ORDINANCES OF THE YUKON TERRITORY PASSED BY THE YUKON COUNCIL IN THE YEAR 1956 FIRST AND SECOND SESSIONS F. H. COLLINS COMMISSIONER Printed and Published for the Government of the Yukon Territory under Authority of

Chapter 75 of tbe Consolidated Ordinance. of 1914. BY H. J. TA YLOR, Queen'. Printer

ORDINANCES OF THE YUKON TERRITORY PASSED BY THE YUKON COUNCIL IN THE YEAR 1956 FIRST AND SECOND SESSIONS F. H. COLLINS COMMISSIONER Printed and Published for the Government of the Yukon Territory under Authority of

Chapter 7S of the Consolidated Ordinances of 1914. BY H. J. TA YLOR, Queen's Printer

Chap. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. TABLE OF CONTENTS FIRST SESSION An Ordinance to Regulate the Sale of Insurance within the Territory ........................................................ _ ... _ .......... _ ..................................................... . An Ordinance Respecting the Protection of Forests .......... _ An Ordinance to Provide for the Financial Administration of the Government of the Yukon Territory ._ ....................... __ .. ..

An Ordinance Respecting the Public Service of the Yukon Territory _ ............. _ ........ _ .. _ ......... _ ...... _ ............... __ ._ ............... _ ............. _ .... .. An Ordinance to Amend the Municipal Ordinance .... _._ ...

An Ordinance to Amend the Workmen's Compensation Ordinance ............................ _ ......................................................... __ .. _ ........................................ _ An Ordinancce to Amend the Yukon Game Ordinance An Ordinance to Amend the Insane Persons Ordinance An Ordinance to Authorize the Commissioner to Enter into an Agreement with the Government of Canada to Amend an Agreement respecting a Loan by Canada to the Yukon Territory in the Sum of $780,000.00 .... _ .............. __ .. _ ... _ ..

An Ordinance to Amend the Legal Profession Ordinance An Ordinance to Amend the Motor Vehicles Ordinance An Ordinance for Granting to the Commissioner Certain Sums of Money to Defray the Expenses of the Public Service of the Territory .. _ ..... __ . __ ._ .................. _ ...... _._.: ..... _ .......... _._ An Ordinance for Granting to the Commissioner Certain Sums of Money to Defray the Expenses of the Public Service of the Territory ............. _. __ ............ _____ ..... __ ._ .... __ .. __ .......... _ .......... __ SECOND SESSION Page 1 98 lOB 123 134 135 137 139 140 149 150 153 155 1.

An Ordinance Respecting the Sale of Goods in Bulk_. __ .. 165 2. An Ordinance Respecting Certain Contracts that have Become Impossible of Performance or Have Been Other-wise Frustrated _. ___ ... _ .... _ .... _. __ ... ___ .. _ .. _._ ....... __ ... _._ .......... _. __ ._ ... _ 173 3. An Ordinance Respecting the Public Service of the Yukon Territory ..... _ .................................... _ .... __ ._. __ ._ ...... _ .... _._ ............ _ ... _ .... _....... 176 4.

An ,ordinance to Facilitate the Reciprocal Enforcement of J udgments ................. _ ..... _ .. _ .... _ ...... _ .. _ .... _ ........ _ ... _._ ..... _ .. _. __ ........... _ ... _ ... _ .. _____ 187 5. An Ordinance to Amend the Vital Statistics Ordinance 191 6. An Ordinance to Amend the Forest Protection Ordinance 192 7. An Ordinance to Amend the Disabled Persons Ordinance 193 8. An Ordinance to Amend the Municipal Ordinance .................. 194 9.

An Ordinance to Amend the Workmen's Compensation Ordinance ........................................................... _ ............................ _.............................................. 197 10. An Ordinance to Amend the Insurance Ordinance ............ 204 11 An Ordinance to Amend an Ordinance to Incorporate the Children's Aid Society of Southern Yukon .................................... 209 12 An Ordinance for Granting to the Commissioner Certain Addition::!1 Sums of Money to Defray the Expenses of the Public Service of the Territory ......... _ ... _ ........... _._ ...... _ ........ _...... 210

ORDINANCES OF THE YUKON TERRITORY Passed in the second session of the seventeenth Council of the Yukon Territory begun and holden at the City of Whi'tehorse on the twenty-first day of March, 1956, and prorogued on the eleventh day of April, 1956.

INSURANCE

CHAPTER 1 ORDINANCES OF YUKON TERRITORY 1956 (First Session) AN ORDINANCE TO REGULATE THE SALE OF INSURANCE WITHIN THE TERRITORY (AsJented to April 10, 1956.) The Commissioner of the Yukon Territory, by and with the advice and consent of the Council of the said Territory, enacts as follows:

SHORT TITLE CHAP. 1 I. This Ordinance may be cited as the Imuremce Ordinance.

Short title. INTERPRETA nON 2. In this Ordinance, (a) "accident insurance" means insurance by which the insurer undertakes, otherwise than I;>y and 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; Ilefinition •.

"Accident insurance". (b) "adjuster" means a person who, for compensation, not "Adjuster". heing a barrister or solicitor acting in the usual course of his profession or a trustee of the property insured or an agent of the owner or person having an insur- able interest in the property insured, directly or in- directly solicits the right to negotiate the settlement of a loss under a contract of insurance on behalf of the insured or the insurer, or holds himself out as an adjuster of losses under such contract; (c) "agent" means a person who, for compensation, solicits "Agent". insurance on behalf of an insurer or transmits, for a person other than himself, an application for or a policy 1

CHAp. 1 ·'Automobile". to Automobile in!Jurance" . . .. Beneficiary". ·-.contract'·. •• Disabilit;r insurance' . "Double indemnity insuraacc".

HFire insuranc~" • INSURANCE of insurance to or from st,lch insurer or offers or assumes to act in the negotiation of such insurance or its continuance or renewal; (d) "automobile" includes all self-propelled vehicles, their trailers, accessories and equipment, but does not in­ clude railway rolling stock, watercraft or aircraft of any kind; (e) "automobile insurance" means insurance against lia­ bility for loss or damage to persons or property caused by an automobile or the use or operation thereof. and against loss of or damage to an automobile: (f) "beneficiary" means a person designated or appointed as one to whom or for whose benefit insurance money is to be payable; (g) "contract" means a contract of insurance and includes a policy, certificate, interim receipt, renewal receipt or writing evidencing the contract, whether sealed or nClt, and a binding oral agreement; , (h) "disability insurance" means ·insurance undertaken by an insurer as part of a life insurance contract whereby the terms of the policy. provide for the duration of such insurance for more than one year and for the pay­ ment of insurance money or the granting of benefits in the event that the insured becomes disabled as a result of bodily injury or disease; (i) "double indemnity insurance" means insurance under­ taken by an insurer as part of a life insurance con­ tract whereby the terms of the policy provide for the duration of such insurance for more than' one year and for payment only in the event of the death of the insured by accident of an additional amount of in­ surance money not exceeding the amount payable in the event of death from other causes; (j) "fire insurance" means insurance, not being insurance 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; 2

INSURANCE .(k) "fraternal society': means any· corporation,· society, urder or voluntary association registered under the ·Iaws of Cana.da and incorporated or formed and carried on for the benefit of its members and their beneficiar- . ies and not for profit, that makes provision by its constitution, by-laws and rules for payment to bene­ ficiaries of benefits on the death or disability of its members; (I) "head office" means the place where the chief executive officer of an insurer ordinarily transacts his business; (m) "industrial contract" means a contract of life insur­ ance for an amount not exceeding two thousand dol­ lars, exclusive of any benefit, surplus, profit,· dividend or bunus also payable under the contract. and that provides for payment of premiums at fortnightly or shorter intervals or, if the premiums are usually col­ lected at the home of the insured, at monthly intervals: (n) "insurance" means the u·ndertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed, or to pay a sum of muney or other thing. of value upon the . happening of a certain event; (0) "insurance· money"· means the amount payable by an in·surer und·er a· contract, and includes all benefits, sllr­ ·plus, profits: dividends, 'bonuses and annuities payable under the contract; (p) "insurer" means a company registered under the Canadian alld British InJllrance Companies Act of Canada or the Foreign l11Jllfal1Ce Companies Act of Canada, and in­ cludes any underwriter or syndicate of underwriters that is a member of the association known as L1oyd's of" London, England·; IIFraternal society".

"Head ollie,,··. ·'Inclustri.d contract", ··II1~lIratlct"". "Insurance money"., •. Ins-lIre-r", (q) "licence" means a valid and subsisting licence issued .. Lic.nc .... under

section 5; (r) "life insurance" means insurance whereby the insurer undertakes to pay insurance money on death, or on the ULife insurance",

CHAP. 1 ·'I·olic},", ··Prernilllll". "Prt:miurn not~". ·'Pro~rty·'. "I'roprrty damagr . insurance" . "Public liability insurance" . "Sicknrss insurance" .

INSURANCE happening of any contingency dependent on human life, or whereby the insurer undertakes to pay in sur­ ahc~ money subject to the payment of premiums for a term depending on human life, but, except to the extent of double indemnity insurance, does not include Insurance payable in the event of death by accident only; (s) "policy" means the instrument evidencing a contract; (t) "premium" means the single or periodical payment under a contract for the insurance, and includes dues, assessments and other consideration; . (u) "premium note" means an instrument gIven as con­ sidera tion for insurance whereby the maker under­ takes to pay such sum or sums as may be legally de­ manded by the insurer, where the aggregate of which sums does not exceed an amount specified in the instrument; (v) "property" includes profits, earnings and other pecun­ iary interests, and expenditures for rents, interest, taxes and other outgoings and charges, and in respect of inability to occupy the insured premises, but only to the extent of express provision in the contract; (w) "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; (x) "public liability 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 Ordinance; and (y) "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. 4

• INSURANCE

PART I LICENCES FOR AGENTS 3.

(1) Subject to subsection (2); no individual shall either on his own account or as a member or representative of a partnership or corporation, act or offer to undertake to act, as an insurance agent unless he is the holder of a licence.

(2) A member of a fraternal society, other than a member who receives a salary or commission for the purpose, may without a licence solicit members of the society to insure with the society.

(3) A firm, partnership, or corporation may apply for a licence in the name of the firm, partnership or corporation and shall designate one individual who shall act as its repre­ sentative, and the licence, if granted shall, when issued, be in the name of the firm, partnership, or corporation, and shall designate thereon the name of the individual who 15 authorized to act as an insurance agent on its behalf . 4. (

I) An application for a licence shall be made to the Commissioner and shall set forth (

a) the full name of the applicant; (

h) the address of his place of business; (

c) the classes of insurance that he will sell as agent; (

d) the name and head office address of each insurer for whom he is to act as agent, and shall state that the applicant has been appointed agent in the Yukon Territory for each such insurer, and (

e) such other information as the Commissioner may re­ qUIre.

(2) The application referred to In subsection (1) shall be accompanied by (

a) a notice in writing from each insurer for which the applicant proposes to act as agent, appointing him an agent for it in the Yukon Territory: 5 CHAP. 1 l...ic~llct: for insurance agent. ExcC'ptil,llI. LiC~l1~~ ("'. firm, etc. CootcuU o( 3pplicatioa. 1\1 aterial la :Iccompany applica liOlI.

CHAP. 1 Issue 01 licence. Classe. of licence. EX(lir a tion o( licence. !l\aterial to accompany applica tion where licence held. License': to notify Commissioner. INSURANCE (

b) character references for the applicant and such other material as the Commissioner may require; and (

c) a fee, (

i) where the applicant resides in the Yukon Territory, of ten dollars where one class of licence is applied for, and fifteen dollars where two classes of licence are applied for, or (ii) where the applicant does not reside in the Yukon Territory, of twenty-five dollars where one class of licence is applied for, and thirty-.five dollars where two classes of licence are applied for. S. (

I) The Commissioner may in his discretion issue to any person who has complied with the requirements of this Ordinance a licence in duplicate authorizing such person to carry on business as an insurance agent subject to this Ordinance and to the terms of the licence.

