee not in force 74(1) If, during the term of a special broker’s licence, the financial guarantee referred to in

section 65 maintained in respect of that licence is no longer in force, the special broker must immediately notify the Minister, in writing, that the guarantee is not in force.

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Chapter I-3 INSURANCE ACT 67

(2) If, during the term of a special broker’s licence, the financial guarantee referred to in

section 65 maintained in respect of the licence is no longer in force, the licence is automatically suspended unless, while the guarantee is in force, the special broker satisfies the Minister that the special broker has obtained a new guarantee that meets the requirements of

section 65.

(3) The Minister must reinstate a special broker’s licence that has been suspended under subsection (2) if (

a) the broker submits an application for reinstatement to the Minister, (

b) the broker satisfies the Mini ster that the broker has obtained a new financial guarantee that meets the requirements of

section 65 before the licence would have expired, and (

c) the Minister is satisfied that the broker is in compliance with the requirements of this Act and the regulations relating to special brokers. 1999 cI-5.1 s74 Using different names 75 No person may advertise or carry on business as a special broker in a name other than the name set out in the person’s special broker’s licence. 1999 cI-5.1 s75 Release of financial guarantee 76 A special broker is entitled to a release or cancellation of the financial guarantee submitted by the special broker when the Minister is satisfied that all insurance effected under

section 63 by the broker is no longer in force or has been reinsured. 1999 cI-5.1 s76 Regulations Regulations 77 The Lieutenant Governor in Council may make regulations (

a) respecting the maximum proportion of risks that may be reinsured with unlicensed insurers for the purposes of

section 62(3); (

b) respecting the requirement, conditions, training and experience that must be met before a special broker’s licence is issued or renewed; (

c) respecting terms and conditions that may be imposed on a special broker’s licence;

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Chapter I-3 INSURANCE ACT 68 (

d) respecting any matter that is to be prescribed under this Subpart. 1999 cI-5.1 s77 Subpart 3 Licensing of Reciprocal Insurance Exchanges

Definitions 78 In this Subpart, (a) “approved securities” means (

i) in respect of a reciprocal insurance exchange that has its principal office in Alberta, investments that the exchange would be authorized to make if the exchange were a provincial company, (ii) in respect of a reciprocal insurance exchange that has its principal office in a province other than Alberta, investments that the exchange is authorized to make under the laws of that province, and (iii) in respect of a reciprocal insurance exchange that has its principal office outside Canada, investments that the exchange is authorized to make under

Part XIII of the Insurance Companies Act (Canada); (b) “principal attorney” me ans a person authorized by subscribers under a power of attorney to sign reciprocal contracts on their behalf and to act on the subscribers’ behalf in respect of any matter specified in the power of attorney relating to those contracts; (c) “principal office” means th e main office of the principal attorney; (d) “reciprocal contract” mean s a reciprocal contract of indemnity or inter-insurance; (e) “subscribers” means persons exchanging reciprocal contracts with each other. 1999 cI-5.1 s78 Licence required 79(1) No person may exchange a reciprocal contract unless (

a) the exchange is made by the person’s principal attorney,

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Chapter I-3 INSURANCE ACT 69 (

b) the exchange is part of a reciprocal insurance exchange that is licensed under this Subpart, and (

c) the reciprocal contract falls within a class of insurance that the reciprocal insurance exchange is authorized to undertake.

(2) No person may act as principal attorney or on behalf of a principal attorney in the exchange of reciprocal contracts for persons who are resident in Alberta unless the exchange is part of a reciprocal insurance exchange that is licensed under this Subpart. 1999 cI-5.1 s79 Exception 80(1) Despite

section 79, a person may, with respect to property located in Alberta, exchange a reciprocal contract that is a contract of property insurance and that is part of an unlicensed reciprocal insurance exchange if (

a) the exchange of the contracts is done for protection only and not for profit, (

b) the contracts are e ffected outside Alberta, (

c) the exchange of contracts is effected without any solicitation by the unlicensed reciprocal insurance exchange, and (

d) the person who owns the property, within 30 days after signing the contract, (

i) notifies the Superintendent in writing under oath of the terms of the contract, the persons with whom the insurance is placed and the amount of premium paid or payable or premium notes given or to be given or mutual liability assumed in connection with the insurance, and (ii) at the same time pays to the Minister a fee equal to 10% of the premium paid or payable or premium notes given or to be given or mutual liability assumed in connection with the insurance.

