ORDINANCES OF THE YUKON TERRITORY PASSED BY THE YUKON COUNCIL IN THE YEAR 1971 FIRST SESSION March 1. 1977 to April 28. 1977 A. M. PEARSON COMMISSIONER Printed and Publi.h"d for the Covernment of tbe YUkOD Territory uDder Authority of CbApter 93 of the Conlolidated OrdiDancea of 1958. BY H. D. SPRAY. Queen1s Printer

EXPLANATORY NOTE The Legislative Assembly adjourned April 28th, 1977. Any additional legislation that may be enacted prior to prorogation of the 1977 First Session will be contained in subsequent volumes of the sessional Ordinances for the 1977 First Session.

CHAPTER NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 N.e.N.R. 15 N.C.N.R. 16 N.C.N.R. 17 N.e.N.R. 18 N.e.N.R. 19 N.e .fL R. 20 N.e.N.R.

ORDINANCES OF THE YUKON TERRITORY 1977 TITLE Insurance Ordinance Credit Union Ordinance Electoral Boundaries Commission Ordinance General Development Agreement Ordinance Real Estate Agents Licencing Ordinance Recreation Development Ordinance Stabilization Loan Fund Ordinance An Ordinance To Amend The Community Assistance Ordinance An Ordinance To Amend The Elections Ordinance An Ordinance To Amend The Liquor Tax Ordinance An Ordinance To Amend The Local Improvement District Ordinance An Ordinance To Amend The Taxation Ordinance An Ordinance To Amend The Liquor Ordinance Financial Agreement Ordinance 1st Appropriation Ordinance 77-78 2nd Appropriation Ordinance 77-78 Jrd Appropriation Ordinance 77-78 2nd Appropriation Ordinance 76-77 Loan Agreement Ordinance

(1977) No. ~1unicipal Loan Agreement Ordinance Table of Ordinances PAGE 1 202 282 288 289 322 325 327 329 332 333 375 376 378 381 383 385 387 1 389 390 393

CHAPTER 1 ORDINANCES OF THE YUKON TERRITORY 1977 (First Session) INSURANCE ORDINANCE (Assented to April 28, 1977) The Conmissioner of the Yukon Territory, by and with the advice and consent of the Council of the said Terri- tory, enacts as follows: 1. (1) 2. (1 )

SHORT TITLE This Ordinance may be cited as the InsuI'anae OI'dill- anae.

INTERPRETATION In this Ordinance, except where inconsistent with the

interpretation sections 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 Ordinance, 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; "accidental death insurance" means insurance under- taken 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; "actuary" means a Fellow of the Canadian Institute of Actuaries; "adjuster" means a person who, - 1 -

Short title

Definitions "accident insurance" "accidental death insurance" "actuary" "adjuster"

"agent" "aircraft insurance" Chp. 1 (

a) on behalf of an insurer or an insured, for compensation, directly or indirectly sol~cits the right to negotiate the settle- ment of or investigate a loss or claim under a contract or a fidelity, surety or guarantee bond issued by an insurer, or investigates, adjusts or settles any such loss or claim, or (

b) hold himself out as an adjuster, invest- igator, consultant or adviser with respect to the settlement of such losses or claims, but does not include, (

c) a barrister or solicitor acting in the usual course of his profession, (

d) a trustee or agent of the property insured, (

e) a salaried employee of a licensed insurer while acting on behalf of such insurer in the adjustment of losses, (

f) a person who is employed as an appraiser, engineer or other expert solely for the purpose of giving expert advice or evidence, or (g) . a person who acts as an adjuster of marine losses only; "agent" means a person who, for compensation, not being a duly licensed insurance broker or not being a person acting under the authority of subsection 216.(15), (16) or (17), solicits insurance on behalf of an 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 assumes to act in the negotiation of such insur­ ance or in negotiating its continuance o~ renewal; "aircraft insurance" means insurance against loss - 2 -

CI:t'. 1 of or damage to an aircraft and ~gainst liability for loss or damage to persons or property caused by an aircraft or by the operation thereof; "appeal" includes a judicial revision or review of a judgment, decision, order, direction, deter- mination, finding or conviction, and a case stated or reserved, and a removal of proceedings by law of r.Je2,tiorari or otherwise; "automobile" includes 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 insurance" JT1p.ilns insurance (

a) against liability arising out of (

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

i) loss of or damage to property, caused by an automobile or the use or oper- ation·thereof, or (

b) against loss of or damage to an automobile and the loss ef 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 under employers' liability insurance; "Automobile Insurance Plan" means an organi­ zation of insurers undertaking automobile insur­ ance in the Territory formed for the purpose of allocating automobile insurance risks so as to ensure the availability of insurance coverage to owners and drivers wishing to purchase automobile insurance; - 3 - "appeal" "automobile" "automobil e insurance" "Automobile Insurance Plan"

"boiler and machinery insurance" "broker" "chief agency" "contract" "credit insurance" "disability insurance" "due application" "boileY' and machinery insurance" means insurance against loss of or damage to persons or property and against liability for loss or damage to per­ sons or property through the explosion, collapse, rupture or breakdo~n of, or accident to, boilers or machinery of any kind; "broker" means a person who, for compensation, not being a licensed agent or not being a person acting under the authority of subsection 216.(15), (16). or (17), acts or aids in any manner in nego- tiating contracts of insurance er placing risks or effecting insurance or in neqot'ating the con- tinuance or renewal of such contracts for a per- son other than himself; "chief agency" means the principal office or plilce of business in the Territory of any licensed in- surer having its head office out of the Territory; "contract" means a contract of insurance, anrl in- cludes a policy, certificate, interim receipt, renewal receipt. or writing evidencing the contract, whether sealed or not, and a binding oral agree- ment; "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; "disability insurance" means insurance undertaken by an insurer as part of a contract of life insur- ance whereby the insurer undertakes to pay insur­ ance money or to provide other benefits in the event that the person whose life is insured be- comes disabled as a result of bodily injury or disease; "due application" includes such information. evi- - 4 -

Chp. 1 dence and material as the Superintendent requires to be furnished, and also the payment of the fees hereinafter prescribed in respect of any applica- tion. certificate or document required or issued by virtue of this Ordinance; "employers' liability insurance" means insurance. not being insurance incidental to some other class of insurance defined by or under this Ordinance. against loss to an employer through liability for accidental injury to or death of an employee aris­ ing out of or in the course of his employment; "endowment insurance", as applied to a fraternal society. 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; "fire insurance" means insurance. not being insur- ance incidental to some other class of insurance defined by or under this Ordinance. against loss of or damage to property through fire. lightning or explosion due to ignition; "foreign jurisdiction" means a jurisdiction other than the Territory; "fraternal society" means a society. order or assoc- iation 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 Ordinance; "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 such performance Or discharge or to pay money upon such default or in lieu of - 5 - "emp 1 oyers' liability insurance" "endowment insurance" "fire insurance" "foreign jurisdiction" "fraternal soci ety" "guarantee insurance"

"head offi ce" "inland transportation insurance" "insurance" "insurance fund" "insurance money" Insurance Ordittance Chp.l such performance or discharge, or where there is loss or damage through such default, but does not include credit insurance; "head office" means the place where the Chief exe- cutive officer of an insurer transacts his busi~ ness; "inland transportation insurance" means insurance other than marine insurance, against loss of or damage to property, (

a) while in transit or during delay inciden- tal to transit, or (

b) where, in the opinion of the Superinten- dent, the risk is substantially a transit risk; "insurance" means the undertaking by one person to indemnify another person against loss or lia­ bility for loss in respect of a certain risk or peril to wh1ch 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; "insurance fund" or "insurance funds", as applied to a fraternal society or as applied to a corpor- ation not incorporated exclusively for the trans­ action of insurance, includes all money, securi- ties for money and assets appropriated by the rules of the society or corporation to the payment of insurance liabilities or appropriated for the manage- ment of the insurance branch or department or divi­ sion of the society, or otherwise legally available for insurance liabilities, but does not include funds of a trade union appropriated to or appli­ cable for the voluntary assistance of wage earners unemployed or upon strike; "insurance money" means the amount payable by an - 6 -

Insurance Ordinance Chp.l insurer under a contract, and includes all bene- fits, surplus, profits, dividends, bonuses and annuities payable under the contract; "insurer" means the person who undertakes or agrees or offers to undertake a contract; "life insurance" means insurance whereby an insurer undertakes 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 1 He, and, without restricting the generality of the foregoing, includes accidental death insurance but not accident insurance; "licence" means a 1 icence granted under this Ordin- ance by the Superintendent; "live stock insurance" means insurance, not being insurance incidental to some other class of insur- ance defined by or under this Ordinance, against loss through the death or sickness of or accident to an animal; "marine insurance" means insurance against, (

a) liability arisir.g out of, (

i) bodily injury to or death of a per- son, or (ii) the loss of or damage to properties; or (

b) the loss of or damage to property, occuring during a voyage or marine adventure at sea or on an island waterway or during delay incidental thereto, or during transit otherwise than by water incidental to such a voyage or marine adventure; - 7 - "insurer" "1 i fe insurance" "licence" Dlive stock insurance" "marine insurance"

"mortgage insurance" "motor vehicle 1 iabil i ty policy" "mutual insurance" "non-owner's policy" "officer" Insurance Opdinance Chp. 1 "mortgage insurance" means insurance against loss caused by default on the part of a borrower under a loan secured by a mortgage upon real property. a hypotbec upon immovable property or an interest in real or immovable property; "htotor vehicle liabil ity pol icy" means a pol icy or part of a policy evidencing a contract insur- ing. (

i) the owner or driver of an automobile. or (ii) 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; "mutual insurance" means a contract of insurance in which the consideration is not fixed or certain at the time the contract is made and is to be deter- mined at the termination of the contract or at fixed periods during the term of the contract accord- ing to the experience of the insurer in respect of all similar contracts. whether or not the maximum amount of such consideration is predetermined; "non-owner's policy" means a motor vehicle liabi- lity 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; "officer" includes a trustee. director. manager. treasurer. secretary or member of the board or committee of management of an insurer and a per- son appointed by the insurer to sue and be sued in i ts beha If; - 8 -

Insuranae Ordinance Chp. 1 "owner's policy" means a motor vehicle liability policy insuring a person in respect of the owner­ ship, use or operation of an automobile owned by him and within the description or definition there­ of in the policy and, if the contract so provides, in respect of the use or operation of any other automobile; "plate glass insurance" means insurance, not being insurance incidental to some other class of insur- ance defined by or under this Ordinance, against loss of or damage to plate, sheet or window glass, whether in place or in transit; "policy" means the instrument evidencing a contract; "premium" means the single or periodical payment under a contract for insurance, and includes dues, assessments, administration fees paid for the admin­ istration or servicing of such contract, and other considerations; "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 pro- visions in the contract; "property damage insurance" means insurance against loss of or damage to property that is not included in or incidental to some other class of insurance defined by or under this Ordinance; "public 1 iabil ity insurance" means insurance against loss or damage to the person or property of others that is not included in or incidental to some other class of insurance defined by or under this Ordin- ance; "salesman" means a person who is employed by a - 9 - "owner's policy" "plate glass insurance" "policy" "premium" "property" "property damage insurance" "public liability insurance" "salesman"

"sickness insurance-" "sprinkler leakage insurance" "Superintendent" "theft insurance" "title insurance" "upon p,roof" InSUl'cInCe Ordinance Chp. 1 licensed insurance agent or broker on a stated salary that is not supplemented by commission. bonus or any other remuneration to solicit insur~nce or trans- act. for a person other than himself an applica- tion for a policy of insurance. or to act in the negotiation of such insurance or in negotiating its continuance or renewal. or collects and receives premiums on behalf of his employer only. but does not include a licensed insurance agent. broker or employee engaged solely in office duties for an agent or broker or a person acting under the auth- ority of subsection 216.(15) or (16); "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; "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; "Superintendent" means the Superintendent of Insur- ance and includes the Deputy Superintendent of Insurance; "theft insurance" means insurance against loss or damage through theft, wrongful conversion. bur­ glary, house-breaking. robbery or forgery; "title insurance" means 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; "upon proof". as applied to any matter connected with the licensing of an insurer or other person, means upon proof to the satisfaction of the Super- intendent; - 10 -

3. (1 ) (2 ) 4. (1 ) 5. (1 ) 6.

