In this Act, except where inconsistent with the interpretation sections of any Part, 1968, c.6, s.1; 1973, c.52, s.1; 1974, c.22 (Supp.), s.1; 1976, c.34, s.1; 1978, c.30, s.1; 1979, c.41, s.68; 1986, c.4, s.27; 1989, c.17, s.1; 2004, c.36, s.1; 2005, c.20, s.2; 2013, c.31, s.20; 2016, c.36, s.7; 2021, c.8, s.1; 2023, c.6, s.12; 2023, c.17, s.114
“accidental death insurance” means insurance undertaken by an insurer as part of a contract of life insurance whereby the insurer undertakes to pay an additional amount of insurance money in the event of the death by accident of the person whose life is insured;(assurance en cas de décès accidentel)
“adjuster” (expert or expert en sinistres)
(a) means
(i) a person who on behalf of an insurer or an insured, for compensation,
(ii) a person who holds themselves out as an adjuster, investigator, consultant or adviser with respect to the adjustment, negotiation or settlement of the loss or claim, and
(b) does not include
(i) a barrister or solicitor while acting in the usual and regular scope of their employment,
(ii) a trustee or agent of the property insured,
(iii) a liquidator or trustee in bankruptcy while acting in the usual and regular scope of their employment,
(iv) a testamentary executor, director, trustee or fiduciary in the performance of their duties,
(v) an engineer, architect, appraiser, assessor or other expert who is employed solely for the purpose of giving expert advice or evidence,
(vi) a member of a police force, fire department or office of a fire marshal while acting in the usual and regular scope of their employment, and
(vii) any other person prescribed by regulation;
“agent” means a person, other than an insurer, who, for compensation,(agent)
(a) solicits insurance on behalf of an insurer, insured or applicant for insurance,
(b) transmits an application for insurance from an insured or applicant for insurance to an insurer,
(c) transmits a policy of insurance from an insurer to an insured, or
(d) negotiates or offers to negotiate insurance on behalf of an insurer, insured or applicant for insurance or the continuance or renewal of insurance on behalf of an insurer or insured;
“appeal” includes a judicial revision or review of a judgment, decision, order, direction, determination, finding or conviction, and a case stated or reserved;(appel)
“automobile” includes a trolley bus and a self-propelled vehicle, and the trailers, accessories and equipment of automobiles, but does not include railway rolling stock that runs on rails, watercraft or aircraft;(automobile)
“automobile insurance” means insurance,(assurance automobile)
(a) against liability arising out of,
(i) bodily injury to or the death of a person, or
(ii) loss of or damage to property,
(b) against loss of or damage to an automobile and the loss of use thereof,
“Board” means the New Brunswick Insurance Board established under section 19.2;(Commission)
“boiler and machinery insurance” means insurance against loss or damage to property and against liability for loss or damage to persons or property through the explosion, collapse, rupture, or breakdown of, or accident to, boilers or machinery of any kind;(assurance des chaudières et machines)
“broker” Repealed: 2021, c.8, s.1
“cash mutual insurance corporation” means a corporation without share capital, or with guarantee capital stock subject to repayment by the corporation, in respect of which the dividend rate is limited by its Act or instrument of incorporation, that is empowered to undertake insurance on both the cash plan and the mutual plan;(compagnie d’assurance mutuelle en comptant)
“chief agency” means the principal office or place of business in New Brunswick of any licensed insurer having its head office out of New Brunswick;(agence principale)
“compliance officer” means a person appointed as a compliance officer under section 373;(agent de conformité)
“contract” means a contract of insurance and includes a policy, certificate, interim receipt, renewal receipt, or writing evidencing the contract, whether sealed or not, and a binding oral agreement;(contrat)
“court” means The Court of King’s Bench of New Brunswick;(Cour)
“damage appraiser” (estimateur de dommages)
(a) means a person who, for compensation or for promise or expectation of compensation, engages in the business of establishing the amount of loss resulting from any damage to the real or personal property of another person, and
(b) does not include
(i) an employee of a garage, body shop or other repair facility who estimates damage to a motor vehicle while acting in the usual and regular scope of their employment,
(ii) a liquidator or trustee in bankruptcy while acting in the usual and regular scope of their employment,
(iii) a testamentary executor, director, trustee or fiduciary while acting in the usual and regular scope of their employment,
(iv) an engineer, architect, appraiser, assessor or other expert who is employed solely for the purpose of giving expert advice or evidence,
(v) an adjuster while acting in the usual and regular scope of their employment,
(vi) a person not employed by an insurance company, adjusting firm or appraisal firm, who, while in the scope of employment because of technical or expert knowledge, is called on to estimate the damage to or the value of property, either their own, their employer’s or their employer’s customers, and
(vii) any other person prescribed by regulation;
“employees mutual benefit society” means a society incorporated by the officer or officers and employees of a corporation for the purpose of providing support and pensions to such of the officers or employees as become incapacitated or as cease to be employed by the corporation or for the purpose of paying pensions, annuities or gratuities to or for dependents of such officers or employees or funeral benefits upon the death of such officers or employees;(société mutuelle d’employés)
“employers’ liability insurance” means insurance, not being insurance incidental to some other class of insurance defined by or under this Act, against loss to an employer through liability for accidental injury to or death of an employee arising out of or in the course of his employment, but does not include workmen’s compensation insurance;(assurance contre la responsabilité des employeurs)
“endowment insurance” means an undertaking to pay an ascertained or ascertainable sum at a fixed future date, if the person whose life is insured is then alive, or at his death, if he dies before such date;(assurance mixte)
“Facility Association” means the Facility Association established as an unincorporated non-profit association of insurers under The Compulsory Automobile Insurance Act, chapter 87 of the Statutes of Ontario, 1979, and continued under the Compulsory Automobile Insurance Act, chapter 83 of the Revised Statutes of Ontario, 1980, and includes any successor to it;(Facility Association)
“Financial and Consumer Services Commission” means the Financial and Consumer Services Commission continued under the Financial and Consumer Services Commission Act;(Commission des services financiers et des services aux consommateurs)
“foreign jurisdiction” includes any jurisdiction other than New Brunswick;(territoire étranger)
“fraternal society” means a society, order, or association incorporated for the purpose of making with its members only and not for profit, contracts of life, accident, or sickness insurance in accordance with its constitution, by-laws, and rules and this Act; but does not include a mutual benefit society, a friendly society, an employees’ mutual benefit society, or a trade union benefit society;(société de secours mutuel)
“guarantee insurance” means the undertaking to perform an agreement or contract or to discharge a trust, duty or obligation upon default of the person liable for such performance or discharge or to pay money upon such default or in lieu of such performance or discharge or where there is loss or damage through such default, and includes insurance against loss or liability for loss due to the invalidity of the title to any property or of any instrument or to any defect in such title or instrument, but does not include credit insurance;(assurance de cautionnement)
“hail insurance” means insurance against loss of or damage to growing crops caused by hail;(assurance contre la grêle)
“head office” means the place where the chief executive officer of an insurer transacts its business;(siège sociale)
“industrial contract” means a contract of life insurance for an amount not exceeding two thousand dollars, exclusive of any benefit, surplus, profit, dividend or bonus also payable under the contract, and that provides for payment of premiums at fortnightly or shorter intervals, or, if the premiums are usually collected at the home of the insured, at monthly intervals;(contrat populaire)
