id="content">

This is an unofficial archived version of The Insurance Act

as enacted by SM 1987-88, c. 9 on July 17, 1987.

Search this document and show paragraphs with hits

Match:

any of the words

all of the words

exact phrase

Search:

You can use wild cards:

'*' allows for 0 or more characters (eg. ceas* will match 'cease', 'ceased', 'ceasing' and 'ceases')

'?' allows for 0 or 1 character (eg. cease? will match 'cease', 'ceases' and 'ceased', but not 'ceasing')

This search is not case sensitive.

R.S.M. 1987, c. I40

The Insurance Act

Table of contents

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definitions.

In this Act, except where inconsistent with the

interpretation

section of any Part,

"accident insurance" means insurance by which the insurer undertakes, otherwise than incidentally to some other class of insurance defined by or under this Act, to pay insurance money in the event of accident to the person or persons insured, but does not include insurance by which the insurer undertakes to pay insurance money both in the event of death by accident and in the event of death from any other cause; ("assurance-accidents corporels")

"accidental death insurance" means insurance undertaken by an insurer as part of a contract of life insurance whereby the insurer undertakes to pay an additional amount of insurance money in the event of the death by accident of the person whose life is insured; ("assurance en cas de décès accidentel")

"adjuster" means a person who

(

a) for or on behalf of an insurer or an insured, for compensation or reward or the hope or expectation thereof, solicits the right to negotiate the settlement of, or investigate, a loss or claim under a contract, or under a fidelity, surety, or guaranty bond issued by an insurer, or directly or indirectly negotiates, investigates, adjusts, or settles, any such loss or claim, or

(

b) holds himself out as an adjuster, investigator, consultant, or adviser, with respect to the adjustment, negotiation, or settlement, of such losses or claims, but does not include a member of The Law Society of Manitoba entitled to practise as a solicitor in the province acting for or on behalf of a client in the course of, and as part of, his practice as a solicitor; ("expert")

"agent" means a person who, for compensation solicits insurance on behalf of any insurer or transmits for a person other than himself, an application for or a policy of insurance to or from such insurer or offers or acts or assumes to act in the negotiation of such insurance or in negotiating the continuance or renewal of other than life insurance contracts; ("agent")

"automobile" includes a trolley bus and a self-propelled vehicle, and the trailers, accessories and equipment of automobiles, but does not include railway rolling stock that runs on rails, watercraft or aircraft; ("automobile")

"automobile insurance" means insurance

(

a) against liability arising out of

(

i) bodily injury to or the death of a person, or

(ii) loss of or damage to property, caused by an automobile for the use or operation thereof, or

(

b) against loss of or damage to an automobile and the loss of use thereof,

and includes insurance otherwise coming within the class of accident insurance where the accident is caused by an automobile or the use or operation thereof, whether liability exists or not, if the contract also includes insurance described in clause (a); ("assurance-automobile")

"aircraft insurance" means insurance against loss of or damage to an aircraft and against liability for loss or damage to persons or property caused by an aircraft, or by the operation thereof; ("assurance-aviation")

"boiler and machinery insurance" means insurance against loss or damage to property and against liability for loss or damage to persons or property through the explosion, collapse, rupture, or breakdown of, or accident to, boilers or machinery of any kind; ("assurance bris des machines")

"chief agency" means the head office of the insurer, or the registered office in the province, of a licensed insurer having its head office out of the province; ("agence principale")

"contract" and "contract of insurance" mean a contract the subject matter of which is insurance, and includes any writing evidencing the contract, but where such words are used in a Part of this Act relating to a specific class of insurance they shall, when so used, mean a contract of the class of insurance to which the Part relates; ("contrat" et "contrat d'assurance")

"court" means Her Majesty's Court of Queen's Bench for Manitoba; ("tribunal")

"credit insurance" means insurance against loss to the insured through the insolvency or default of a person to whom credit is given in respect of goods, wares or merchandise; ("assurance-crédit")

"disability insurance" means insurance undertaken by an insurer as part of a contract of life insurance whereby the insurer undertakes to pay insurance money or to provide other benefits in the event that the person whose life is insured becomes disabled as a result of bodily injury or disease; ("assurance-invalidité")

"employees' mutual benefit society" means a society incorporated or formed and carried on by the officers or officers and employees of an employer for the purpose of providing support and pensions for such of the officers or employees as become incapacitated or as cease to be employed by the employer, or for the purpose of paying pensions, annuities or gratuities to, or for dependants of, such officers or employees, or funeral benefits upon the death of such officers or employees, and membership in which is restricted exclusively to bona fide employees of one employer; ("société mutuelle de salariés")

"employers' liability insurance" means insurance (not being insurance incidental to some other class of insurance defined by or under this Act) against loss to an employer through liability for accidental injury to, or death of, an employee arising out of or in the course of his employment but does not include workmen's compensation insurance; ("assurance responsabilité patronale")

"endowment insurance" means an undertaking to pay an ascertained or ascertainable sum at a fixed future date, if the person whose life is insured is then alive, or at his death, if he dies before such date; ("assurance mixte")

"exchange" or "reciprocal or inter-insurance exchange" means a group of persons exchanging reciprocal contracts of indemnity or interinsurance with each other through the same attorney; ("bourse" ou "bourse d'assurance réciproque ou d'interassurance")

"fire insurance" means insurance (not being insurance incidental to some other class of insurance defined by or under this Act) against loss of or damage to property through fire, lightning or explosion due to ignition; ("assurance-incendie")

"foreign jurisdiction" includes any jurisdiction other than Manitoba; ("territoire étranger")

"fraternal society" means a society, order, or association incorporated for the purpose of making with its members only and not for profit, contracts of life, accident, or sickness insurance in accordance with its constitution, by-laws, and rules and this Act; but does not include a mutual benefit society, a friendly society, an employees' mutual benefit society, or a trade union benefit society; ("société de secours mutuels")

"friendly society" means a society, order, association or corporation formed or incorporated, and carried on for the purpose of making with its members only, and not for profit, contracts under which

(

a) sickness, accident and disability benefits, or any one or more of them, not exceeding $5. per week, or

(

b) funeral benefits not exceeding $150., for all of such benefits, may be paid only to its members or their beneficiaries, in accordance with its constitution and laws and the provisions of this Act; ("société de collecte")

"guarantee insurance" means the undertaking to perform an agreement or contract or to discharge a trust, duty, or obligation upon default of the person liable for the performance or discharge, or to pay money upon such default or in lieu of the performance or discharge, or where there is loss or damage through such default, and includes insurance against loss or liability for loss due to the invalidity of the title to any property or of any instrument or to any defect in such title or instrument, but does not include credit insurance; ("assurance de cautionnement")

"hail insurance" means insurance against loss of or damage to crops caused by hail; ("assurance contre la grêle")

"industrial contract" means a contract of life insurance for an amount not exceeding $2,000., exclusive of any benefit, surplus, profit, dividend or bonus also payable under the contract, and which provides for payment of premiums at fortnightly or shorter intervals, or if the premiums are usually collected at the home of the insured, at monthly intervals; ("contrat populaire")

"inland transportation insurance" means insurance (other than marine insurance) against loss of or damage to property:

(

a) while in transit or during delay incidental to transit, or

(

b) where, in the opinion of the superintendent, the risk is substantially a transit risk; ("assurance transports terrestres")

"insurance" means the undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed, or to pay a sum of money or other thing of value upon the happening of a certain event and, without limiting the generality of the foregoing, includes life insurance; but does not include an agreement of the nature commonly described as an investment contract made by a person not licensed under this Act to undertake contracts of insurance; ("assurance")

"insurance fund," as applied to a fraternal society or as applied to any corporation not incorporated exclusively for the transaction of insurance, includes all money, securities for money and assets appropriated by the rules of the society or corporation to the payment of insurance liabilities or appropriated for the management of the insurance branch, department or division of the society, or otherwise legally available for insurance liabilities, but does not include funds of a trade union appropriated to or applicable for the voluntary assistance of wage earners unemployed or upon strike; ("fonds d'assurance")

"insurance on the cash plan" means any insurance that is not mutual insurance; ("assurance au comptant" )

"insured" means a person insured by a contract whether named or not; ("assuré")

"insurer" means the person who undertakes or agrees or offers to undertake a contract; ("assureur")

"legal expense insurance" means insurance against the cost incurred by a person for specified legal services, including fees or other costs, incurred relative to the provision of those services; ("assurance-frais de justice")

"life insurance" means an undertaking by an insurer to pay insurance money

(

a) on death, or

(

b) on the happening of an event or contingency dependent on human life, or

(

c) at a fixed or determinable future time, or (

d) for a term dependent on human life,

and without limiting the generality of the foregoing, includes

(

e) accidental death insurance but not accident insurance,

(

f) disability insurance, and

(

g) an undertaking to provide an annuity, or what would be an annuity except that the periodic payments may be unequal in amount, for a term dependent solely or partly on a human life, and such an undertaking shall be deemed always to have been life insurance; ("assurance-vie")

"livestock insurance" means insurance (not being insurance incidental to some other class of insurance defined by or under this Act) against loss through the death or sickness of or accident to an animal; ("assurance-bétail")

"marine insurance" means insurance against marine losses; that is to say, the losses incident to marine adventure, and may by the express terms of a contract or by usage of trade extend so as to protect the insured against losses on inland waters or by land or air, which are incidental to any sea voyage; ("assurance maritime")

"minister" means that member of the Executive Council charged with the administration of this Act; ("ministre")

"motor vehicle" has the same meaning as "automobile"; ("véhicule automobile")

"motor vehicle liability policy" means a policy or part of a policy evidencing a contract insuring

(

a) the owner or driver of an automobile, or

(

b) a person who is not the owner or driver thereof where the automobile is being used or operated by his employee or agent or any other person on his behalf, against liability arising out of bodily injury to or the death of a person or loss or damage to property caused by an automobile or the use or operation thereof; ("police de responsabilité automobile")

"mutual benefit society" means a society, order or association incorporated, and carried on, for the purpose of making with its members only, and not for profit, contracts under which

(

a) sickness, accident and disability benefits or any one or more of them, not exceeding $10. per week, or

(

b) funeral benefits not exceeding $300.,

or all such benefits, may be paid only to its members or their beneficiaries, in accordance with its constitution and laws and the provisions of this Act; but does not include a friendly society, or an employees' mutual benefit society, or a trade union benefit society; ("société mutuelle")

"mutual insurance" means a contract of insurance, other than life, accident and sickness insurance, in which the consideration is not fixed or certain at the time the contract is made and is to be determined at the termination of the contract or at fixed periods during the term of the contract according to the experience of the insurer in respect of all similar contracts whether or not the maximum amount of such consideration is predetermined; ("assurance mutuelle")

"mutual insurance company" means an insurer incorporated under the laws of the province without share capital that is not a fraternal society, a friendly society, an employees' mutual benefit society, a mutual benefit society or a trade union benefit society; ("compagnie d'assurance mutuelle")

"non-owner's policy" means a motor vehicle liability policy insuring a person solely in respect of the use or operation by him or on his behalf of an automobile that is not owned by him; ("police de conducteur")

"officer" includes any trustee, director, manager, treasurer, secretary, or member of the board or committee of management of an insurer, or any person appointed by the insurer to sue and be sued in its behalf; ("dirigeant")

"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 him and within the description or definition thereof in the policy and, if the contract so provides, in respect of the use or operation of any other automobile; ("police de propriétaire" )

"personal property insurance" means insurance against loss of, or damage to, movable or personal property; ("assurance biens personnels")