(1) IPl8UJ'allCe Ordinance

PART I SUPERINTENDENT AND HIS DUTIES Chp. 1 The Commissioner shall appoint a Superintendent of Insurance who shall exercise the powers and perform the duties vested in or imposed upon him by this or any other Ordinance, shall have the general supervision of the business of insurance in the Territory and shall See that the laws re­ lating to the conduct thereof are enforced and obeyed. The Superintendent may designate a person in his office to act as Superintendent during the absence or inability ·of the Superintendent.

For the purposes of his duties and in the exercise of his powers under this Ordinance or under any other Ordinance ~elating to insurance, the Super- intendent may require to be made 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, and to enforce their atten- dance, and to compel them to produce books, docu- ments and things, and to give evidence as any court has in civil cases.

An oath required by this Ordinance to be taken may be administered and certified to by the Super­ intendent or by any person authorized to admini- ster oaths in the Territory. Neither the Superintendent nor any person in his office shall be interested as a shareholder, directly or indirectly, in any insurance company doing busi­ ness in the Territory. - 11 - Superin­ tendent Acting Superin­ tendent Evidence Oaths Independence of Super­ intendent and Offi cers

Superili- 1. (1) intendenL may ~ring actions, etc Leave

(2) Records 8. (1) of Super­ intendent Inspection

(2) Annual 9. (1) publication in Gazette Certificate of Superi n­ tendent is evi dence

(2) Chp. 1 The ~upel'int.endellt may bring actions and insti tute proceedings in his name of office for the enforce- ment of any provision of this Ordinance or for the recovery of any fee or penalty payable under this Ordinance. No action or proceeding for the recovery 0:" any fee or penalty payable under this Ordinance shall be commenced without the leave of the Superinten- dent.

The Superintendent shall keep a register of all licences. in which shall appear the name of the insurer, the address of th~ Head Office, the ad- dress of the .princip1e office in Canada, the name and address of the chief agent in the Territory, the number of the licence issued, particulars of the classes of insurance for which the insurer is licensed and such other information as the Super- intendent considers necessary. The register referred to in subsection (1) shall be open to inspection at such times and upon pay- ment of such fees as are prescribed.

The Superintendent may cause to be published an­ nually in the Yukon Gazette a list of the insurers licensed at the date of the list, and may from time to time cause notice of the licence of an insurer not theretofore licensed and notice of suspension or cancellation or revivor of licence to be given by publication in the Yukon Gazette. A certificate under the hand and seal of office of the Superintendent that on a stated day an in- surer mentioned therein was or was not licensed under this Ordinance or that any insurer was oriqin- ally granted a licence, or that the licence of - 12 -

(3) 10.

(1) InGl~anCe Ordinance Chp. 1 any insurer was renewed, suspended, revived, re- voked or cancelled on a stated day, is admissible evidence as prima facie proof of the facts stated in the certificate. A certificate of the filing of any document in the office of the Superintendent is admissible in evidence as prima facie proof of the filing if signed or purporting to be signed by the Super­ intendent. Every decision of the Superintendent upon an appli- cation for a licence shall be in writing and notice thereof shall be forthwith given to the insurer.

(2) The insurer or any person interested is entitled upon payment of the prescribed fee, to a certified copy of a decision of the Superintendent. ( 3) 11. (1) (2) ( 3)

(4) The evidence and proceedings in any matter before the Superintendent may be reported by a stenogra­ pher sworn before the Superintendent to faithfully report the same. An applicant for a licence under this Ordinance or any person who·considers himself aggrieved by a decision of the Superintendent may appeal there­ from to the Court of Appeal. The appeal shall be set down for argument at the first sitting of the Court of Appeal that commences after the expiration of thirty days from the deci­ sion complained of.

The practice'and procedure upon and in relation to the appeal shall be the same as upon an appeal from a judgment of a judge of the Supreme Court in an action. The Superintendent shall certify to the Registrar of the Court of Appeal the decision appealed from, - 13 - Evidence, filing of documents Decision of Superinten­ dent Stenographic report Appeal When to be set down Procedure Certificate

Conse-· quences of failure to anS\'I~r inquiries 12. (1) .~ccess to 13. (

l) books Outy to 14. (1) fu!'nfsh . information an request Inspec!i on . J,nnuJl ~~::,~·,:'.:l :I)rl of i nsurcrs (2) 15. (1) r'laUI'a'lca .Oz'dir:ance Clip. his r'~asons to~rerol' ,tI\U to!;! documents, inspection reports and evidence, if any. and such other infor- mation as he had before. him in making his decision. The Superintendent may direct to an insurer any inquiry t<?lJchiny the contracts or financial affilirs af the insurer. and the ins'urer shall mJke prompt and explicit anS\'Ier to any such inquiry. and, in ~ case of refusal or neglect to anS\'1er. is guilty of an offence.

The Superintendent or any person authorized ~nder his hand or seal of office, shall. at all reason- able times, have access to all books, securities and documents· of an insurer, agent or broker that related to control of insurance, and any officer or person in charge. possession, custody or con­ trol of such books, securi ty or documents \'1ho re­ fuses or neglects to afford such access is guilty of an offence.

It is the duty of the officers and agents of a . licensed insurer, an~ of persons licensed under this Ordinance, and of any insured. to furnish the Superintendent on his request \'1ith full infor­ mation relating to any contract of insurance issued by the insurer or to the insured or relative to any settlement or adjustment under any such con- tract. The Superintendent may visit the head office or chief agency from \'1hich the contract ~/as issued, or the office of the adjuster. and inquire into such contract or settlement, and

section 13 applies mutatis mutandi:: to such inquiry. The Superintendent or any per!>on iluthorized by - 14 -

(2) (3) (4)

(5) Insurance Ordinance Gnp. 1 him may visit the head office or chief office of a licenced insurer. and he may examine the statements of the condition and affairs of each such insurer and make such inquiries as are necessary to ascer- tain its condition and 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 Ordinance applicable to its transactions.

The officers and agents of an insurer shall cause the books and records of the insurer to be opened for the inspection of the Superintendent and shall otherwise facilitate such examination so far as it is in their power.

In order to facilitate the inspection of the books and records of an insurer. the insurer may be re- qui red by the Superintendent to produce the books and records at the head office or chief office of the insurer or at such other convenient place as the Superintendent direct~. and the officer or officers of the insurer who have custody of the books and records are entitled to be paid by the insurer for the actual expenses of such attendance.

The Superintendent may cause abstracts to be pre­ pared of the books and vouchers and a valuation to be made of the assets or liabilities of any such insurer and the cost thereof upon the certi­ ficate of the Superintendent shall be paid by the insurer. Where the office of an insurer at which an exam- ination is made under this

section is out of the Territory. the insurer shall pay the account in connection with such examination upon the certi- ficate of the Superintendent. - 15 - Duties of officers and agents Production of books at head office or as Super­ intendent directs Examination of affairs of an insurer Expenses of examination

Service of16. (I) ,notice or process on Superintendent .Insurer ;to :file address

(2) Superin- 17. (

I) tendent to forward notice of ,process Public-· 18. (I) 'ation by Superin- 'tendent Appl1c- 19. (

l) ationof Part Undertaking insurance (2 ) Insurance Ordinance Chp. 1 Where the head office of a licensed insurer is s1tuated out of the Territory, notice or process 1n any action or proceeding in the Territory may be served upon the chief agent of the insurer in the Territory or where no appointment of a chief agent is then in effect notice may be served upon the Superintendent and such service shall be deemed service upon the insurer in the case of a corpor- ation and upon members of the insurer in the case of an unincorporated body or association.

Every licensed insurer shall file in the office of the Superintendent notice of a postal address to wh1ch any such notice or process may be for­ warded by the Superintendent and shall from time to t1me notify the Superintendent of any change in the address so filed. The Superintendent shall forthwith after the re­ ce1pt of any notice or process referred to in sec­ tion 16 forward it to the insurer by registered ma1l addressed in the manner last notified to him for this purpose by the insurer.

The Superintendent may publish from time to time notices, reports, correspondence, results of hear- ings, decisions and any other matter considered by the Superintendent to be in the public interest.

PART I I GENERAL PROVISIONS APPLICABLE TO INSURERS This Part applies to insurance undertaken in the Territory and to all insurers carrying on business in the Territory. An insurer undertaking a contract that under this - 16 -

(3) tnsurance o~di"~e t!1ip. 1 Ordinance is deemed to be made in the Territory, wllether the contract is original or renewed, except the renewal from tine to tine of life insurance poliCies, shall be deened to be under- taking insurance in the Territory within the meaning of this Part. An insurer undertaking insurance in the Terri- tory or that in the Territory, (

a) displays or causes to be displayed a sign containing the name of an insurer. (

b) maintains or operates. either in its own name or in the name of its agent or other representative. an office {or the transaction of the business of insurance either in or out of the Territory. (

c) distributes or publishes or causes to be distributed or published any pro- posal. circular. card. advertisenent. printed form or like document. (

d) makes or causes to be made any written or oral solicitation for insurance. (

e) issues or delivers any policy of insurance or interim receipt or collects or receives or negotiates for or causes to be collected or received or negotiated for any premium for a contract of insurance or inspects any risk or adjusts any loss under a contract of insurance. or (

f) prosecutes or mai~tains in the Territory an action or proceeding in respect of a contract of insurance shall be deemed to be an insurer carrying on business in the Territory within the meaning of this Ordirlanc~.

(4) Any club. society or association incorporated - 17 - Carrying on business

Necessity for license Prohibition 20.(1)

(2) Prohibition (3) against person acting on behalf of unlicensed insurer Exception

(4) Reinsurance 21.(1) with unlicensed insurer In8urance.Ordinance Chp. 1 or unincorporated that rrceives, either as trustees or otherwise, gratuities or benefits which are paid directly or indirectly upon the death of its members, of any of them, shall be deemed to be an insurer carrying on business in the Territory within the meaning of this Ordinance. licences Every insurer undertaking insurance in the Territory or carrying on business in the Territory shall obtain from the Superintendent and hold a licence under this Ordinance. Every insu~er undertaking insurance or carrying on business in the Territory without having obtained a licence as required by this

section is guilty of an offence. A person who in the Territory does or causes to be done any act or thing mentioned in sub~

section 19. (3) or' (4) o'n.behalf of or as. agent of an insurer not licensed under this Ordinance or who receives directly or indirectly any remuneration for so doing is guilty of an offence. The following shall not be deemed insurers within the meaning of this Ordinance or required or entitled to be licensed as such, namelYi (

a) pension fund societies or employees' mutual benefit societies incorporated in the TerritorYi (

b) corporations mentioned in paragraphs 215. (3) (

a) and (b). Nothing in this Ordinance prevents a licensed insurer who has lawfully effected a contract of insurance in the Territory from reinsuring the risk or part thereof with an insurer - 18 -

22. (1) (2) 23. (1)