“inland transportation insurance” means insurance, other than marine insurance, against loss of or damage to property,(assurance de transports terrestres)
(a) while in transit or during delay incidental to transit, or
(b) where, in the opinion of the Superintendent, the risk is substantially a transit risk;
“insurance” means the undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed, or to pay a sum of money or other thing of value upon the happening of a certain event;(assurance)
“insurance fund” , as applied to a fraternal society or as applied to any corporation not incorporated exclusively for the transaction of insurance, includes all money, securities for money and assets appropriated by the rules of the society or corporation to the payment of insurance liabilities or appropriated for the management of the insurance branch, department or division of the society, or otherwise legally available for insurance liabilities, but does not include funds of a trade union appropriated to or applicable for the voluntary assistance of wage earners unemployed or upon strike;(fonds d’assurance)
“insurance money” means the amount payable by an insurer under a contract, and includes all benefits, surplus, profits, dividends, bonuses, and annuities payable under the contract;(sommes assurées)
“insurance on the cash plan” means and includes any insurance that is not mutual insurance;(assurance au comptant)
“insurer” includes any corporation or any society or association incorporated or unincorporated, any fraternal society or any person or partnership, or any underwriter or group of underwriters, that undertakes or effects, or agrees or offers to undertake or effect, a contract of insurance;(assureur)
“investigator” means a person appointed as an investigator under section 378;(enquêteur)
“livestock insurance” means insurance, not being insurance incidental to some other class of insurance defined by or under this Act, against loss through death or sickness of or accident to an animal;(assurance contre la mortalité du bétail)
“lodge” includes a primary subordinate division, by whatever name known, of a fraternal society;(loge)
“marine insurance” means insurance against losses described in subsection 6(1) of the Marine Insurance Act (Canada);(assurance maritime)
“Minister” means the Minister of Finance and Treasury Board and includes any person designated by the Minister to act on the Minister’s behalf. (ministre)
“Minister” Repealed: 2013, c.31, s.20
“motor vehicle” has the same meaning as automobile;(véhicule à moteur)
“motor vehicle liability policy” means a policy or part of a policy evidencing a contract insuring,(police de responsabilité pour automobiles)
(a) the owner or driver of an automobile, or
(b) a person who is not the owner or driver thereof where the automobile is being used or operated by his employee or agent or any other person on his behalf,
“mutual benefit society” means a mutual corporation formed for the purpose of providing sick and funeral benefits for its members where the amounts paid as sick benefits do not exceed thirty dollars per week and as funeral benefits two hundred and fifty dollars, or for these and any other purposes except life insurance, but does not include an employees’ mutual benefit society;(société mutuelle)
“mutual insurance” means a contract of insurance, in which the consideration is not fixed or certain at the time the contract is made but is to be determined at the termination of the contract or at fixed periods during the term of the contract according to the experience of the insurer in respect of all similar contracts whether or not the maximum amount of such consideration is predetermined;(assurance mutuelle)
“mutual insurance corporation” means a corporation without share capital or with guarantee capital stock subject to repayment by the corporation, in respect to which the dividend rate is limited by its Act or instrument of incorporation, that is empowered to undertake mutual insurance exclusively;(compagnie d’assurance mutuelle)
“officer” includes any trustee, director, manager, treasurer, secretary or member of the board or committee of management of an insurer, or any person appointed by the insurer, to sue or be sued in its behalf;(dirigeant)
“owner’s policy” means a motor vehicle liability policy insuring a person in respect of the ownership, use or operation of an automobile owned by him and within the description or definition thereof in the policy and, if the contract so provides, in respect of the use or operation of any other automobile;(police de propriétaire)
“paid in” , when applied to the capital stock of an insurer or to any shares thereof, means the amount paid to the insurer on its shares not including the premium, if any, paid thereon, whether such shares are or are not fully paid;(versé)
“paid up” , when applied to the capital stock of an insurer or to any shares thereof, means capital stock or shares on which there remains no liability, actual or contingent, to the issuing insurer;(libéré)
“plate glass insurance” means insurance, not being insurance incidental to some other class of insurance defined by or under this Act, against loss of or damage to plate, sheet or window glass, whether in place or in transit;(assurance contre le bris des glaces)
“policy” means the instrument evidencing a contract;(police)
“property” includes profits, earnings and other pecuniary 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 provisions in the contract;(biens)
“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 Act;(assurance contre les dommages matériels)
“provincial mutual company” means a mutual insurance corporation incorporated by or under an Act of the Legislature;(compagnie mutuelle provinciale)
“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 Act;(assurance de la responsabilité civile)
“regulated activity” means any activity governed by this Act or the regulations;(activité réglementée)
“regulation” means a regulation made under this Act and, unless the context otherwise indicates, includes a rule;(règlement)
“rule” means a rule made under this Act, or, if the context requires, a rule made under the Financial and Consumer Services Commission Act; (règle)
“sick and funeral benefits” includes insurance against sickness, disability or death;(prestations de maladie et indemnités funéraires)
“sprinkler leakage insurance” means insurance against loss of or damage to property through the breakage or leakage of sprinkler equipment or other fire protection system, or of pumps, water pipes or plumbing and its fixtures;(assurance contre le coulage des extincteurs automatiques)
“Superintendent” means the Superintendent of Insurance appointed under the Financial and Consumer Services Commission Act and includes any person designated by the Financial and Consumer Services Commission or the Superintendent to act on the Superintendent’s behalf.(surintendant)
“theft insurance” means insurance against loss or damage through theft, wrongful conversion, burglary, house-breaking, robbery or forgery;(assurance contre le vol)
“Tribunal” means the Tribunal as defined in the Financial and Consumer Services Commission Act;(Tribunal)
“weather insurance” means insurance against loss or damage through windstorm, cyclone, tornado, rain, hail, flood or frost, but does not include hail insurance;(assurance contre les intempéries)
“workmen’s compensation insurance” means insurance of an employer against the cost of compensation prescribed by statute for bodily injury, disability or death of a workman through accident or disease arising out of or in the course of his employment.(assurance contre les accidents de travail)
Unless the contract otherwise provides, a violation of any criminal or other law in force in the Province or elsewhere does not, ipso facto, render unenforceable a claim for indemnity under a contract of insurance except where the violation is committed by the insured, or by another person with the consent of the insured, with intent to bring about loss or damage; but in the case of a contract of life insurance this section applies only to disability insurance undertaken as part of the contract. 1968, c.6, s.2
1968, c.6, s.3; 1974, c.22 (Supp.), s.2; 2013, c.31, s.20
Subject to the direction of the Financial and Consumer Services Commission, the Superintendent shall have general supervision of the business of insurance within the Province, see that the laws relating to the business of insurance are enforced and obeyed, and report to the Financial and Consumer Services Commission on all matters connected with the business of insurance.