"plate glass insurance" means insurance (not being insurance incidental to some other class of insurance defined by or under this Act) against loss of or damage to plate, sheet or window glass, whether in place or in transit; ("assurance bris des glaces")

"policy" means the instrument evidencing a contract; ("police")

"premium" means the single or periodical payment to be made for the insurance, and includes dues and assessments; ("prime")

"premium note" means an instrument given as consideration for insurance whereby the maker undertakes to pay such sum or sums as are legally demanded by the insurer, the aggregate of such sums not to exceed an amount specified in the instrument and includes any undertaking to pay such sums regardless of the form thereof and whether or not accompanied by a deposit of money or security; ("billet de souscription")

"prescribed" means prescribed in the regulations or otherwise under the authority of this Act; ("prescrit")

"property" includes profits, earnings, and other pecuniary interests, and expenditure for rents, interest, taxes, and other outgoings and charges and in respect of inability to occupy the insured premises, but only to the extent of express provision in the contract; ("biens")

"property damage insurance" means insurance against loss of or damage to property which is not included in or incidental to some other class of insurance defined by or under this Act; ("assurance contre les dommages matériels")

"public liability insurance" means insurance against loss or damage to the person or property of others which is not included in or incidental to some other class of insurance defined by or under this Act; ("assurance responsabilité civile")

"sick and funeral benefits" includes insurance against sickness, disability or death; ("prestations d'assurance-maladie et indemnités funéraires")

"sickness insurance" means insurance by which the insurer undertakes to pay insurance money in the event of sickness of the person or persons insured, but does not include disability insurance; ("assurance-maladie")

"sprinkler leakage insurance" means insurance against loss of or damage to property through the breakage or leakage of sprinkler equipment or other fire protection system, or of pumps, water pipes, or plumbing and its fixtures; ("assurance-extincteurs automatiques" )

"superintendent" means the Superintendent of Insurance and includes the deputy; ("surintendant" )

"theft insurance" means insurance against loss or damage through theft, wrongful conversion, burglary, housebreaking, robbery, or forgery; ("assurance-vol")

"title insurance" means insurance against loss or damage caused by defect in the title to real property, or by the existence of liens, encumbrances, or servitudes upon real property, or by other matters affecting the title to real property or the right to the use and enjoyment thereof, or by defect in the execution of mortgages, hypothecs, or deeds of trust; ("assurance titres de propriété")

"trade union" means an organization of wageearners of a particular trade or industrial calling constituted primarily and operated bona fide for regulation of wages and hours of labour as between employers and employed; but does not include a co-operative association or corporation; ("syndicat ouvrier")

"trade union benefit society" means a society, association or corporation, membership in which is restricted exclusively to bona fide members of one trade union and which under the authority of its charter has an assurance or benefit fund for the benefit of its own members exclusively; ("société mutuelle syndicale")

"weather insurance" means insurance against loss or damage through windstorm, cyclone, tornado, rain, hail, flood or frost, but does not include hail insurance; ("assurance-intempéries")

"workers compensation insurance" means insurance of an employer against the cost of compensation prescribed by statute for bodily injury, disability, or death of a worker through accident or disease arising out of or in the course of employment. ("assurance accidents de travail")

PART I

SUPERINTENDENT AND HIS DUTIES

Appointment of superintendent, deputy, and staff.

2(1)

An officer to be called: "Superintendent of Insurance" and an officer to be called: "Deputy Superintendent of Insurance" and such other officers and employees under the superintendent as are necessary for the purposes of this Act may be appointed as provided in The Civil Service Act.

Duties of.

2(2)

The superintendent shall act under the instructions of the minister, have general supervision of the business of insurance within the province, see that the laws relating thereto are enforced and obeyed, and examine and report to the minister from time to time upon all matters connected therewith.

Applications under

section 280 of The Corporations Act.

2(3)

The superintendent may consider any application, his approval to which is required under

section 280 of The Corporations Act.

Duties of deputy.

The Deputy Superintendent of Insurance shall act as superintendent during the absence or inability of the superintendent, and shall perform such other duties as are assigned to him by this Act, by the Lieutenant Governor in Council, the minister, or the superintendent.

Agreement with Canada for inspection of insurers.

4(1)

Provision for payment to Canada.

4(2)

Regulations for carrying agreement into effect.

4(3)

The Lieutenant Governor in Council may make regulations deemed necessary for carrying any agreement into effect, and may authorize the Superintendent of Insurance (Canada) to exercise and perform any or all of the powers granted to and the duties imposed on the superintendent under the sections referred to in subsection (1) and under subsections (4) and (5).

Superintendent to ascertain inspection expenditure during last preceding year.

4(4)

Where an agreement is entered into under this section, the Superintendent of Insurance (Canada) shall annually, as soon as may be after the close of each fiscal year, by such inquiry or investigation as he may deem necessary, ascertain and certify the total amount of the expenditure incurred for or in connection with the administration of the sections of this Act dealing with the financial inspection and supervision of insurers during the last preceding fiscal year; and the amount of the expenditure so ascertained and certified by the superintendent shall be final and conclusive for all purposes of this section.

Assessment.

4(5)

In each year that an agreement made under subsection (1) is in force, the Superintendent of Insurance (Canada) shall assess each insurer for the expenses incurred by the Superintendent of Insurance (Canada) for or in connection with the performance by him of duties under the agreement in respect of that insurer and shall notify the superintendent of the amount of each such assessment.

Payment of assessment.

4(6)

Upon being notified of an assessment made against an insurer under subsection (5), the superintendent shall notify the insurer in writing of the amount of the assessment and that amount is a debt due by the insurer to the Crown, payable to the minister and due on the 30th day after the day the insurer receives the notice of assessment.

Agreement for guarantee of insurers.

5(1)

The Lieutenant Governor in Council may authorize the minister on behalf of the Government of Manitoba, to enter into an agreement with any corporation established for the purpose of setting up a fund to guarantee, in whole or in part, the obligations of an insurer designated by the corporation.

Regulations.

5(2)

The Lieutenant Governor in Council may make such regulations as the Lieutenant Governor in Council deems necessary

(

a) to carry out any agreement referred to in subsection (1); and

(

b) to enforce the rights of the Government of Manitoba under an agreement referred to in subsection (1).

Taking evidence.

6(1)

In carrying out his duties and in exercising his powers under this Act or under any other Act relating to insurance, the superintendent may require and may take and receive affidavits, statutory declarations, and depositions, and may examine witnesses upon oath; and he has the same power to summon persons to attend as witnesses, to enforce their attendance, to compel them to produce books, documents and things, and to give evidence as any court has in civil cases.

Oaths.

6(2)

An oath required by this Act to be taken, may be administered by the superintendent or by any person authorized to administer oaths in the province.

Superintendent not to be shareholder.

Neither the superintendent nor any officer under him shall be interested as a shareholder, directly or indirectly, in any insurance company doing business in the province.

Actions against superintendent.

8(1)

Without a fiat of the Attorney-General, no action or proceeding shall be brought or taken against the superintendent for anything done or omitted in the performance, or intended or supposed performance of his duty under this Act, or under any other Act which imposes duties upon him.

Actions by superintendent.

8(2)

The superintendent may bring actions and institute proceedings in his name of office for the enforcement of any provision of this Act or for the recovery of fees and penalties payable hereunder.

Leave.

8(3)

No action or proceeding for the recovery of fees and penalties payable hereunder shall be commenced without the leave of the superintendent.

BOOKS AND RECORDS

Records of superintendent.

9(1)

The superintendent shall keep the following books and records:

(

a) a register of all licences issued pursuant to this Act, in which shall appear the name of the insurer, the address of its head office, the address of its principal office in Canada, the name and address of its principal general agent in the province, the number of the licence, particulars of the classes of insurance for which the insurer is licensed, and such other information as the superintendent deems necessary;

(

b) a record of all securities deposited by each insurer with the Minister of Finance, naming them in detail, their par value, their date of maturity and value at which they are received as deposit; and

(

c) a record of agents licensed or authorized under this Act.

Inspection.

9(2)

The books and records required by this

section to be kept shall be open to inspection at such time and upon payment of such fees as are prescribed.

Annual publication in Manitoba Gazette.

10(1)

The superintendent shall cause to be published yearly in The Manitoba Gazette a list of the insurers licensed at the date of the list, and he shall forthwith cause notice of the issue of a licence to an insurer not theretofore licensed and of the suspension, cancellation, revocation or revivor of a licence to be given by publication in The Manitoba Gazette.

Annual publication in Manitoba Gazette.

10(2)

A certificate, under the hand and seal of office of the superintendent, that on a stated day an insurer mentioned therein was or was not licensed under this Act, or that any insurer was originally admitted to licence or that the licence of any insurer was renewed, suspended, revived, revoked, or cancelled on a stated day, is evidence of the facts stated in the certificate, without proof of the signature of the superintendent or official signing it.

Certificate of filing evidence.

10(3)

A certificate of the filing of any document by this or any former Insurance Act required to be filed in the office of the inspector of insurance or of the superintendent is evidence of the filing if signed or purporting to be signed by the superintendent.

DUTIES RESPECTING LICENCES

Superintendent to determine right to licence.

The superintendent shall determine the right of any insurer to be licensed under this Act, subject to appeal, and to the right of the Lieutenant Governor in Council or of the minister to suspend or cancel any licence as hereinafter provided.

Applications for approval by superintendent.

12(1)

Where an application is made to the superintendent for his approval of any matter requiring his approval under

section 280 of The Corporations Act, he may, subject to appeal, give or withhold his approval, and if he gives his approval he shall state therein to what class of insurance, as defined herein, the applicant belongs, and the kinds of insurance which an insurer of that class may transact; and the applicant shall file with the superintendent such evidence as he may require.

Appeal.

12(2)

Where the superintendent withholds his approval of an application made under subsection (1), the applicant may appeal from the decision of the superintendent to the Lieutenant Governor in Council whose decision thereon is final.

Decision of superintendent.

13(1)

Every decision of the superintendent upon an application for a licence shall be in writing and notice thereof shall be forthwith given to the insurer.

Certified copy of.

13(2)

The insurer, or any person interested shall be entitled, upon payment of the prescribed fee, to a certified copy of the decision.

Stenographic report of evidence.

13(3)

The evidence and proceedings in any matter before the superintendent may be reported by a stenographer sworn before the superintendent faithfully to report it.

Appeal.

An applicant for a licence may appeal from the decision of the superintendent refusing a licence, to the Lieutenant Governor in Council.

INVESTIGATION OF INSURERS

Consequences of failure to answer inquiries.

The superintendent may direct to an insurer any inquiry touching its contracts or financial affairs, and the insurer shall make prompt and explicit answer to any such inquiry, and, in case of refusal or neglect to answer, is guilty of an offence.

Access to books.

The superintendent, or any person authorized under his hand, shall, at all reasonable times, have access to all the books, securities, and documents of an insurer, agent, or adjuster, that relate to contracts of insurance; and any officer or person in charge, possession, custody or control of such books, securities, or documents who refuses or neglects to afford such access is guilty of an offence.

Duty to furnish information on request.

The officers, adjusters, and agents of every licensed insurer, every other licensed person, and every insurer, shall furnish the superintendent on his request with full information relative to any contract issued by the insurer or to the insured, as the case may be, and made or deemed to be made within the province, or relative to any settlement or adjustment under any such contract.

Annual inspection of insurers.