(2) Insurance Ordinance Chp. 1 transacting business out of the Territory and not licensed under this Ordinance. Upon due application and upon proof of com­ pliance with this Ordinance, the Superinten­ dent may issue a licence to undertake contracts of insurance and carry on' business in the Territory to any insurer coming within one of the following classes, namely: (

a) joint stock insurance companies; (

b) mutual insurance corporations; (

c) cash-mutual insurance corporations; (

d) fraternal societies; (

e) companies duly incorporated to under­ take insurance contracts and not within classes (

a) to (d); (

f) underwriters or syndicates of under­ writers operating on the plan known as Lloyds; (

g) penSion fund associations. A licence authorizes the insurer named there- 1n to exercise in the Territory all rights and powers reasonably incidental to the carrying on of the business of insurance named therein that are not inconsistent with this Ordinance or with its Act or instrument of incorporation or organization. The Commissioner may make regulations determin­ ing and defining classes of insurance and. classes of licences for the purposes of this Ordinance. Subject to the provisions of the Parts of this· Ordinance that particularly relate to the classes - 19 - What insurers may be 1 i censed for Effect of licence Classes of 1nsurance Licence to carry on insurance business

Determination of classes of insurance by Superintendent Limited or conditional licence Conditions of automobile insurance licence (3) (4 ) 24

(1) Insurance Ordinance Chp.l at inSlIrrrs mentioned in

section 22, a licence may be granted to an insurer to carry on anyone or more of the classes of insurance defined in

section 2 and such other classes as are prescribed. For the purposes of this Ordinance, the Superintendent may determine the class or classes of insurance into which the circumstances or conditions in any case may bring any insurance granted or that may be granted in respect thereto, and the policy form to be used for that class of insurance. Any licence may be issued subject to such limitations and conditions as the Superinten- dent may specify. A licence to carry an automobile insurance in the Territory is subject to the following conditions: (

a) in any action in the Territory against the licenced insurer or its insured arising out of an automobile accident in the Territory, the insurer shall appear and shall not set up any defence to a claim under a contract made outside the Territory, 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 the Territory and such contract made outside the Territory shall be deemed to include the benefits set out in the Schedule; (

b) in any action in a province of Canada against the licenced insurer or its insured arising out of an automobile - 20 -

Il18Ul'anae Ordinance Chp.l accident in that province, the insurer shall appear and shall not set up any defence to a claim under a contract evidenced by a motor vehicle liabilfty policy issued in the Territory, includ- ing any defence as to the limit or limits of liability under the contract, that might not be set up if the con- tract, were evidenced by a motor vehi- cle liability policy issued in that province.

(2) Any insurer undertaking automobile liability insurance in the Territory shall be and re­ main a party to the Agreement establishfng the Automobile Insurancf Plan and shall comply with the requirements of the Automobile Insurance Plan as to rates to be charged for business placed through the Automobile Insurance Plan.

(3) The Automobile Insurance Plan shall pub- lish a rate manual but such rate manual and any changes to it shall be submitted to the Superintendent and shall not be used unless approved by him.

(4) A licence may be cancelled when the holder commits a breach of condition as set out in subsection (1). 25.

(1) Every insurer licensed for the transaction of life insurance may, under the authority - 21 - Insurance Plan Penalty for breach Scope of Lffe insurance 1 i cence

Scope of 26.(1) fire insurance In8ta'ane:e Ol'd·inance Chp. 1 of its licence, unless the licence expressly provides otherwise, (

a) include in any policy of life insurance, in respect of the same life or lives insured thereby, disability insurance and accidental death insurance; and (

b) transact annuities of all kinds and insurance providing for the establish- ment of accumulation or endownent funds.

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, \~indstorm, tornado, hail, sprinkler leakage, riot, malicious damage, weather, water damage, smoke damage, civil commotion and impact by vehicles and anyone or more perils falling within such other classes of insurance as are prescribed.

Insurance of automobiles

(2) An insurer licensed to carry on fire insur- Application of 27.(1) other Parts ance may insure an automobile against loss or damage under a policy falling within

Part IV of this Ordinance. A licence shall not be granted to an insurer except upon proof that it has complied with the provisions of this Ordinance and the regu­ lations applicable to it. - 22 -

Insurance Ordinance Chp. 1

(2) Where the head office of an applicant for a licence under this Ordinance is situate out of the Territory, a licence shall not be granted except upon proof of its ability to provide for the payment at maturity of all its con­ tracts, but the Superintendent may accept as sufficient the fact that it is licensed by any other government in Canada.

(3) A licence shall not be granted to a corpor- 28. (1 ) 29. (1) ation that is incorporated under the law of a province unless its head office and chief place of business is situate in that province. The Superintendent shall require such notice of the application for a licence to be given "by publication in the Yukon Gazette and else- where as he considers necessary. Every insurer shall, when applying for a licence, file in the office of the Superintendent the following documents: (

a) a certified copy of its Act or other instrument of incorporation or associ- ation and of its constitution and by­ laws and regulations verified in a manner satisfactory to the Superintendent; (

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

c) if the head office of the insurer is out of the Territory, notice of the place where the chief office of the insurer in the Territory is to be situate; - 23 - Evidence by insurer when head office outside of the Territory Licence of extra­ provinci al corporation Information prel iminary to licence Documents to be fl1 ed by applicants for licence

Executi on of power of attorney Contents of power of attorney Chp. 1 (

d) if the head office of the insurer is out of the Territory an executed copy of a power of attorney from the insurer to the chief agent resident fn the TerritorYi (

e) copies of all policy forms and forms of application for insurance proposed to be used by the insurer in the Terri- torYi (

f) any evidence or documents required by other Parts of this Ordinance.

(2) A power of attorney filed pursuant to para­ graph (l)(

d) shall be under the seal of the insurer, and shall be signed by the president and secretary or other proper offfcers of the insurer in the presence of a witness who shall make oath as to its due execution.

(3) A power of attorney filed pursuant to para­ graph (l)(

d) shall declare in what place in the Territory the chief agency of the corpor­ atfon is and shall expressly authorize the chief agent to receive service of process in all actions and proceedings against the insurer in the Territory for any liability incurred by the insurer therein, and also to receive from the Superintendent all notices that the law requires to be given, or that ft is thought advisable to give and shall declare that service of process for or in respect of such liability on the chief agent is legal and binding on the insurer. - 24 -

In8uran~e Ordinance Chp. 1

(4) The production of a copy of the power of attorney certified by the Superintendent is sufficient evidence for all purposes of the power and authority of the person therein named to act on behalf of the insurer in the manner and for the purposes set forth in the certi­ fied copy.

(5) Where the insurer.changes its chief agent in the Territory it shall, within seven days of the appointment file with the Superintendent a similar power of attorney stating the change and containing a similar declaration as to service of process and notices.

(6) After the power of attorney is filed, any process in any action or proceeding against the insurer for liability incurred in the Territory may be validly served on the insurer upon its chief agent but nothing in this

section renders invalid service in any other modes in which the corporation may be lawfully served.

(7) An applicant for a licence shall furnish evi­ dence satisfactory to the Superintendent that the requirements of this Ordinance have been complied with and that the applicant is entitled to the licence applied for.

(8) When the Superintendent considers it neces- sary to conduct an examination of the affairs of an applicant for a licence, the applicant shall pay the costs of the examination upon receiving a statement thereof certified by the Superintendent. - 25 - Effect of copy and evidence Changes in chief agent Service of process thereafter Evidence

Forms of 1 icence Terms of licence Conditions of licence Variation of licence Insurance Ordinance Chp. 1

(9) Every licensed insurer shall file in the office of the Superintendent certified copies of 30. (1 ) every amendment, revision or consolidation of its Act or other instrument of incorporation or association and of its constitution, by- laws and regulations verified in a manner satis­ factory to the Superintendent within thirty days after the passing or adoption of the amend- ment. revision or consolidation. A licence shall be in such form or forms for the different classes of insurers as may be determined from time to time by the Superin­ tendent and a licence shall specify the busi- ness to be carried on by the insurer.

(2) Every licence expires on the thirtieth day of June in each year. subject to renewal by the Superintendent on or before that date.

(3) Any li cence may be issued or renel'led subject to such limitations or conditions as the Superintendent considers appropriate.

(4) Notwithstanding subsections (2) and (3), the Superintendent may at any time and in respect of any licence of an insurer, (

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

b) impose any conditions or limitations 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, - 26 -

31. (1 ) II18U.l'a1IOB Ordinance Chp. 1 but the Superintendent may not exercise any power granted under this subsection until he has given the insurer notice of his intention to exercise:such power and has afforded the insurer a reasonable opportunity to be heard with respect thereto. Where written notice has been served on the Superintendent and upon proof of an undisputed claim arising from loss insured against in the Territory remaining unpaid for sixty days after being due or of a disputed claim after final judgment in the regular course of law and tender of a legal, valid discharge being unpaid, the Superintendent may suspend or can­ cel the licence.

(2) The licence may be revived and the insurer may again transact business if, within six months after notice to the Superintendent of the failure of the insurer to pay an undisputed claim or the amount of a final judgment as provided in this section, the undisputed claim 32. (1 ) or final judgment upon or against the insurer in the Territory is paid and satisfied. If the Superintendent, upon examination, or from annual statements or upon other evidence, finds (

a) that the assets of an insurer are insufficient to justify its continuance in business or to provide proper security to persons effecting insurance with it in the Territory, or - 27 - Failure to pay undisputed claim Revival of 1 i cence Insufficiency of assets to be reported by Superin­ tendent

Notice L1mited or conditi ona 1 1 icence Application to 1 i censees of any governrrent in Canada Appeal In8UJ'ance lJlodinance Chp. 1 (

b) that an insurer has failed to comply with any orovision of law or with its Act or instrument of incorporation or association. he may suspend or cancel the licence of the insurer.

(2) Notice of suspension or cancellation under this

section shall be published in the Yukon Gazette and elsewhere as the Superintendent directs ilnd thereafter any person transacting business on behalf of the insurer except for winding­ up purposes is guilty of an offence.

(3) In the case mentioned in subsection (1) the Superintendent may in lieu of suspending or cancelling the licence of the insurer. issue such modified. limited or conditional licence as he considers necessary for the protection of persons in the Territory who have effected or effect contracts of insurance with the insurer.

(4) 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 such insurer under this Ordinance.

(5) An insurer may appeal a suspension or cancel­ lation of his licence by the Superintendent pursuant to SUbsection (1) or the decision of the Superintendent to issue a modified. limited or conditional licence issued pursuant to subsection (3). to the Court of Appe~l - 28 -

33. (1 ) In8Ul'Qnce OJodinance Chp. 1 and the provisions of

section 11 apply to the appeal mutatis mutandis. Every licensed insurer that carries on in the Territory the business of automobile insur- ance, fire in9urance, oroperty damage insur- ance, or sprinkler leakage insurance shall prepare and file, when required, with the Superintendent or with such statistical agency as he may designate such statistical return of the experience of such business as the Sup- erintendent may require and in such form and manner and according to such system of classi- fication as he may approve.

(2) The Superintendent may require any agency designated under subsection (1) to compf1e the data so filed in such form as he may approve. and the expense of making the compilation shall be apportioned among the insurers whose data is compiled by such agency by the Super­ intendent who shall certify in writing the amount due from each insurer and it is pay- able by the insurer to such agency forthwith.

(3) If at any time it appears to the Superintendent that the insurer's record of premium income and claims paid are not kept in such manner as "to show correctly the experience of the insur- er for the purposes of the statistical return, the Superintendent 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 officers - 29- Statistical returns Compil at ion of data Audit and direction where records not duly kept

Expenses of audit Offence Annual statement Who may veri fy statement Insurance Ordinar~e Chp. 1 of the insurer to keep the records correctly therea fter.

(4) The expense of an audit under subsection (3) shall be borne by the insurer and the account shall, when certified and approved untiel- the hand of the Superintendent, be paid by the insurer forthvli th.

(5) Any insurer that contravenes this

section 34. (1 ) and the princiral officer in the Territory of any such insurer are guilty of an offencE.