(2) If the fee referred to in subsection (1)(d)(ii) is not paid within 30 days from the time when it becomes payable, a sum equal to 10% of the fee remaining unpaid becomes a penalty that forms a part of the fee and is recoverable with the fee. RSA 2000 cI-3 s80;2005 c27 s19;2008 c19 s16;2022 c11 s3 Classes of insurance 81 Subject to

section 82, a reciprocal insurance exchange may be licensed to undertake any class of insurance that a provincial

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Chapter I-3 INSURANCE ACT 70 company may be licensed to undertake except for the following classes: (

a) life insurance; (

b) accident and sickness insurance; (

c) surety insurance. (

d) repealed 2008 c19 s17. RSA 2000 cI-3 s81;2008 c19 s17 Automobile insurance 82(1) No reciprocal insurance exchange may be licensed to undertake the type of automobile insurance that is evidenced by a motor vehicle liability policy, except the type of insurance provided in a standard excess automobile policy or standard non-owned automobile policy.

(2) The Minister may issue a licence to a reciprocal insurance exchange that authorizes the exchange to undertake automobile insurance, other than the type described in subsection (1), if the Minister is satisfied that (

a) the exchange has signed r eciprocal contracts or bona fide applications for such contracts for at least the prescribed number of automobiles, and (

b) arrangements are in effect for the reinsurance of all liabilities in excess of the prescribed limits. RSA 2000 cI-3 s82;2005 c27 s10;2008 c19 s18 Property insurance 83 The Minister must not issue a licence to a reciprocal insurance exchange that authorizes the exchange to undertake property insurance unless the Minister is satisfied that the exchange has bona fide applications for reciprocal contracts for at least the prescribed number of separate property insurance risks in Alberta or elsewhere and for at least the prescribed aggregate amount.

RSA 2000 cI-3 s83;2008 c19 s18 Application for licence 84(1) Persons who wish to have a reciprocal insurance exchange licensed must submit the following to the Minister: (

a) the name of the exchange; (

b) the name and address of its principal attorney;

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Chapter I-3 INSURANCE ACT 71 (

c) the classes of insurance that cover the reciprocal contracts to be exchanged; (

d) a copy of the form of the contract, agreement or policy under or by which the reciprocal contracts are to be effected or exchanged; (

e) a copy of the form of power of attorney under which the contracts are to be effected or exchanged; (

f) the location of the office from which the contracts are to be issued; (

g) if the exchange is required by

section 94 to have an attorney for service, the appointment of an individual as its attorney for service and the consent of the individual to act as the attorney for service; (

h) any other information required by the Minister.

(2) Persons who wish to have a reciprocal insurance exchange’s licence renewed must submit the following to the Minister: (

a) the name of the exchange; (

b) the name of its principal attorney; (

c) any other information required by the Minister. 1999 cI-5.1 s84 Name of exchange 85 The Minister may refuse to issue a licence to a reciprocal insurance exchange if the name or designation under which contracts are issued is so similar to a name or designation of a licensed exchange or licensed insurer that confusion or deception is likely. 1999 cI-5.1 s85 Issuing licence 86 Applicants who apply for a licence for a reciprocal insurance exchange or to renew such a licence are entitled to the licence if the Minister is satisfied that (

a) the requirements of this Act and the regulations relating to the licence have been met, and (

b) in the case of an existing reciprocal insurance exchange, the exchange is in compliance with the requirements of this Act and the regulations. 1999 cI-5.1 s86

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Chapter I-3 INSURANCE ACT 72 Notice of licence 87(1) The Minister must publish a notice of the licence of a reciprocal insurance exchange in The Alberta Gazette.

(2) This

section does not apply to the renewal of a licence. 1999 cI-5.1 s87 Premium deposit 88 Every reciprocal insurance exchange must require its subscribers to provide to its principal attorney, as a condition of membership in the exchange, a premium reasonably sufficient for the risk assumed by the exchange. 1999 cI-5.1 s88 Management of exchange 89 The affairs of a reciprocal insurance exchange must be managed by an advisory board or committee of subscribers established in accordance with the power of attorney. 1999 cI-5.1 s89 Term of licence 90 A licence issued under this Subpart expires on December 31 of the year in which it is issued or renewed. 1999 cI-5.1 s90 Annual return 91(1) Every licensed reciprocal insurance exchange must file an annual return for each calendar year within the time period specified in subsection (2) that meets the requirements of subsection (3).

(2) The annual return for a calendar year must be filed by the last day of the following February.

(3) The annual return must (

a) set out the name of the r eciprocal insurance exchange and the name and address of its principal attorney and of its attorney for service, (

b) set out the financial information required by the Minister that is audited in a manner that is satisfactory to the Minister, (

c) set out any other information considered necessary by the Minister, and (

d) be signed by the principal attorney and at least 2 members of the advisory board or committee of subscribers of the reciprocal insurance exchange.