18(1)

The superintendent shall visit personally, or cause to be visited, at least annually, the head office or chief agency in the province of every licensed insurer, other than a mutual benefit society having less than 300 members, or any insurer as to which he adopts the inspection of some other government, and he shall verify the statement of the condition and affairs of each such insurer filed under this Act, and make such inquiries as are necessary to ascertain its ability to provide for the payment of its contracts as they mature and whether or not it has complied with all the provisions of this Act applicable to its transactions; and the superintendent shall report thereon to the minister as to all matters requiring his attention and decision.

Examination of affairs of insurer.

18(2)

Where the head office of any such insurer is not in the province the minister may, in his discretion, instruct the superintendent to visit the head office to inspect and examine its affairs and to make such inquiries as the minister requires.

Duty of officers and agents to facilitate examination.

18(3)

The officers or agents of the insurer shall produce its books and records for the inspection of the superintendent or other person making the inspection, and shall otherwise facilitate the examination so far as is in their power.

Production of books at head office.

18(4)

In order to facilitate the inspection the superintendent, with the approval of the minister, may require the insurer to produce the books and records at the head office or chief agency of the insurer in the province or at such other place as the superintendent directs; and any officer of the insurer who has custody of the books and records so attending shall be entitled to be paid by the insurer the actual expenses of his attendance.

Examination of affairs of an insurer.

18(5)

The superintendent, with the approval of the minister, may cause abstracts to be prepared of the books and vouchers and a valuation to be made of the assets and liabilities of any such insurer, and the cost thereof, upon the certificate of the superintendent approved by the minister, shall be paid by the insurer.

Expenses of examination.

18(6)

An insurer examined or inspected under this

section outside the province shall forthwith pay to the superintendent his expenses in connection therewith upon the delivery to the insurer of the certificate of the superintendent approved by the minister, certifying as to his travelling and living expenses.

Recovery of expenses.

18(7)

Any amount payable under subsection (6) may be recovered by the superintendent as a debt due to the Crown.

Assistants and their remuneration.

18(8)

The superintendent may, with the approval of the minister, employ persons to make on his behalf, or to assist him in making, any examination or inspection under this section; and the travelling and living expenses of those persons so employed constitute expenses of the superintendent within the meaning of subsection (6).

Disposal of moneys paid for expenses.

18(9)

Any moneys paid to the superintendent under this

section do not form part of the Consolidated Fund but may be disbursed by the superintendent in payment of his expenses.

Inspection adopted.

18(10)

With the consent of the minister, the superintendent may, with respect to any insurer, accept the inspection and report, in whole or in part, of, or made under the authority of, any other government in Canada.

SERVICE OF PROCESS

Service of process on superintendent.

19(1)

Where the head office of a licensed insurer is situated outside the province, notice or process in any action or proceeding in the province may be effectually served upon the insurer by leaving three copies of the notice or process with the superintendent, or with an employee in the office of the superintendent designated for that purpose by him.

Contracts on cessation of licence.

19(2)

Where a licensed insurer ceases to be licensed, while any contract made in the province by the insurer is in force, the insurer shall, for the purposes of this section, be deemed to be a licensed insurer.

Insurer to file address.

19(3)

Every licensed insurer shall file in the office of the superintendent notice of a post office address to which the notice or process may be forwarded by the superintendent and shall notify the superintendent of any change in the address.

Superintendent to forward process.

19(4)

The superintendent shall forthwith after the receipt of the notice or process in triplicate forward one copy thereof to the insurer by registered mail, postage prepaid, addressed in the manner last notified to him for this purpose by the insurer.

Record and remuneration.

19(5)

The superintendent shall keep a record of all such proceedings, showing the day and hour of the service of process on him; and for that service each insurer shall pay to the superintendent, in the name of the Minister of Finance, for the use of Her Majesty, an annual fee of $5.

No judgment by default unless service is proved.

19(6)

No judgment against the insurer shall be entered for default of appearance or defence in the action or proceeding unless an affidavit is filed in the court out of, or by, which the process is issued, showing that the superintendent has duly forwarded a copy thereof to the insurer.

ANNUAL REPORT

Annual report.

20(1)

The superintendent shall prepare for the minister from the statements filed by the insurers and from any inspection or inquiries made, an annual report, showing particulars of the business of each insurer as ascertained from the statements, inspection, and inquiries; and the report shall be printed and published forthwith after completion.

Permissible investments.

20(2)

In his report the superintendent shall allow as assets only such of the investments of any insurer as are authorized by this Act, its charter or any other Act applicable to such investments.

Superintendent's correction of annual statements.

20(3)

In his report the superintendent shall make the necessary corrections in the annual statement of any insurer, and may increase or diminish the liabilities of the insurer to the true and correct amounts thereof as ascertained from any examination of its affairs.

Appraisement of real estate of insurer.

20(4)

Where it appears to the superintendent, or where he has reason to suppose, from the annual statement, that the value placed by an insurer incorporated and licensed under the laws of the province upon any of its real estate is too great, he may either require the insurer to secure an appraisement of the real estate by one or more competent valuators, or may himself procure such appraisement at the expense of the insurer; and the appraised value, if it varies materially from the statement made by the insurer, may be substituted in the annual report of the superintendent.

Appraisement of security.

20(5)

In like manner the superintendent may procure an appraisement of any parcel of land that constitutes the security for any loan; and if from the appraisal it appears that the parcel is not adequate security for the loan and accrued interest, he may reduce the value to such an amount as is fairly realizable from the security, in no case to exceed the appraised value, and may insert the reduced value in his report.

Appraisement of other investments.

20(6)

In like manner the superintendent may make, or cause to be made, an appraisal of the security taken for any investments of the insurer; and if it appears that the value of the securities as shown on the books of the insurer is greater than its true value as shown by the appraisal he may reduce the book value thereof to such amount as is fairly realizable therefrom, and in no case to exceed the appraised value, and may insert the reduced amount in his annual report.

What investments allowed.

20(7)

The superintendent may require any insurer incorporated and licensed under the laws of the province to dispose of and realize any of its investments acquired after the passing of this Act and not allowed in his report; and the insurer shall, within 60 days after receiving the requisition, absolutely dispose thereof; and subject to subsection (8), if the amount realized therefrom falls below the amount paid by the insurer therefor, the directors of the insurer are jointly and severally liable for the payment to the insurer of the amount of the deficiency.

Saving.

20(8)

If any director present when an investment to which subsection (7) applies was authorized did forthwith, or if any director then absent, did, within eight days after he becomes aware of such an investment, protest and give notice thereof by registered letter to the superintendent, that director may thereby, and not otherwise, exonerate himself from the liability.

Appeal.

20(9)

An insurer affected thereby may appeal to the Lieutenant Governor in Council from the ruling of the superintendent as to the allowance in his report of any asset not allowed by him, or as to any item or amount added to liabilities, or as to any correction or alteration made in its statement.

APPEAL FROM SUPERINTENDENT'S DECISION

Appeal.

21(1)

Where, by this Act, an appeal to the Lieutenant Governor in Council is given to any person, the superintendent shall, at the request of the person, give a certificate in writing, setting forth the ruling complained of and his reasons therefor; and the ruling is binding upon the person, unless within ten days after the giving thereof the person serves upon the superintendent notice of his intention to appeal therefrom, setting forth the grounds of appeal, and within ten days thereafter files his appeal with the Lieutenant Governor in Council and with due diligence prosecutes it, in which case action on the ruling shall be suspended until the Lieutenant Governor in Council renders judgment thereon.

Certificate.

21(2)

The superintendent shall certify and file with the Clerk of the Executive Council the decision appealed from and his reasons therefor, and the documents, statements, inspection reports, certificates, declarations, and other papers relating to the matter, and any evidence taken, and such other information as he had before him in making his decision.

PART II

GENERAL PROVISIONS APPLICABLE TO INSURERS IN MANITOBA CARRYING ON BUSINESS

Undertaking insurance.

22(1)

Any insurer undertaking a contract of insurance that, under this Act, is deemed to be made in the province, whether the contract is original or a renewal, except the renewal from time to time of life insurance policies, shall be deemed to be undertaking insurance in the province within the meaning of this Part.

Carrying on business.

22(2)

Any insurer that

(

a) undertakes or offers to undertake insurance within the province; or

(

b) sets up or causes to be set up within the province any sign containing the name of the insurer; or

(

c) maintains or operates within the province either in its own name or in the name of an agent or other representative an office for the transaction of a business of insurance either within or without the province; or

(

d) distributes or publishes within the province, or causes to be distributed or published within the province, any proposal, circular, card advertisement, printed form, or like document;

(

e) inserts, prints, or publishes, its name, or permits or causes its name to be inserted, imprinted, or published, in any telephone directory or in any other directory or list of names, with or without addresses, of the residents or occupants of premises in any municipality, locality, area, or district within the province, or in any building within the province; or

(

f) makes or causes to be made within the province any written or oral solicitation for insurance; or

(

g) issues or delivers within the province any policy of insurance or interim receipt; or

(

h) collects or receives within the province or negotiates within the province for, or causes to be collected or received within the province, or negotiated within the province for, any premium for a contract of insurance; or

(

i) inspects any risk or adjusts any loss within the province under a contract of insurance; or

(

j) prosecutes or maintains within the province any action or proceeding in respect of a contract of insurance; or

(

k) represents or holds itself out within the province to the public as being engaged in the insurance business; or

(

l) has in force contracts of insurance on property situated in the province, or insuring persons resident in the province shall be deemed to be an insurer carrying on business in the province within the meaning of this Act.

Certain organizations deemed insurers.

23(1)

Every society, order, association or corporation that under its constitution and laws is empowered

(

a) to pay to its members or their beneficiaries, as a benefit payable by the society, order, association or corporation, the proceeds of a contingency levy; or

(

b) to pay sickness, accident, disability, unemployment, funeral, hospital, medical, or dental benefits, or benefits payable on death or on the happening of any contingency dependent on human life, in an amount that is fixed at the discretion of the directors or of an executive or management committee of the society, order, association or corporation;

shall, subject to subsection 24(4) be deemed to be an insurer within the meaning of this Act.

Definition of "contingency levy".

23(2)

For the purposes of this

section the expression "contingency levy" means an assessment or levy made on members of a society, order, association, or corporation on the occasion of the happening to any member thereof of any one or more of certain contingencies upon the happening of which that member or his beneficiaries become entitled to receive the proceeds of that assessment or levy.

LICENCES

Necessity of licence.

24(1)

Every insurer carrying on business in the province shall obtain from the superintendent and hold a licence under this Act.

Prohibition of unlicensed insurance.

24(2)

Every insurer carrying on business in the province without having obtained a licence as required by this section, is guilty of an offence.

Prohibition against person acting on behalf of unlicensed insurer.

24(3)

Any person who, within the province, does or causes to be done any act or thing mentioned in

section 22 on behalf of, or as agent of, an insurer not licensed under this act, or who receives, directly or indirectly, any remuneration for so doing, is guilty of an offence.

Exceptions.

24(4)

The following shall not be deemed insurers within the meaning of this Act or required or entitled to be licensed as such:

(

a) employees' mutual benefit societies;

(

b) friendly societies;

(

c) trade union benefit societies;

(

d) mutual benefit societies whose memberships are confined to railway employees and which do not grant mortuary or funeral benefits; and

(

e) such other organizations as the Lieutenant Governor in Council determines.

Carrying on business in foreign jurisdiction without authority.

24(5)

Where the superintendent is satisfied that an insurer licensed under this Act is carrying on or soliciting business in a foreign jurisdiction without being first authorized so to do under the laws of that foreign jurisdiction, the Lieutenant Governor in Council may, upon the report of the superintendent, suspend or cancel the licence of the insurer.