The Financial and Consumer Services Commission may appoint Deputy Superintendents of Insurance who shall perform the duties that are assigned to them by this Act, the Commission or the Superintendent.
2021, c.8, s.22021, c.8, s.2
If the Superintendent considers it appropriate to do so, the Superintendent may exempt, by order and subject to any terms and conditions the Superintendent considers appropriate, any person or class of persons from the application of this Act, the regulations or any provision of this Act or the regulations.
An order under subsection (1) may be made on the Superintendent’s own motion or on the application of an interested person.
An order under subsection (1) may be retroactive in its operation.
A person to whom an order under subsection (1) applies shall comply with the terms and conditions imposed by the Superintendent under that subsection.
In carrying out his duties and in exercising his powers under this Act or under any other Act relating to insurance, the Superintendent may require and may take and receive affidavits, statutory declarations and depositions, and may examine witnesses upon oath; and he has the same power to summon persons to attend as witnesses, to enforce their attendance, to compel them to produce books, documents, accounts, records and things, and to give evidence as any court has in civil cases. 1968, c.6, s.4; 1983, c.42, s.1
An oath required by this Act to be taken, may be administered by the Superintendent or by any person authorized to administer oaths in the Province. 1968, c.6, s.5
Neither the Superintendent nor any officer under him shall be interested as a shareholder, directly or indirectly, in any insurance company doing business in the Province. 1968, c.6, s.6
1968, c.6, s.7; 1981, c.6, s.1; 2016, c.36, s.7
Without a fiat of the Attorney General, no action or proceeding shall be brought or taken against the Superintendent for anything done or omitted in the performance, or intended or supposed performance of his duty under this Act, or under any other Act that imposes duties upon him.
Repealed: 2016, c.36, s.7
The Superintendent may bring actions and institute proceedings in his name of office for the enforcement of any of the provisions of this Act or for the recovery of fees and penalties payable hereunder.
No action or proceeding for the recovery of fees and penalties payable hereunder shall be commenced without the leave of the Superintendent.
1968, c.6, s.8; O.C. 68-516; 2013, c.31, s.20; 2021, c.8, s.4
The Superintendent shall keep the following books and records:
(a) a register of all licences issued pursuant to this Act, in which shall appear the name of the insurer, the address of its head office, the address of its principal office in Canada, the name and address of its principal general agent in the Province, the number of licence, particulars of the classes of insurance for which the insurer is licensed, and such other information as the Superintendent deems necessary;
(b) a record of all securities deposited by each insurer with the Superintendent, naming in detail the several securities, their par value, their date of maturity and value at which they are received as deposit;
(c) a record of all claims of which notice of dispute is filed pursuant to this Act; and
(d) a record of adjusters, adjusting firms, agencies, agents, managing general agents, restricted insurance representatives, third party administrators and special insurance brokers licensed or authorized under this Act.
The books and records required by this section to be kept shall be open to inspection at such time and upon payment of such fees as are prescribed.
2021, c.8, s.52021, c.8, s.5
The Superintendent may publish and distribute, or cause to be published and distributed, annually or at more frequent intervals, and in any manner or format the Superintendent considers appropriate, a list of persons to whom licences have been issued under this Act.
The list of persons referred to in subsection (1) may contain any other information or documents that the Superintendent considers appropriate.
2021, c.8, s.6A certificate purporting to be signed by the Superintendent certifying any one or more of the following facts shall be admissible in evidence and is proof, in the absence of evidence to the contrary, of the facts stated in the certificate without proof of the appointment, authority or signature of the person who signed the certificate: 1968, c.6, s.9; O.C. 68-516; 2013, c.31, s.20; 2021, c.8, s.7
(a) that a person named in the certificate was or was not licensed on a particular date;
(b) that a licence was issued to a person on a date set out in the certificate;
(c) that the licence of a person was renewed, suspended, reinstated, revived, revoked or cancelled at a particular date;
(d) that a licence issued to a person was made subject to terms and conditions; and
(e) any other facts prescribed by regulation.
The Superintendent shall determine the right of an insurer to be licensed under this Act. 1968, c.6, s.10; 2013, c.31, s.20
1968, c.6, s.11; 2021, c.8, s.8
Every decision of the Superintendent upon an application for a licence shall be in writing and notice thereof shall be forthwith given to the insurer.
Repealed: 2021, c.8, s.8
The evidence and proceedings in any matter before the Superintendent may be reported by a stenographer sworn before the Superintendent faithfully to report the same.
1968, c.6, s.12; 2013, c.31, s.20; 2017, c.48, s.9
An applicant for a licence may appeal to the Tribunal a decision of the Superintendent to refuse to issue a licence within 30 days after the date of the decision.
Despite subsection (1), the Tribunal may extend the period for appealing a decision, before or after the expiration of the time, if it is satisfied that there are reasonable grounds for an extension.
The Superintendent may direct to an insurer any inquiry touching its contracts or financial affairs, and the insurer shall make prompt and explicit answer to any such inquiry, and is, in case of refusal or neglect to answer, guilty of an offence. 1968, c.6, s.13
The Superintendent shall have, at all reasonable times, access to all the books, accounts, records, securities and documents of any person licensed or authorized under this Act or the regulations that relate to contracts of insurance, and any officer or person in charge, possession, custody or control of the books, accounts, records, securities or documents who refuses or neglects to allow access is guilty of an offence. 1968, c.6, s.14; 1983, c.42, s.2; 2021, c.8, s.9
2021, c.8, s.102021, c.8, s.10
The following definition applies in this section.