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(4) If, in the Minister’s opinion, an annual return prepared by a reciprocal insurance exchange for another jurisdiction meets the requirements of subsection (3), the exchange may file that return to satisfy the requirements of subsection (1). 1999 cI-5.1 s91 Signing contracts 92 After a reciprocal insurance exchange is licensed under this Subpart, a principal attorney may sign a reciprocal contract on behalf of a subscriber if the attorney is authorized by a power of attorney from the subscriber. 1999 cI-5.1 s92 Court action 93 Despite any condition or stipulation in a power of attorney or in a reciprocal contract, any action or proceeding in respect of any such contract may be maintained in any court of competent jurisdiction in Alberta. 1999 cI-5.1 s93 Attorney for service 94(1) Every reciprocal insurance exchange whose principal attorney is not located in Alberta must have an attorney for service who meets the requirements of subsection (2).

(2) The attorney for service must be an individual who is resident in Alberta.

(3) Service of any document in a legal action, suit or proceeding on a reciprocal insurance exchange may be effected by (

a) delivering the document to its attorney according to the Minister’s records, (

b) delivering the document to the address, according to the Minister’s records, of its attorney, or (

c) sending the document by recorded mail to that address.

(4) A document sent by recorded mail to the attorney’s address in accordance with subsection (3)(

c) is deemed to be served 7 days from the date of mailing unless there are reasonable grounds for believing that the attorney did not receive the document at that time or at all.

(5) Every reciprocal insurance exchange that is required to have an attorney for service must ensure that its attorney’s office is open during normal business hours. RSA 2000 cI-3 s94;2016 c23 s3

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Chapter I-3 INSURANCE ACT 74 Attorney’s change of address 95 An attorney for service who changes addresses must, before the change occurs, notify the Minister of the date of the change and the new address. 1999 cI-5.1 s95 Change in attorney for service 96(1) If the attorney for service of a reciprocal insurance exchange dies or resigns or if an exchange revokes the appointment of an attorney for service, the exchange must, as soon as is reasonably possible, provide the Minister with (

a) the appointment of its new attorney for service, and (

b) the consent of the individu al to act as the attorney for service.

(2) An attorney for service of a reciprocal insurance exchange who intends to resign must (

a) give not less than 60 days’ notice to the exchange, and (

b) send a copy of the notice to the Minister. 1999 cI-5.1 s96 No attorney for service 97 If a reciprocal insurance exchange that is required to have an attorney for service does not have an attorney for service, service on the exchange may be effected by serving the Superintendent. 1999 cI-5.1 s97 Requirements for property insurance 98(1) A reciprocal insurance exchange that is authorized to undertake property insurance must ensure that no subscriber has assumed on any single property insurance risk an amount greater than 10% of the net worth of the subscriber.

(2) The principal attorney of a reciprocal insurance exchange that is authorized to undertake property insurance must file, when requested by the Minister, a statement under oath (

a) showing the maximum amount of indemnity on any single property insurance risk, and (

b) stating that no subscriber has assumed on any single property insurance risk an amount greater than 10% of the net worth of the subscriber. RSA 2000 cI-3 s98;2008 c19 s19

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Section 99

Chapter I-3 INSURANCE ACT 75 Amount of reserve 99 Every reciprocal insurance exchange must maintain with the principal attorney as a reserve fund a sum in cash, approved securities or other prescribed assets equal to an amount calculated in accordance with the following formula: (50% of (A-B)) + (C-

D) where A is the amount of premiums collected or credited to the accounts of subscribers on reciprocal contracts in force having one year or less to run; B is the amount paid to licensed insurers to reinsure the reciprocal contracts referred to in A; C is the amount of premiums collected or credited to the accounts of subscribers on reciprocal contracts in force that have more than one year to run less the amount of those premiums that is attributable to the expired portion of the contracts; D is the amount paid to licensed insurers to reinsure the reciprocal contacts referred to in C less the amount that is attributable to the expired portion of the reinsurance contracts.

RSA 2000 cI-3 s99;2013 c18 s6 Temporary exclusion from premium calculation 99.1(1) In this section, “premiums” means premiums collected or credited to the accounts of subscribers in respect of reciprocal contracts in force.

(2) A reciprocal insurance exchange may provide for the assessment on its subscribers of a premium surcharge over and above the premiums required by

section 88.

(3) The premium surcharge may be assessed only during the year in which the reciprocal insurance exchange’s licence is initially issued and during the first full year of its renewal after its initial issue, except that the Minister may, on application by the exchange, extend the period of authorization of the surcharge for further one-year periods until the 2nd anniversary of the end of that year in which the licence was initially issued.

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(4) The reciprocal insurance exchange may exclude the premi