(2) Licences issued pursuant to this

section shall be of two classes, namely, (

a) licences for life insurance, life and accident insurance, or life. accident and sickness insurance, and (

b) licences for any classes of insurance other than life insurance. 6. A licence expires on the 31st day of March following the day upon which it came into effect. 7. Where on the date of application for a licence the appli­ cant is the holder of an unexpired licence, he may in lieu of complying with paragraphs (

c) and (

d) of subsection (1) of

section 4 and paragraphs (

a) and (

b) of subsection (2) of that

section attach to his application a statement that he continues to represent the same insurers and to act as agent in respect of the same classes of insurance stated in the un­ expired licence. 8. Where a licensee ceases to act as agent for one of the insurers mentioned in his licence application he shall immediately notify the Commissioner. 6

INSURANCE 9. The Commissioner may refuse to issue a licence and may suspend or cancel a licence at any' time. 10. An agent shall (

a) display one copy of his licence at his p'lace of busi­ ness; (

b) carry the other copy upon his person at all times when acting as an agent, and (

c) produce his licence upon request of any peace officer or person purchasing insurance. 11. The Commissioner shall keep a record of all licences issued pursuant to this Ordinance. CHAP: l' Commissioner may cancel licence, etc. Agent to displaY:lIlcl carry Jict:'llct.'. Record to be kept. 12. A certificate given by- the Commissioner that on a Certificate of proof. day mentioned in the certificate (

a) a person mentioned therein was or was not licensed under this Ordinance; (

b) any person was originally issued a licence, or (

c) the ·licence of an agent was renewed, suspended, re­ vived, revoked or cancelled is proof of the fact stated in the certificate. 13. (

I) The Commissioner or any person authorized under his hand shall at all reasonable times have access to the books, records and' documents of ~ny agent that relate to contracts of insurance. (2) 'Where the person in charge, possession, custody or control of the books, records or documents referred to in subsection (1) refuses or neglects to afford access thereto as provided in this section. he is guilty of an offence. 14. Any person who (

a) acts as 'or holds himself out as an agent and IS not the holder of a licence, 7 Access to books of licensee. l'enalty. Offences.

CHAP. 1· nurd~n 01 prool. No commis­ Rion except to Jicensee. Exception. No agreements to"" made except as stated in policy. Exception. INSURANCE (

b) acts as or holds himself out to be the agent of an insurer that is not named in his licence, or (

c) acts as or holds himself out to be an agent in respect of a class of insurance that is not named in his licence, is guilty of an offence. 15. In any prosecution under this Ordinance, the burden of proof of his authority to carry on the business of an agent or to act as an agent is upon the person charged. 16.

(1) No insurer, no officer, agent or employee of an insurer and no licensed agent shall, directly or indirectly, payor allow, or offer or agree to payor allow, any com­ mission or other compensation or anything of value to any person in respect of the effecting or undertaking of insur­ ance unless that person holds a licence at the time. (2) Subsection (1) does not affect the payment or allow­ ance by an agent or part of his commission to brokers out­ side the Territory.

(3) No insurer, and no officer, agent or employee thereof shall, directly or indirectly, (

a) make or attempt to make any agreement respecting the premium to be paid for a policy other than as set forth in the policy with, or (

b) pay, allow or give, or offer or agree to pay, allow or give (

i) any rebate of the whole or part of the premIUm stipulated by the policy to, or (ii) any other consideration or thing of value intended to be in the nature of a rebate of premium to. any person insured or applying for insurance in respect of life, person or property.

(4) Nothing in this

section (

a) affects any payment by way of dividend, bonus, profit or savings that is provided for by a policy, 8

INSURANCE (

b) prevents an insurer from compensating a bond fiJe salaried employee of its head or branch office in respect of insurance issued by the insurer upon the life of the employee, or . (

c) requires that such an employee shall be licensed as an agent for life insurance under this Ordinance to effect such IOsurance. 17. Any person licensed as an agent for life IOsurance who (

a) induces, directly or indirectly, an insured to "lapse, forfeit or surrender for cash, paid up or extended in­ surance or other valuable consideration, his contract of life insurance with one insurer in order to effect a contract of life insurance with another insurer, (

b) makes any false or misleading statement or repre­ sentation in the solicitation or negotiation of life in­ surance, or (

c) coerces or proposes, directly or indirectly, to coerce a prospective buyer of life insurance through the in­ Auence of a business or a professional relationship or otherwise, to give a preference in respect of the plac­ ing of life insurance that would not otherwise be given in effecting such IOsurance, IS guilty of an offence. 18. (

I) An agent shall for the purpose of recelvlOg any premium for a contract of insurance be deemed to be the agent of the insurer notwithstanding any conditions or stipulations to the contrary.

(2) This

section does not apply in respect of life insurance. 19. (

I) An agent who knowingly procures, by fraudulent representations, payment or the obligation for payment of any premium on an insurance policy, is guilty of an offence.

(2) Any agent of any insurer or other person whatsoever who, by means of misleading or false statements, procures or induces, or attempts to procure or induce any person to surrender or otherwise avoid any policy of IOsurance, IS guilty of an offence. 9 CHAP. 1 JncJucemc::nt by agent to insured to lapse policy or to change insurers. f'tc .• all ofTt"nc~. Agent receiving premium. Exception. )'raudulent representa­ tions. )lIducement to surrender policy an offence.

CHAp. 1 Application. Contract deemerlto be made in the Territory. T~rms. etc., of contract in,,"alid unless set out in lull. Subsequent alt~ration. Where contract being renewed. Insured's application not pari or contract eXCel}t, etc. Contrac.t not avoided by any st:ltemenl not mntrri:a1. INSURANCE

PART 11 INSURANCE CONTRACfS IN THE TERRITORY 20. Subject to this Ordinance, this Part applies in respect of every contract other than (

a) contracts of life insurance to which

Part IV applies, and (

b) contracts of accident and sickness insurance to which

Part VI applies. 21.

(1) Every contract that insures a person domiciled or resident in the Territory at the date thereof or the suhiect matter of which is property within the Territory shall be deemed to be made in the Territory and construed accord­ ingly.

(2) This

section applies nutwithstanding any agreement, condition or stipulation to the contrary. 22.

(1) Subject to this section, every term and condition of a contract 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 ad­ missible in evidence to the prejudice of the insured or any beneficiary. (2) Subsection (1) does not apply to an alteration or modi­ fication of a contract agreed upon in writing by the insurer and the insured after the issue of the policy.

(3) Where a contract, whether or not it contains provision for its renewal, is renewed by a renewal receipt, it is a sufficient compliance with subsection (1) if the terms and conditions of the contract were set out in tht:; contract being renewed as required by that subsection and the renewal receipt refers to that contract by its number or date.

(4) The proposal or application of an insured shall not, as against him, be deemed a part of or be considered· with the contract except insofar as the Court may determine that such proposal or application contains a material misrepresentation by which the insurer was induced to enter into the contract.

(5) No contract shall contain, have endorsed thereon or be made subject to any· terms, conditions, stipulation, warranty or proviso. 10

INSURAN<OE (

a) providing that the contract shall be avoided by reason of any statement in the :application therefore, or (

b) inducing the entering into the contract by the 111- surer, unless the term, condition, stipulation, warranty or proviso is limited to cases in which the statement is material to the contract, and no contract shall be avoided by reason of the inaccuracy of any such statement unless it is mater.ial to the contract.

(6) The question of materiality in any contract is a ques­ tion of fact, and no admission, term, condition, stipulation, warranty or proviso to the contrary contained in the applica­ tion or proposal for insurance, in the contract or in any agreement or document relating thereto has any force or validity.

(7) Nothing in this

section impairs the effect of any statutury condition required by this Ordinance to be inserted in any contract of insurance, or of any express provision of this Ordinance. 23. (

I) Wh~rc a contract of insurance other than life insurance has been delivered, it is as binding on the insurer as if the premium had been paid, although it has not in fact he en paid and althuugh delivered by an officer or agent of the insurer who had not authority to deliver it.

(2) This sectiun applies notwithstanding any agreement, conditiun or .stipulation to the contrary.

(3) Where a premium is paid by a cheque or a promissory note and the cheque is not paid on presentation or the promis­ sory note at maturity. the contract shall at the option of the insurer be void. CHAP;' 1 Materialil)" a question ollacl. Saving. Effect 01 d<livery 0/ polic)' or rt'ceipt [or premil111l. \\'here premium (lishonol1rc:"d.

(4) An insurer may deduct from money payable under any 1l«llIctioIlS. contract any indebtedness of the insured on the contract for premium due whether evidenced by note or otherwise given either to the insurer or its agent and held either bv the insurer or any other party. 11

CHAP. 1 DiSCOUlI1. AJlplication. Jdem. JIl~Urt:r to furnish (orms. Offence. Compliance deemed. When actioD may be brought under contract. Beneficiary may sue in own name. INSURANCE

(5) In making the deduction mentioned in subsection (4) the insurer shall allow to the insured the same discount upon any unpaid premium as he would be entitled to if the unpaid premium were paid in cash at the date of the loss. (6) Subsection (3) applies in respect of a contract of life insurance unless otherwise provided in the contract. (7) Subsection (4) applies in respect of contracts of life Insurance·. 24.

(1) Every insurer shall, immediately upon receipt of notice of any claim under a contract, forward 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) Every insurer who neglects or refuses to comply with subsection (1) is guilty of an offence.

(3) Where an insurer has, within thirty days after notifica­ tion of loss, adjusted the claim acceptably to the claimant and the adjustment has been duly signed by the claimant or his agent, or where .the amount of loss has been determined by arbitration or appraisal pursuant to this Ordinance, the in­ surer shall be deemed to have complied with this section. 25. No action shall be brought for the recovery of money payable under a contract until the expiration of (

a) sixty days after proof, in accordance with the provisions of the contract, of the loss or the happening of the event upon which the insurance money is to become payable, or (

b) such shorter period as may be prescribed by any enact­ ment regulating the contracts of the insurer, or as may be fixed by the contract of insurance or other­ wise provided in this Ordinance. 26. After the time referred to in

section 25 that is applicable in the circumstances, any person who is entitled as beneficiary or by assignment or other derivative title to the lOsurance money and has the right to receive the same and 12

INSURANCE to give an effectual discharge therefor, may sue for the same iri his own name, any rule, stipulation or condition to the contrary notwithstanding. 27. Where the person entitled to receive money due and payable under any contract is domiciled or resides in a foreign jurisdiction and payment, valid according to the law of that jurisdiction, is made to the person, such payment is valid and effectual for all purposes. 28. (

I) Subject to any statutory condition, where the mode of giving any notice by an insurer to an insured for any purpose herein is not expressly provided, the notice may he given by mailing it to the address of the insured given in his application for insurance or by delivering it otherwise in writing to the insured.

(2) Subject to any statutory condition, where the mode of giving any written notice to an insurer for any purpose herein is not expressly provided, the notice may be given by letter delivered to an authorized agent of the insurer. 29. Every insurer shall furnish to the insured upon re­ quest a true copy of his application or proposal for insurance. 30. No insurer shall make a contract that is inconsistent with the provisions of this Ordinance. 31.

Any act or omission of the insurer that results in imperfect compliance with any provisions of this Ordinance does not render a contract invalid as against the insured. 32. An insurer may contract to indemnify an insured against financial loss occasioned by reason of liability to a third person whether or not the loss has been caused by the insured through negligence or while violating any Ordinance or municipal by-law. 33.

Where a person insured against liability for injury or damage to persons or property of others has failed to satisfy a judgment obtained by a claimant for such injury or damage and an executIon against the insured in respect thereof is returned unsatisfied, the execution creditor has a right of action against the insurer to recover an amount not exceed- 13 CHAP. 1 PaYlllellt to p"lyec domi­ ciled or resident abroad. Notice to insured. Notice to in8urer. Copy 01 pr,,· posal furnish· ed to insured. No contract to be incon­ sistent with Ordinance:. Impedl:'ct compliance.

Jllsur:mct." against In5!oO through negligence:, etc. Actioll against ill­ sun:!" wllt."l"c execLltion ,aga.inst insured unsalisflt~(1.

CHAP. ·1 Requirf!lnents as to fire and automobile insurance on risks within Territory. Issue of contracts at principal office. etc. Certified b~PlI:d. Application. Offence. Burden of proof. .Agent's actions restricted. Insurance as collateral security. INSURANCE ing the amount of the· judgment and not exceeding, in any event, the face· amount of· the policy in the same manner and subject to the same equities as the insured would have if the judgment had been satisfied. 34.