“regulatory authority” means a person empowered by the laws of a jurisdiction to regulate the activities of adjusters, adjusting firms, agencies, agents, damage appraisers, insurers, managing general agents, restricted insurance representatives, special insurance brokers and third party administrators.(organisme de réglementation)
All books, accounts, records, securities and documents required under this Act or the regulations to be kept by an adjuster, adjusting firm, agency, agent, damage appraiser, insurer, managing general agent, restricted insurance representative, special insurance broker or third party administrator shall be kept by those persons in a safe location and in a durable form.
The persons referred to in subsection (2) shall keep client information for a minimum period of seven years after the latest of the following dates:
(a) the final closing of the client record;
(b) the date the last service was rendered to the client; and
(c) the expiration without renewal or the replacement of the last product sold to the client, as the case may be.
An adjuster, adjusting firm, agency, agent, damage appraiser, employee of a restricted insurance representative engaged in the business of insurance, insurer, managing general agent, special insurance broker or third party administrator shall deliver to the Superintendent, at any time that the Superintendent requires,
(a) any of the books, accounts, records, securities and documents that are required to be kept by that person under this Act or the regulations, and
(b) any filings, reports or other communications made to any other regulatory authority.
2021, c.8, s.111968, c.6, s.15; 2021, c.8, s.12
On the request of the Superintendent, any person who holds or held a licence under this Act or, in the opinion of the Superintendent, is or was required to hold a licence under this Act, a damage appraiser, an employee of a restricted insurance representative engaged in the business of insurance or an officer or representative of an insurer shall give the Superintendent full information and provide records about the following matters:
(a) a contract issued by an insurer;
(b) a settlement or adjustment under a contract;
(c) activities related to the business of insurance;
(d) activities related to employees of a restricted insurance representative engaged in the business of insurance;
(e) activities related to damage appraisers;
(f) activities related to the business of a person who holds or held a licence under this Act;
(g) activities related to the business of any other person who, in the opinion of the Superintendent, is or was required to hold a licence under this Act;
(h) the financial affairs of an insurer;
(i) any other matters prescribed by regulation; and
(j) any other matters specified by the Superintendent.
On the request of the Superintendent, an insured person or a purported insured person, a policy owner or a person claiming to be entitled to payment under an insurance contract shall give the Superintendent full information about the following matters:
(a) a contract issued to the insured person or the purported insured person;
(b) a settlement or adjustment under a contract, if the settlement or adjustment relates to the insured;
(c) the acts or practices of a person who holds or held a licence under this Act that are relevant to the purposes of this Act;
(d) the acts or practices of any other person who, in the opinion of the Superintendent, is or was required to hold a licence under this Act that are relevant to the purposes of this Act;
(e) the acts or practices of a person who, in the opinion of the Superintendent, may have committed unfair or deceptive acts or practices in the business of insurance;
(f) the acts or practices of a damage appraiser or an employee of a restricted insurance representative engaged in the business of insurance;
(g) any other matters prescribed by regulation; and
(h) any other matters specified by the Superintendent.
2013, c.31, s.20; 2021, c.8, s.13
The Superintendent may conduct investigations in relation to agencies, agents, insurers, managing general agents, restricted insurance representatives and special insurance brokers concerning the premiums charged for contracts of insurance and the availability of contracts of insurance.
The Superintendent may conduct an investigation under subsection (1) as a result of a complaint made to the Superintendent or on his or her own initiative.
1968, c.6, s.16; 2013, c.31, s.20
The Superintendent shall visit personally, or cause to be visited, at least annually, the head office or chief agency in the Province of every licensed insurer, other than a mutual benefit society having less than three hundred members, or any insurer as to which he adopts the inspection of some other government, and he shall verify the statement of the condition and affairs of each insurer filed under this Act, and make such inquiries as are necessary to ascertain its ability to provide for the payment of its contracts as they mature, and whether or not it has complied with all the provisions of this Act applicable to its transactions; and the Superintendent shall report to the Financial and Consumer Services Commission on all matters requiring its attention and decision.
If the head office of an insurer is not in the Province, the Financial and Consumer Services Commission may instruct the Superintendent to visit the head office to inspect and examine the insurer’s affairs and to make any inquiries that the Commission requires.
The officers or agents of the insurer shall produce its books and records for the inspection of the Superintendent or other person making the inspection, and shall otherwise facilitate such examination so far as is in their power.
In order to facilitate such inspection the Superintendent may require the insurer to produce the books and records at the head office or chief agency of the insurer in the Province or at such other convenient place as the Superintendent directs; any officer of the insurer who has custody of the books and records so attending shall be entitled to be paid by the insurer the actual expenses of such attendance.
The Superintendent may cause abstracts to be prepared of the books and vouchers and a valuation to be made of the assets and liabilities of an insurer, and the cost of preparing these shall be paid by the insurer in accordance with a certificate of the costs presented by the Superintendent.
Where the office of an insurer at which an examination is made is out of the Province the insurer shall pay the account of the Superintendent in connection with such examination upon the certificate of the Superintendent.
The Superintendent may, with respect to any insurer, accept the inspection and report, in whole or in part, of, or made under the authority of, any other government in Canada.
1968, c.6, s.17; 1993, c.8, s.1
Where the head office of a licensed insurer is situate outside of the Province, notice or process in any action or proceeding in the Province may be effectually served on the insurer by sending a copy of the notice or process to the insurer by registered mail, postage prepaid, addressed to the insurer at the most recent address filed in the office of the Superintendent under subsection (2).
Any notice or process served on an insurer in accordance with subsection (1) shall be deemed to have been received by the insurer ten days after the date of mailing.
Every licensed insurer shall file in the office of the Superintendent notice of a post office address to which any such notice or process may be sent to the insurer and shall from time to time notify the Superintendent of any change in the address.
Repealed: 1993, c.8, s.1
Repealed: 1993, c.8, s.1
Repealed: 1993, c.8, s.1
Repealed: 2021, c.8, s.14 2021, c.8, s.14Repealed: 2021, c.8, s.15 1993, c.8, s.2; 2021, c.8, s.15
1968, c.6, s.18; 2013, c.31, s.20; 2017, c.48, s.9
The Superintendent shall prepare for the Financial and Consumer Services Commission, from the statements filed by the insurers and from any inspection or inquiries made, an annual report showing particulars of the business of each insurer as ascertained from those statements, inspection and inquiries; and the Financial and Consumer Services Commission may publish the report after its completion.