Penalty.

24(6)

Every insurer or other person guilty of an offence under this

section is liable, on

summary conviction, to a fine of not less than $50. and not more than $200. for each such offence.

Reinsurance with unlicensed insurer.

Nothing in this Act prevents a licensed insurer that has lawfully effected a contract of insurance in the province from reinsuring the risk or any portion thereof with any insurer transacting business out of the province and not licensed under this Act.

What insurers may be licensed.

26(1)

Upon due application and proof of compliance with this Act, the superintendent may issue a licence and upon payment of the prescribed fee, the superintendent may issue a licence to undertake contracts of insurance and carry on business in the province to any insurer coming within one of the following classes:

(

a) joint stock insurance companies;

(

b) mutual insurance companies;

(

c) fraternal societies;

(

d) mutual benefit societies;

(

e) companies duly incorporated to undertake insurance contracts and not within any of the foregoing classes;

(

f) underwriters or syndicates of underwriters operating on the plan known as Lloyd's.

Effect of licence.

26(2)

A licence issued pursuant to this Act authorizes the insurer named therein to exercise within the province all rights and powers reasonably incidental to the carrying on of the business of insurance named therein, that are not inconsistent with this Act or with the terms of its charter.

Classes of insurance.

27(1)

Subject to provisions of Parts of this Act particularly relating to classes of insurers mentioned in

section 26, a licence may be granted to an insurer to carry on any one or more of the classes of insurance defined in

section 1 and such other classes as may be prescribed by the regulations.

Limited or conditional licence.

27(2)

A licence may be issued subject to such limitations and conditions as the minister prescribes.

Variation of conditions, etc.

27(3)

Notwithstanding subsection (2) and

section 34, the Minister may, at any time, in respect of any licence of an insurer,

(

a) reduce the term for which the licence was issued or renewed; or

(

b) impose any condition or limitation relating to the carrying on of the insurer's business that he considers appropriate; or

(

c) vary, amend or revoke any condition or limitation to which the licence is then subject;

or do any or all of those things; but the Minister may not exercise any power granted under this subsection unless he has given the insurer notice of his intention to exercise the power and has afforded the insurer a reasonable opportunity to be heard with respect thereto.

Determination of classes of insurance by superintendent.

27(4)

Where a question arises as to the class of insurance into which any specific contract of insurance or form of policy falls, the superintendent may determine the question; and his determination is effective and final for the purposes of this Act.

Conditions of automobile insurance licence.

27(5)

A licence to carry an automobile insurance in Manitoba is subject to the following conditions:

(

a) In any action in Manitoba against the licensed insurer, or its insured, arising out of an automobile accident in Manitoba, the insurer shall appear and shall not set up any defence to a claim under a contract made outside Manitoba, including any defence as to the limit or limits of liability under the contract, that might not be set up if the contract were evidenced by a motor vehicle liability policy issued in Manitoba.

(

b) In any action in another province or territory of Canada against the licensed insurer, or its insured, arising out of an automobile accident in that province or territory, the insurer shall appear and shall not set up any defence to a claim under a contract evidenced by a motor vehicle liability policy issued in Manitoba, including any defence as to the limit or limits of liability under the contract, that might not be set up if the contract were evidenced by a motor vehicle liability policy issued in that other province or territory.

Penalty for breach.

27(6)

A licence may be cancelled when the holder commits a breach of condition as set out in subsection (5).

Scope of life insurance.

Every insurer licensed for the transaction of life insurance may, under the authority of its licence, unless the licence expressly provides otherwise, issue annuities and endowments of all kinds and also include in any policy of life insurance, in respect of the same life or lives insured thereby, disability insurance and accidental death insurance.

Scope of fire insurance licence.

29(1)

Every insurer licensed to carry on fire insurance may, subject to its act of incorporation, and subject to the restrictions prescribed by the licence, insure or reinsure any property in which the insured has an insurable interest against loss or damage by fire, lightning or explosion and may insure or reinsure the same property against loss or damage from falling aircraft, earthquake, windstorm, tornado, hail, sprinkler leakage, riot, malicious damage, weather, water damage, smoke damage, civil commotion and impact by vehicles and any one or more perils falling within such other classes of insurance as are prescribed by the regulations.

Insurance of automobiles against fire.

29(2)

An insurer licensed to carry on fire insurance may insure an automobile against loss or damage under a policy falling within

Part IV of this Act; but in the case of a purely mutual fire insurance corporation, incorporated or licensed in Manitoba and carrying on business on the premium note plan, the automobile shall be specifically insured under a policy separate from that insuring other property.

Restriction re: joint stock company.

30(1)

A licence shall not be granted to a joint stock insurance company not licensed on June 15, 1967, unless the company furnishes to the superintendent satisfactory evidence that, of the capital stock, not less than $500,000. has been bona fide subscribed for, allotted and paid in and, in addition,

(

a) where the company is undertaking life insurance, the company has an unimpaired surplus of not less than $500,000.; or

(

b) where the company is not undertaking life insurance, the company has an unimpaired surplus of not less than $100,000.

Restrictions re: life insurance.

30(2)

A licence shall not be granted to an insurer undertaking life insurance, and that was not licensed on March 17, 1943, unless the insurer is registered under the Canadian and British Insurance Companies Act (Canada), or under the Foreign Insurance Companies Act, (Canada), and has obtained a certificate of registry from the Minister of Finance; but this subsection does not apply to an insurer that is a mutual benefit society.

Restrictions re: Lloyd's.

30(3)

A licence shall not be granted an insurance company mentioned in clause 26(l)(e), or to an underwriter or syndicate of underwriters operating on the plan known as Lloyd's, except upon proof that

(

a) its, or his net surplus of assets over all liabilities exceeds the paid-up capital stock required in the case of a joint stock company under subsection (1), carrying on the same class of insurance; and

(

b) its net surplus together with the contingent liability of members, if any, exceeds the subscribed and allotted capital stock required in the case of such a joint stock insurance company.

Restrictions re: mutual insurance.

30(4)

A licence shall not be granted to a mutual insurance company, except upon proof,

(

a) that the total amount insured under the contracts of the company (not being one undertaking hail insurance) in force at the expiration of one year from the date of the issue of the initial licence amount to at least $100,000.

(

b) that thereafter the total amount insured under contracts at all times equal $100,000.; and

(

c) in the case of a mutual company undertaking hail insurance, that the total amount insured under contracts equal in the aggregate the sum of $100,000.

Application of other Part.

30(5)

A licence shall not be granted to any insurer except upon proof that the insurer has complied with the provisions of the Part of this Act and regulations applicable thereto.

Evidence by insurer whose head office outside of province.

30(6)

Where the head office of an applicant for a licence under this Act is situated outside the province, a licence shall not be granted except upon proof of the applicant's ability to provide for the payment at maturity of all its contracts; but the superintendent may accept as sufficient the fact that the insurer is licensed by any government in Canada.

Certain types of agreements requiring superintendent's approval.

30(7)

Where an insurer that under its constitution and laws is empowered

(

a) to pay to its members or their beneficiaries, as a benefit payable by such insurer, the proceeds of a contingency levy; or

(

b) to pay sickness, accident, disability, unemployment, funeral, hospital, medical, or dental benefits, or benefits payable on death or on the happening of any contingency dependent on human life, in an amount which is fixed at the discretion of the directors or of an executive or management committee of the insurer;

applies for a licence, and the insurer has not, prior to the date of the application, been licensed, if the insurer, after April 6, 1944, and before making the application, has made with any of its shareholders, members or policyholders an agreement whereby the terms of any former contract between the insurer and any shareholder, member or policyholder has been altered or modified, or if any change has been made with respect to any reserve fund or surplus moneys or assets, a licence shall not be granted to the insurer until the agreement or change has been submitted to, and approved by, the minister.

Restriction re guarantee fund.

30(8)

A licence shall not be granted to an insurer required to be a member of a guarantee fund unless the insurer furnishes proof satisfactory to the superintendent of ability to meet the requirements of membership when the insurer applies to be licensed.

Membership in guarantee fund.

30(9)

Where an insurer is required to maintain membership in a guarantee fund and fails to do so, the Lieutenant Governor in Council may cancel the licence of the insurer.

Regulations.

30(10)

The Lieutenant Governor in Council may make regulations requiring any insurer or class of insurer to be a member of a guarantee fund.

Information preliminary to licence.

The superintendent may require such notice of the application for a licence to be given by publication in The Manitoba Gazette and elsewhere as he deems necessary.

Documents to be filed by applicants for licence.

32(1)

Before the issue of a licence to an insurer, the insurer shall file in the office of the superintendent

(

a) in the case of an insurer undertaking life insurance (other than a mutual benefit society) and that was not licensed on March 17, 1943, a certificate of registry under The Canadian and British Insurance Companies Act, (Canada), or under The Foreign Insurance Companies Act, (Canada);

(

b) a certified copy of its Act or charter of incorporation, which shall include its constitution, by-laws, and regulations verified in manner satisfactory to the superintendent;

(

c) a certified copy of its last balance sheet and auditor's report thereon;

(

d) notice of the place where the chief agency or head office of the insurer in the province is to be situated;

(

e) a statement showing the amount of the capital of the insurer and the number of shares into which it is divided, the number of shares subscribed and the amount paid up thereon;

(

f) notice of appointment of chief agent or resident manager for the province;

(

g) such other evidence as the superintendent requires.

Exemption from certain fillings.

32(2)

Where the insurer is not a corporation or certain of the provisions of subsection (1) are otherwise inapplicable to the insurer, the superintendent may dispense with the filing of those documents that do not apply to the insurer.

Changes.

32(3)

Where a change at any time is made in the charter of the insurer or its head office or chief agency or in its chief agent, the insurer shall forthwith notify the superintendent thereof and file with him such further certified copies, notices or powers of attorney as are necessary to evidence the change.

Statement of expenses of organization.

33(1)

Upon application being made for a licence by an insurer incorporated under the laws of the province after September 1, 1932, there shall be submitted to the superintendent a sworn statement setting forth the several sums of money paid in connection with its incorporation and organization, and therein a list of all unpaid liabilities, if any, arising out of its incorporation and organization.

To what limited.

33(2)

Until the licence is granted, no payments on account of such expenses, shall be made out of the moneys paid in by shareholders except reasonable sums for the payment of clerical assistance, legal services, office rental, advertising, stationery, postage and expense of travel, if any.

Conditions precedent to issue of licence.

33(3)

The superintendent shall not issue the licence until he is satisfied that all requirements of this Act and of The Corporations Act, as to subscriptions of stock, payment of money by shareholders on account thereof, election of directors and other preliminaries have been complied with, and that the expenses of incorporation and organization, including the commission payable for the sale of the stock are reasonable.

Form of licence.

The licence shall be in such form as is determined by the superintendent, shall specify the business to be carried on by the insurer and shall expire on December 31 in the year of its issue, but may be renewed from year to year.

Issue of licences.

When an insurer has deposited the security required by this Act and has otherwise complied with the requirements thereof and of The Corporations Act, the superintendent may issue a licence to it.

CANCELLATION OF LICENCE

Withdrawal of licence for non-payment of claims.

36(1)

Upon written notice to the superintendent and upon proof of an undisputed claim arising from loss insured against in the province remaining unpaid for the space of 60 days after becoming due, or of a disputed claim, after final judgment and tender of a valid discharge, being unpaid, the superintendent shall cancel the licence of the insurer.

Revival of licence.