(1) No insurer shall undertake any contract of fire or automobile insurance upon real or personal property situate in the Territory or described in any contract as situate in the Territory. except after the contract has been signed or countersigned by a licensed agent who is a resident of the Territory and who is to receive the commission or some part thereof when the premium stipulated in the contract is paid . .

(2) Where subsection (1) is complied with, nothing herein shall be construed to prevent any insurer from issuing policies of fil·e and automobile insurance at its principal or branch office or general agency covering any matter or thing, real or personal, situate in the Territory. (3). Where an insurer issues any policy of fire or automo­ bile insurance ).Ipon any matter or thing, real or personal, situate in the Territory, he shall forthwith file a certified copy of the policy with the countersigning agent or with the insured within the Territory.

(4) This .section does not apply in respect of direct insur­ ~nce cover~ng property in transit that is in the ·possession and custody of common carriers, or moveable property of such common carriers used or employed by them in their business as common earners.

(5) Any insurer that issues a contract of fire or automo­ bile insurance save as in the manner provided in this

section is guilty of an offence.

(6) In any prosecution under this Ordinance for any con­ travention of this section, the burden of proving that this

section has been complied with is upon the person charged. 35. No agent shall sign any contract in blank. INSURANCE AS COLLATERAL SECURllY 36.

(1) A mortgagee shall not accept or be entitled to receive either directly or through his agent or employee. and no officer or employee of a mortgagee shall accept or receive 14

INSURANCE any' conlmission ·or ·other remuneration or benefit in consider­ ation of effecting a contract 01' renewal thereof under which loss,. if any,. is payable to him as mortgagee.

(2) No insurer or agent shall pay, allow or give any com­ mission, other remuneration or benefit· to a mortgagee or any person in his employ or on his behalf, in consideration of effecting .a contract or Tenewal thereof under which loss, if any, is payable to him as mortgagee.

(3) No person who engages in the business of lending money and has an insurance agency or any interest in or connection with an insurance agency, shall require as a con­ dition of the making of any loan that the borrower shall cancel any subsisting policy of insurance and take out other insurance through the lender or through any agency with which he has any interest or connection.

(4) No trust company shall cancel any subsisting policy of insurance issued by an insurer in respect of any property for which the trust company is a trustee unless there is no neces­ sity for the continuation of the insurance and no other in­ surance of a similar description is taken out in respect of the property -during the original term of the cancelled policy.

(5) Every (

a) person who contravenes subsection (3), (

b) trust company that contravenes subsection (4), (

c) agent who knowingly accepts any proposal for any insurance taken out in contravention of subsection (3) or subsection (4), and (

d) insurer that issues any contract with actual or con­ structive notice that it has been negotiated in con­ travention of subsection (3) or subsection (4), is guilty of an offence, and if any such person is the holder of a licence he is liable in addition to any other penalty to the suspension or cancellation of his licence. 37. (

I) Where an Insurer cannot obtain sufficient dis­ charge for insurance money for which it admits liability. the insurer may apply to the Court ex parte for an order for the 15 CHAP_ 1 ]'ayn,cnt of commission prohibitt!d. Prohibition against. requirements ~l c'~~~:ll:l- tion or ct:'rt~,ill policies. Prohibitioll again~t cancellation bv trust COmlJanies or t.:C'rt~lin policit's. OlTcnces. J'aVIIlt:llt into Court b)" insurer.

CHAP. 1 H.ccdpt on payment in a dischargr. J'iling or cOP'y of ~~h~oe~c:. rnissioner. Cases where insurer pro· hibited from using policy, etc. Olience.

Definitions. ··Contract". "Property". INSURANCE payment thereof into Court, and the Court may order such payment to be made upon such terms as to costs and other­ wise as the Court directs, and may provide to what fund or name the money shall be credited.

(2) The receipt of the Clerk of the Court is a sufficient discharge to the insurer for the insurance money paid into Court, and the insurance money shall be dealt with according to the orders of the Court. 38.

(1) The Commissioner may require an insurer to file with him a copy of any form of policy, any form of applica­ tion for a policy, or any endorsement, rider or advertising material issued or used by the insurer.

(2) Where an insurer issues any policy or uses an applica­ tion, or endorsement or rider or advertising material that in the opinion of the Commissioner is unfair, fraudulent, un­ duly restrictive or not in the public interest, he may prohibit the insurer from issuing or using that form of policy, appli­ cation, endorsement, rider or advertising material.

(3) Any insurer that, after being prohibited pursuant to subsection (2), uses any prohibited policy, application, en­ dorsement, rider or advertising material, is guilty of an offence.

PART III FIRE INSURANCE INTERPRETA nON 39. In this Part, (a) "contract" means a contract of insurance against loss of or damage to property in the Territory or in transit therefrom or thereto, caused by fire, lightning or ex­ plosion, and includes a policy, certificate, interim re­ ceipt, renewal receipt or writing evidencing the contract, whether under seal or not, and a binding oral agreement, and (b) "property" includes use and occupancy, rents, profits and charges where these are the subject matter of the insurance. 16

INSURANCE CHAP. 1 GENERAL PROVISIONS 40. This Part applies in respect of fire insurance and to Application. any insurer carrying on the business of fire insurance. 41.. Every insurer may insure or reinsure any property in which the insured has an insurable interest against damage or "loss by fire, lightning or explosion, whether the same happens by accident or by any other means except that of design on the part of the insured. 42.

(1) No contract shall be made for a term exceeding three years, but any contract may be renewed from time to time for a further period not exceeding three years by the delivery of a renewal receipt identifying the policy by num­ ber, date or otherwise, or by a new premium note.

(2) No insurer shall make a contract covering property situate outside the liinits of a municipal district for a term exceeding twelve months without a written application there­ for, signed by the applicant, or, in case of the absence of the applicant or his inability to make the application, by his agent or by a person having an insurable interest in the property.

(3) Every application referred to in subsection (2) shall set forth (

a) the name, address and occupation of the appli­ cant, (

b) the description, location and occupancy of the property to be insured, (

c) the value of the property, (

d) particulars of any mortgage, lien or other incumbrance there­ on, (

e) the purpose for which and the location in which any movable property is deposited or used, (

f) particulars of all previous fire claims made by the applicant and the name of every company against which the claims were made, (

g) whether any insurer has cancelled any fire insurance or refused fire insurance to the applicant, and (

h) such other information as the insurer may require. 43. Every policy shall contain (

a) the names of the in­ surer, the insured and every person to whom the insurance money is payable, (

b) the premium or other consideration for the insurance, (

c) the subject matter of the insurance, (

d) the indemnity for which the insurer may become liable, (

e) the event on the happening of which the liability is to accrue, and (

f) the term of the insurance. 17 Powers of insurers. Term of contract. Application lor fire insuranc~. Contents of application. Contents of policy"

Statutory conditions to be part o( contract. Exc('ption. Co-illsurance clause. Lilllitalioll of liabilit~· clause. INSURANCE. 44.

(1) Subject to .. this

section and sections 45, 46 and 51, the statutory conditions set forth in

Part I of the

Schedule shall be deemed to be part of every contract and ·shall be printed on every policy with the heading "Statutory Condi~ tions", and no variation or omission of any statutory condi­ tion is binding on the insured, nor is' anything contained in the description of the . subject matter of the' insurance effective in so far as it is inconsistent with, varies, modifies or avoids any such condition.

(2) Where the subject matter of the insurance is exclusive­ ly rents, charges, or loss of profits, the conditions referred to in this

section are not required to be part of any such contract or to be printed therein. 45. '

(1) A policy may contain a co-insurance clause in which case it shall have printed or stamped upon its face in conspicuous type and in red ink the words: "This policy con­ tains a co-insurance clause", and unless such words so appear the clause is not binding upon the insured.

(2) A co-insurance clause shall not be deemed to be a variation of or addition to any statutory condition referred to in

section 44. 46. (

I) A policy may contain one or more limitation of liahility clauses to the following effect, namely, (

a) that the insurer shall be liable only for a specified ~ro­ portion of any· loss sustained to any of the property covered by the policy, (

h) that' the insurer shall not be liable for more than a specified percentage of the value of any of the said property at the time of the loss, (

r) where there is any other insurance covering any of the property. (

i) that the insurer shall be' liable for a rateable proportion of a specified percentage or proportion of any loss to any of the property, or (ii) that the insurer shall not be liable for more than a rateable proportion of a specified percentage of the value of any of the property at the time of the loss, or 18

INSURANCE (

d) that the insurer shall be liable only for a specified percentage of any loss, or, where there is other in­ surance covering any of the property, for a specified percentage of its rateable proportion of any loss, but upon the fulfilment by the assured of certain specified stipulation or agreements, shall be liable for a further specified percentage of the loss, or where there is other insurance covering any of the property, for a further specified percentage of its rateable percentage of the loss, but no such stipulation or agreement is binding upon the insured unless it is clearly set forth in a written application for the insurance signed by the applicant; and every policy that contains any such clause sh~111 have printed or stamped on the face of it, in conspicuous type and in red ink, the words: "This policy contains a limitation of liability clause (or clauses)."

(2) No clause mentioned in subsection (

i) shall be deemed to be a variation of any statutory condition. 47.

(1) Where at the time of the happening of any loss or damage by fire to property insured there is in force more than one policy taken by and in the name of the insured insuring the property against loss or damage caused by the peril of fire, no term of any such policy that excludes the insurer from contributing a rateable proportion of the loss with an insurer under any such other policy is valid unless the insurer under such other policy has expressly assented in writing to such term.

(2) For the purposes of subsection (1), a policy shall be deemed to be in force notwithstanding any term thereof that the policy will not cover, 'come into force, attach or become insurance with respect to the property until after full or partial payment of any loss under any other policy.

(3) Nothing in subsection (1) affects (

a) the validity of any division of the sum insured into separate items, (

b) any limits of insurance on specified property, (

c) a co-insurance clause, (

d) a limitation of liability clause mentioned in sec­ tion 46, or (

e) the provisions of condition 8 of the statutory conditions referred to in

section 44, respecting undisclosed msurance. 19 CHAP. 1 Term excluding in· surer from c.ontributing to loss not valid in cer­ tain cases. Policy in lorce lor purposes 01 slIbsection (

I) Validity 01 division of sum not alT~ct .... ci.

CHAP. ~ First loss insuranee. Apl,lication. Vseol red ink. Uelid (ram rorreitun:. 1'1'001 of loss.. SI'ccial stipulations. Joint ~l1r\'\')' or loss INSURANCE

(4) Notwithstanding subsection (1), insurance on identified articles is a first loss insurance as against all other insurance.

(5) This section, in respect of the peril of fire, applies to all policies of all classes of insurance except aircraft, automo­ bile, boiler and machinery insurance. 48. No red ink shall be used on the face of a policy except for the name, address and emblem of the insurer, the policy number and the purposes mentioned in this Ordinance. 49.

Where there has been imperfect compliance with a statutory condition as to the proof of loss to be given by the insured and a c;onsequent forfeiture or avoidance of the in­ surance, in whole or in part, and the Court deems it inequit­ able that the insurance should be forfeited or avoided on that ground, the Court may relieve against the forfeiture or avoidance on such terms as may seem just. SO. A proof of loss form, furnished by an insurer pursuant to

section 24 shall, for the purposes of this Part, be in Form A in

Part 1 of the

Schedule and in furnishing the form the insurer shall attach thereto a copy of the wording of the policy giving the description and location of the property insured. SI.

(1) Where the rate of premium is affected or modi­ fied by the user, condition, location or maintenance of the insured property, the policy may contain a clause not in­ consistent with any statutory condition setting forth any stipulation in respect of such user, condition, location. or maintenance, and such clause (

a) shall not be deemed a vari­ a tion of any statutory condition, and (

b) is binding on the insured only in so far as it is held by the Court before which a question relating thereto is tried to be just and reasonable.

(2) The insurer and insured, instead of proceeding by arbi­ lration under condition 17 of the statutory conditions referred to in

section 44, may at any time after the loss or damage make a joint survey, examination, estimate or appraisal of the loss or damage, in which case the insurer shall be de'!med to have waived all right to make a separate survey, examina­ tion, estimate or appraisal thereof. 20

INSURANCE 52.