In his report the Superintendent shall allow as assets only such of the investments of any insurer as are authorized by this Act, its charter or any other Act applicable to such investments.
In his report the Superintendent shall make the necessary corrections in the annual statement of any insurer and may increase or diminish the liabilities of such insurer to the true and correct amounts thereof as ascertained from any examination of its affairs.
If it appears to the Superintendent, or if he has any reason to suppose, from the annual statement that the value placed by an insurer upon any of its real estate is too great, he may either require such insurer to secure an appraisement of such real estate by one or more competent valuators, or may himself procure such appraisement at the expense of the insurer, and the appraised value, if it varies materially from the statement made by the insurer, may be substituted in the annual report of the Superintendent.
In like manner the Superintendent may procure an appraisement of any parcel of land that constitutes the security for any loan and if from the appraisal it appears that such parcel is not adequate security for the loan and accrued interest, he may reduce the value to such amount as is fairly realizable from such security, in no case to exceed such appraised value, and may insert such reduced value in his report.
In like manner the Superintendent may make or cause to be made an appraisal of the securities taken for any investments of the insurer, and if it appears that the value of the securities as shown on the books of the insurer is greater than their true value as shown by the appraisal he may reduce the book value of the same to such amount as is fairly realizable therefrom, and in no case to exceed such appraised value and may insert such reduced amount in his annual report.
The Superintendent may require any insurer licensed under this Act to dispose of and realize any of its investments acquired after the passing of this Act and not allowed in his report, and the insurer shall, within sixty days after receiving such request, absolutely dispose thereof; the licence of any insurer that fails to comply with such request may be cancelled or suspended by the Superintendent.
An insurer affected thereby may, within 30 days after the date of the ruling, appeal to the Tribunal from the ruling of the Superintendent as to the allowance in his report of any asset not allowed by him, or as to any item or amount added to liabilities, or as to any correction or alteration made in its statement.
Despite subsection (8), the Tribunal may extend the period for appealing a ruling, before or after the expiration of the time, if it is satisfied that there are reasonable grounds for an extension.
Repealed: 2013, c.31, s.20 1968, c.6, s.19; 2013, c.31, s.20
2004, c.36, s.2In this Part, 2004, c.36, s.2
“electronic hearing” means a hearing held by telephone conference or some other form of electronic technology allowing persons to hear one another;(audience électronique)
“fiscal year” means the period commencing on April 1 in one year and ending on March 31 the next year;(année financière)
“oral hearing” means a hearing at which the parties or their counsel or agents attend before the Board in person;(audience orale)
“written hearing” means a hearing held by exchanging documents, whether in written form or electronically.(audience écrite)
2004, c.36, s.2The New Brunswick Insurance Board is established consisting of such number of members as may be appointed by the Lieutenant-Governor in Council, one of whom shall be appointed Chairperson and another who shall be appointed Vice-chairperson. 2004, c.36, s.2
2004, c.36, s.22004, c.36, s.2
The term of office of the Chairperson shall not exceed ten years, and may not be renewed, and the term of office of any other member shall not exceed three years and may be renewed.
The appointment of the Chairperson, the Vice-chairperson and the other members of the Board may be revoked by the Lieutenant-Governor in Council for cause.
2004, c.36, s.2The Lieutenant-Governor in Council may determine the remuneration to be paid to the Chairperson, the Vice-chairperson and the other members of the Board and may fix the rate for reimbursement of expenses incurred by them while acting on behalf of the Board. 2004, c.36, s.2
2004, c.36, s.22004, c.36, s.2
The Chairperson, the Vice-chairperson and the other members of the Board, before commencing their duties, shall take the following oath or affirmation before a person authorized to administer it:
An oath or affirmation taken under subsection (1) shall be filed with the Minister.
2004, c.36, s.2A person appointed as a member of the Board continues to hold office after the expiry of the member’s term until the member is reappointed, the member’s successor is appointed or twelve months have elapsed, whichever occurs first. 2004, c.36, s.2
2004, c.36, s.2The Chairperson is the chief executive officer of the Board. 2004, c.36, s.2
2004, c.36, s.22004, c.36, s.2
In addition to the powers, functions and duties of the Board prescribed elsewhere in this Act, the Board may investigate or inquire into any matter relating to rates of insurance for other classes or types of insurance as may be prescribed by regulation and shall make recommendations to the Minister as a result of its investigation or inquiry.
Every member of the Board has the power and privileges of a commissioner under the Inquiries Act and the regulations under that Act.
The Board may make rules governing its procedures.
The Board has full jurisdiction to hear and determine all matters, whether of law or fact.
2004, c.36, s.22004, c.36, s.2
The Board shall act, for any particular purpose, in any particular situation and at any particular time, as directed from time to time by the Chairperson, in relation to the particular purpose, situation or time, either
(a) as a full Board, or
(b) as a panel of the Board consisting of the Chairperson or the Vice-chairperson, as the chairperson of a panel, and two other members of the Board.
Two or more panels of the Board may be constituted and may act simultaneously.
A panel of the Board constitutes a quorum of the Board.
A decision of the majority of the members of a panel is the decision of the panel but if there is no majority, the decision of the chairperson of the panel is the decision of the panel.
Any decision or order or any act or thing done by a panel of the Board shall be a decision, order or an act or thing done by the Board.
The Chairperson shall, in his or her discretion, direct that a particular matter required or authorized to be heard, determined or otherwise dealt with by the Board, or any other act or thing required or authorized to be done by the Board, be heard, determined or otherwise dealt with or be done 2004, c.36, s.2
(a) by the full Board, or
(b) by a panel of the Board consisting of the Chairperson or a Vice-chairperson, as the chairperson of a panel, and two other members of the Board.
2004, c.36, s.2Every order or decision of the Board and every appointment made by the Board shall be signed by the Chairperson or the Vice-chairperson, and when purporting to be so signed shall be presumed to have been signed by the person purporting to have signed it, without proof of the signature, authority or appointment of the person purporting to have signed it, and when adduced as evidence in any proceeding, it shall be received and shall constitute, in the absence of evidence to the contrary, proof of its making and of its content. 2004, c.36, s.2
2004, c.36, s.22004, c.36, s.2
The Lieutenant-Governor in Council may by regulation establish policies and rules to be observed by the Board in the exercise of any jurisdiction or authority conferred upon it under this Act.
Subsection (1) does not authorize any regulation directed specifically to any application, matter or decision pending before the Board.