36(2)

The superintendent may revive the licence and the insurer may again carry on business if, within six months after notice to the superintendent of the failure of the insurer to pay such an undisputed claim or the amount of such a final judgment, the undisputed claim or final judgment is paid and satisfied.

Failure to keep deposit unimpaired.

Where the insurer fails to keep unimpaired the deposit, required by this Act, the minister may suspend or cancel the licence of the insurer.

Insufficiency of assets to be reported by superintendent.

38(1)

Where the superintendent, upon examination, or from annual statements, or upon other evidence, finds that the assets of any insurer are insufficient to justify the continuance of the insurer in business or to provide proper security to persons effecting insurance with the insurer in the province or that the insurer has failed to comply with any provision of law, or its charter, he shall so report to the minister.

Suspension or cancellation.

38(2)

Where the minister, after consideration of the report and after hearing or giving notice of a hearing to the insurer, and upon any further investigation he thinks proper, reports to the Lieutenant Governor in Council that he concurs in the report of the superintendent, the Lieutenant Governor in Council may suspend or cancel the licence of the insurer.

Effect of.

38(3)

Upon the publication of notice of the suspension or cancellation of licence in The Manitoba Gazette, any person who transacts business on behalf of the insurer, except for winding-up purposes, is guilty of an offence.

Limited licence.

38(4)

Where the superintendent has so reported, the minister or the Lieutenant Governor in Council may direct the issue of such modified, limited, or conditional licence as is deemed necessary for the protection of persons in the province who have effected or effect contracts of insurance with the insurer.

Suspension elsewhere.

Upon the suspension or cancellation of the licence of an insurer by any government in Canada, the superintendent may suspend or cancel the licence of that insurer under this Act.

Revival of licence.

Where the licence of an insurer is suspended or cancelled, it may be revived if the insurer makes good the deposit, or the deficiency, or remedies its default, as the case may be, to the satisfaction of the minister.

Report of violations.

The superintendent shall report to the minister any violation of any provision of this Act by a licensed insurer; and thereupon the minister may, in his discretion, suspend or cancel or refuse to renew the insurer's licence.

DEPOSITS

Approved securities.

The expression "approved securities" in the following sections means only such securities as are authorized for the investment of trust funds under the law of the province in which they are offered for deposit, and are approved by the superintendents of insurance of this and the several provinces of Canada in which the insurer is carrying on business, and with which the province has a reciprocal arrangement respecting deposits.

Deposit of.

43(1)

Every insurer carrying on the business of insurance in the province shall, before receiving a licence under this Act, deposit approved securities with the Minister of Finance in the following amounts:

(

a) where the insurer undertakes life insurance -$50,000.;

(

b) where the insurer undertakes any one or more classes of insurance other than life or plate glass;

(

i) in the province only - $25, 000.;

(ii) in the province and elsewhere - $50,000.;

(

c) where the insurer undertakes plate glass insurance only - $3,000.

Maximum deposit.

43(2)

An insurer may voluntarily make a deposit in excess of the amount prescribed by this section, in which case no part of a voluntary deposit shall be withdrawn without the sanction of the Lieutenant Governor in Council.

Where deposits not required.

43(3)

Subsections (1) and (2) do not apply to

(

a) mutual insurance companies, incorporated under the laws of the province;

(

b) fraternal societies;

(

c) mutual benefit societies;

(

d) underwriters or syndicates of underwriters operated on the plan known as Lloyd's;

(

e) insurers making any deposit for the security of its contracts and creditors pursuant to any law of the Parliament of Canada; and

(

f) insurers undertaking marine insurance only and insurers undertaking marine insurance and other classes with respect to marine insurance only;

but every mutual insurance company incorporated under the laws of the province insuring mercantile or manufacturing risks shall deposit approved securities with the Minister of Finance in the sum of$15,000.

Increase of amount of deposit.

43(4)

Either before or after a licence is issued to an insurer, the superintendent, subject to the approval of the Lieutenant Governor in Council, may direct that a deposit required under subsection (1) or (3) to be made by the insurer be increased to such an amount as the superintendent deems to be necessary.

Value of securities.

44(1)

The value of the securities shall be estimated at their market value, not exceeding par, at the time they are deposited.

Other than approved securities.

44(2)

Where any other than approved securities are offered as a deposit, the Minister of Finance may accept them on such valuation and on such conditions as he deems proper.

Decline in value.

44(3)

Where the market value of any securities that are deposited by an insurer declines below that at which they were deposited, the Minister of Finance may notify the insurer to make such further deposit as it is necessary to ensure that the accepted value of all securities deposited equals the amount that is required by this Act to be deposited.

Further deposit.

44(4)

On failure by the insurer to make a further deposit within sixty days after being so required, the superintendent may suspend of cancel its licence.

Property in securities.

44(5)

The property in any stock bonds or debentures deposited before or after the coming into force of this Act with the Minister of Finance under this or any Act licensing insurers, is hereby vested in the Minister of Finance by virtue of his office, without any formal transfer while the stock, bonds, or debentures form the whole or any part of the deposit required by this Act.

Administration.

44(6)

While the conditions of this Act are satisfied and no notice of any final judgment against the insurer or order for its winding-up, or for the distribution of its assets, or for administration of its deposit is given to the Minister of Finance, the insurer is entitled to receive the interest upon the securities forming the deposit.

Substitute securities.

Where an insurer desires to substitute other approved securities for securities deposited, the Minister of Finance may permit the substitution to be made.

Excess securities.

Where at any time it appears that an insurer has on deposit with the Minister of Finance securities in excess of the prescribed amount, the Lieutenant Governor in Council, upon being satisfied that holders of contracts with the insurer in the province will not be prejudiced thereby, and upon giving notice in The Manitoba Gazette and taking such other precautions as he deems expedient, may authorize the withdrawal of the amount of the excess or a portion thereof; but he may authorize such a withdrawal without giving notice.

Withdrawal of deposit

47(1)

An insurer having made a deposit may withdraw it, with the sanction of the minister, if it is made to appear to him that the insurer has made a reciprocal deposit under this Act.

Ceasing to do business in province.

47(2)

An insurer that has ceased to transact business in the province and desires to obtain a return of its deposit may give written notice to that effect to the superintendent, and shall publish in The Manitoba Gazette a notice that is has applied to the Lieutenant Governor in Council for the return of its deposit, calling all claimants, contingent or actual, who object to the return, to file their objections with the superintendent on or before a day named in the notice, which shall not be less than three months after the first publication of it.

Lists of contracts.

47(3)

Upon giving notice to the superintendent the insurer shall file with him a list of all its outstanding contracts, including contracts in respect of which claims have accrued.

Return of deposit.

47(4)

After the day named in the notice, if the superintendent is satisfied that the insurer has obtained a discharge of all such outstanding contracts, and has paid all fees and taxes owing to the Crown, the Lieutenant Governor in Council may direct that the deposit be returned.

Return in instalments.

47(5)

Where the superintendent is not satisfied that all such contracts have been discharged, or fees and taxed paid, the Lieutenant Governor in Council may direct that a sufficient amount be retained to meet the contracts unprovided for and that the remainder of the deposit be returned, and thereafter from time to time as such contracts lapse or proof is adduced that they are satisfied, he may direct a further return of the deposit.

Reciprocal deposits.

47(6)

Where the deposit is, by virtue of reciprocal legislation in another province, held for the benefit of policyholders resident in that province, the notice shall also be given to the Superintendent of Insurance or minister in charge of the Department of Insurance in that province and shall be published in the official gazette of that province.

Transfer of deposit on reinsurance.

48(1)

Where a licensed insurer, hereinafter called the "continuing insurer", has acquired the assets and assumed the liabilities, within the province, of another licensed insurer, hereinafter called the "discontinuing insurer", or reinsured all the contracts of a discontinuing insurer outstanding within the province, the Lieutenant Governor in Council may, upon the application of the continuing insurer, and upon the report of the superintendent, direct the transfer to the continuing insurer of the deposit held by the Minister of Finance on behalf of the discontinuing insurer.

Effect of transfer.

48(2)

In any such case the deposit so transferred shall thereafter be treated and dealt with under this Act as, and deemed to be a deposit by, the continuing insurer.

Return of deposit to insurer taking Dominion registry.

Where a licensed insurer has obtained a certificate of registry under the Canadian and British Insurance Companies Act, (Canada) or the Foreign Insurance Companies Act, (Canada) the Minister of Finance may return to the insurer its deposit.

Payment out of deposit on reinsurance by insurer holding Dominion registry.

Where a licensed insurer, hereinafter called the "continuing insurer," has acquired the assets and assumed the liabilities, within the province of another licensed insurer hereinafter called the "discontinuing insurer," or reinsured all the contracts of a discontinuing insurer outstanding within the province, and where the continuing insurer holds a certificate of registry under the Canadian and British Insurance Companies Act (Canada) or the Foreign Insurance Companies Act, (Canada), the Minister of Finance may, upon the application of the continuing insurer and the discontinuing insurer, pay out the deposit of the discontinuing insurer to the continuing insurer or to the discontinuing insurer.

RECIPROCAL DEPOSITS

Definitions.

51(1)

In sections 51 to 75 and in sections 96 to 109

"Manitoba contract" means a subsisting contract of insurance that

(

a) has for its subject

(

i) property that, at the time of the making of the contract, is in the province or is in transit to or from the province; or

(ii) the life, safety, fidelity, or insurable interest of a person who, at the time of the making of the contract, is resident in, or has its head office in, the province; or

(

b) makes provision for payment thereunder primarily to a resident of the province or to an incorporated company that has its head office in the province; ("contrat du Manitoba")

"insured person" means a person who enters into a subsisting contract of insurance with an insurer and includes

(

a) every person insured by a contract whether named or not; and

(

b) every person to whom, or for whose benefit, all or part of the proceeds of a contract of insurance are payable; and

(

c) every person entitled to have insurance money applied toward satisfaction of his judgment in accordance with

section 258; ("personne assurée" )

"loss" includes the happening of an event or contingency by reason of which a person becomes entitled to a payment under a contract of insurance of money other than a refund of unearned premiums; ("sinistre")

"reciprocal deposit" means a deposit of an insurer held pursuant to sections 52 or 53; ("dépôt réciproque")

"reciprocating province" means a province that has been declared to be a reciprocating province pursuant to clause 52(l)(

a) or subsection 53(1) with respect to the deposit of a particular insurer. ("province avec convention de réciprocité")

Application of sections 51, 52, and 53.

51(2)

This

section and sections 52 and 53 are applicable notwithstanding that the insurer is, or may become, licensed in one province for classes of insurance different from those for which it is, or may become, licensed in another province.