(1) On every contract issued by a fire insurance com­ pany at its principal or branch office on application procured and submitted to it by a licensed agent shall be printed, stamped or written the words: "Issued on application sub- mitted by ................................................................... authorized resident agent at ............................................... _ ................ _ ..... pp. CH.'\P. 1 Policy issued on applicatioQ of agenlto principal offier. (2) Subsection (1) does not apply where a contract is E"e~"tioll. countersigned, or is to be countersigned before delivery, by a licensed agent.

PART IV LIFE INSURANCE

INTERPRETATION 53.

In this Part, (a) "adopted child" means a person who is adopted by another person as his child and, by reason of such adop­ tion, is entitled under the law of the place of adoption to inherit real and personal property from such other person if he dies intestate; (b) "adopting parent" means a person who has adopted another person as his child and, by reason of such adoption, is entitled under the law of the place of adop­ tion to inherit real and personal property from such other person if he dies intestate; (c) "child" includes an adopted child; (d) "contract" means a contract of life insurance and in­ cludes any other contract that an insurer may issue under his authority to write life insurance; (e) "creditor's group life insurance" means life insurance effected by a creditor on the lives of his debtors where­ by the lives of the debtors are insured severally under a single contract; (f) "declaration" means an instrument in wrltmg signed by the insured (

i) that is attached to or endorsed on a contract, or (ii) that in any way identifies the con­ tract or in any way describes the subject of the declar­ ation as the insurance or insurance fund or a

part 21

Definitions. "Adopted child". "Adopting parent". "o,i1d". "Creditor's ~roup lire 11 IIIsurance . ··neclaratio,n".

.. :. "Foreigll jurisdiction" . "Grandchild" . "Group lire insurance" . "Jnstrument in writing". "Insurance", "Jnsur~d". "Insurer", "I'arent". "I'erson".

INSURANCE thereof, 'or 'as the contract or 'contracts of the insured, by which the i'nsured designates or appoints one' or , more beneficiarie's,' alters or revokes the designation orapp6intment of any beneficiary, or apportions or re-apportions insurance money between or among beneficiaries; (g) "foreign jurisdiction" means' any jurisdiction beyond the 'Territory; (h) "grandchild" includes a child of an adopted child; (i) "group life insurance" means life insurance other than creditor's group life 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; (j) "instrument in \vriting" includes a will;' (k) "insurance" means life insurance; (

I) subject to subsection (2) of

section 59. "insured" means the person who makes a contract with an insurer; (m) "insurer" includes any corporation, or any society or assuciation, incorporated or unincorporated, any fra­ ternal society or any person or partnership, or any underwriter or grpup of underwriters, that undertakes or effects or agrees or offers to undertake or effect, a contract of life insurance; (n) "issue" includes an a~opted child; (0) "parent" includes an adopting parent; and (p) "person" includes a firm, partnership, corporation and all unincorporated society or association. APPLICATION OF

PART 54.

(1) Subject to

section SS and. notwithstanding any agreement, condition or stipulation to the contrary, this Part applies in respect of every contract made in the Terri­ tory after the coming into force of this Ordinance and any term in any such contract that is inconsistent with the pro­ \risions of this

Part is nun and void. 22

INSURANCE .

(2) Subject to

section 55, this Part applies. to every con­ tract made in the Territory before the coming into force of this Ordinance where the maturity of the contract had not occurred before that date.

(3) Subject to

Section 55, where this Part applies to allY contract, the rights and status of beneficiaries and the powers of the insured with regard to the designation or appointment of beneficiaries and the apportionment of the insurance money are governed by the provisions of this Part, whether or not the insured or any of the beneficiaries is domiciled in the Territory at the time when the contract is made, or at any time subsequent thereto. 55. In the case of a contract of group life insurance, whether made befo~e or after the coming into force of this Ordinance, (

a) the law of the place where the contract was made applies between the insurer and the insured, and (

b) the law of the place where the person whose life is insured was resident at the time his life became insured applies in determining the rights and status of bene­ ficiaries and the rights and obligations of the person whose life is insured. . THE CONTRACT OF INSURANCE 56. Every contract shall be evidenced by an instrument in writing called, in this Part, a policy. 57.

(1) A contract shall be deemed to be made III Territory, the (

a) where the place of residence of the insured is stated in the application or the policy to be in the Territory, or (

b) where neither the application nor the policy contains a statement as to the place of residence of the insured, but the actual pla·ce of residence of the insured is within the Territory at the time of the making of the contract.

(2) This

section does not apply III respect of a contract of group life insurance. 23 Application Jlotwithstand· ing rlO1nicile o( bent"ficiaries. La w applica hie to contract of t:'TOUp lire IIIsnratlct=" . .... Evidence 01 Contract. \Vhen COll· tract cI~em~d made in Territory. ~::-:rpJica- s«tion.

CHAP. 1 Conlent. ofpoliq other than group life policy. Contents o( group lile 1>olk)·. PitVIllt'lIt of in!'ilrance where .. mount does lIot t';II;cecd l\lo'o thuus~",1 dollars. I"erivd or gr:u:c and terms of re·instO\te­ menl. INSURANCE 58.

(1) Every policy other than a group life insurance policy shall state, (

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

b) the name or sufficient designation of the person whose life is insured and the beneficiary; (

c) the insurance money payable; (

d) the manner of payment; (

e) the amount of the premium, and (

f) the facts that determine the maturity of the contract.

(2) Every group life insurance policy shall state: (

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

b) the method of determining the amount of insurance on each life; (

c) the persons or classes of persons whose lives are 10- sured, and (

d) the facts that determine (

i) the manner and time of payment of the insurance money, and (ii) the amount of the premium.

(3) Where the amount of insurance money, exclusive of dividends and bonus, does not exceed two thousand dollars, the policy, notwithstanding that it is expressed to be payable to a named or designated beneficiary, may provide that the insurance money may be paid to any relative by blood or connection by marriage of the person whose life is insured or any other person appearing to the insurer to be equitably entitled to the same by reason of having incurred expense for the maintenance, medical attendance or burial of the person whose life is insured or to have a claim against the estate of the person whose life is insured in relation thereto.

(4) Every policy shall; 24

INSURANCE (

a) state the period of grace within which the premlUms may be paid and the terms and conditions upon which the policy may, if it lapses, be reinstated, and (

b) indicate the amount, if any, of cash surrender or loan value and any options of the insured as to paid lip or extended insurance, respectively, provided by the policy.

(5) Every policy shall indicate whether or not it partici­ pates in any surplus or profits declared.

(6) Where a contract of group life insurance is made, the insurer shall issue, for delivery by the insured to each person whose life is insured under the policy, a certificate that: (

a) identifies the policy; (

b) states the name or sufficient designation of the person whose life is insured, his beneficiary, the insurer and the insured; (

c) states the amount or the method of determining the amount of insurance, and (

d) indicates any right of the person whose life is in­ sured upon termination of insurance on his life under the policy.

(7) Every policy that includes disability insurance shall state what notice of disability shall be given to the insurer.

(8) This

section does not apply in respect of a contract made by a fraternal society. 59. (

I) Subject to subsection (2) in the case of group life insurance, the employer or other person making the contract with the insurer is the insured for the purposes of this Part.

(2) In the case of group life insurance and for the purposes of the provisions of this Part relating to the designation or appointment of beneficiaries and the rights and status of benefiiciaries, the term "insured" means the person whose life is insured. 25 CHAP. 1 J'articipation in profits. [s,sut: of certificate identifying policy and­ l~rSOll whose lif~ is insured. :"\otice or di.ability_ .-\ppiicatioll. Employer the insured. Exception.

CHAP. 1 . . Conditions invalid unless set out in 'lOliey. Excel,tioll. Contract of (rOltern:11 society. Hi.c1osure and .n!sr~Jlre­ sentatloll by insured. Wh"" >Ialc· ments dt:l'm~d true. Exception. XOIl-disc.lo~ure and misn~pre­ :o'clltatioll by insurer. IN:5URANCE 60.

(1) Except in the· case of a contract made with a fraternal society, n9 term or condition of a contract. that is not set 0':lt in full in the policy or in anyone or more documents attached to it when issued is valid or admissible in evidence to the prejudice of the insured or a beneficiary. (2) Subsection (1) does not apply to an alteration or modificatiOJl of the contract agreed upon in writing' by the insurer and the insured after the issue of the policy. (3) 1n the case of a contract made by a fraternal society, the policy, the Ordinance or other instrument of incorpora­ tion of the society, its constitution, by-laws and rules, and the amendments validly made thereto, and the application for the contract and medical examination of the applicant as signed by him, constitute the contract between the society and its member. 61.

(1) The applicant for a contract and the person whose life is to be insured shall each disclose to the insurer in the application for the contract, on the medical examination, if any, or in any statements or answers furnished in lieu of a medical examination every fact within his knowledge that is material' to the contract, and failure to disclose or the misrepresentation of any such fact by either person renders the contract voidable at the option of the insurer.

(2) Subject to subsection (3), the statements made by the insured or the person whose life is insured in the application, on the medical examination, if any, or in any statements or answers furnished 'in lieu of a medical examination, other than fraudulent statements or statements erroneous as to age, shall be deemed to be true and incontestable after the insur­ ance on the person whose life is insured has been in force for I wo years during his lifetime. (3) Subsection (2) does not apply with respect to disability insurance or double indemnity insurance. 62.

A failure to disclose or the misrepresentation of a fact material to the contract by the insurer renders the contract voidable at the option of 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 force for two years during the lifetime of the person whose life is insured. 26

INSURANCE 63. The question of materiality is one of fact. 64.

(1) Where the age of the person whose life is insured is understated in the application, the insurance money shall be reduced to the amount that would have been payable in respect of the premium stated in the policy at the correct age, according to the tables of rates of premium of the In­ surer in force at the time of the issue of the policy.

(2) Where the tables of rates of premium of the insurer do not extend to or include the rates for the correct age of the person whose life is insured, the insurance money shall be reduced in the proportion that the premium at the age stated in the application bears to the premil!m at the correct age, both premiums for this purpose being (

a) the net premium shown in or deduced from the British Officers' Life Table, 1893, OM(5), the rate of interest being three and one-half per cent per annum, or, at the option of the insurer, (

b) calculated on the same principles as govern the calcula­ tion of premiums for ages mentioned in the table of rates of premiums of the insurer in force at the time of the issue of the policy.

(3) Where the age of the person whose life is insured is overstated in the application, and the policy does not pro­ vide that in that event the insurance money shall be increased, the insurer shall repay the amount by which the premium paid exceeds the premium that would have been payable in respect of the correct age; but if the policy so provides, the insurance money shall be increased to the amount that would have been payable in respect of the premium stated in the policy at the correct age according to the tables of rates of premium of the insurer in force at the time of the issue of the policy.

(4) Where, by the terms or for the purposes of the con­ tract, an addition is made to the age stated in the applica­ tion, and the age is understated in the application, then for the purpose of the calculation, the correct age and the stated age shall respectively be deemed to be the correct age and the stated age increased by such addition. 27 CHAP. 1 ~13teriality . AdjustmeDt wher~ age underslaCed. Adjustment where age U\Oer· stated. Correc.tiun 01 stale,J age.

CHAP. 1 When COD tract voidable. "'\f'll'lication. \Vhen true age go\-erlls. Whea contrAct take,; die<:t. \Vht:n con· tract void for default in paying cheque. etc .• gi\"t~n for pren,ium. Payn~ent ni prf'l1l1\1t1l~. INSURANCE

(5) Where the application or contract expressly limits the insurable age and the correct age at the date of the applica­ tion exceeds the age so limited, the contract shall during the lifetime of the person whose life is insured, but not later than five years from the date of the policy, be voidable at the option of the insurer within thirty days after the error comes to his knowledge.

(6) This

section does not apply in respect of a contract of group life insurance. 65. \\There a contract of group life insurance provides that the age of a person whose life is insured affects the commencement or the termination of the insurance, the amount thereof or any other right or benefit under the con­ tract, the true age governs. 66.

(1) Unless a contract or an application otherwise ex­ pressly provides, the contract does not take effect or bind either party until (

a) the policy is delivered to the insured, his assign or agent, or the beneficiary named therein, and (

b) payment of the first premium is made to the insurer or its duly authorized agent no change having taken place in the insurability of the life about to be insured subsequent to the completion of the application.