Every licensed insurer shall preo~re annually and deliver to the Superintendent on or be- fore the fifteenth day of March of each year, a statement of the condition of affairs of the insurer as at the 31st day of December immediately preceding, which statement shall be in a form prescribed by the Superintendent and shall exhibit the assets, liabilities, receipts and expenditures of the insurer for the calendar year ending on such date, and shall also exhibit particulars of the busi- ness done in the Territory during such year and such other information as the Superinten- dent considers necessary from time to time, and such statement shall be verified in such manner as may be prescribed by the Superin­ tendent.

(2) In the case of a corporation, a statement under subsection (1) shall be verified by the president, vice-president or managing di rector or other di rector appoi nted for the - 30 -

InBW'ancs Ordinance Chp. 1 purpose by the board of directors and by the secretary or manager of the corporation.

(3) An insurer shall, when required by the Super- intendent, 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 Territory.

(4) Subject to subsection (5), in the case of all classes of insurance, other than life insur- ance, and in the case of all insurers, the statement shall show as a liability of the insurer not less than eighty percent of the actual portions of unearned premiums on all business in force on the 31st day of December immediately preceding or not less than eighty percent of fifty percent of the premiums writ­ ten in its policies and received in respect of contracts having one year or less to run and p~o ~ata on those for longer periods.

(5) In the case of non-cancellable accident and sickness insurance, the statement shall show as a liability of the insurer a reserve com­ puted on such bases and in accordance with such methods as will place an adequate val- ue on the liab1lities thereunder, but 1n no case shall the value placed upon the benefits under any po11cy be less than the value placed upon the future premiums.

(6) The statement shall not show as assets the unpaid balances owing by agents or other - 31 - Prompt reply to inquiries Unearned premiums a liability Reserve liability on non-cancellablE accident and sickness insurance Certain agents' balances, unauthorized securities etc., must not show as assets

Valuation of securities Published statements Insurance Oztdinance Chj). 1 insurers in respect of business written before the 1st day of October in the next preceding calendar year, or bills receivable on account of the same, or unpaid capital or premium on subscribed shares of capital stock, or investment in office furnishings or equipment, nor shall such statements include as assets any investments not authorized by any special or general Act or Ordinance to which the insurer is subject.

(7) Every licensed insurer may, in its annual 35. (1) statement or in any valuation of its secur- ities requfred to be made, value all of its securities having a fixed term and rate and not in default as to principal or fnterest according to the following rule: if purchased at par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield meantfme the effec­ tive rate of fnterest 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, and the Superintendent has full discretion in determining the method of calculating values according to the foregoing rule.

No statement purporting to show the financial condition of an insurer that differs from the financial condition shown by the statement filed with the Superintendent, and no balance sheet or other statement that differs in form from the form prescribed by the regulations. - 32 -

36. (1) 37. (1 ) 38. (1) 39.

(1) Insurance Ordinance Chp. 1 shall be published or circulated, and every insurer publishing such a statement is guilty of an offence.

Every person who represents orally or in writ­ in9 that the issue of a licence to an insurer or the printing or publication of an annual statement in any report or publication of the Superintendent or any other circumstance of the supervision or regulation of the busin­ ess of the insurer by law or the Superinten­ dent is a warranty or guarantee of the fin­ ancial standing of the insurer or of its ability to provide for the payment of its contracts at maturity is guilty of an offence.

Every insurer licensed to transact life insur­ ance shall keep separate and distinct accounts of participating and nnn-participating busi- ness. Insurance With Unlicensed Insurers Nothwithstanding anything in this Ordinance any person may insure property situated in the Territory against fire with an unlicensed insurer, if such insurance is effected out- side the Territory and without any solicita­ tion whatsoever directly or indirectly on the part of the insurer, and any property insured or to be insured under this

section may be inspected and any loss incurred in respect t.here- of adj us ted. General Any person, other than an insurer or its duly -13 - Statements that financi~l stand­ ing guananteed by government prohibited Separate accounts Ins Ul"nace with unlicensec1 insurers Trafficking in 1 i fe i nsu rance pol ides prohibited

Privileged information Insurer to file form of policy Prohibit issue of policy 40. (1) 41.

(1) In8W'ance Ordinance Chp. 1 authorized agent. who advertfses or holds hfm­ self out as a purchaser of lffe insurance policies or of benefits thereunder. or who trafficks or trades in life insurance policies for the purpose of procuring the sale. sur­ render. transfer. assignment. pledge or hypo­ thecation thereof to him or any other person. is guilty of an offence.

Any information. document. record. statement or thing made or disclosed to the Superinten­ dent concerning a person licensed or apply­ ing for a licence under this Ordinance is absolutely. privileged and shall not be used as evidence in any action or proceeding in any court brought by or on behalf of such person. 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.

(2) Where the Superintendent finds that an insurer has issued a policy or used an application that is unfair. fraudulent. or not in the public interest the Superintendent may. after giving the insurer an opportunity to be heard and make representations. prohibit the insurer from issuing or using such form of policy or application and any insurer. that after being so prohibited issues such policy or uses any such application is guilty of an offence. - 34 -

1 nBW'ance Ordinance Chp. 1 (

J) An i nsurel' \~ho cons i ders himself aggrieved by a decision of the Superintendent pursuant 42.(1) 43. (1 ) 44. (1) to sUbsection (1) may appeal therefrom to the Court of Appeal and the provisions of

section 11 shall apply mutatis mutandis. Unless the contract otherwise provides, a contra­ vention of any criminal or other law in force in the Territory or elsewhere does not, ipso facto, render unenforceable a claim for in- demnity under a contract of insurance except where the contravention is committed by the insured, or by another person with the consent of the insured, with intent to bring about loss or damage but in the case of a contract of life insurance this section'applies only to disability insurance undertaken as part of the contract.

Where an insurer wrongfully withholds payment of any sum of money due to an insured under a contract of insurance, the insurer shall be liable to pay to the insured interest on the said sum from the date it became due and payable at a rate to be prescribed. Penalties Unless otherwise provided, every person who knowingly, (

a) furnishes false information in any application under this Ordinance or in any statement, return or answer required to be furnished under this Ordinance or the regulations, - 35 - Appeal Effect of violation of law on claim for indemnity Where insurer withholds payrrent General penalty

Penalty to insurer Suspension of licence Penalty for carrying on business without a licence Intr.a'ance Ordinance Chp. 1 (

b) fa; ls to comply with any order. direc­ tion or other requirement made under this Ordinance. or (

c) contravenes any provision of this Ordinance or the regulations, and every director or officer of an insurer who knowingly concurs in such furnishing. failure or contravention is guilty of an offence and on

summary conviction is liable to a fine of not more than two thousand dollars or to imprisonment for a term of not more than one year or both.

(2) Where an .i nsurer is convi cted of an offence under subsection (1), the maximum penalty that may be imposed upon the insurer is twenty-five thousand dollars and not as provided therein.

(3) In addition to the penalty set out in subsec­ tion (2) where an insurer contravenes the prohibitions or fails to comply with the re­ quirements of this Ordinance the Superintendent may suspend or cancel the licence of the in- surer.

(4) Every person who (

a) undertakes insurance or carries on business as an insurer in the Territory, (

b) acts on behalf of an insurer in the Territory, or (

c) does or performs anyone or more of the acts constituting the business of insurance,

Chp. 1 in relation to any class of insurance with­ out being licenced for that class, is guilty of an offence and on

summary conviction is liable to a fine of not more than twenty-five thousand dollars.

(5) In case of default in making a return required by this Ordinance to be made within a limited time, the insurer or the person required by this Ordinance to make the return shall, in addition to the fine provided by subsection (1), incur a further fine of one hundred dol­ lars for every month or part thereof during which such insurer or nerson neglects to file the return so required.

(6) In any prosecution under this Ordinance. when­ ever it appears that the accused has done any act or been guilty of any omission in respect of which he would be liable to some penalty under this Ordinance or the regulations. un­ less he is duly licensed, it is incumbent upon him to prove that he is duly licensed. 45.

(1) Fees and Regulations The Commissioner may make regulations. (

a) requiring the payment of fees for licences and renewals of licences and in respect of any function performed by the Super- . .'1." intendent·under this Ordinance and prescribing the amounts thereof; (

b) extending the provisions of this Ordin­ ance or any of them to a system or class - 37 - Penalty for defaul t in making returns Burden of proof of li cence Regulations

(1) Contracts deemed 47.(1) made in the Territory Insurance Ordinance Chp. 1 of insurance not particularly mentioned in this Ordinance; (

c) governing group insurance contracts or schemes, or any class thereof includ­ ing prescribing and regulating their terms and conditions, qualifications for membership in groups and re9u1at­ ing the marketing of. group insurance contracts or schemes; (

d) governing the advertising of insurance contracts or any class thereof includ­ ing prescribing and regulating the form and content of advertisements and re- quiring their filing; (

e) amending or altering the terms, condi- tions. provisions. exclusions and limits set forth in the Schedule; and (

f) generally for the better administration of this Ordinance.

PART II I INSURANCE CONTRACTS IN THE TERRITORY Except where otherwise provided and where not inconsistent with other provisions of this Ordinance, this Part applies to every contract of insurance made in the Territory. other than contracts of (

a) accident and sickness insurance; (

b) life insurance; (

c) marine insurance; and (

d) workers' compensation insurance. Where the subject matter of a contract of insurance is property in the Territory or an - 38 -

(1) Insurance Ordinance Chp. 1 insurable interest of a person resident in the Territory, the contract of insurance, if signed, countersigned, issued or delivered in the Territory or committed to the postal office or to any carrier, messenger or agent to be delivered or handed over to the insured, his assign or agent in the Territory, shall be deemed to evidence a contract made therein, and the contract shall be construed according to the law thereof, and all moneys payable under the contract shall be paid at the office of the chief officer or agent in the Terri- tory of the insurer in lawful money of Canada.

All the terms and conditions of the contract. of insurance shall be set out in full in the policy or by writing securely attached to it when issued, and, unless so set out, no term of the contract or condition, stipulation, warranty or proviso modifying or impairing its effect is valid or admissible in evidence to the prejudice of the insured or beneficiary. (2) Subsection (1) does not apply to an altera- tion or modification of the contract agreed upon in writing by the insurer and the insured after the issue of the policy.

(3) Whether the contract does or does not provide for its renewal, but it is renewed by a renewal receipt, it is a sufficient compliance with subsection (1) if the terms and conditions of the contract are set out as provided by that - 39 - Terms, etc., of contracts invalid unless set out in full Exception Contents of renewal receipt

What regard to be given to proposal Contract not to be invalidated by erroneous statellEnt in application unless material Material1ty. now decided Insuranae Ordinar.ae Chp. 1. subsection and the renewal receipt refers to the contract by its number or date.

(4) The proposal or application of the insured shall not as against him be deemed a part of or be considered with the contract of insurance except in so far as the court determines that it contains a material misrepresentation by which the insurer was induced to enter into the contract.

(5) No contract of insurance shall contain or have endorsed upon it, or be made subject to, any term, condition, stipulation, warranty or proviso providing that such contract shall be avoided by reason of any statement in the application therefor, or inducing the enter­ ing into of the contract by the insurer, un- less such term, condition, stipulation, war­ ranty or proviso is and is expressed to be limited to cases in which such statement is material to the contract, and no contract shall be avoided by reason of the inaccuracy of any such statement unless it is material to the contract.

(6) The question of materiality in a contract of insurance is a question of fact for the jury. or for court if there is no jury, and no admission, term, condition, stipulation, war- ranty or proviso to the contrary contained in the application or proposal for insurance, or in the instrument of contract or in any agreement or document relating thereto, has - 40 -

Insurance Or'dinance Chp. 1 any force or validity.