Sole deposit of insurer in province

52(1)

Where an insurer has its head office for Canada in Manitoba and makes a deposit under this Act for the purpose of this section, by virtue whereof the insurer will not be required to make a deposit in another province in which it is or may become licensed to undertake insurance, the following provisions have effect, and to the extent that they are inconsistent with any other provision of this Act prevail over that provision, namely:

(

a) the amount of the deposit to be made and maintained by the insurer shall be fixed by order of the Lieutenant Governor in Council, and the order shall declare what provinces are reciprocating provinces with respect to that insurer's deposit;

(

b) the deposit shall be held and administered as security pari passu for the Manitoba contracts of the insurer and for its contracts in any reciprocating province;

(

c) the Minister of Finance shall, upon the request of the official who issues or proposes to issue a licence to the insurer in another province, certify under his hand that the deposit is held in manner provided by clause (b), and the superintendent shall forward the certificate to that official and a copy to the Superintendent of Insurance in each province;

(

d) where, with respect to the outstanding contracts of the insurer, it appears to the superintendent from the annual statement or any examination of the affairs of the insurer that a further deposit for the purposes of this

section is necessary, or where it appears to the Superintendent of Insurance for another province in which the insurer is licensed, from any annual report or any examination of the affairs of the insurer, that a further deposit for the purposes of this

section is necessary, and that superintendent requests the superintendent to obtain a further deposit, the insurer shall forthwith deposit such further sum as the Lieutenant Governor in Council fixes;

(

e) where the insurer obtains a licence from any government in Canada extending to this or another province the Minister of Finance may, on the request of the insurer, authorize the superintendent to deliver to the insurer or to transfer to the proper official of that government, the whole or part of such deposit as the Minister of Finance thinks fit, having regard to the extent of the licence; and the superintendent forthwith shall give notice of the delivery or transfer to the Superintendent of Insurance of each reciprocating province;

(

f) where the licence of the insurer is suspended or cancelled under this Act, the superintendent shall give immediate notice to the Superintendent of Insurance in each province;

(

g) where the insurer ceases to carry on insurance business in Canada and its deposit may be withdrawn under this Act, the superintendent shall notify the Superintendent of Insurance in each province, and all claims and liabilities arising in any such province shall be verified by the Superintendent of Insurance there and a statement thereof communicated to the superintendent;

(

h) where the insurer ceases to transact business in, or its licence is suspended or cancelled in, a reciprocating province and notice thereof is given to the superintendent, the minister and the superintendent upon the request of the superintendent in the reciprocating province, may take any action that could be taken if the insurer were ceasing to transact business in, or its licence were suspended or cancelled in, Manitoba.

Changing head office.

52(2)

The insurer shall not change the situation of its head office to another province without the consent of the minister, but where the minister so consents, the Minister of Finance may authorize the superintendent to transfer the insurer's deposit to the minister responsible for the deposit in that province, or to the insurer, as the minister in that province requests; and the superintendent forthwith shall give notice of any change or transfer to the Superintendent of Insurance of each reciprocating province.

Deposit of insurer held in another province.

53(1)

Where an insurer has its head office for Canada in another province and there makes a deposit of such amount as may be fixed by the proper authority in that province, and under the laws of that province the deposit is held as security pari passu for its Manitoba contracts and its contracts in every reciprocating province, the minister, upon receipt of a certified copy of an order of the Lieutenant Governor in Council of the province in which the deposit is made fixing the amount of the deposit and declaring that Manitoba is a reciprocating province with respect to that insurer's deposit, and upon receipt of the consent of the insurer to its deposit being so held, shall exempt the insurer from the provisions of this Act requiring it to make and maintain a deposit.

Notice required on insurer ceasing to do business, etc.

53(2)

Where the insurer ceases to transact business in, or its licence is suspended or cancelled in, this province the superintendent shall immediately give notice thereof to the superintendent of the province in which the reciprocal deposit is held and to the superintendent of each other reciprocating province.

Action by superintendent on receipt of notice of administration in another province.

53(3)

Where an order is made for the administration of a reciprocal deposit held in another province pursuant to subsection (1), the superintendent, as soon as is reasonably possible after receipt of notice of the termination date fixed by the receiver, shall proceed pursuant to

section 62 to give the notice required by that

section to the insured persons under the Manitoba contracts.

Transfer of deposit.

53(4)

Where a licensed insurer is exempted under this section, the Minister of Finance shall transfer its deposit under this Act to the minister responsible for the deposit in the province in which the insurer has its head office and which will hold the deposit, or to the insurer, as that minister requests.

Section prevails.

53(5)

Every provision of this

section prevails over any provision of this Act to the extent that it is inconsistent with that other provision.

Agreement for use of deposit for reinsurance.

At any time before the granting of an order for the administration of a reciprocal deposit, the Superintendent of Insurance of each reciprocating province may enter into an agreement to use all or any part of the securities deposited for the purpose of reinsuring all or any part of the risks of the insurer outstanding in all or any of those provinces.

ADMINISTRATION OF DEPOSIT

Use of deposit for reinsurance.

55(1)

Notwithstanding anything hereinafter contained, but subject to subsection (2), at any time before the granting of an order for administration of a deposit, and upon the recommendation of the superintendent certifying that such action is necessary or desirable for the protection of policyholders entitled to share in the proceeds of the deposit, the minister may use all or any part of the deposit for the purpose of reinsuring all or any part of the Manitoba contracts.

Consents required in case of reciprocal deposit.

55(2)

A reciprocal deposit may be used for purposes of reinsurance in the manner and to the extent agreed upon by the Superintendents of Insurance of the reciprocating provinces and not otherwise.

Administration of deposits.

56(1)

The deposit made by an insurer under this Act is subject to administration in the manner hereinafter provided.

Persons for whom deposit administered.

56(2)

Subject to sections 52 and 53, the deposit shall be held and administered for the benefit of all insured persons under Manitoba contracts; and they are entitled to share in the proceeds of the deposit.

Claims entitling insured to share in deposit

56(3)

An insured person under a Manitoba contract is entitled to share in the proceeds of the deposit in respect of

(

a) a claim for a loss that is covered by the contract and that occurred before the termination date fixed pursuant to

section 61 or

section 103; or

(

b) a claim for refund of unearned premiums except in the case of life insurance; or

(

c) a claim for payment of the legal reserve in respect of the contract in the case of life insurance; or

(

d) claims under both clauses (

a) and (b).

Application for administration.

An application for administration of a deposit shall be made by originating notice of motion to a judge of the Court of Queen's Bench.

Application by superintendent.

58(1)

With the approval of the minister, the superintendent may make application for administration at any time when, in his opinion, it is necessary or desirable for the protection of the insured persons entitled to share in the proceeds of the deposit.

Application in case of reciprocal deposit.

58(2)

In the case of a reciprocal deposit held in this province, the Superintendent of Insurance of any reciprocating province may make application for administration of the deposit.

Application by insured person.

58(3)

An insured person entitled to share in the proceeds of a deposit may make application for administration of the deposit upon producing evidence

(

a) that he has served the Superintendent of Insurance for Manitoba with a notice in writing of his intention to make the application, if the superintendent or the Superintendent of Insurance of any reciprocating province does not apply; and

(

b) that 60 days have elapsed since the service of the notice and that no application for administration of the deposit has been made.

Duty of superintendents in case of reciprocal deposit.

58(4)

In the case of a reciprocal deposit, if the superintendent is served with a notice as provided in subsection (3), he shall forthwith notify the Superintendent of Insurance of each reciprocating province that he has been so served.

Service of notice of motion by applicant

59(1)

The applicant for administration of the deposit shall serve the originating notice of motion, at least 10 days prior to the date specified in the notice for the making of the application,

(

a) upon the insurer or, where the insurer is in liquidation, upon the liquidator of the insurer; and

(

b) upon the Superintendent of Insurance for Manitoba; and

(

c) in the case of a reciprocal deposit, upon the Superintendent of Insurance of each reciprocating province.

When applicant to be entitled to administration order.

59(2)

An applicant for administration is entitled to an order for administration upon proof

(

a) that the licence of the insurer has been cancelled, and that its assets are insufficient to discharge its outstanding liabilities; or

(

b) that an order has been made for the winding-up of the insurer; or

(

c) that the insurer has failed to pay

(

i) an undisputed claim for 60 days after it has been admitted; or

(ii) a disputed claim after final judgment and tender of a valid discharge;

if the claim arose under a contract of insurance in respect of which the deposit is subject to administration.

Appointment of receiver.

60(1)

Upon granting an order for administration the court shall appoint a receiver to administer the deposit.

Liquidator as receiver of deposit

60(2)

Where a provisional liquidator or a liquidator has been appointed under this Act or The Corporations Act, or a liquidator has been appointed under the Winding-up Act (Canada) to wind up a company that has made a deposit under this Act, the court may appoint the provisional liquidator or the liquidator as the receiver to administer the deposit.

Administration of deposit by liquidator.

60(3)

Thereupon the provisional liquidator or the liquidator shall administer the deposit for the benefit of the insured persons entitled to share in the proceeds thereof in accordance with the priorities and other provisions prescribed in this Act.

Termination date fixed by receiver.

61(1)

Where a termination date has not been fixed by a provisional liquidator or a liquidator pursuant to

section 103, forthwith after his appointment the receiver shall fix a termination date for the subsisting contracts of insurance of the insurer; and on and after that date coverage and protection under the Manitoba contracts ceases and determines, and the insurer is not liable under any such contract for a loss that occurs after that date.

Termination of Manitoba contracts on date fixed by receiver in another province.

61(2)

Where a receiver administering a reciprocal deposit held in another province for the benefit of the insured persons under Manitoba contracts fixes a termination date for the subsisting contracts of insurance of the insurer, on and after that date coverage and protection under the Manitoba contracts ceases; and the insurer is not liable under any such contract for a loss that occurs after that date.

When termination date to be fixed.

61(3)

The termination date shall not be fewer than 20 nor more than 45 days after the date upon which the receiver was appointed.

Notice of termination date to all superintendents concerned.

61(4)

The receiver shall forthwith give notice in writing of the termination date to the Superintendent of Insurance for Manitoba and, in the case of a reciprocal deposit, to the Superintendent of Insurance of each reciprocating province.

Publication of notice of termination date.

61(5)

The receiver shall forthwith publish notice of the termination date in The Manitoba Gazette and in the official gazette of each reciprocating province, and in such newspapers circulating in those provinces as the receiver in his opinion deems advisable in order to give reasonable notice of the termination date.

Duty of superintendent to notify Manitoba insured persons.

62(1)

The superintendent, forthwith upon receiving notice of a termination date fixed by the receiver administering the deposit of an insurer, shall take such action as he may deem advisable in the interests of the insured persons under Manitoba contracts to give notice of that date to them as soon as is reasonably possible.

Lists of insured persons required from agents.

62(2)

Without restricting the generality of subsection (1), the superintendent may forthwith require each agent of the insurer in the province to forward to him a list showing the name and address of each person who has entered into a contract of insurance with the insurer of whom he has a record.

Notice to be given by mail by superintendent

62(3)

On receipt of each list forwarded by an agent, the superintendent may send by ordinary mail to each person whose name appears on the list a notice containing the following information:

(

a) the termination date fixed by the receiver;

(

b) the name and address of the receiver to whom particulars of claims for loss and claims for refund of unearned premiums should be submitted;

(

c) such other information as the superintendent deems advisable.

Publication, broadcasting, etc., of contents of notice.

62(4)

The superintendent, in his discretion, may publish, broadcast, or otherwise communicate or distribute, the information stated in the notice, either generally or in any particular area or case, in such manner and by such means as he deems best suited to convey the information to the insured persons as soon as is reasonably possible having regard to all the circumstances.

Duty of receiver on appointment.

Forthwith after his appointment the receiver shall

(

a) call either upon the insurer or its agents or liquidator to furnish a list of all insured persons who are entitled to share in the proceeds of the deposit; and

(

b) call upon all insured persons who are entitled to share in the proceeds of the deposit to file their claims if they have not already done so.

When powers of Master of Queen's Bench exercisable by receiver.

The court, by the order appointing a receiver or by any subsequent order, may authorize the receiver to exercise, in respect of the accounts of the insurer, all or any of the powers that the Master of the Court of Queen's Bench would have if he were taking an account of the claims against the deposit; and every receiver so authorized has those powers, as well as all other powers enjoyed by a receiver appointed under an order of the court.