(2) Subject to

section 67, where a cheque, bill of exchange Of promissory note payable to the insurer, or other written promise to pay the insurer, is given, whether originally or by way of renewal, for the whole or part of any premium and slIch cheque, bill of exchange, promissory note or other writ­ tell promise to pay is not paid according to its tenor, the contract is, unless otherwise provided in the policy, void. 67.

(1) Where any premIum other than the initial premium under any contract is unpaid, the insured, his assign or agent, or any beneficiary may, within a period of grace of thirty days or, in the case of an industrial contract, four weeks from and excluding the day on which the premium is 28

INSURANCE due, pay, deliver or tender the sum in default to the insurer at its head office or at its chief agency in the Territory or to its collector or authorized agent.

(2) The payment, delivery or tender referred to in subsec­ tion (1) may be made by sending a post office order, postal note or a cheque payable at par and certified by a bank chartered under the laws of Canada or a draft of such bank, in a registered letter addressed to the insurer, and the pay­ ment, delivery or tender shall be deemed to have been made at the time of the delivery and registration of the letter at any post office.

(3) Payment, delivery or tender pursuant to subsection (2) has the same effect as if made at the due date of the premium.

(4) The periods of grace mentioned in subsection (1) run concurrently with the period of grace, if any, allowed by the contract for the payment of a premium, or of an instalment of a premium. CHAP .. 1 How payment may be mack. Effect of payment. llunning of period of grace.

(5) Upon the maturity of a contract during the period of ~~~~~~~yo( grace and before the overdue premium is paid, the contract :::~C;:;~ shall be deemed to be in as full force and effect as if the expir"s. premium had been paid at its due date, but the amount of the premium with interest not exceeding six per cent per. annum and any balance of the current year's premium may be deducted by the insurer from the insurance money.

(6) Nothing in this

section deprives the insured of the Saving. benefit of any period of grace allowed by the contract in ex- cess of the period of grace allowed by this section. 68.

(1) Where a contract has lapsed and (

a) its cash value has not been paid, (

b) any options respecting paid up or extended insurance have not been exercised, (

c) payment of all overdue premiums and other indebted­ ness to the insurer under the contract, with interest at such rate not exceeding six per cent per annum as . the contract provides, is made, and 29 Reinstate­ nlent of contract.

Application of

section 61. Suicide. Application. COJl~· or apr1i· coition furll­ i!Ollcd to in!Ol1rt"d. \\'her" i11surancc l'a··ablt: 10 c!Otalc. At:"rIlLo( ill~ured. INSURANCE '(

d) no change' has occurred in'the good health and insur­ abili:ty of the 'person 'whose life is insured subsequent to the date of application and before the contract is reinstated . ' the insured is entitled to have the contract reinstated wIthin two years' or, in the case of ap industrial, contract, within one year, from the date of ' lapse upon production of evidence satisfactory to the insurer of the good health' and insurability of the person whose life was insured, at the time of applica­ tion for reinstatement.

(2) Where an application is made to reinstate a contract and the contract is reinstated,

section 61 applies mulaliI Inllt(lIldiI, and the' period of two years referred to in section (2) of that

section runs from the date of reinstatement.

(3) Where a contract that has lapsed provided that in the event of the suicide of the person whose life was insured within a period of time stated in the"contract it should be void or that the amount payable thereunder should be re­ duced and, after the contract is reinstated, such person com­ inits suicide within a period of time commericing on the date ofreinstateme~t and of the' 'same duration as the period of time fixed" by ,the contract, the reinstated contract shall likewise be . 'void, or the amou~t payable thereunder shall likewise be 'reduced. (4) ,Th,is

section does not apply in respect of a contract made hy a fraternal society or a contract of group life insurance. 69. The insurer shall, upon request, furnish to the insured a true copy of the application for the insurance. 70, Where by 'a contract or declaration the insured appoints as beneficiaries, or appoints or apportions insurance money to, his "heirs", "legal heirs", "lawful heirs" or "next­ of-kin" the appointment or apportionment shall be deemed to he for the benefit of the estate of the insured. 71.

No officer, agent, employee or servant of the insurer or any person soliciting insurance, whether or not an agent of the insurer shall be deemed to be the prejudice of the insured, for any purpose whatsoever the agent of the insured m respect of any question arising out of a contract. 30

INSURANCE INSURABLE INTEREST 72. E'very perso~has an insurable i~terest in' his own life. CHAP. 1 In oue-, own life. 73. Without limiting the meaning that "insurable interest" ~1~~he~;e. has in law, (

a) a parent has an insurable interest in, the life of his child under twenty-five years of age, (

b) a husband has an insurable interest in the life of his wife, (

c) a wife has an insurable interest 10 the life of her husband, (

d) a person has an insurabl,e interest in the life of another person' upon whom, he is wholly or in part dependent for support or education, or from whom he is receiv­ ing support or education. '(

e) a person has an' insurable interest 10 the life of his "'officer or employee, and (

f) a person who has a pecuniary interest 10 the duration of the life of another person has an insurable interest in the life of that person. 74. A contract is void where at the time that it, would otherwise take effect and be' binding, the insured has no insurable interest. 75. Where the insured has, at the time that the contract takes effect, an insurable interest in the life insured, it is not necessary for the validity of the contract or any assign­ ment that any beneficiary or person claiming under an assign­ ment, by will or by succession have an insurable interest. 76. A minor, after attaining the age of fifteen years, has the capacity of a person of full age, (

a) to effect a contract on his own life and to deal with that contract, (b) 'to deal with a contract on his own life effected by him before attaining the age of fifteen years, 31 Contract void if no insurable int~rest. Beneficiaries need not h:lvC insurable ' interest. Capacity of minors.

CHAP. 1 INSURANCE MaxinlUlll amounts payable by Insurer on death of chilrlunder 'h·e. Excess premiu,n 10 be refunded. (

c) to deal with his interest in a contract effected on his life by another, whether effected before or after the minor attained the age of fifteen years, and (

d) where married, to effect a contract on the life of his spouse or his children and to deal with that contract. 77.

(1) Subject to subsection (2) no insurer shall pay on the death of a child who has not attained the age of five years an amount that alone or together with any amount payable 011 the death of the child by another insurer, exceeds the following amounts, namely (

a) where the child dies before attaining the age of one year, two hundred dollars, (

b) where the child dies after attammg the age of one year; but before attaining the age of two years, four hundred dollars, (

c) where the child dies after the age of two years but before attaining the age of three years, six hundred dollars, (

d) where the child dies after attaining the age of three years but before attaining the age of four years, eight hundred dollars, and . (

e) where the child dies after attammg the age of four years but before attaining the age of five years, one thousand dollars.

(2) Where the amount payable under a contract on the death of the child, whether alone or together with an amount payable under any other contract previously made, exceeds the maximum amount that may be paid under subsection (1) and the child dies before attaining the age of five years, the amount payable on death in excess of the applicable amount specified in subsection (1) is limited to (

a) the amount of any excess premIUms paid under the contract, and (

b) where the insurer has knowingly or without sufficient inquiry entered into the contract, interest at six per cent per annum on the excess premiums. 32

INSURANCE CHAP. 11.

(3) Every insurer that undertakes insurance on the life of ~~~'i;~!OD a child who has not attained the age of five years shall print ~~ii~\~fbe the scale of benefits set out in subsection (1) in conspicuous prinle<i. type upon ever) circular or advertisement soliciting such insurance and every policy evidencing the insurance.

(4) This

section does not (

a) apply in respect of a contract under which the insured has a pecuniary interest in the life insured or that limits the payment on the death of a child who has not attained the age of five years to the premiums that have been paid, with interest at the rate provided in the contract, or (

b) preclude the payment of dividends or the repayment of premiums in addition to' the amounts specified in .subsection (1). THIRD PARTY POLICIES ON LIVES OF MINORS 78.

(1) Where a contract effected on the life of a minor by someone other than the minor, or an agreement in writing between the insurer and the insured respecting such a con­ tract provides that a person named in the contract or the agreement upon the death of the insured has all the rights and interests of the insured in the contract (

a) the contract does not, upon the death of the insured, form part of his estate, and (

b) the person named in the contract or agreement, upon the death of the insured, has all rights and interests of the insured in the contract and shall be deemed to be the insured.

(2) Notwithstanding the naming of any person as mention­ ed in subsection (1), the insured may, prior to his death, deal with the contract as if such naming had not been effected, and may alter or revoke such naming by agree­ ment in writing with the insurer. 33 Application. Third party. policies on Jives or minors. Aht"ratioll or rc\"ocatioll of nomination.

CHAP: 1 Dfncficiarirs lor value. . Preferred benet;ciaries. Ordinary beneficiaries. Interest 01 beneficiary lor value and assignee ror value. Jlriority. PersoD deemed to be the insured. Power 01 insured to designate beneficiary. INSURANCE BENEFICIARIES . , 79.

(1) Beneficiaries for. value are beneficiaries who have given valuable consideration other' than' marriage and who are expressly stated to be. or described as. beneficiaries for value in the policy or in an endorsement thereon or in a subsequent declaration signed by the insured.

(2) Subject" to

section 88. preferred beneficiaries are the husband, wife. children, grandchildren, father and mother of the person whose life is insured.

(3) Ordinary beneficiaries are beneficiaries who are not preferred beneficiaries, beneficiaries for value or assignees for value. , 80~:

(1) A' beneficiary for' value and an assignee for value of a policy have'a vested interest in the policy.

(2) Except as regards beneficiaries for value who are ex­ pressly stated to be or described as beneficiaries for value in the policy, a beneficiary for value or assignee for· value who gives notice in writing of his interest in the policy to the insurer at the head or principal office of the insurer in Canada prior to any other beneficiary for value or assignee for value has priority of interest as against. such last mentioned beneficiary or assignee. 81. Where a contract is assigned, otherwise than as secur­ ity for a loan or debt, to the person whose life is insured that person is thereupon deemed to be the insured. 82.

(1) Subject to the rights of beneficiaries for value and assignees for value and to the provisions of this Ordinance relating to preferred beneficiaries, an insured (

a) may designate any beneficiary by the contract or by a declaration, (

b) may from time to time by any declaration (

i) appoint or apportion the insurance money, (ii) alter or revoke any prior designation, appointment or apportionment. 34

INSURANCE . (iii) substitute new beneficiaries, or ,I:' ,', . , : (iv) divert the insurance money wholly or 111 part to ',.1',11 . himself or his estate, (

c) may surrender the contract to the insurer, (

d) may borrow from the insurer upon the security of the contract, (

e) may receive the surplus or profits for his own benefit, and (

f) may otherwise deal with the contract as may be agreed upon between him and the insurer.

(2) Subject to subsection (1), a beneficiary or a trustee appointed pursuant to

section 107 may, at the maturity of the contract, enforce for his own benefit or as such trustee the payment of insurance money appointed or apportioned to him by the contract or a declaration in accordance with the terms thereof, but the insurer is entitled to set up any defence that it could have set up against the insured or his personal representatives.

(3) Payment made to the beneficiary or trustee referred to in subsection (2) discharges the insurer.

(4) A person whose life is insured under a contract of group life insurance may in his own name enforce any right stated in the policy to be given to him, subject to any defence available to the insurer against him or the insured.

(5) Subject to subsection (1), a declaration has effect from the time of its execution, but a declaration does not affect the interest or rights of a beneficiary for value or assignee for value unless the declaration has been filed with the in­ surer at its head or principal office in Canada prior to the time when such beneficiary or assignee acquired his interest or rights, and if the declaration is not so filed the interest or rights of such beneficiary or assignee are as if the declaration had not been made.

(6) Where a declaration is contained in a will, it is sufficient for the purposes of subsection (5) to file a copy thereof or of the material part thereof, verified by statutory declara­ tion with the insurer at its head or principal office 111 Canada. 35 CHAP. 1 Enlorcing 01 payment 01 InsuranCt: mone)' by beneficiary or tru~lt't. 1'a)'IUt'lIt di~­ charges in­ surer-. Ellrorct'lIIent 01 right under group illslInlllct:' policy. Effect 01 declaration. Filingol ch:claration cOlltailll."d in will.