2004, c.36, s.2The Board, when inquiring into, hearing or determining any matter or thing under this Act 2004, c.36, s.2
(a) may determine its own procedure, and may give directions about process and procedure that it considers appropriate in the circumstances, including a direction for an electronic hearing, a written hearing, an oral hearing or a pre-hearing conference,
(b) may request from anyone, and require anyone to gather, evidence or studies relevant and incidental to the matters over which it has jurisdiction under this Act,
(c) is not required to hold an oral hearing unless it considers it necessary to do so in order to act in a procedurally fair manner,
(d) shall ensure procedural fairness to all affected persons,
(e) is not bound by any common law rule of evidence except that the evidence it considers shall be relevant, material and trustworthy as it determines, and
(f) may make orders allowing evidence to be taken outside the Province and used in its proceedings.
2004, c.36, s.22004, c.36, s.2
The Board may enter into leases, licences, agreements and contracts for provision to the Board of services, accommodations and other matters necessary for the functioning of the Board and may sue and be sued with respect to enforcement of the same.
Nothing in this section shall be construed as authorizing any action, suit or other legal proceeding against the Board for or arising out of any order, decision or direction given or made by the Board exercising the power or jurisdiction of the Board under this Act.
2004, c.36, s.22004, c.36, s.2
The Board may appoint a secretary and an assistant secretary who shall be employees of the Board.
The Board may engage the services of persons having special, technical or other knowledge for the purpose of assisting the Board.
2004, c.36, s.22004, c.36, s.2
The Chairperson, Vice-chairperson, members and employees of the Board are not personally liable for anything done
(a) by the Board, or
(b) while acting under the authority of this Act,
The Chairperson, the Vice-chairperson, a member or an employee of the Board shall not, in any proceeding to which the Board is not a party, be required to give evidence with regard to information obtained in the discharge of their official duties.
2004, c.36, s.2Where information concerning the costs of an insurer, or other information that is by its nature confidential, is obtained from an insurer by the Board in the course of any investigation under this Act, or is made the subject of inquiry by any party to any proceeding held under the provisions of this Act, such information shall not be published or revealed in such a manner as to be available for the use of any person unless in the opinion of the Board such publication or revelation is necessary in the public interest. 2004, c.36, s.2
2004, c.36, s.22004, c.36, s.2
An insurer to whom the Board makes a request for documents or information of any kind shall furnish the required information to the Board.
The Minister and any other minister, Service New Brunswick, a Crown corporation or other agency of the Province shall furnish the Board with such certificates and certified copies of documents as the Board may in writing require, without charge, and the Board may at any time search in the public records of Service New Brunswick without charge.
2004, c.36, s.22004, c.36, s.2; 2008, c.2, s.1; 2013, c.31, s.20
The Board shall, unless it orders otherwise, give notice of a hearing with respect to rates charged or proposed to be charged by an insurer who carries on the business of automobile insurance in the Province by advertisement for a period of not less than twenty days in one or more newspapers published in the Province.
The Board shall notify the Attorney General and the Financial and Consumer Services Commission of a hearing.
The Board shall provide the following with copies of all documents relevant to the hearing if requested to do so:
(a) the Attorney General; and
(b) the Financial and Consumer Services Commission.
The Attorney General may intervene at the hearing and make representations that he or she considers to be in the public interest.
2004, c.36, s.22004, c.36, s.2
A person who is a party to a hearing, or who is authorized to appear before the Board at a hearing, may appeal an order or decision of the Board to The Court of Appeal of New Brunswick.
A notice of appeal shall be filed within thirty days after the issuance of the order or decision and shall contain the names of the parties and the date of the order or decision appealed from.
A copy of the notice of appeal shall be served upon the other parties and any person who was authorized to appear before the Board within ten days after the filing of the notice of appeal with The Court of Appeal of New Brunswick.
The Court of Appeal of New Brunswick may confirm, modify, vary or reverse the order or decision of the Board.
2004, c.36, s.22004, c.36, s.2; 2023, c.17, s.114
The annual expenses of the Board incurred or to be incurred by it under sections 121.3 and 267.2 to 267.9 that, without restricting the generality of the foregoing, include the salaries and travelling expenses of the members and secretary and Board employees, the payment of stenographers, experts and witnesses, office rent, unforeseen and contingent expenses, and all other expenses of the Board for the then current year ending on the thirty-first day of March next ensuing, together with any sum necessary to make up any arrears or deficiency in the assessment for the preceding year, or the collection of the assessment, shall be borne by insurers who carry on the business of automobile insurance in the Province.
The Board shall determine the amount to be assessed having regard to the amount required for the previous year, but for the first year of operation, shall have regard to the expenses required for the previous year by the Board of Commissioners of Public Utilities in respect of its former responsibilities under this Act.
The Board shall, before the commencement of the fiscal year in respect of which the annual expenses are determined, assess each insurer who carries on the business of automobile insurance in the Province with its share of the annual expenses, which shall be determined according to the proportion that each insurer’s net receipts bears to the total net receipts of all insurers who carry on the business of automobile insurance in the Province and the secretary shall notify each insurer by registered post of the amount so assessed upon it.
The amount so assessed shall be paid to the Board within forty-five days after the posting of such notice, and in default of payment, the Board may transmit to a clerk of the court a certificate stating that the assessment was made, the amount remaining unpaid on the account and the person by whom the amount was payable, and such certificate or a copy of it, certified by the Chairperson of the Board to be a true copy of the certificate, may be filed with the court and when so filed and sealed with the seal of such court shall become an order of that court upon which judgment may be entered against such person for the amount mentioned in the certificate, together with the fees of the clerk or agent allowable in the case of a default judgment and such judgment may be enforced by execution or otherwise as any other judgment of the court.
The Superintendent shall forward to the Board information requested by the Board for the purpose of making the assessment under this section.
2004, c.36, s.22004, c.36, s.2
The Board shall make and submit to the Minister by the first of March in each year an annual report on the operation of the Board under this Act for the preceding calendar year.
The Minister shall lay the report before the Legislative Assembly if it is in session, or if not, then at the next ensuing session.