(7) This

section does not apply to contracts of 49. (1) fire or automobile insurance. An insurer shall upon request furnish to the i~sured a true copy of his ap~lic~tinn or proposal for insurance. 50.

(1) No insurer shall make a contract of insurance inconsistent with this Ordinance.

(2) An act or omission of the insurer resulting in imperfect compliance with any of the pro- 51.(1) visions of this Ordinance does not render a contract invalid as against the insured.

Every policy shall contain the name of the insurer, the name of the insured, the name of the person or persons to whom the insur- ance money is payable, the amount, or the method of determining the amount, of the premiums for the insurance, the subject matter of the insur- ance, the indemnity for which the insurer may become liable, the event on the happen­ ing of which the liability is to accrue, the date upon which the insurance takes effect and "the date it terminates or the method by which the latter is fixed or to be fixed.

(2) This

section does not apply to contracts of 52. {

l) guarantee insurance. This

section applies to a contract containing a condition, statutory or otherwise, providing for an appraisal to determine specified mat- - 41 - Application Copy of proposal to oe furnished to insured No contract shall be inconsistent with Ordinance Rights of insured Contents of policy Application" of

section Application

Appraisals Appraisers Costs Relief from forfe; ture Insurance Ordinance Chp. 1 ters in the event of a disagreement between the insured and the insurer.

(2) The insured and the insurer shall each appoint an appraiser, and the two appraisers, so appointed, shall appoint an umpire.

(3) The appraisers shall determine the matters in disagreement and. if they fail to agree, they shall submit their differences to the umpire. and the finding in writing of any two determines the matter,s. (4) Each party to the appraisal shall pay the (5) 53. (1 ) appraiser appointed by him and shall bear equally the expense of the aporaisa1 and the umpire. Where (

a) a party fails to appoint an appraiser within seven clear days after being served with written notice to do so, (

b) the appraisers fail to agree upon an umpire within fifteen days after their appointment, or (

c) an appraiser or umpire refuses to act or is incapable of acting or dies, a judge of the Supreme Court may appoint an appraiser or umpire, as the case may be, upon the application of the insured or of the insurer. Where there has been imperfect compliance with a statutory condition as to the proof of loss to be given by the insured or other matter or thing required to be done or omitted by the - 42 -

54. (1) 55.

(1) Insurance Ordinance Chp. 1 insured with respect to the loss and a conse- quent forfeiture or avoidance of the insurance in whole or in part and the court considers it inequitable that the insurance should be forfeited or avoided on that ground, the court may relieve against the forfeiture or avoid­ ance on such terms as it considers just. Insurance money is payable in the Territory in lawful money of Canada. No term or condition of a contract shall be deemed to be waived by the insurer in whole or in part unless the waiver is stated in writing and signed by a per.son authorized for that purpose by the insurer.

(2) Neither the insurer nor the insured shall 56. (1) be deemed to have waived any term or condi- tion of a contract by any act relating to the appraisal of the amount of loss or the deli­ very and completion of proofs or to the investi­ gation or adjustment of any claims under the contract. Where a person (

a) incurs a liability for injury or damage to the person or property of another, (

b) is insured against such liability, and (

c) fails to satisfy a judgment awarding damages against him in respect of his liability, and an execution against him in respect thereof is returned unsatisfied, the person entitled to the damages may recover by action against - 43 - How policy payable Waiver of term or condition Right of claimant against insurer where execution against insured returned unsatisfactory

Exception Consolidation of actions Where infants are entitled to insurance IIXlney Apportionment of sums di rected to be paid When payee is domi c 11 ed or resident abroad InsuPance Ordinance Chp. 1 the insurer the amount of the judgment up to the face value of the policy, but subject to the same equities as the insurer would have if the judgment had been satisfied.

(2) This

section does not apply to motor vehicle liability policies. 57.

(1) Where several actions are brought for the recovery of money payable under a contract or contracts of insurance, the court may consolidate or otherwise deal therewith so that there is but one action for and in re- spect of all the claims made in such actions.

(2) Where an action is brought to recover the share of one or more infants, all the other infants entitled, or the trustees, executors or guardians entitled to receive payment of the shares of such other infants, shall be made parties to the action, and the rights of all the infants shall be determined in one action.

(3) In all actions where several persons are in- terested in the insurance money, the court or judge may apportion among the persons en­ titled any sum directed to be paid, and may give all necessary directions and relief.

(4) Where the person entitled to receive money due and payable under a contract of insurance, except insurance of the person, is domiciled or resides in a foreign jurisdiction and pay­ ment valid according to the law of such juris- diction, is made to such person, such payment - 44 -

58. (1 ) Insurance Ordinance Chp. 1 is valid and effectual for all purposes. Where the policy has been delivered. the con- tract is as binding on the insurer as if the premium had been paid, although it has not in fact been paid, and although delivered by an officer or agent of the insurer who had no authority to deliver it.

(2) The insurer may sue for any unpaid premium and may deduct the amount thereof from the amount for which he is liable under the con- tract of insurance.

(3) Where a cheque, bill of exchange or promis­ sory note is given, whether originally or by way of renewal, for.the whole or part of any premium and the cheque, bill of exchange or 59. (1) promissory note is not honoured according to its tenor, the insurer may terminate the con- tract upon giving written notice by registered mail to the insured. An insurer, immediately upon receipt of a request, and in any event not later than sixty days after receipt of notice of loss, shall furnish to the insured or person to whom the insurance money is payable forms upon which to make the proof of loss required under the contract.

(2) An insurer who neglects or refuses to comply with subsection (1) is guilty of an offence, and in addition

section 60 is not available to the insurer as a defence to an action brought, - 45- Effect of delivery of policy Right of insurer in respect of uflpaid premium Where note or cheque for premium not honoured Insurer to furnish forms Offenee

Furnishing of forms not an admission Insurance ordinance Chp. 1 after such neglect or refusal, for the recovery of moneys alleged to be payable under the contract of insurance.

(3) The furnishing by an insurer of forms to make proof of loss shall not be taken to constitute an admission by the insurer that a valid contract is in force or that the loss in question falls within the insurance provided by the contract. When action may 60.(1) be brought under contract No action should be brought for the recovery of money payable under a contract of insurance Mortgagee not 61.(1) to receive commission from insurer until the expiration of sixty days after proof, in accordance with the provisions of the con- tract, (

a) of the loss, or (

b) of the happening of the event upon which the insurance money is to become payable, or of such shorter period as is fixed by the contract of insurance. Insurance as Collateral Security No mortgagee shall accept or be entitled to receive either directly or through his agent or employee, and no officer or employee of such mortgagee shall accept or receive, any commission or other remuneration or benefit in consideration of effecting a contract of in­ surance or renewal thereof under which con- tract loss, if any, is payable to him as mortgagee. Payment of commission prohibited.

(2) No insurer or agent or broker shall pay, allow or given any commission or other remuneration or benefit to a mortgagee or to any person in his employ or on,his behalf in consideration - 46 -

lIwurQllct1 Ol'(/inance of effecting a contract of insurance or renewal thereof under which contract loss, 1f any, 1s payable to him as mortgagee.

(3) Every insurer or other person who contravenes the

section is guilty of an offence. 62.

(1) Where an insured assigns the right to refund of premium that may accrue by reason of the . cancellation or terminatioh of a contract ·of insurance under the terms thereof and notice of the assignment is given by the assignee to the insurer, the insurer shall pay any such refund to the assignee noblithstanding any con­ dition in the contract, whether ~rp.scrihed under this Ordinance or not, requiring the refund to be paid to the insured or to accom­ pany any notice of cancellation or termination to the insured.

(2) Where the condition 1n the contract dealing 63. (1 r with cancellation or termination by the insurer provides that the refund shall accom~any the notice of cancellation or termination, the insurer shall include in the notice a state- ment that in 1 ieu of payr,lent of the refund in accordance with the condition the refund is being paid to the assignee under this section, Contracts of Title Insurance Every contract of title insurance sh~ll be 1n writing, and, in addition to the other require- ments prescribed by this Ordinance, shall ex­ pressly limit the liability of the insurer to a sum stated in the contract. - 47 - ' Offence Right to refund of premium on termination of contract Contracts of title insurance

64. (1)

(2) If a question arises as to the validity of the title ensured or as to the liability of the insurer, the insured or the insurer or any person entitled to proceed in right of either may apply in a

summary way to the Supreme Court to have such question determined and the court may make such order upon the application as may be considered just. General Where an insurer cannot obtain a sufficient discharge for insurance money for which it admits liability, the insurer may apply to the court ex parte for an order for the payment. thereof into court, and the court may order the payment into court to be made upon such terms as to costs and otherwise as the court may direct, and may provide to what fund or name the amount shall be credited.

(2) The receipt of the proper officer of the court 65.(l} is sufficient discharge to the insurer for the insurance money so paid into court, and the insurance money shall be deait with according to the orders of the court.

PART IV FIRE INSURANCE This Part applies to insurance against loss of or damage to property arising from the peril of fire in any contract made in the Territory except, (

a) insurance falling within the classes of aircraft, automobile, boiler and - 48 - PaYI~ent int.> Court Discharge to insurer ApplicJtion ;jf

Part

Insurance Ordinance Chp. 1 machinery inland transportation, marine, plate glass. sprinkler leakage and theft insurance~ (

b) where the subject matter of the insurance is rents, charges or loss of profits~ (

c) where the peril of fire is an incidental peril to the coverage provided; or (

d) where the subject matter of the insurance is property that is insured by an insurer or a group of insurers primarily as a nuclear risk under a policy covering against loss of or damage to the property resulting from nuclear reaction or nuclear radiation and from other perils.

(2) Notwithstanding subsection (1), this Part applies 6fi. (1 ) to insurance of an automobile as provided in subsection 26.(2). Subject to subsection (4) of this

section and to paragraph 72.(1)(a), in any contract to which this Part applies the contract shall be deemed to cover the insured property (

a) against fire, whether resulting from explosion or otherwise, not occasioned by or happening through, (

i) in the case of goods, their under- going any process involving the application of heat, (ii) riot, civil commotion, war, inva- sion, act of foreign enemy, hosti­ lities (whether war be declared or not) civil war, rebellion, - 49 - Automobiles Extent of coverage by contract

Radioactive contamination Extent of . coverage by contract Insurance Ordinance Chp. 1 revolution. insurrection or military power; (

b) against lightning, but excluding des- truction or loss to electrical devices or application caused by lightning or other electrical currents unless fire originates outside the

article itself and only for such destruction or damage as occurs from such fire; (

c) against explosion not occasioned by or haopening through any of the perils specified in subparagraph (a)(ii) of natural, coal or manufactured gas in a building not forming part of a gas works, whether fire ensues there from or not.

(2) Unless a contract to which this Part applies otherwise specifically provides, it does not cover the insured property against loss or damage caused by contamination by radioactive material directly or indirectly resulting from fire, lightning or explosion within the mean- :ing of subsection (1).

(3) Where property insured under a contract cover­ ing at a specified location is necessarily removed·to prevent loss or damage or further loss,or damage thereto, that part of the insur- ance under the contract that exceeds the amount of the insurer's liability for any loss in­ curred covers, for seven days only or for the unexpired term of the contract if less than - 50 -

Insla'ance Ordinance Chp. 1 seven days, the property removed and any pro­ perty remaining in the original location in the proportions that the value of the property in each of the resoective locations bears to the value of the prooerty in them all.

(4) Nothing in subsection (1) precludes an insurer giving more extended insurance against the perils mentioned therein, but in that case this Part does not apply to the extended insurance.

(5) An insurer licensed to carry on fire insur- 67. (1) 68.(1) ance may include in its insurance contracts a clause or endorsement providing that, in the case of livestock insured against death or injury caused by fire or lightning, the word "lightning" is deemed to include other electrical currents.