CHAP. 1 Other­ dttlarations. llcncficiaries share equally where no apportion· ment. Death of nrdinary ""neficiary ""rore Inaulrity of contract. Designation or class or ~~~fi~i~ries creates a trust. Right to income only. Rights or beneficiaries for value, etc. INSURANCE

(7) A declaration contained in an instrument purporting to be a will that has not been revoked otherwise than by operation of law is effective as a declaration, notwithstanding that the instrument is invalid as a testamentary instrument. 83. Where two or more beneficiaries are designated other­ wise than alternatively, but no apportionment is made, they shall share equally. 84.

Where there are several beneficiaries of whom one or more are ordinary beneficiaries and one or more of the ordin­ ary beneficiaries die before the maturity of the contract, and no apportionment or other disposition of his or their shares is provided for in the contract or by a declaration, the share of any such deceased ordinary beneficiary is payable to the surviving designated beneficiary or beneficiaries, whether preferred or ordinary, and where more than one, in equal shares but where there is no surviving beneficiary, is payable to the insured or his estate. 85.

(1) Where the insured, pursuant to

section 82, desig­ nates as beneficiary anyone or more members of the class of preferred beneficiaries, a trust is created in favor of such designated beneficiary or beneficiaries, and the insurance money or such part thereof as is or has been apportioned to a preferred beneficiary shall not, except as otherwise pro­ vided in this Ordinance be subject to the control of the insured or his creditors, or form part of the estate of the insured.

(2) The contract may provide or the insured may at any time direct by declaration that a preferred beneficiary is entitled only to the income from insurance money for life or a period of time, or subject to any limitation or contingency stated in the declaration.

(3) The provisions of this

section are subject to any vested rights of beneficiaries for value and assignees for value, to the provisions hereinafter contained relating to preferred beneficiaries, and to any contingency or limitation stated in the instrument by which the insured designates a preferred beneficiary, but no provision in any instrument reserving to the insured the right to revoke or abridge the interest of a preferred beneficiary is effective to enable the insured to revoke or abridge that interest in favour of a person not in the class of preferred beneficiaries. 36

INSURANCE 86. Notwithstanding the designation of any preferred beneficiary, the insured may subsequently exercise the powers conferred by

section 82 to restrict, limit, extend or transfer the benefits of the contract to anyone or more of the class of preferred beneficiaries to the exclusion of any or all other of the class, or wholly or partly to one or more for life or any other period of time or subject to any limitation or contingency, with remainder to any other or others of the class. 87.

(1) Subject to

section 88 where by the policy or by a subsequent declaration the insurance money or any part of it is made payable to or for the benefit of the wife of the person whose life is insured, his future wife, his wife and children, his future wife and children generally, or his children gen­ erally, the word "wife" means the wife living at the maturity of the contract, and the word "children" includes all the children of the person whose life is insured living at the maturi ty of the contract as well as the issue living at the maturity of the contract of any child of his who predecp.ases him, such issue taking by representation. (2) Subsection (1) applies, mutatis mutandis, to insurance effected on a woman's life where the insurance money or any part of it is made payable to or for the benefit of her husband, her future husband, her husband and children, her future husband and children generally or her children generally. (3) Subsections (1) and (2) do not apply where any beneficiary is designated by name or otherwise definitely indicated. 88.

For the purposes of this Part, an adopted child and its adopting parent shall from the date of the adoption be deemed to b.ear towards one another the relationship of preferred beneficiaries, and an adopted child and its natural parents shall from the date of the adoption be deemed to bear toward one another the relationship of ordinary beneficiaries. and in either case this

section applies in respect of insurance effected both before and after the date of adoption. 89.

(1) SUbject to subse·ction (2), the contract may pro­ vide or the insured may at any time direct by declaration that where a preferred beneficiary dies before the maturity 37 CHAP. 1 Power 0/ insured to transfer benefits. ~teallillg or "wire" and "children". Application. 1~t"lalionships .. rising from a4loprion. I )~c1.ilratioll pro\'irling lor death of C~~r:fi~i~ .. , ..

CHAP. 1 Powers of insured wher~ alternath'c preferred beneficiary becomes the beneficiary. I'owers of insured on death 01 preferred beneficiary. Howsharr payable. INSURANCE of the contract, ·the insurance money or any part thereof appointed to the preferred beneficiary shall be payable to the insured, his estate or any other person whether or not that person is within the class of preferred beneficiaries.

(2) Where the contract provides or the insured by a declaration directs that in·~urance money goes to a ·preferred beneficiary and in the event of the death of the preferred beneficiary to some uther person in the class of preferred beneficiaries, and the first named beneficiary dies, the insured may before· the maturity of the contract exercise only the powers referred to in

section 86 . .

(3) In case of the death of a preferred beneficiary before the. maturity· of the contract and in the absence of any pro­ vision in the contract or a declaration by which some othe~ person in the ·c1ass of· preferred beneficiaries is to become entitled tb the insurance money or any part thereof appointed to· -th·e· deceased beneficiary in the event of his death or upon the happening of any other event, the insured may deal under

section 82 with the :insurance money or part thereof in the same manner and to the same extent as if the deceased beneficiary had not been a preferred beneficiary.

(4) Subject . to this section, the share of a· preferred beneficiary who dies before the maturity ~f the contract is payable as follows, namely, (

a) where the deceased beneficiary is a child of the person . whose life is insured and leaves issue surviving at ~he maturity of the contract, his share and any share to which he would have been entitled if he had survived is payable to his issue in equal shares, such issue taking by representation; (

b) where there is no person entitled under paragraph (a), the share of the deceased beneficiary is payable to the surviving designated preferred beneficiaries in equal shares; (

c) where there is no person entitled under paragraph (

a) or (b), the share of the deceased beneficiary is payable in equal shares to the spouse and the children of the person whose life is insured living at the maturity cif 38

INSURANCE i::': ',. th~, contraCt, and the issue then living of any deceased ~hildQf the.pe'rson whose life'is insured, such issue t.aking,in equal shares the share' to which their parent would have been entitled if living; and . (d)\vhere there is no person entitled under' paragraph " (a), (

b) o'r (c), the share of the deceased benefi<;:iary i~' :i)ayaJ)l~to 'the insured or his estate. ' 90,

(1) Where the spouse of the person whose life is 10- sured is designated as a beneficiary and is subsequently di­ vorced, all interest of. such beneficiary under the policy passes to the insured or his estate, unless the beneficiary IS a beneficiary for value or an assignee for value.

(2) For the purposes of this

section where a divorce has been granted on the application ofa beneficiary, the benefic­ iary is estopped from denying the validity of the divorce.

(3) Until the insurer receives at its head or principal office in Canada notice in writing of the Act of Parliament, judg­ ment, decree or order granting a divorce, it may deal with the insurance money in the same manner and with the same effect as if no divorce had been granted, and before paying the insurance ~oney, the insurer is entitled to receive the original judgment, decree or order or a duly verified copy thereof, or a duly verified copy of the Act of Parliament, or a copy thereof printed by the Queen's Printer, as the case, may be,

(4) Nothing III subsection (3) affects the right of any person e'ntitledto 'payment of insurance money by reason of a divorce to recover, from any person to whom payment is made by the insurer. 91. Where the spouse of the person whose life IS insured is designated as beneficiary and it appears (

a) in the case of the wife, that she is living apart from her husband in circumstances disentitling her to ali­ mony (

b) in the case of the husband, that he is living apart from his wife in circumstances disentitling him to an order for restitution of conjugal rights, and 39 Effect 01 divorce. Estoppel. Hightol insurer. Savi<lg, Where spouts Ii ving apart.

CHAP. 1 INSURANCE l'ower of insured to surrender contract \\'here~ preferred beneficiary designated. Disposal of surplus or profits. (

c) that there is no other member of the class of preferred beneficiaries whom the insured may designate as beneficiary in place of the designated beneficiary, the Court may, on the application of the insured and on such terms as may seem fit, declare the designated beneficiary ·dis­ entitled to claim the benefit of the provisions of this Part relating to preferred beneficiaries and the insured may then deal with the policy as provided by

section 82. 92. Where a preferred beneficiary is designated. the insured may (

a) surrender the contract to the insurer and accept in lieu thereof any paid-up or extended insurance pro­ vided by the contract in favour of the preferred beneficiary, and (

b) from time to time, borrow from the insurer on the security of the contract such sums as may be necessary and are applied to keep it in force, and the sums so borrowed, with such interest as may be agreed upon, are a first charge on the contract and the insurance company. 93.

(1) Notwithstanding the designation of a preferred beneficiary, any person who effects a participating contract other than a contract of group life insurance may (

a) receive for his own benefit during his lifetime the surplus or profits declared on the contract, or (

b) may direct the insurer (

i) to apply them in payment or reduction of premiums or in the purchase of paid up additions to the sum insured, (ii) to hold them to his credit for accumulation, or (iii) to deal otherwise with such surplus or profits as the contract may provide. 40

INSURANCE

(2) Upon the maturity of a contract all surplus or profits held to the credit of the insured or being due and unpaid, shall, subject to the contract and to any direction by the in­ sured to the contrary, be added to the insurance money and the share of any beneficiary shall be increased accordingly. (3) 111 the case of group life insurance, surplus profits, dividends or bonuses shall be applied in accordance with the terms of the contract.

(4) The insurer may apply for the purpose of keeping the contract in force any surplus or profits declared on the con­ tract and held by the insurer to the credit of the contract or of the insured, or held for accumulation, and not otherwise applied ur dealt with pursuant to subsection (1).

(5) The insurer is not obliged to payor apply any surplus or profits in a manner contrary to the terms of the contract or of any subsequent agreement. 94. (

I) Where all the designated preferred beneficiaries are of full age, they and the insured may surrender the con­ tract or may assign or dispose of it either absolutely or by way of security, to the insurer, the insured or any other person.

(2) Where the beneficiaries, whether designated by name or not, include the wife or children or grandchildren of the . insured, it is sufficient, so far as their interests are concerned, if all then living are of full age and join in the surrender, assignment or disposal. CHAP. 1 Group lile insurance. Application 01 surplus 10 keep contract in rorce. Obligation of insurer. Power to surrender contract wher!! pr~· lerred b4:ne fidaries 01 lun ag •.

(3) Where insurance money is made payable to a mmor Orcl« 01 Court where or other person under disability or to a trustee on behalf money pa)·· able to minor, of a minor or person under disability and the insurance money etC. or a part thereof is required for the maintenance or educa­ tion of the minor ur person under disability, the Court may, upon the application of the insured and upon at least ten days' notice to the insurer, make an order on such terms as it may deem just permitting the insured to surrender the contract to the insurer or to borrow from the insurer on the security thereof, and payment by the insurer in accordance with the order discharges it from liability in respect of the payment. 41

CHAP. 1 Assignment of policy and right of ~ne· ficiar-ies. PerSCllS joining in surrenrl~r. Commutation of instal· ments of insutance money., "Instalments", Insurer hold­ ing insurance money after ma.tll1'il),of contract. INSURANCE

(4) Where a contract has been assigned as security for any loan or debt, the rights of any beneficiary, whether ordinary or preferred, are affected only to the extent necessary to give effect to the rights of the assignee, and when the loan or debt is discharged the assignee shall furnish a certificate in writing to that effect and to the effect that the assignee has no further right, title or interest in that contract. 95.

Where by a contract or any instrt1ment in wrItmg a person is entitled to insurance money only in the event of the death of another person named as a beneficiary, it is not necessary for the first mentioned person to join In any surrender, assignment or disposal of the contract. 96.

(1) Subject to this section, where insurance money is payable in instalments and the contract, or an instrument in writing signed by the insured and delivered to the insurer, expressly provides that the beneficiary has not the right to commute the instalments or to alienate or assign his interest therein, the insurer shall not commute the instalments or pay them to any person other than the beneficiary, and the instalments are not, in the hands of the insurer, subject to any legal process except an action to recover the value of necessaries supplied to the beneficiary or his infant children.

(2) The ~nsured may, by an instrument in writing signed by him and delivered to the insurer, declare that the beneficiary has the right to commute instalments of msur­ ance money or alienate or assign his interest therein.

(3) The Court may, upon the application of the insurer or the beneficiary and upon at· least ten days' notice, declare that in view of special circumstances the beneficiary has the right to commute instalments of insurance money or to alienate or assign his interest therein.