Application by receiver for order for sale of securities.

65(1)

The receiver may apply to the court from time to time for an order authorizing him

(

a) to sell or realize upon all or any portion of the securities comprised in the deposit of the insurer; and

(

b) to pay from the proceeds thereof the costs of the administration of the deposit including salaries of office staff, office expenses, the fee for the services of the receiver, fees and disbursements to adjusters and solicitors, and such other costs and expenses as the court deems proper.

Notice of application.

65(2)

The court may require to give such notice, if any, of the application, in such manner, as the court may require.

Making of order.

65(3)

After hearing the application the court may make the order and may require the receiver to comply with such conditions as the court may direct.

Priorities in payment of proceeds of deposit

The proceeds of the deposit are payable (

a) firstly in payment of the receiver and of all costs and expenses incurred by him in the administration of the deposit, and in payment of all or part of the remuneration, costs, and expenses, of the provisional liquidator if so ordered by the minister pursuant to subsection 99(3);

(

b) secondly in payment of the insured persons who are entitled to share in the proceeds of the deposit in accordance with the priorities set out in

section 67.

Priority of loss claims.

67(1)

Except in the case of life insurance, each insured person who claims in respect of a loss covered by the contract that occurred before the termination date fixed pursuant to

section 61 or

section 103 is entitled to receive payment of his approved or settled claim in full in priority to the insured persons who claim in respect of refunds of unearned premiums.

Priority of unearned premium claims.

67(2)

Subject to subsection (1), an insured person who claims in respect of a refund of unearned premiums may claim such part of the premium paid as is proportionate to the period of his contract unexpired

(

a) at the termination date fixed by the receiver pursuant to

section 61 or fixed by the provisional liquidator or the liquidator pursuant to

section 103; or

(

b) at the date the insured person cancelled the contract;

whichever date is the earlier.

Priority of life insurance claims.

67(3)

In the case of life insurance, each insured person who has a claim for a loss covered by the contract that occurred before the termination date fixed pursuant to

section 61 or

section 103 shall rank, in the distribution of the proceeds of the deposit, for the approved or settled amount of the claim pari passu with insured persons under unmatured life insurance contracts.

Allowable amount of claim under unmatured life policy.

67(4)

An insured person under an unmatured life insurance contract is entitled to the full amount of the legal reserve in respect of his contract determined by the receiver according to the valuation thereof approved by the superintendent under this Act.

Action of receiver on receipt of claims.

68(1)

Where an insured person has filed a claim for a loss covered by the contract that occurred before the termination date fixed pursuant to

section 61 or

section 103, the receiver shall inquire into the claim and

(

a) may approve the claim if a final judgment has been obtained against the insurer in respect thereof; or

(

b) may approve the claim if it has been adjusted or settled by the insurer or by the receiver at an amount that, in his opinion, the claimant is reasonably entitled to receive; or

(

c) may refuse to approve the claim or the amount thereof.

Appeal from receiver.

68(2)

An appeal lies from any decision of the receiver if taken within 30 days from the date on which the person appealing has received notice of the decision.

Manner of appeal.

68(3)

The appeal shall be taken by the filing and service on the receiver of a notice of motion returnable before a judge of the court in chambers, who may summarily determine the matter, or may direct an issue to be tried, or may make such other order as he deems proper.

List of persons entitled to share in deposit.

69(1)

The receiver shall prepare a list showing the names of the persons who appear by the books and records of the insurer or otherwise to be entitled to share in the proceeds of the deposit.

Schedule of approved claims for losses.

69(2)

The receiver shall prepare and attach to the list a

schedule of approved claims for losses showing, in respect of each approved claim for loss made by a person appearing on the list,

(

a) the name and address of the claimant;

(

b) the particulars of the contract of insurance upon which the claim is based;

(

c) whether the claim was reduced to judgment or was adjusted or settled; and

(

d) the amount for which the claimant is entitled to rank upon the fund.

Schedule of unapproved claims for losses.

69(3)

The receiver shall prepare and attach to the list a

schedule of unapproved claims for losses showing, in respect of each claim for loss that has not yet been approved made by a person appearing on the list,

(

a) the name and address of the claimant;

(

b) the particulars of the contract of insurance upon which the claim is based; and

(

c) the amount for which the claim is made or the amount estimated by the receiver as the probable maximum amount that will be payable under the contract in respect of that loss.

Schedule of unearned premiums.

69(4)

Except in the case of life insurance, the receiver shall prepare and attach to the list a

schedule of unearned premiums refundable showing, in respect of each person whose name appears on the list and who is entitled to a refund,

(

a) his name and address;

(

b) the particulars of the contract of insurance in respect of which the unearned premium is refundable;

(

c) the date on which the policy was terminated either by the receiver pursuant to

section 61 or by the provisional liquidator or the liquidator pursuant to

section 103 or was cancelled by the insured person; and

(

d) the amount of the unearned premium as calculated by the receiver in accordance with subsection 67(2).

Schedule of legal reserves on life policies.

69(5)

In the case of life insurance, the receiver shall prepare and attach to the list a

schedule of contract legal reserves showing, in respect of each person whose name appears on the list and who is entitled to claim for the legal reserve in respect of his contract,

(

a) his name and address;

(

b) the particulars of the contract of insurance in respect of which the legal reserve is payable; and

(

c) the amount of the legal reserve calculated by the receiver pursuant to subsection 67(4).

Application for order for payment on account of claims.

70(1)

Upon completion of the schedules, and after having paid or provided reasonable reserves from the deposit to pay the amounts payable pursuant to clause 66(a), the receiver may apply to the court for an order authorizing the payment of such aggregate sum as may be fixed by the court on account of the amounts payable pursuant to clause 66(b).

Provision for approved and unapproved claims.

70(2)

Except in the case of life insurance, the receiver shall divide the sum mentioned in subsection (1) so as to provide for payment of the claims for loss in full or, if the sum is inadequate, pro rata on account of

(

a) the approved claims for losses set out in the

schedule of approved claims for losses; and

(

b) the unapproved claims for losses set out in the

schedule of unapproved claims for losses;

and shall distribute the portion referred to in clause (

a) at such time or times as the receiver may determine, to the persons entitled thereto, and shall retain the portion referred to in clause (

b) for distribution from time to time as the unapproved claims are approved.

Payment of unearned premiums from surplus.

70(3)

Except in the case of life insurance, if there appears to be a surplus remaining after the receiver has paid or retained a sum that in his opinion is reasonably adequate to pay in full all claims for loss referred to in subsection (2), the receiver shall divide the surplus so as to provide for payment of all unearned premiums in full or, if it is inadequate, among the persons entitled to a refund of unearned premiums in proportion to the amounts payable, as set out in the

schedule of unearned premiums refundable.

Payment of claims in case of life insurance.

70(4)

In the case of life insurance, the receiver shall divide the sum fixed pursuant to subsection (1) so as to provide for payment of the following amounts in full or, if the sum is inadequate, pro rata on account of

(

a) the approved claims for losses set out in the

schedule of approved claims for losses;

(

b) the unapproved claims for losses set out in the

schedule of unapproved claims for losses;

(

c) the full amount of the legal reserve in respect of each unmatured life insurance contract as set out in the

schedule of contract legal reserves;

and shall distribute the portions referred to in clauses (

a) and (c), at such time pr times as the receiver may determine, to the persons entitled thereto, and shall retain the portion referred to in clause (

b) for distribution from time to time as the unapproved claims are approved.

Payment of delayed claims.

Application to court for directions or advice.

The receiver administering a deposit may apply to the court at any time, on

summary application, for directions or advice pertaining to any matter arising in the administration of the deposit.

Submission by receiver of final accounts.

Upon the completion of the distribution of the proceeds of the deposit the receiver shall submit his final accounts to the court; and the court, on the passing thereof, may make an order approving the accounts and discharging the receiver.

Claims remaining unpaid after distribution of deposit.

If a claim is made after the completion of the distribution of the proceeds of the deposit and the discharge of the receiver, or if there is a claim against the insurer by an insured person not fully paid by the distribution of the proceeds of the deposit, the claimant is not barred from any recourse he may have against the insurer, and his claim is a first lien or charge on the assets of the insurer in winding-up as provided in subsection 101(2).

Surrender of security.

A person who holds security for his claim under a contract, or who is entitled to share in the administration of a deposit with the government of another province for the protection of persons resident therein, is entitled to share in the administration of the deposit held by this province only if he abandons the security or releases his claim upon the deposit with the other government.

INVESTMENTS

Investments of surplus funds.

76(1)

An insurer, incorporated and licensed under the laws of the province, may invest its surplus funds and reserve in any investments in which an insurer registered under the Canadian and British Insurance Companies Act (Canada) is permitted, under that Act as amended from time to time heretofore or hereafter, to invest its funds.

Deposit in bank.

76(2)

Uninvested funds of the insurer shall be kept on deposit in the name of the insurer in a bank.

BOOKS OF INSURERS

Books to be kept.

77(1)

Each insurer shall keep such a classification of its contracts and such registers and books of account as are directed or authorized by the superintendent; and, if it appears at any time to the superintendent that the classification, registers, or books are not kept in such a businesslike way as to make, at any time, a proper showing of the affairs and standing of the insurer, he shall thereupon nominate an accountant, under his directions, to audit them and to give such instructions as will enable the insurer to keep them correctly thereafter.

Amount of accountant's expenses.

77(2)

The fees and expenses of the accountant shall be paid forthwith by the insurer on receipt from the superintendent of notification in writing of the amount thereof; and those fees and expenses shall not exceed such amount as the superintendent certifies to be reasonable and recommends for payment, and as is thereafter approved by the Minister of Finance.

Inspection of.

Where the insurer has a share or stock capital, the stock register or register of members shall at all reasonable times be open to the examination of the minister or superintendent.

RECORDS AND RETURNS

Records to be kept.

79(1)

Every licensed insurer which carries on the business of fire insurance shall keep a record of its premium income derived from risks located in the province and of claims paid in respect of such risks, so as to show at any time its experience according to the classification of occupancy hazards of the National Board of Fire Underwriters, with such modifications as the superintendent prescribes.

Audit of.

79(2)

When, at any time, it appears to the minister, on the report of the superintendent, that such a record is not kept in such a manner as to show correctly the experience of the insurer, the minister may nominate an accountant to proceed under his direction to audit the books and records of the insurer and to give such instructions as will enable the insurer to keep the records correctly thereafter.

Expense of.

79(3)

The expense of such an audit shall not exceed $15. per day and necessary travelling expenses; and the account shall, when certified and approved by the superintendent, be paid forthwith by the insurer.

Statement of premium income and losses.

79(4)

Every licensed insurer undertaking the business of fire insurance shall, if required by the superintendent, prepare and file annually with the superintendent, on or before the first day of May in each year, on a printed form to be supplied by the superintendent, a sworn statement of the premium income and losses experienced within the province for the year last preceding the date of the return according to the record required to be kept under this section.

Penalty.

79(5)

Any insurer, and the principal officer within the province of any insurer, that contravenes this

section is guilty of an offence.

Return by insurer of automobiles.

80(1)

Every licensed insurer that carries on the business of automobile insurance shall prepare, and file when required with the superintendent or with such statistical agency as he designates, a record of its automobile insurance premiums, and of its loss and expense costs in the province, in such form and manner, and according to such system of classification, as he approves.

Agency to compile.