After an application for insurance is made, if it is in writing, any policy sent to the insured shall be deemed to be intended to be in accordance with the terms of the applica- tion, unless the insurer pOints out in writing the paiticulars wherein it differs from the application, in which case the insured may, within two weeks from the receipt of the notification, reject the policy.

Where the loss, if any, under a contract has, with the consent of the insurer, been made payable to a oerson other than the insured. - 51 - Extended insurance Power to extend lII!ani ng of "liontining" in 1 i vestock contracts Form of contact Mortgagees and other payees

Statutory conditions

Interpretation Misrepresenta'­ tion Property of others Insta'ance Ordinance Chp. 1 the insurer shall not cancel or alter the policy to the prejudice of that person with­ out notice to him.

(2) The length of time for any manner of giving the notice under subsection (1) is the same as notice of termination to the insured under the statutory conditions in the contract. 69. (1 ) The conditions set forth in this

section shall (2) 1. 2. be deemed to be part of every contract in force in the Territory and shall be printed on every policy with the heading "Statutory Conditions" and no variation or omission of or addition to any statutory condition is binding on the insured. In this section, "policy" does not include interim receipts or binders.

STATUTORY CONDITIONS If a person applying for insurance falsely describes the property to the prejudice of the insurer, or misrepresents or fraudulently omits to communicate any circumstance that is material to be made known to the insurer in order to enable it to judge of the risk to be undertaken, the contract is void as to any property in relation to 'of hi ch the mis- representation or omission is material. Unless otheT\ofise specifically stated in the contract, the insurer is not liable for loss or damage to property owned by any person other - 52 -

3. 4. 5. Insuranae Ordinanae Chp. 1 than the insured, unless the interest of the insured therein is stated in the contract. The insurer is liable for loss or ~~e occur­ ring after an authorized assignment under the 8ankruptay Aat (Canada) or change of title by succession, by operation of law, or by death.

An}' change material to the risk and within the control and knmvledge of the insured avoids the contract as to the part affected thereby, unless the change is promptly notified in writing to the insurer or its local agent, and the insurer when so notified may return the unearned portion, if any, of the premium paid and cancel the contract, or may notify the insured in writing that, if he desires the con- tract to continue in force, he must, within fifteen days of the receipt of the notice, pay to the insurer an additional premium, and in default of such payment the contract is no longer in force and the insurer shall return the unearned portion, if any, of the premium paid.

This contract may be terminated, (

a) by the insurer giving to the insured fifteen days' notice of termination by registered mail or five days' writ~ ten notice of termination personally delivered; - S3 - Change of interest Materi a 1 changes Termination

Insurance Ordinance Chp. 1 (

b) by the insured at anytUne on request. (2) l'ihere this contract is terminated by the 1 nsurer. (

a) the insurer shall refund the excess of premium actually paid by the insured over the pro rata premium for the ex­ pired time, but, in no event, shall the pro rata premium for the expired time be deemed to be less than any minimum retained premium specified; and (

b) the refund shall accompany the notice unless the premium is subject to adjust­ ment or determination as to amount, in ~ich case the refund shall be made as soon as practicable.

(3) Where this contract is terminated by the insured. the insurer shall refund as soon as practicable the excess of premium actually paid by the in­ sured'over the short rate premium for the ex­ pired time but in no event shall the short rate premium,for the expired time be deemed , to be less than any minimum retained premium specified. (4) 'The refund may be made by money, postal Or express company money order or cheque payable at par.

(5) The fifteen days mentioned in clause (

a) of subcondition (1) of this condition commences to run on the day following the receipt of the registered letter at the post office to which it is addressed. - 54 -

(1) Il1sural1ce Ordirlal1ce Chp. I Upon the occurrence of any loss of or damage to the insured property, the insured shall, if the loss or damage is covered by the contract, in addition to observing the requirements of conditions 9, 10 and 11, (

a) forthwith give notice thereof in writing to the insurer; (

b) deliver as soon as practicable to the insurer a proof of loss verified by a statutory declaration, (

i) giving a complete inventory of the destroyed and damaged property and showing in detail quantities, costs, actual cash value and particulars of amount of loss claimed, (ii) stating when and how the loss occurred, and if caused by fire or explosion due to ignition, how the fire or explosion ori- ginated so far as the insured knows or believes, (iii) stating that the loss did not occur through any wilful act or neglect or the procurement, means or comivance of the insured, Civ) showing the amount of other insurances and the names of other insurers, Cv) showing the interest of the insured and of all others in - 55 - Requi rement after loss

Fraud Who may give notice and proof 7. 8. Insul'ance Ordinance Chp. I the property with particulars of all liens, enclDTlbrances and other charges upon the property, (vi) showing any changes in title, use, occupation, location, pos- session or exposures of the property since the issue of the contract, (vii) showing the place where the property insured was at the time of loss; (

c) if required, give a complete inventory of ~damaged property and showing in detail quantities, cost and actual cash value: (

d) if required and if practicable, pro- duce books of account, warehouse receipts and stock lists, and furnish invoices and other vouchers verified by statutory declaration and furnish a copy of the written portion of any other contract.

(2) The evidence furnished under clauses (

c) and (

d) of subparagraph (1) of this condition shall not be considered proofs of loss within the meaning of conditions 12 and 13. Any fraud or wilfully false statement in a statutory declaration in relation to any of the above particulars, vitiates the claim of the person making the declaration. Notice of loss may be given and proof of loss may be made by the agent of the insured named - 56 -

(1) InBurance Ordinance Chp.l in the contract in case of absence or inability of the insured to give the notice or make the proof, and absence or inability being satis­ factorily accounted for, or in the like case, or if the insured refuses to do so. by a person to whom any part of the insurance money is payable. The insured, in the event of any loss or damage to any property insured under the contract, shall take all reasonable steps to prevent further damar.e to such property so damaged and to prevent damage to other property in- sured hereunder including, if necessary, its removal to prevent damage or further damage thereto.

(2) The insurer shall contribute pro rata towards 10. any reasonable and proper expenses in connec­ tion with steps taken by the insured and re- quired under subparagraph (1) of this condi- tion according to the respective interests of the parties.

After loss or damage to insured property, the insurer has an immediate right of access and entry by accredited agents sufficient to enable them to survey and examine the property, and to make an estimate of the loss or damage, and, after the insured has secured the property, a further right of access and entry sufficient to enable them to make appraisement or parti­ cular estimate of the loss or damage, but - 57 - Salvage Entry. Control. Abandonment

Appraisal When loss payable Replacement 11. 12. 13.

(1) Insurance ~dinance Chp. 1 the insurer is not entitled to the control or possession of the insured property, and without the consent of the insurer there can be no abandonment to it of insured property. In the event of disagreement as to the value of the property insured, the property saved or the amount of the loss, those questions shall be determined by appraisal as provided under the Insurance Ordinance before there can be any recovery under this contract whether the right to recover on the contract is disputed or not, and indepenJent1y of all other ques­ tions.

There shall be no right to an appraisal until a specific demand therefor is made in writing and until after proof of loss has been delivered. The loss is payable within sixty days after completion of the proof of loss, unless the contract provides for a shorter period. The insurer, instead of making payment, may repair, rebuild, or replace the property damaged or lost, giving written notice of its inten- tion so to do within thirty days after receipt of the proofs of loss.

(2) In that event the insurer shall cOlTUllence to so repair, rebuild, or replace the property within forty-five days after receipt of the proofs of loss, and shall thereafter proceed with all due diligence to the completion there- of. - 58 -

"4. 15. 70.(1) 71.

(1) JnSlIl'ance Or>dinatlCe Chp. 1 [very action or proceeding against the insurer for the recovery of a claim Lmder or by \"ir- tue of this contract is absolutely barred Lm­ less conrnenced ,.ithin two years next after" the loss or damage occurs. An)" ',Titten notice to the insurer mar be deli- vered at, or sent by registered mail to, the chief agency or head office of the insurer in the Territory. \Iritten notice may be given to the insured named in the contract letter personally delivered to him or by registered mail addressed to him at his latest postal address as· notified to the insurer.

In this condition, the expression "registered" means registered in or outside Canada. A contract containing,- (

a) a deductible clause; or (

b) a co-insurance, average or similar clause; or (

c) a clause limiting recovery by the insured to a specified percentage of the value of any property insured at the time of loss. whether or not that clause is conditional or unconditional. shall have printed or stam~ed upon its face in red ink the words "This policy contains a clause that may limit the amount payable", failing which the clause is not binding upon the insured. Where on the happening of any loss or damage to property insured there is in force more than - 59 - Action Notice Limitation of 1 i abil ity Rateable contribution

Effect of policy may not be postponed Certain restrictions val id Ascertainrrent of rateable proportions Insurance Ordi'umce Chp. 1 one contract covering the same interest. each of the insurers under the respective contracts is liable to the insured for its rateable prooortion of the loss, unless it is other- wise expressly agreed in writing between the insurers.

(2) For the puroose of subsection (1). a contract (3) shall be deemed to be in force notwithstand- ing any term thereof that the policy will not cover, come into force. attach or become insur- ance with resoect to the property until after full or partial ~ay~ent of any loss under any other policy. Nothing in subsection (1) affects the val"idity of any divisions of the sum into separate items. or any limits of insurance on specified property. or any clause referred to in

section 70 or any contract condition li~iting or pr6hibiting the having or placing of uther insurancp.

(4) Nothing in subsection (1) affp.cts the opera- tion of any deductible clause and. (

a) where one contract contains a deductible. the pro rata proportion of the insurer under that contract shall be first ascertained without regard to the clause and then the clause shall be appliEj only to affect the amount of recovery under that contract; and (

b) where more than one contract contains a deductible. the pro rata proportion - 60 -

Insurance Ordinance Chp. 1 of the insurers under those contracts shall be first ascertained without re- gard to the deductible clauses and then the highest deductible shall be pro rated among the insurers with deductibles and these pro rated amounts shall affect the amount of recovery under those con- tracts.

(5) Nothing in subsection (4) shall be construed Idem to have the effect of increasing the pro rata contribution of an insurer under a contract that is not subject to a deductible clause.

(6) Notwithstand1n9 subs~ction (1). insurance 72. (1) on identified articles is a first loss insur- ance as against all other insurance. Where a contract, (

a) excludes any loss that would otherwise fall within the coverage prescribed by

section 66; or (

b) contains any stipulation, condition or warranty that is or may be material to the risk including, but not restricted to. a provision in respect to the use, condition, location or maintenance of the insured property, the exclusion, stipulation, condition or war- ranty is not binding upon the insured, if it is held to be unjust or unreasonable by the court before which a question relating thereto is tried. _ 61 _ Insurance on identi fied articles Special stipulations

Subrogation Where amount recovered is not sufficient to i ndemn i fy

Interpretation "application" "beneficiary" "contract" "court" 73.

(1) Insurance ordinance Chp. 1 The insurer, upon making a payment or assuming liability therefor under a contract of fire insurance, is subrogated to all rights of recovery of the insured against any person, and may bring action in the name of the in­ sured to enforce such rights.

(2) Where the net amount recovered under subsec­ tion (1), after deducting the costs of recovery, is not sufficient to provide a complete in­ demnity for the loss or damage suffered, that 74. (1) amount shall be divided between the insurer and the insured in the proportions in which the loss or damage has been borne by them respectively.