2004, c.36, s.2Any decision or order of the Board of Commissioners of Public Utilities under this Act that is valid and of full force and effect immediately before the commencement of this section continues to be valid and of full force and effect and shall be deemed to be the decision or order of the New Brunswick Insurance Board. 2004, c.36, s.2
After the commencement of this section, any proceeding, hearing, matter or thing commenced by the Board of Commissioners of Public Utilities that would be dealt with by the New Brunswick Insurance Board, if commenced after the commencement of this section, may be dealt with and completed by the New Brunswick Insurance Board. 2004, c.36, s.2
The documentation, information, records and files pertaining to any proceeding, hearing, matter or thing dealt with and completed by the Board of Commissioners of Public Utilities under this Act becomes the documentation, information, records and files of the New Brunswick Insurance Board on the commencement of this section. 2004, c.36, s.2
2004, c.36, s.2
Any proceeding, hearing, matter or thing dealt with and completed by the Board of Commissioners of Public Utilities under subsection (1) shall be dealt with and completed in accordance with the law as it existed immediately before the commencement of this section and as if that Board had not been replaced with respect to its responsibilities under this Act by the New Brunswick Insurance Board.
Any decision or order of the Board of Commissioners of Public Utilities made in accordance with subsection (1) shall be deemed to be a decision or order of the New Brunswick Insurance Board.
2004, c.36, s.2The Lieutenant-Governor in Council may make regulations 2004, c.36, s.2
(a) respecting the eligibility of a person to be or remain a member of the Board;
(b) prescribing classes or types of insurance for the purposes of subsection 19.3(1).
1968, c.6, s.20
Any insurer undertaking a contract of insurance that under the provisions of this Act is deemed to be made in the Province, whether the contract is original or a renewal, except the renewal from time to time of life insurance policies, shall be deemed to be undertaking insurance in the Province within the meaning of this Part.
Any insurer that within the Province
(a) undertakes or offers to undertake insurance;
(b) sets up or causes to be set up any sign containing the name of the insurer; or
(c) maintains or operates either in its own name or in the name of an agent or other representative, any office for the transaction of the business of insurance either within or without the Province; or
(d) distributes or publishes or causes to be distributed or published any proposal, circular, card, advertisement, printed form or like document; or
(e) makes or causes to be made any written or oral solicitation for insurance; or
(f) issues or delivers any policy of insurance or interim receipt or collects or receives or negotiates for or causes to be collected or received or negotiated for any premium for a contract of insurance or inspects any risk or adjusts any loss under a contract of insurance; or
(g) prosecutes or maintains any action or proceeding in respect of a contract of insurance;
1982, c.32, s.1
No insurer carrying on business in the Province shall use any form or document relating to a contract of insurance and which is to be provided to an applicant for insurance, an insured, a beneficiary or a claimant unless that form or document is provided or made available in both official languages; and every insurer shall, if the Superintendent so requests, file a copy of the form or document in each official language in the office of the Superintendent.
The Superintendent may require an insurer to change a form or document filed under subsection (1) and, when the Superintendent so requires, he shall specify in writing his reasons for requiring the change.
1986, c.48, s.1; 2008, c.11, s.14
No insurer carrying on business in the Province shall engage a solicitor to act on behalf of an insured unless the insured has indicated to the insurer the official language he wishes to be used by the solicitor acting on his behalf.
Where an insurer is required or wishes to engage a solicitor to act on behalf of an insured, the insurer shall, after the insured has indicated the official language he wishes to be used by the solicitor acting on his behalf, engage a solicitor who uses that official language.
Repealed: 2008, c.11, s.14
1968, c.6, s.21; 2008, c.11, s.14; 2016, c.36, s.7; 2021, c.8, s.16
Every insurer carrying on business in the Province shall obtain from the Superintendent and hold a licence under the provisions of this Act.
Every insurer carrying on business in the Province without having obtained a licence, as required by this section, is guilty of an offence.
Repealed: 2016, c.36, s.7
Any person who, within the Province, does or causes to be done any act or thing mentioned in section 20 on behalf of, or as agent of, an insurer not licensed under this Act, or who receives, directly or indirectly, any remuneration for so doing, is guilty of an offence.
The following shall not be deemed insurers within the meaning of this Act or required or entitled to be licensed as such:
(a) employees mutual benefit societies;
(b) a trade union that, under the authority of its charter, has an assurance or benefit fund for the benefit of its own members exclusively;
(c) an organization the membership of which is limited to those engaged in or who at the time they became members were engaged in a particular trade, calling or profession, that under the authority of its charter has an assurance or benefit fund for the benefit of its own members exclusively;
(d) any other organization prescribed by regulation.
An insurer incorporated and licensed by the Province, that carries on or solicits business in any foreign jurisdiction without being first authorized so to do under the laws of such foreign jurisdiction, is guilty of an offence.
Nothing in this Act prevents a licensed insurer that has lawfully effected a contract of insurance in the Province from reinsuring the risk or any portion thereof with any insurer transacting business out of the Province and not licensed under this Act. 1968, c.6, s.22
1968, c.6, s.23
Upon due application and upon proof of compliance with this Act, the Superintendent may issue a licence to undertake contracts of insurance and carry on business in the Province to any insurer coming within one of the following classes:
(a) joint stock insurance companies;
(b) mutual insurance corporations;
(c) cash-mutual insurance corporations;
(d) fraternal societies;
(e) mutual benefit societies;
(f) companies duly incorporated to undertake insurance contracts and not within any of the foregoing classes;
(g) reciprocal or inter-insurance exchanges;
(h) underwriters or syndicates of underwriters that are members of the society known as Lloyd’s, incorporated by the Imperial statute, Lloyd’s Act, 1871.
A licence issued pursuant to this Act shall authorize the insurer named therein to exercise within the Province all rights and powers reasonably incidental to the carrying on of the class or classes of insurance named therein, that are not inconsistent with the provisions of this Act or with the terms of its charter.
2021, c.8, s.171968, c.6, s.24; 2004, c.36, s.3; 2008, c.2, s.2; 2013, c.31, s.20; 2016, c.36, s.7; 2021, c.8, s.18
Subject to the provisions of Parts of this Act particularly relating to any of the classes of insurers mentioned in the preceding section, a licence may be issued to an insurer to carry on any one or more of the classes of insurance defined in section 1 and such other classes as may be prescribed by the regulations.
Repealed: 2016, c.36, s.7
A licence to carry on automobile insurance in the Province is subject to the following conditions:
(a) in any action in the Province against the licensed insurer or its insured arising out of an automobile accident in the Province, the insurer shall appear and shall not set up any defence to a claim under a contract made outside the Province, including any defence as to the limit or limits of liability under the contract, that might not be set up if the contract were evidenced by a motor vehicle liability policy issued in the Province;
(b) in any action in another province or territory of Canada against the licensed insurer, or its insured, arising out of an automobile accident in that province or territory, the insurer shall appear and shall not set up any defence to a claim under a contract evidenced by a motor vehicle liability policy issued in this Province including any defence as to the limit or limits of liability under the contract, that might not be set up if the contract were evidenced by a motor vehicle liability policy issued in the other province or territory;
(c) Repealed: 2008, c.2, s.2
The Superintendent may restrict, at any time, a licence issued to an insurer by imposing any terms and conditions that the Superintendent considers appropriate on the licence.