(4) After the death of the beneficiary, his personal repre­ sentatives may commute any instalments of insurance money payable to them.

(5) In this action, "instalments" includes insurance money or any part thereof held by the insurer under

section 97. 97.

(1) Subject to the provisions of this Part relating to preferred beneficiaries, where it is expressly provided in the contract or by an agreement in writing with the insurer or 42

INSURANCE uy a declaration, the insurer may hold the insurance money or any' part thereof after 'maturity of the contract subject to the order of the beneficiary, or upon such' trusts or other agreements for the benefit of the beneficiary as are provided in the contract, agreement or declaration, allowing and pay­ ing for the term during which the insurer retains the insur­ ance money or any, part thereof, interest thereon at a rate not less than that specified in the contract" agreement or declaration, or, where no rate is agreed upon, at the rate declared from time to time by the insurer in respect to insurance money so held by it.

(2) An insurer is not bound to carry out the terms of any declaration to which it has not agreed in writing, 98.

(1) Until the insurer receives at its head or principal office in Canada notice in writing of the making of an order declaring a beneficiary disentitled to insurance money, or of any instrument in writing affecting the insurance money or any part thereof or of the appointment or revocation of the appoinlment of, a trustee, it may make any payment that is lawful and valid except for the order, instrument in writing, appointment or revocation of appointment, and before making -any payment pursuant to or under the a)lthority of the order, instrument in writing. appointment or revocation of appoint­ ment, it is enti'tled to receive the original or a true copy thereof.

(2) Nothing in this'

section affects the right of any person entitled to payment by virtue of an order, instrument in writing. appointment or revocation of appointment referred to in subsection (1) to recover from any person to whom payment has heen made by the insurer. 99. An insurer does not incur any liability for any default, error or omission in giving or withholding information as to any notice or instrument in writing affecting the insurance money that the insurer has received. PROOF OF CLAIM AND PAYMENT 100.

(1) An insurer is entitled to reasonably sufficient proof in writing verified by affidavit or statutory declaration 43 <'::HAP, 1 1'.:r501l5 to whom i.nsurer m~y makt:' paymellt. Saving. NOli' liability or insl1n:r for in£orn13' tion as to notice~. Proof of Claim,

CHAP. 1 I'roolol name and ~ge 01 beneficiary. Payment or insurance ntolley. \\.'here insurance money payable. How p~)'~ble, INSURANCE of the maturity of the contract, the age of the person whose life is insured and the right of the claimant to receive pay­ ment of the insurance money.

(2) Where the insurance money or part thereof is pay­ able to or for the benefit of a beneficiary, the insurer is entitled to reasonably sufficient proof of the name and age of the beneficiary. 101. (

I) Insurance money that is expressed to be payable at the maturity of the contract is payable thirty days after reasonably sufficient proof has been furnished to the insurer of the maturity of the contract, the age of the person whose life is insured and the right of the claimant 'to receive pay­ ment.

(2) Except in the case of a contract of group life insur­ ance, insurance money (

a) is payable in the place in Canada where the insured was domiciled when the money became payable, or (

b) is payable at the head or principal office of the in­ surer in Canada, where the insured was not domiciled in Canada when the money became payable and the contract does not otherwise provide.

(3) In the case of a contract of group life insurance, In­ surance money (

a) is payable in the place in Canada where the person whose life is insured was domiciled when the money be­ came payable, or (

b) is payable at the head or principal office of the insurer in Canada, where the person whose life is insured was not domiciled in Canada when the money became payable and the contract does not otherwise provide.

(4) Every amount to be paid to or by an insurer under a contract is payable in lawful money of Canada, unless the contract expressly provides for payment in another currency. 44

INSURANCE

(5) In every contract, whether the contract by its terms provides for payment in Canada or elsewhere, amounts ex­ pressed in dollars mean lawful dollars of Canadian currency, unless some other currency is specifically provided for in the contract. 102. Where insurance money is payable in respect of a policy on the life of a person who is at the date of his death domiciled elsewhere than in Canada to another person domiciled elsewhere than in Canada, and there is no person in Canada entitled to receive it, the insurer may pay it to the person to whom it is payable or to any other person entitled to receive it on his behalf by the law of the domicile of the payee. 103.

(1) Where the insurer admits the validity of the contract but does not admit the sufficiency of the proof furnished by the claimant of the maturity of the contract, the age of the person whose life is insured or the right of the claimant to receive payment of the insurance money and there is no other question in issue except a question under subsection (2), the insurer or the claimant may, before or after action brought and upon at least thirty days' notice, apply to the Court for a declaration as to the sufficiency of the proof furnished, and the Court may direct what further proof shall be furnished or, in special circumstances, may dispense with further proof.

(2) Where the claimant alleges that the person whose life is insured is 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 subsection (1), the insurer or the claimant may, before or after action brought and upon at least thirty days' notice, apply to the Court for a declara­ tion as to the presumption of death.

(3) Where the Court (

a) finds that the proof of the maturity of the contract, the age of the person whose life is insured or the right of the claimant to receive payment is sufficient, (

b) finds that a presumption of death has been established, or 4S CHAP. 1 Meaning of "dollars", "aVllllf'lI~.!"­ out-sid..: Callaci<l. ])~c.laratioll by ccurt as to 5uffici.:nc \­ oi proof. - ])t'clarHlioll as to prt:S\1l\1llliOIl or dt'ath. EIT<ct or onlt:r of <':ollrt.

CHAP. 1 I'avment a dischar/Je. Olher Court nrcier. Slay of action. l'reStll11fJlion in case of "' common difiaster. I'olicl' 1101 pro\'idecl by ~lIicide in cert"in c:-Ises. Limitation of aClion~. INSllRANCE (

c) makes an order directing what further proof s~all be furnished or, in special circumstances, dispensing with further proof, the finding or order of the Court is, subject to appeal, con­ clusive and binding upon the applicant and all parties notified of the application and the Court may make such order respect­ ing the payment of the insurance money and respecting costs as it may deem just.

(4) Payment by an insurer in accordance with an order made pursuant to this

section discharges the insurer from liability in respect of the payment.

(5) Where the Court does not (

a) find that the proof of. the maturity of the contract, the age of the person whose life is. insured or the right of the claimant to receive payment is sufficient, or (

b) find that the presumption of death is established, the Court may order that the matters in issue be decided in an action brought or to be brought,. or may make such other order 'as it deems just respecting further proof to be furnished by the claimant, publication of advertisements, further inquiry and costs or otherwise.

(6) Unless otherwise ordered by the Court, an application made pursuant to subsection (1) operates as a stay of any pending action with respect to the insurance money. 104. Where the person whose life is insured and one or more of the beneficiaries pe,rish in the same disaster, it is prima fade presumed that the beneficiary or beneficiaries died first. 105. An agreement, express or implied, contained in a contract of life insurance for the payment of insurance money in the event that the person whose life is insured commits suicide is lawful and enforcable, LIMITATION OF ACTIONS 106.

(1) Subject to this section, no action or proceeding against the insurer for the recovery of insurance money shall be commenced more than one year after the furnishing of 46

INSURANCE reason:i bly sufficient proof of the maturity of the contract and 'of the right of the claimant to receive payme'nt, or more than six years after the maturity of the contract, whichever period first expires.

(2) Where an order has been made declaring that death is presumed from the fact that the person whose life is insured has not been heard of for seven years, no action or proceed­ ing referred to in subsection (1) shall be commenced more than one year and six months next after the date of the order.

(3) Where the death of the person whose life is insured is unknown to the person entitled to claim under the contract, IlO action or proceeding shall be commenced more than six years next after the death of the person whose life is insured or more than one year and six months after the death becomes known to the person entitled whichever period first expires.

(4) Where an action or proceeding is prematurely brought, the plaintiff may commence a new action or proceeding at any time within six months after the final determination of the first action or proceeding. TRUSTEES, GUARDIANS, ETC. 107.

(1) The powers conferred upon the insured by this Part with regard to the designation or appointment of any onc or more beneficiaries, the alterati()n or revocation of such designation or appointment, and' the apportionment or reapportionment of insurance money between or among beneficiaries include the power from time to time to appoint onc or ll10re new trustees for any beneficiary, to revoke any such appointment or alter its terms, to appoint one or more trustees or to make provision for the appointment of one or more new trustees.

(2) The appointment of a trustee or trustees for any beneficiary does not take away from the Court or the in­ sured any power of depriving the beneficiary of the benefit of the insurance money that the Court or the insured has under this Ordinance where the beneficiary .has been desig­ nated as beneficiary without the appointment of a trustee.

(3) Payment made to the trustee or trustees appointed pursuant to this

section discharges the insurer. 47 CHAP. 1 Limitation where death presumed. Limitation where dt.":1th unknowl1. J'remalllH' action. Appointlllt"llt or IllslIrt"ti. Sadng. Pa\"ll1t'lIt a dbicharg.:.

CHAP. 1 Payment of share of minor, .:tc. Appointment of guardian. Guardian. elc. in a foreip jurisdiction. Order for payment mto Court. INSURANCE 108.

(1) Where no trustee is appointed to receive the share to which a minor or other person under disability is entitled, or where a trustee is named Qut refuses or neglects to act or dies or otherwise becomes incapable of acting. the share of the minor or other persons under disability may be paid to a guardian, tutor or trustee of the minor or to a curator, committee or trustee of the other person under disability appointed under the I.aw of the Territory.

(2) Where insurance money not exceeding two thousand dollars is payable to the spouse and children or to the children of the person whose life is insured, and one or more of the children are minors, the Court may, if the spouse is a parent of the minors appoint him their guardian, with or without security, and the insurance money may be paid to such spouse as guardian.

(3) Where it appears that a guardian, tu:tor, curator, com­ mittee or trustee of a minor or other beneficiary under dis­ ability has been appointed in a foreign jurisdiction, and that the minor or other beneficiary is resident within that juris­ diction, the Court may authorize payment of the insurance money to the guardian, tutor, curator, committee or trustee with or without scurity in the Territory. . PAYMENT INTO COURT 109.

(1) Where the insurer admits liability for the insur­ ance money or any part thereof and it appears to the insurer (

a) that there are adverse claimants, (

b) that the place of abode of a person entitled is unknown, or (

c) that there is no person capable of giving or authorized to give a valid discharge, the insurer may, at any time after the expiration of one month from the maturity of the contract, apply to the Court for an order for payment of the money into Court, and the Court may upon such notice, if any, as it thinks necessary make an order accordingly, and the application may in the first instance be made ex parte. 48

INSURANCE

(2) Where the insurer admits liability for the insurance money or any part thereof payable to a minor and there is no person capable of giving a valid discharge therefor, the insurer may at any time after the expiration of one month from the maturity of the contract pay the money, less the costs mentioned in subsection (3), into Court to the credit of the minor.

(3) The insurer may retain out of the insurance money for costs incurred upon payment into Court pursuant to subsection (2) the sum of ten dollars where the amount does not exceed one thousand dollars, and the sum of fifteen dollars in other cases, and payment of the remainder of the money into Court discharges the insurer.

(4) No order is necessary for payment into Court under subsection (2), but the Clerk of the Court shall receive the money upon the insurer filing with him an affidavit showing the amount payable and the name, date of birth and resi­ dence of the minor, and upon such payment being made the insurer shall forthwith notify the Public Administrator and deliver to him a copy of such affidavit. 110.

Where the insurer does not within two months after due proof of the claim pay the insurance money to some person competent to receive it under this Part or into Court, the Court may, upon application of any person, order that the insurance money or any part thereof, be paid into Court or may make such other order as to the distribution of the money as it may deem just, and payment made in accordance with the order is a sufficient discharge to the insurer. 11]. The Court may fix and ascertain without taxation the costs incurred upon or in connection with any application or order made under subsection (1) of

section 109 or under

section 110, and may order such costs to be paid out of the insurance money or by the insurer or the applicant or other­ wise as seems just. CONSTRUCTION OF

PART 112. This Part shall be so interpreted and construed as to effect its general purpose of making uniform the law of the Territory and of those provinces that enact similar legislation. 49 CHAP. 1 Payment into Court for minor. Costs retained out 01 insurance mOlle\', Clerk or Court to receive money, etc. Order lor payment mtoCollrt. Costs may be fixe" by Cnurt. Const1"lIC­ tiOIl.