PART V LI FE INSURANCE .r nterpreta t i on In this Part (a) (b) (c) (d) "application" means an application for insurance or for the reinstate- ment of insurance; "beneficiary" means a person, other than the insured or his personal rep­ resentative, to whom or for whose bene- fit insurance money is made payable in a contract or by a declaration; "contract" means a contract of life insurance; "court" means the Supreme Court or a Judge thereof; - 62 -

(e) (f) (g) (

h) Insul'ance Or>dinallce Chp. 1 "creditor's group insurance" means insurance effected by a creditor in respect of the lives of the debtors whereby the lives of the debtors are insured severally under a single con- tract; "declaration" means an instrument signed by the ins ured , (

i) with respect to which an endorse­ ment is made on the policy, (1i) that identifies the contract, or (iii) that describes the insurance or insurance fund or a part there- of, in which he designates, or alters or revokes the designation of, his personal representative or a beneficiary as one to whom or for whose benefit insurance money is to be payable; "family insurance" means insurance where- by the lives of the insured and one or more persons related to him by blooij, marriage or adoption are insured under a single contract between an insurer and the insured; "group insurance" means insurance. other than creditor's group insurance and family insurance whereby the lives of a number of persons are insured severally under a single contract between an insurer and an employer or other person; - 63- "creditor's group insurance" "declaration" "family insurance' "group insurance"

"group 1 i fe insured" "instrument" "insurance" "insured" "life insurance" "wi 11" Application 75. (1) (1) (j) (k) (1) (m) (

n) Insurance Ordinance Chp. 1 "group life insured" means a person whose life is insured by a contract of group insurance but does not include a person whose life is insured under the contract as a person dependent upon or related to him; "instrument" includes a will; "insurance" means life insurance; "insured", (

i) in the case of group insurance, means, in the provisions of this Part relating to the desi- gnation of beneficiaries and the rights and status of bene- ficiaries, the group life insured, and (ii) in all other cases, means the person who makes a contract with an insurer; "1 ife insurance" includes disability insurance and accidental death insur- ance; "will" includes a codicil. Application of Part Notwithstanding any agreement, condition or stipulation to the contrary, this Part applies to a contract made in the Territory on or after the first day of July, 1967, and subject to subsections (2) and (3), applies to a contract made in the Territory before that day. - 64 -

Insurance Ordinance Chp. 1

(2) The rights and interests of a beneficiary for value under a contract that was in force immediately prior to the first day of July, 1966 are those provided in

Part IV of the Insurance Ordinance as it existed immediately prior to that day.

(3) Where the person who would have been entitled 76.(1) to the payment of insurance money, if the money had become payable immediately prior to the first day of July, 1967, was a pre­ ferred beneficiary within the meaning of

Part IV of the Insurance Ordinance as it existed immediate)y prior to that day, the insured may not, except in accordance with that Part, (

a) alter or revoke the designation of a beneficiary; or (

b) assign, exercise rights under or in respect of, surrender or otherwise deal with the contract, but this sub­

section does not apply after a time at which the insurance money, if it were then payable, would be payable wholly to a person other than a pre­ ferred beneficiary within the meaning of that Part. In the case of a contract of group insurance made with an insurer authorized to transact insurance in the Territory at the time the contract was made, this Part applies in deter­ mining, - 65 - Beneficiary for value Preferred beneficiary Group Insurance

Ins urer to issue poli cy Contract of fraternal society Copy of app 11 ca ti on 77.

(1) Insurance Ordinance Chp. 1 (

a) the rights and status of beneficiaries if the group life insured was resident in the Territory at the time he became insured; and (

b) the rights and obligations of the group life insured if he was resident in the Territory at the time he became insured. Issuance of Policy and Contents Thereof An insurer entering into a contract shall issue a policy.

(2) Subject to subsection (3), the provisions in (

a) the application; (

b) th~ policy; (

c) any document attached to the policy when issued; and (

d) any amendment to the contract agreed upon in writing after the policy is issued; constitute the entire contract.

(3) In the case of a contract made by a fraternal society, the policy, the Act or instrument of incorporation of the society. its contri­ bution. by-laws and rules, and the amendments made from time to time to any of them, the application for the contract and the medical statement of the applicant constitute the entire contract.

(4) An insurer shall. upon request, furnish to the insured or to a claimant under the con- tract a copy of the application. - 66 -

In8u~ance Ordinance Chp. 1 78. (1 ) This

section does not apply to a contract, (

a) of group insurance; (

b) of creditor's group insurance; or (

c) made by a fraternal society.

(2) An insurer shall set forth the following oarti­ cu1ars in the policy: (

a) the name or a sufficient description of the insured and of the person whose life is insured; (

b) the amount or the method of determin- ing the amount of the insurance money payable, and the conditions under which it.becomes payable; (

c) the amount or the method of determin- 1ng the amount of the prem1um and the period of grace, if any, within which it may be pa id; (

d) whether the contract provides for part1- cipation in a d1str1but1on of surplus or profits that may be declared by the insurer; (

e) the conditions upon which the contract may be reinstated if it lapses; and (

f) the options, if any, (1) of surrendering the contract for cash; ,(ii) of obtaining a loan or an advance payment of the insurance money; and (iii) of obtaining paid-up or extended insurance. - 67 - Exceptions Contents of Policy

Contents of group policy Contents of group cer­ tificate 79. (1 ) 80. (

l) Insurance Ordinance Chp. 1 In the case of a contract of group insurance or of creditor's group insurance, an insurer shall set forth the following particulars in the policy: (

a) the name or a sufficient description of the insured; (

b) the method of determining the persons whose lives are insured; (

c) the amount or the method of determin- . ing the amount of the insurance money payable and the conditions under which it becomes payable; (

d) the period of grace, if any,"within which the premium may be paid; and whether the contract provides for parti­ cipation in a distribution of surplus . or profits that" may be declared by the . insurer. In the case of a contract of group insurance, an insurer shall issue, for delivery by the insured to each group life insured, a certi­ fic~te or other document in which are set forth the following particulars: (

a) the name of the insurer and an identi- f1cation of the contract; (

b) the amount or the method of determining the amount of insurance on the group life insured and on any person dependent upon or related to him; and (

c) the circumstances in which the insurance terminates and the rights, if any, upon such termination, of the group life - 68-

(1) InBUZ'a1108 Ordil'llD'lCe Chp. 1 insured or of any person whose life is insured under the contract as a person dependent upon or related to him. Conditions Governing Formation of Contract Subject to subsection (2). where at the tim~ a contract would otherwise take effect the insured has no insurable interest. the con­ tract is void.

(2) A contract is not void for lack of insurable interest. (

a) if it is a contract of group insurance; or' (

b) if the person whose life is insured has consented in writing to the insurance being placed on his life.

(3) Where the person whose life is insured is 82. (1 ) under the age of sixteen years. consent to insurance being placed on his life may be given by one of his parents or by a person standing in Loco parentis to him. Without restricting the meaning of the expres- sion "insurable interest". a person has an insurable interest in his own life and in the life of (

a) his child or grandchild; (

b) his spouse; (

c) any person upon whom he is wholly or in part dependent for or from whom he is receiving support or education; - 69 - Insurable Interest Exceptions Consent of minor Insurable interest defined

Insupance Ordinance Chp. 1 (

d) his employee; and (

e) any person in the duration of whose life he has a pecuniary interest. Contract taking 83.(1) effect Subject to any provision to the contrary in Delivery to agent Default in payi ng premi urn the application or the policy, a contract does not take effect unless, (

a) the policy is delivered to an insured, his assign or agent or to a beneficiary; (

b) the payment of the first premium is made to the insurer or its authorized agent; and (

c) no change has taken place in the insura­ bility of the life to be insured between the time the application was completed and the time the policy was delivered.

(2) Where a policy is issued on the terms applied for and is delivered to an agent of the insurer for unconditional delivery to a person referred to in paragraph (l)(a), it shall be deemed but not to the prejudice of the insured to have been delivered to the insured.

(3) Notwithstanding SUbsection (l), where an 84. (

l) insured dies after payment of the first pre­ mium but before delivery of the policy, the policy shall be deemed to be in effect if full information on the life to be insured has been supplied and on the basis of this information a prudent insurer would have issued the policy. Where a cheque or other bill of exchange, or a promissory note or other written promise to pay, is given for the whole or part of a - 70 -

(2) 85.

(1) Insuranae Ordinanae Chp.l premium and payment is not made according to its tenor, the premium or part thereof shall be deemed not to have been paid. Where a remittance for or on account of a premium is sent in a registered letter to an insurer and is received by it, the remit­ tance shall be deemed to have been received at the time of the registration of the letter. Except in the case of group insurance, an assignee of a contract, a beneficiary or a person acting on behalf of one of them or of the insured may pay any premium that the insured is entitled to pay.

(2) Where a premium other than the initial prem­ ium 1s not paid at the time it is due, the premium may be paid within a period of grace of, (

a) thirty days or, in the case of an industrial contract, twenty-eight days from and excluding the day on which the premium is due; or "(

b) the number of days, if any, specified in the contract for payment of an over- due premium, whichever is the longer period.

(3) Where the happening of the event upon which the insurance money becomes payable occurs during the period of grace and before the overdue premium is paid, the contract shall be deemed to be in effect as if the premium had been paid at the time it was due, but the - 71 - Payment by registered mail Who may pay premi um Period of grace Contract in force during grace

D~ty to disclose Failure to disclose Exception~ Incontestability I~~ontestability i~ group insurance 86. (1 ) Insurance Ordinance Chp. 1 amount of the premium, together with interest at the rate specified in the contract, but not exceeding six percent per annum, and the balance, if any, of the current year's premium, may be deducted from the insurance money.

An applicant for insurance and a person whose life is to be insured shall each disclose to the insurer in the application, on a medical examination, if any, and in any written state­ ments or answers furnished as evidence of insurability, every fact within his knowledge that is material to the insurance and is not so disclosed by the other.

(2) Subject to

section 87, a failure to disclose 87. (1) or a misrepresentation of such a fact renders the contract voidable by the insurer. This

section does not apply to a misstatement of age or to disability insurance.

(2) Subject to subsection (3), where a contract has been in effect for two years during the lifetime of the person whose life is insured, a failure to disclose or a misrepresentation of a fact required to be disclosed by

section 86 does not, in the absence of fraud, render the contract voidable.

(3) In the case of a contract of group insurance, a failure to disclose or a misrepresentation of such a fact in respect of a person whose life is insured under the contract does not render the contr~ct voidable, but, if evidence - 72 -

88. (I ~ 89. (1 ) IP18W"a1lce OJyfinaP1C6 Chp. 1 of insurability is specifically requested by the insurer, the insurance in respect of that person is voidable by the insurer un- less it has been in effect for two years dur­ ing the lifetime of that person, in which event it is not, in the absence of fraud, voidable. Where an insurer fails to disclose or misrepre- sents a fact material to the insurance, the contract is voidable by the insured but in the absence of fraud the contract is not by reason of such failure or misrepresentation voidable after the contract has been in effect for two years. This

section does not apply to a contract of group insurance or of creditor's group insur- ance.

(2) Subject to subsection (3), where the age of a person whose life is insured is misstated to the insurer, the insurance money provided by the contract shall be increased or decreased to the amount that would have been provided for the same premium at the correct age.

(3) Where a contract limits the insurable age and the correct age of the person whose life 1s insured at the date of the application exceeds the age so limited, the contract 1s, during the lifetime of that person but not later than five years from the date the contract takes effect, voidable by the insurer within sixty days after it discovers the error. - 73 - Non-disclosure of insurer Exceptions Li rni tati on of insurable age

Insurance ardinaJ1Ce ,Chp. 1 Misstatement 90.(1) of age in In the case of a contract of group insurance or of creditor's group insurance, misstate-group insurance Effect of suicide Suicide and reinstatement Exceptions Reinstatement 91. (1 ) ment to the insurer of the 'age of a person whose life is insured does not of itself render the contract voidable and the provisions, if any, of the contract with respect to age or mis- statement of age apply. Where a contract contains an undertaking ex­ press or implied that insurance money will be paid if a person whose life is insured com­ mits suicide, the undertaking 1s lawful and enforceable.