80(2)

The superintendent may require any agency so designated to compile the data so filed in such form as he approves, and the expense of making the compilation shall be apportioned by the superintendent among the insurers whose data are compiled by the agency; and the superintendent shall certify in writing the amount due from each insurer, and that amount shall be payable by the insurer to the agency forthwith.

Application of sections.

80(3)

Subsections 79(2), (3) and (5) apply, with appropriate changes, to this section.

By-laws filed.

Every insurer shall deliver to the superintendent, within one month after the passing thereof, a certified copy of its by-laws and of every repeal, amendment, or consolidation thereof or addition thereto.

Balance sheet filed.

A copy of every balance sheet or other statement published or circulated by an insurer purporting to show its financial condition, together with any auditor's report thereon, shall be mailed or delivered to the superintendent concurrently with its issue to its shareholders of policyholders, or to the general public.

Report of auditor on books.

Each auditor of an insurer, in the report required to be made to shareholders under The Corporations Act, shall state

(

a) that he has audited the books of the insurer and verified the cash, bank balance and securities;

(

b) in the case of insurers transacting other than life insurance, that he has checked the reserve of unearned premiums and that it is calculated as required by The Insurance Act;

(

c) that he has examined the reserve for unpaid claims and that in his opinion it is adequate;

(

d) that he has verified the balances owing by agents and other insurers;

(

e) that the balance sheet does not include as assets, items prohibited by The Insurance Act from being shown in the annual statements required to be filed thereunder;

(

f) that, after due consideration, he has formed an independent opinion as to the position of the company and that, with his independent opinion so formed, and according to the best of his information, and the explanations given him, the balance sheet sets forth fairly and truly the state of affairs of the insurer ; and

(

g) that all transactions of the insurer that have come within his notice have been within its powers.

Annual statement.

84(1)

Every licensed insurer shall prepare annually, and deliver to the superintendent on or before the last day of February of each year, a statement of the condition of affairs of the insurer as at December 31 last preceding; and the statement shall be in such form, and verified in such manner, as is prescribed by the superintendent, and shall exhibit the assets, liabilities, receipts, and expenditures of the insurer for the year ended on that date, and shall also exhibit particulars of the business done in the province during that year and such other information as is deemed necessary by the minister or superintendent.

Verification of.

84(2)

In the case of a corporation the statement shall be verified 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 corporation.

Answers to inquires.

84(3)

Every insurer shall, when required by the superintendent, make prompt and explicit answer in reply to any inquiry directed to the insurer by him in relation to the statement or in relation to the transactions of the insurer in the province.

Contents of statement

84(4)

In the case of all classes of insurance other than life insurance, and insurance on the premium note plan, the statement shall show, as a liability of the insurer, 80% of the actual portions of unearned premiums on all business in force on December 31 then last past, or 80% of 50% of the premiums written in its policies and received in respect of contracts having one year or less to run, and pro rata on those for longer periods.

Life insurance.

84(5)

In the case of insurers transacting life insurance the statement shall show, as a liability, the valuation of outstanding contracts of insurance according to the standard for valuation of policies of life insurance prescribed by this Act, or such higher standard as the insurer, with the approval of the superintendent, adopts.

Restrictions.

84(6)

The statement shall not show as assets the unpaid balances owing by agents or other insurers in respect of business written prior to October 1 in the last preceding year, or bills receivable on account thereof, or unpaid capital or premium on subscribed shares of capital stock, or investment in office furnishings or equipment, nor shall the statement include as assets any investments not authorized by any Act to which the insurer is subject.

Value of securities.

84(7)

Every licensed insurer may, in its annual statement or in any valuation of its securities, value all of its securities, having a fixed term and rate and not in default as to principal or interest, according to the following rule: If purchased at par at the par value; if purchased above or below par on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield meantime the effective rate of interest at which the purchase was made; but the purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase.

Discretion of superintendent.

84(8)

The superintendent has full discretion in determining the method of calculating values according to the foregoing rule.

No publication before filing.

An insurer shall not publish or circulate a statement purporting to show the financial condition of an insurer differing from that shown by the statement filed with the superintendent, or a balance sheet or other statement in form differing from that prescribed by the regulations, and if it does, it is guilty of an offence.

Misrepresentation as to statement, report, etc.

Every person, who represents orally or in writing that the issue of a licence to an insurer or the printing or publication of an annual statement in the report or any other publication of the superintendent or any other circumstance of the supervision or regulation of the business of the insurer by law, is a warranty or guarantee of the financial standing of the insurer or of its ability to provide for the payment of its contracts at maturity, is guilty of an offence.

Misleading statement prohibited.

Every insurer, and every officer, director, agent, and employee of an insurer, who, for the purpose of inducing any person to insure with the insurer, makes or uses any misleading statement purporting to show the dividends, profits, or surplus which have been paid or may be paid by the insurer in respect of any policy issued or to be issued by it, as the case may be, is guilty of an offence.

LIFE INSURANCE RESERVES

Standard of valuation.

88(1)

The valuation of contracts of life insurance issued by insurers incorporated and licensed under the law of the province, except contracts of fraternal societies licensed under this Act, shall be based on the British Offices' Life Tables, 1893, Om (5), and on a rate of interest of 3 1/2% per annum but any such insurer may, with the approval of the superintendent, adopt the American Men Ultimate Table of Mortality Am (5), with interest at 3 1/2% per annum, for the valuation of contracts issued on and after January 1,1929.

Deductions in first year policy.

88(2)

In computing such a valuation a deduction may be allowed from the value of a policy in the first policy year of an amount ascertained in the following manner, namely: In the case of a 20 payment life policy or any other form of policy, except a term policy, the net annual premium upon which is less than the corresponding net annual premium of a 20 payment life policy, the difference between the net annual premium for such a policy and the corresponding net premium for a one year term insurance, and in the case of a policy with a net annual premium greater than that of a 20 payment life policy, an amount equal to the deduction allowed in respect of a 20 payment life policy.

Deductions in subsequent years.

88(3)

After the first policy year the deduction allowed by subsection (2) shall be diminished each year by an amount not less than 1/9 of the deduction in the first policy year so that in the tenth year from the date of issue, the value of the policy shall not be less than that ascertained in accordance with subsection (1).

Deductions where less than 10 premiums.

88(4)

In the case of policies subject to less than 10 annual premiums the deduction ascertained as provided in subsection (2) shall, in each year after the first policy year, be reduced by an amount not less than the equal parts thereof required to provide that the value of the policy at the end of the premium paying period shall be not less than that ascertained in accordance with subsection (1).

Contract self-supporting.

88(5)

No insurer shall issue any contract of life insurance that does not appear to be self-supporting upon reasonable assumption as to interest, mortality, and expenses.

Accident and sickness benefits.

88(6)

Where a contract of life insurance provides for accident or sickness insurance benefits the superintendent may prescribe by regulations the basis for valuing those benefits, but no deduction shall be allowed from the basis so fixed under subsection (2); and in the valuation of the life insurance benefits under such contracts, the amount of the net annual premium upon which the deduction provided for in the preceding subsections is to be based, shall be the net annual premium exclusive of the premium for those accident or sickness benefits.

Annuity contracts.

88(7)

In the case of annuity contracts, whether immediate or deferred, the valuation shall be the British Offices' Select Life Annuity Tables, 1893 (male or female according to the sex of the nominee), with interest at 3 1/2% per annum.

Insurers registered under Dominion Act.

88(8)

Where an insurer is registered under the Canadian and British Insurance Companies Act, (Canada,) the requirements of this

section with reference to that insurer in respect of valuations, deductions, and rates of interest, may be modified or altered as may be necessary to permit the insurer to comply with the requirements of the Superintendent of Insurance appointed under the Department of Insurance Act (Canada).

INSURANCE WITH UNLICENSED INSURERS

Insurance with unlicensed insurers.

No person in the province shall enter into a contract of insurance with an insurer not licensed under this Act, except through a special broker duly licensed.

DEALINGS IN LIFE INSURANCE POLICIES

Traffic in life insurance policies prohibited.

No person other than an insurer or its duly authorized agent shall advertise or hold himself out as a purchaser of life insurance policies or benefits thereunder, nor shall he traffic or trade in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge, or hypothecation thereof, to himself or any other person; and if he does so he is guilty of an offence.

Prohibition of certain policies.

91(1)

The superintendent may require an insurer to file with him a copy of any form of policy, or of the form of application for any policy, issued or used by the insurer.

Unfair forms of policy or application.

91(2)

Where an insurer issues a policy or uses a form of application that, in the opinion of the superintendent, is unfair, fraudulent, or not in the public interests, the superintendent shall report to the minister thereon; and, after hearing the insurer, the minister may, if he concurs in the report, order the superintendent to prohibit the insurer from issuing or using such a form of policy or application.

Offence.

91(3)

An insurer that, after being prohibited, issues any such policy or uses any such application is guilty of an offence.

Effect of violation of law on enforcement of policy.

Unless the contract otherwise provides, a violation of any criminal or other law in force in the province or elsewhere shall not, ipso facto, render unenforceable a claim for indemnity under a contract of insurance except where the violation is committed by the insured, or by another person with the consent of the insured, with intent to bring about loss or damage: Provided that in the case of a contract of life insurance this

section shall apply only to disability insurance undertaken as part of the contract.

UNDERWRITERS' AGENCIES

Licence of.

93(1)

An insurer shall not issue a policy of insurance through an underwriter's agency unless the insurer is licensed to carry on business in the province and has obtained from the superintendent a permit to issue contracts of insurance through the agency.

Form of policy.

93(2)

Every policy of insurance issued through an underwriter's agency shall be in a form approved by the superintendent, and shall bear upon its face the name and address of the insurer in a prominent and conspicuous manner, and the name of the underwriter's agency shall not appear on the face of the policy except as a countersignature thereto.

Name on back.

93(3)

On no other part of the policy shall the name of the underwriter's agency appear, except that for identification purposes the words "issued through the Underwriter's Agency" may be inscribed on the filing back of the policy, following the name of the insurer in such manner as is approved by the superintendent.

Evidence of adoption of form.

93(4)

Upon an application for a permit under this

section the insurer shall furnish to the superintendent evidence of its approval and adoption of the form of policy to be issued through the underwriter's agency and of the authority of the agency to bind the insurer.

Form of permit.

93(5)

The permit shall be in such form as is prescribed by the superintendent, and shall expire on December 31 of the year of its issue, but shall be renewable from year to year.

Annual return.

93(6)

Every insurer issuing a policy of insurance through an underwriter's agency shall file an annual return of the business transacted through the agency in a form prescribed by the superintendent.

FORFEITURE FOR NON-USER OR DISCONTINUANCE

Non-user forfeits charter.

94(1)

Where an insurer incorporated under the laws of the province does not go into actual operation within two years after incorporation, or where, after an insurer has undertaken contracts, it discontinues business for one year, or where its licence remains suspended for one year, or is terminated otherwise than by effluxion of time and is not renewed within the period of 60 days, the insurer's corporate powers shall thereupon cease and determine, except for the sole purpose of winding-up its affairs; and the court, upon the application of the Attorney-General or of any person interested, may limit the time within which the insurer shall settle and close its accounts, and may, for that purpose or for the purpose of liquidation generally, appoint a receiver.

Rights of creditors preserved.

94(2)

No such forfeiture affects prejudicially the rights of creditors as they exist at the date of the forfeiture.

Onus.

94(3)

In any action or proceeding where such non-user is alleged, proof of user shall be upon the insurer.

APPOINTMENT OF SUPERVISOR

When supervisor may be appointed.

95(1)

Where the superintendent is satisfied that an insurer that is s