CHAP. 1

Definitions. "J)rl,oer's po1icr", ·'Insured". "~Ioto .. \'ehicle liahility policy". "Owner's policy". i\pfllicatioll. J Il!'>urance or automobile by fire insurance policy. NOIl-a.pplica­ hilit,· of sections .l2 and .1.1. INSURANCI!

PART V AU'TOMOBILE INSURANCE i' .

INTERPRETATION 11'3.

In this Part,' (a) "driver's policy" means a motor vehicle liability policy that insures a person named therein in respect of the operation or use by him of any automobile other than an automobile owned by him or registered in his name; (b) "insured" means a person insured by a contract whether named or not; (c) "motor vehicle liability policy" means a policy or that part of a policy that insures the owner or driver of an automobile against liability for loss or damage to persons or property; and ' (d) "owner's policy" means a motor, vehicle liability policy that insures a person named therein in respect of the ownership, operation or use of any automobile owned by him and specifically described in the policy and, in respect of the ownership, operation or use of any other 'automobile that is within the definition thereof appearing in the policy.

GENERAL PROVISIONS 114.

(1) This Part applies in respect of automobile in­ surance and to any insurer carrying on the business of automobile insurance in the Territory and in respect of all contracts made in the Territory on or after the 1st day of May, 1956.

(2) Nothing in this Part prevents the insuring of an automobile against loss or damage by fire under a policy of fi re insurance, and in that event this Part does not apply.

(3) Sections 32 and 33 do not apply in respect of automo­ bile 1J1surance in respect of which this Part applies. 50

INSIJRANCE

(4) This Part, other than

section 137, does not apply in respect of insurance of an automobile chiefly used or oper­ ated off highways unless insured under a form of policy approved under this Part. 115.

(1) No insurer shal1 make any contract for a period exceeding fourteen days without a written application there­ for, signed by the applicant or his agent duly authorized in writing.

(2) No person carrying on the business of financing the sale or purchase of automobiles, no automobile dealer, insur­ ance agent or broker, and no officer or employee of any such person, dealer, agent or broker, shal1 act as agent for an applicant under this section.

(3) Every written application for a driver's policy shal1 set forth, (

a) the name, address and occupation or business of the applicant, (

b) particulars of all accidents, losses or claims ansmg out of the ownership, use or operation of an automobile by the applicant within the three years preceding the application, (

c) whether any insurer has cancel1ed any policy of auto­ mobile insurance of the applicant or refused automobile insurance to him, (

d) whether any licence, permit, registration certificate or other like authority, issued to the applicant under any ordinance or under any law or statute of any province, state or country relating to automobiles, has been or continued to be, to the knowledge of the applicant, suspended or cancel1ed within the three years pre­ ceding the application, and (

e) such further information as the insurer may reqUire or the Commissioner may prescribe. 51 CHAP. I Application. H.equirt:J1It:nts as to writh:ll ;lpplicatioll. I ~ersons ror­ bidden to act as agents Cor applicant •. Applic.ation for driv~r's policy.

CHAP. 1 Application in other ca.~5. ~pl'cial ~Olltl';:tctS. INSURANCE

(4) Every other written application shall set forth, (

a) the name, address and occupation or business of the applicant, (

b) the description of the automobile to be insured, (

c) the purchase price to the applicant of the automobile, (

d) whether the automobile was purchased new or other­ WIse, (

e) particulars of any mortgage, lien or encumbrance thereon, (

f) the place where the automobile IS and will usually be kept, (

g) the locality in which and the purpose for which the automobile is and will be used chiefly, (

h) particulars of all accidents, losses or claims arising out of the ownership, use or operation 'of an automo­ bile by the application within the three yea~s preced­ ing the application, (

i) whether any insurer has cancelled any policy of automobile Insurance of the applicant, or refused automobile insurance to him, Ci) whether any licence, permit, registration certificate or other like authority, issued to the applicant or mem­ ber of his family and household under any Ordinance or under any law or statute of any province, state or country relating to automobiles, has been or continued to be, to the knowledge of the applicant, suspended or cancelled within the three years preceding the appli­ cation, and (

k) such further information as the insurer may reqUIre or the Commissioner may prescribe. (

j) Where the requirements of subsections (3) and (4) al-C, in the opinion of the Commissioner, inapplicable to any specia 1 form of contract, the Commissioner may prescribe the form of application or vary, omit or add to those rc­ quirements. 52

INSURANCE

(6) Upon every written application and policy there shall be printed or stamped in conspicuous type, not less in size than ten point and in red ink, a copy of subsection (1) of

section 121.

(7) Where a contract is renewed without change or only the amount of the insurance, the rate of premium or the method of rating is changed, the renewal may be effected without a written application.

(8) A copy of the application, or such part thereof as is material to the contract, shall be embodied in, endorsed upon or attached to the policy when issued by the insurer. 116. Where it is proposed to change the subject matter of a contract by substitution or addition of one or more automobiles, the insurer may so amend the contract by an endorsement of the policy, but in such case the insurer shall obtain a written application signed in accordance with sec­ tion 115 and containing such particulars required by that

section as relate to the new subject matter. 117.

(1) Every policy shall set forth, (

a) the name and address of the insurer, (

b) the name, address and occupation or business of the insured named therein, (

c) the premium for the insurance, (

d) the subject matter of the insurance, (

e) the indemnity for which the insurer may become liable, (

f) the event on the happening of which liability is to accrue, (

g) the term of the insurance, and (

h) except in case of motor vehicle liability policies, the name of the person to whom the insurance money IS payable. 53 CH.'\P. 11 Redillk endor~e­ ment. Renewal 01 contract. Copy of application. Amendment of contract. Contents 01 policy.

CHAP. 1 DiscrcpallCY between al'I)lication and policy. JJclivcr)" ofl'olicy to inslIrco. ~t~tutor)' conditions. J'rcscriptioll or cOllrlitiol1~ in certOlin C:1~t"~. Fnnn or .'1OtOf n.-hide Iiabilil" policy," INSURANCE

(2) Unless 'otherwise' expressly stated therein, any. writ­ ten application shall be deemed to ~e one for a policy embody­ ing'the 'terms and 'conditions of the insurer's correspOnding standard policy form; and the policy shall be deemed to be in accordance with the application unless the insurer points out' 'in writing to the insured named in the policy in what respect the policy differs from the application, and, in that event, the insured shall be deemed to have accepted the policy unless within one week from the receipt of the noti­ fication he informs the insurer in writing that he rejects the policy,

(3) Notwithstanding any agreement. the insurer shall de­ liver or mail to the insured named therein the policy or a true copy thereof and every endorsement or amendment of the llolicy or a true copy thereof. 118. (

I) Subject to subsections (2) and (3) and sections 119 and ]38, . (

a) the conditions set forth in

Part II of the

Schedule are statutory conditions and shall be deemed to be part of every contract of automobile insurance and shall be printed on every policy with the heading "Statutory Conditions", and (

b) no variation or omission of a statutory condition is valid :nor is anything contained in any addition to a statutory condition or in the description of the subject matter of the insurance effective in so far as it varies, avoids or is j'nconsistent with any such condition.

(2) Where the automobile insurance is neither insurance under a motor vehicle liabilIty policy nor insurance against loss of or damage to an automobile designated in the policy, the Commissioner may prescribe appropriate conditions or may omit, vary or add to the statutory conditions referred to in this section.

(3) The Commissioner may approve a form of motor vehicle liability policy appropriate to insure a limited or restricted use of the automobile and in that case the statu­ tory conditions ~eferred to in this

section shall be deemed to be amended so far as is necessary to give effect to the terms and conditions of the policy so approved and sections 128 and 129 shall not apply in such case. 54

INSURANCE 119.

(1) Where the policy does not insure against liabil­ ity for loss or damage to persons or property, statutory condition 4 of the ~onditions referred to in

section 118 shall not be deemed to be part of the policy.

(2) Where 'the policy does not insure against loss of or damage to an automobile, statutory condition 5 of the condi­ tions referred to in

section 118 shall not be deemed to be part of the policy. 120.

(1) No insurer shall issue or deliver a policy or en­ dorsement to a policy until a copy of the form of policy or endorsement has been on file with the Commissioner for at least thirty days, unless sooner approved in writing by him, nor if within that period the Commissioner notifies the in­ surer in writing that such form of policy or endorsement is not approved.

(2) The Commissioner shall' upon request, specify the reasons for not approving or for disapproving of a form of policy or endorsement.

(3) Where approval has been given by the Commissioner pursuant to this section, the approval may be revoked by him at any time upon giving written notice to the insurer specifying the reasons for revocation of the approval. 121.

(1) Where (

a) an applicant for a contract (

i) gives false particulars of the described automobile to be insured, to the prejudice of the insurer, or (ii) knowingly misrepresents or knowingly fails to disclose in the application any fact required to be stated therein, (

b) the insured violates a term or condition of the policy or commits a fraud, or (

c) the insured wilfully makes a false statement with respect to a claim under the policy, a claim by the insured is invalid and the right of the insured to recover indemnity is forfeited. 55 CHAP. 1 C~rtnill conditions not part OlllOlic),. 1deOl. Insurer mu!;l file with Conlnus­ sioner copy of policy or t!udorsement before issue or delivery. Reasons lor oot .Ipproving or di.· . .approving. Approval lDay be revoked. Voidance of policy lor mi.­ representation, fraud or violation of conditi01I.

CHAP. 1 Statements not in written application. Relief against lorfeiture. Pa)"lllcnt or inslIrallce money. \Vah"ers to be in writing. ~ubrofa. tlono insurer. Di\'ision or amount. I'l"co\"rred. V,eor red ink. I{ight, or insured. preserved. INSURANCE

(2) Where a written application for a contract is made, no statement of the applicant shall be used in defence of a claim under the policy unless it is contained in the written application. 122.

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 insured with respect to the loss, and a conse­ quent forfeiture or avoidance of the insurance in whole or in part, and the Court deems it inequitable that the insur­ ance should be forfeited or avoided on that ground, the Court may relieve against the forfeiture or avoidance on such terms as it may deem just. 123. Insurance money is payable ID lawful money of C:mada 124.

No term or condition of a contract shall be deemed to be waived by the insurer ill whole or in part unless the waiver is stated in writing and signed by an agent of the insurer. 125.

(1) Where an insurer makes any payment or assumes liability there for under a contract of automobile insurance, it is subrogated to all rights of recovery of the insured against any person and may bring action in the name of the insured to enforce such rights.

(2) Where the net amount recovered in an action re­ ferred to in subsection (1), after deduction of the costs of the recovery, is not sufficient to provide a complete indemnity for the loss or damage suffered, the 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. 126. No red ink shall be used in printing a policy, except for the name, address and emblem of the insurer, the policy number and the purposes mentioned in this Part. 127.

Any act or omission of the insurer resulting in non­ compliance or imperfect compliance with any provision of this Part does not render a contract invalid as against the insured. 56

INSURANCE 128.

(1) Every owner's policy insures the person named therein and every other person who, with his consent, personally drives any automobile specifically described in the policy, against the liability imposed by law upon the insured named therein or any such other person for loss or damage (

a) arising from the ownership, use or operation of any such automobile within Canada, the continental United States of America or Alaska, or upon a vessel plying between ports thereof, and (

b) resulting from, (

i) bodily injury to or death of any person, (ii) damage to property, or (iii) both.

(2) Nothing in subsection (1) precludes coverage being provided in an owner's policy to the person named therein and such other persons as may be specified therein, who, with his consent, personally drive any other automobile within the definition thereof appearing in the policy, against the liability imposed by law upon the ins'ured named therein or upon any such other person for loss or damage described in paragraphs (

a) and (

b) of subsection (1).

(3) Any person insured by but not named in a policy may recover indemnity in the same manner and to the same ex­ tent as if named therein as the insured, and for that purpose shall be deemed to be a party to the contract and to have given consideration therefor. 129. Every driver's policy insures the person named there­ in against the liability imposed by law upon the insured for loss or damage, (

a) arising from the operation or use by him of any auto­ mobile, other than an automobile owned by him or registered in his name, while he is personally in con­ trol as driver or occupant of the automobile within Canada, the conti