(2) Where a contract provides that in case a person whose life is insured commits sufcide within 92. (1) a certain period of time the contract 1s void or the amount payable under it is reduced, 1f the contract lapses and is subsequently reinstated on one or more occasions, the period of time commences to run from the date of the latest reinstatement. This

section does not apply to a contract of group insurance or to a contract made by a fraternal society.

(2) Where a contract lapses and the insured within two years applies for reinstatement of the contract, if within that time he (

a) pays the overdue premiums and other indebtness under the contract to the insurer, together with interest at the rate specified in the contract, but not exceeding six percent per - 74 -

Insurance OPdinance Chp. 1 annum, compounded annuallYi and (

b) produces (

i) evidence satisfactory to the insurer of the good health, and (ii) other evidence satisfactory to the insurer of the insura- bility of the person whose lffe was insured, the insurer shall reinstate the contract. (3) Subsection (2) does not apply where the cash surrender value has been paid or an option of taking paid-up or extended insurance has been exercised.

(4) Sections 86 and 87 apply mutatis mutandis to reinstatement of a contract. 93.

(1) Designation of Beneficiaries An insured may in a contract or by a declara­ tion designate his personal representative or a beneficiary to receive insurance money.

(2) Subject to

section 94, the insured may from time to time alter or revoke the designation by a declaration.

(3) A designation in favour of the "heirs", "next of 94. (1) kin", or "estate" of the insured, or the use of \'Iords of like import in a designation, shall be deemed to be a designation of the personal representative of the insured. An 1nsured may in a contract or by a declara­ t10n other than a declaration that is part of a '11111, filed with the insurer at its head - 75 - Exceptions Designation of benef1ciary Change in designation Meaning of "heirs". etc. Designation of bene­ ficiary ,/ i rrevocab ly

Attempted designation -Designation in invalid will Pri oriti es Revocation Insurance Ordinance Chp. 1 or principal office in Canada during-the lifetime of the person whose life is insured. designate a beneficiary irrevocably. and in that event the insured. while the beneficiary is·living. may not alter or revoke the desig­ nation without the consent of the beneficiary and the insurance money is not subject to the control of the insured or of his creditors and does not form part of his estate.

(2) Where the insured purports to designate a 95. (1 ) beneficiary irrevocably in a will or in a declaration thil' is not filed as provided in sUbsection (1). the designation has the same effect as if the insured had not pur­ ported to make it irrevocable. A designation in an instrument purporting to be a will is not ineffective by reason only of the fact that the instrument is invalid as a will or that the designation is invalid as a bequest under the will.

(2) Notwithstanding the Wills Ordinance. a desi­ gnation in a will is of no effect against a designation made later than the making of the wi 11.

(3) Where a designation is contained in a will. if subsequently the will is revoked by opera­ tion of law or otherwise. the designation is thereby revoked.

(4) Where a designation is contained in an instru­ ment that purports to be a will, if subsequently - 76 -

96. Cl ) Insurance Ortdinance Chp. 1 the instrument if valid as a will would be revoked by operation of law or otherwise. the designation is thereby revoked. An insured may in a contract or by a declara- tion appoint a trustee for a beneficiary and may alter or revoke the appointment by a dec­ laration.

(2) A payment made by an insurer to a trustee for a beneficiary discharges the insurer to the extent of the payment. 97.

(1) Where a benefit j,,,"y lJredeceases the person whose life is insured. and no disposition of the share of the deceased beneficiary in the insurance money is provided in the con­ tract or by a declaration, the share is pay- able. (

a) to the surviving beneficiary; (

b) if there is more than one surviving beneficiary, to the surviving benefi- ciaries in equal shares; or (

c) if there is no surviving beneficiary. to the insured or his personal repre- sentative.

(2) Where two or more beneficiaries are designated otherwise than alternatively. but no division of the insurance money is made, the insurance money is payable to them in equal shares. 98.

(1) A beneficiary may enforce for his own bene- fit, and a trustee appointed pursuant to

section 95 may enforce as trustee, the payment of insurance - 77 - Trustees for beneficiary Payment to trustee Beneficiary predeceasing 1 i fe insured Several benefi ci ad es Ri ght to use

Insurance maney free from credf tors Contract exempt from seizure Insured dealing with contract Insured entitled to dividends 99.

(1) Clip. 1 money maue payable to hfm fn the contract or by a declaration and in accordance wfth the provisions thereof, ~ut the insurer mdY set up any defence that it coulu have set up against the insured or his persollcsl represen- tative. Where a beneficiary is designated, the ins~r- ance money, from the time of the happening of the event upon which the insurance money becomes payable. is not part of the estate of the insured and is not ~ubject to the claims of the creditors of the insured.

(2) While a designation in favour of a spouse, child, grandchild or parent of a person whose life is insured. or any of them, is in effect, the rights and interests of the insured in the ins:.!rance lIi')ney and in the r.onti'ad are exempt from execution or seizure. Dealings with Contract During lifetime of Insured 100.

(1) Where a beneficiary, (

a) is not designated irrevocably; or (

b) is designated irrevocably but has attained the a~e of nineteen years cl~d r.or.~ents, the insured may assign, exercfse rights under or in respect of, surrender or otherwise deal with the contract as provided therein or in this Part or as may be agreed upon with the insurer. 101.

(1) Notwfthstanding the designation of a beneffciary irrevocably, the insured is entitled while - 78-

Chp. 1 living. to the dividends or bonuses declared on a contract. unless the contract otherwise provides.

(2) Unless the insured otherwise directs. the insurer may apply the dividends or bonuses declared on the contract for the purpose of keeping the contract in force. 102.

(1) Notwithstanding the Jlil.1,B Ordinance~ where in a contract or in an agreement in writing between an insurer and an insured it is pro­ vided that a person named in the contract or in the agreement has. upon the death of the insured. the rights and interests of the in­ sured in the contract. (

a) the rights and interests of the insured in the contract do not. upon the death of the insured. form part of his estatei and (

b) upon the death of the insured. the person named in the contract or in the agreement has the rights and interests given to the insured by the contract and by this Part and shall be deemed to be the insured.

(2) Where the contract or agreement provides that two or more persons named in the contract'or in the agreement shall. upon the death of the insured. have successively. on the death of each of them. the rights and interests of the insured in the contract. this

section applies succes­ sively. mutatis mutandis to each of such persons and to his rights and interests in the contract. - 79 - Transfer of ownership Successive owners

Savings Interest of assignee Effect on beneficiary's ri ghts Assignee deemed to be insured Prohibition against assignment Chp. 1

(3) Notwithstanding any nomination made pursuant to this section. the i1sured may. prior to his death. assign. exercise rights under or in re5pect of. surrender or otherwise deal with the contract as if the nomination had not been made. and may alter or revoke the nomination by agreement in writing with the insurer. 103.

(1) Where an assignee of a contract gives notice in writing of the assignment to the insurer at its head or principal office in Canada. he has priority of interest as against. (

a) an assignee other than one who gave no~ice earlier in like manner, and (

b) a beneficiary other than one designated irrevocably as provided in

section 94 prior to the time the assignee gave notice to the insurer of the assign­ ment in the manner prescribed in this subsection.

(2) Where a contract is assigned as security. the rights of a beneficiary under the contract are affected only to the extent necessary to give effect to the rights and interests of the assignee.

(3) Where a contract is assigned unconditionally and otherwise than as security. the assignee has all the rights and interests given to the insured by the contract and by this Part and shall be deemed to be the insured.

(4) A provision in a contract to the effect that the rights or interests of the insured. or in - 80 -

Chp. 1 the case of group insurance. the group lffe insured, are not assignable is valfd. 104.

(1) A group life insured may in his own name en­ force a right given to him under a contract, subject to any defence available to the in­ surer against him or against the insured. Minors 105.

(1) Except in respect of his rights as beneficiary. a mfnor who has attained the age of sfxteen years has the capacity of a person of the age of nineteen years, (

a) to make an enforceable contract; and (

b) in "respect of a contract. 106.

(1) A beneficfary who has attained the age of eighteen years has the capacity of a person of the age of nineteen years to receive in­ surance money payable to hfm and to gfve a discharge therefor. Proceedfngs under Contract 107.

(1) Where an insurer receives sufficient e,fdence of, (

a) the happening of the event upon which insurance money becomes payable; (

b) the age of the person whose life is insured; (

c) the right of the claimant to receive payment; and (

d) the name and age of the beneficiary, if there is a beneficiary, it shall. within thirty days after receiving the evidence, pay the insurance money to the person - 81 - Group lffe fnsured. enforcing rights Capacity of minors Capacity of minor beneficiary Proof of claim

Place of payment Dollars Payment outside the Territory Exception for group insurance Action in the Terr; tory Limitation of action InBW'ance Ordinance Chp. 1 entitled thereto. 108.

(1) Subject to subsection (4), insurance money is payable i~ the Territory.

(2) Unless a contract otherwise provides, a re­ ference in a contract to dollars means Canadian dollars.

(3) Where a person entitled to receive insurance money is not domiciled in the Territory, the insurer may pay the insurance money to that person or to any other person who is entitled to receive it on his behalf by the law of the domicile Qf the payee.

(4) In the case of a contract of group insurance, insurance money is payable in the province or territory of Canada in which the group life insured was resident at the time he became insured. 109.

(1) Notwfthstanding where a contract was made, an action on it may be brought in a court by a resident of the Territory if the insurer was authorized to transact insurance fn the Territory at the time the contract was made or at the time the action is brought. 110.

(1) Subject to subsection (2), an action or pro- ceeding against an insurer for the recovery of insurance money shall not be commenced more than two years after the furnishfng of the evidence required by

section 107 or more than six years after the happening of the - 82 -

Chp. 1 event upon which the insurance money becomes payable, whichever period first expires.

(2) Where a declaration has been made under sec­ tion 112. an action or proceeding to which reference is made in subsection (1) shall not be commenced more than two years after the date of the declaration. 111.

(1) Until an insurer receives at its head or princ1- pal office in Canada an instrument or an order of a court affecting the right to receive ins- urance money, or a notarial copy, or a copy verified by statutory declaration. of any such instrument or order, it may make payment of the insurance money and shall be as fully discharged to the extent of the amount paid as if there was no such instrument or order. (2) Subsection (1) does not affect the rights or interests of any person other than the insurer. 112.

(1) Where an insurer admits the validity of the insurance but does not admit the sufficiency of the evidence required by

section 107 and there is no other question in issue except a question under

section 114. the insurer or the claimant may, before or after action is brought and upon at least thirty days' notice, apply to the Court for a declaration as to the sufficiency of the evidence furnished. and the Court may make the declaration or may direct what further evidence shall be furnished and on the furnishing thereof may make the declaration or, in special circum- - 83 - Exception Docurrents affecting title Saving Declaration as to suf­ ficiency of proof

Oeclaration as to pre­ sumption of death Court may make order Payment under order Stay of proceedings Appeal Power of Court Insupar.ae Ordinanae Chp. 1 stances. may dispense with further evidence. 113.

(1) Where a claimant alleges that the person whose life is insured should be presumed to be dead by reason of his not having been heard of for seven years and there is no other question in issue except a question under

section 114. the insurer or the claimant may. before or after action is brought and upon at least thirty days' notice. apply to the Court for a declaration as to presumption of the death and the Court may make the declaration. 114.

(1) Upon making a declaration under

section 112 or 113. the Court may make such order respec­ ting the payment of the insurance money and respecting costs as it deems just and subject to

section 116. a declaration or direction or order made under this subsection is bind- ing upon the applicant and upon all persons to whom notice of the application has been given.

(2) A payment made under an order made under sub­ section (1) discharges the insurer to the extent of the amount paid. ~15.

(1) Unless the Court otherwise orders. an appli­ cation made under

section 112 or 113 operates as a stay of any pending action with respect to the insurance money. 116.

(1) An appeal lies to the Court