A holder of a licence issued to an insurer shall comply with the terms and conditions of the licence.
The Superintendent shall not impose terms and conditions on a licence issued to an insurer without giving the applicant for the licence or the holder of the licence an opportunity to be heard.
An applicant for a licence issued to an insurer or a holder of the licence may appeal to the Tribunal a decision of the Superintendent to impose a term and condition on a licence within 30 days after the date of the decision.
Despite subsection (3.4), the Tribunal may extend the period for appealing the imposition of any terms and conditions on a licence, before or after the expiration of the time, if it is satisfied that there are reasonable grounds for an extension.
The Superintendent may accept a written undertaking made by an applicant for an insurer’s licence or the holder of an insurer’s licence or an officer, representative or employee of an insurer.
A person providing an undertaking under subsection (3.6) shall comply with the undertaking.
The licence of an insurer who commits a breach of any of the conditions of licence set out in subsection (3) may be cancelled.
Every insurer licensed for the transaction of life insurance may under the authority of its licence, unless the licence expressly provides otherwise, issue annuities and endowments of all kinds and also include in any policy of life insurance, in respect of the same life or lives insured thereby, disability insurance and accidental death insurance.
Every insurer licensed to carry on fire insurance may, subject to its Act of Incorporation and subject to the restrictions prescribed by the licence, insure or reinsure any property in which the insured has an insurable interest against loss or damage by fire, lightning or explosion and may insure or reinsure the same property against loss or damage from falling aircraft, earthquake, windstorm, tornado, hail, sprinkler leakage, riot, malicious damage, weather, water damage, smoke damage, civil commotion, and impact by vehicles and any one or more perils falling within such other classes of insurance as are prescribed by the regulations.
An insurer licensed to carry on fire insurance may insure an automobile against loss or damage under a policy falling under Part IV of this Act.
Where a question arises as to the class of insurance into which any specific contract of insurance or form of policy falls, the Superintendent may determine the question, and his determination is effective and final for the purposes of this Act.
1968, c.6, s.25; 1974, c.22 (Supp.), s.3; 1976, c.34, s.2; 1983, c.42, s.3
A licence shall not be issued to a joint stock insurance company not licensed before this section comes into force, unless the company furnishes to the Superintendent satisfactory evidence that of the capital stock not less than three million dollars has been bona fide subscribed for, allotted and paid in and, in addition,
(a) where the company is undertaking life insurance, the company has an unimpaired surplus of not less than five hundred thousand dollars, or
(b) where the company is not undertaking life insurance, the company has an unimpaired surplus of not less than two hundred and fifty thousand dollars.
A licence shall not be issued to an insurer mentioned in paragraph 23(1)(b), (c), or (f), other than a provincial mutual company, except upon proof that the net surplus of assets over all liabilities exceeds the amount fixed by subsection (1) for the paid in capital stock of joint stock insurance companies, and that such net surplus of assets over all liabilities together with the contingent liability of members, if any, exceeds the amount fixed by subsection (1) for the subscribed and allotted capital stock of joint stock insurance companies for the respective classes of insurance mentioned therein.
No provincial mutual company is entitled to a renewal of a licence except upon proof that during the preceding calendar year the total amount insured under the contracts of the company was at all times not less than one hundred thousand dollars.
A licence shall not be issued to any insurer except upon proof that such insurer has complied with the provisions of this Act and regulations applicable hereto.
Where the head office of an applicant for a licence under this Act is situate outside of the Province, a licence shall not be issued except upon proof of the applicant’s ability to provide for the payment at maturity of all its contracts, but the Superintendent may accept as sufficient the fact that such insurer is licensed by any government in Canada.
No provincial company or extra-provincial company as defined in the Loan and Trust Companies Act shall apply for or obtain a licence under this Act after the commencement of the Loan and Trust Companies Act. 1987, c.L-11.2, s.282
The Superintendent may require such notice of the application for a licence to be given by publication in The Royal Gazette and elsewhere as he deems necessary. 1968, c.6, s.26
1968, c.6, s.27
Before the issue of a licence to an insurer, the insurer shall file in the office of the Superintendent,
(a) a certified copy of its Act or charter of incorporation, that shall include its regulations verified in manner satisfactory to the Superintendent,
(b) an affidavit or statutory declaration that the insurer is still in existence and legally authorized to transact business under its charter,
(c) a certified copy of its last balance sheet and auditor’s report thereon,
(d) notice of the place where the head office of the insurer is situate, if without the Province,
(e) notice of the place where the chief agency or head office of the insurer in the Province is to be situate,
(f) a statement showing the amount of capital of the insurer and the number of shares into which it is divided, the number of shares subscribed and the amount paid thereon,
(g) a certified copy of the power of attorney to its Canadian chief agent, if any,
(h) notice of appointment of chief agent or resident manager for the Province,
(i) a statement in such form as is required by the Superintendent of the condition and affairs of the insurer on the thirty-first day of December then last preceding or up to the usual balancing day of the insurer or as the Superintendent requires, and
(j) such other evidence as the Superintendent requires.
In the event of a change at any time being made in the charter of the insurer or its head office or chief agency or in its chief agent, such insurer shall forthwith notify the Superintendent thereof and file with him such further certified copies, notices or powers of attorney as are necessary to evidence such change.
1968, c.6, s.28; 2008, c.11, s.14
Upon application being made for a licence by an insurer incorporated under the laws of the Province after the commencement of this Act, the insurer shall submit to the Superintendent a sworn statement setting forth the several sums of money paid in connection with its incorporation and organization, and therein a list of all unpaid liabilities, if any, arising out of such incorporation and organization.
Until the licence is granted, no payment on account of such expenses shall be made by the insurer out of the money paid in by shareholders, except reasonable sums for the payment of clerical assistance, legal services, office rental, advertising, stationery, postage and expenses of travel, if any.
The Superintendent shall not issue the licence until he is satisfied that all requirements of this Act and of any other Act as to subscriptions of stock, payment of money by shareholders on account thereof, election of directors and other preliminaries have been complied with, and that the expenses of incorporation and organization including the commission payable for the sale of the stock are reasonable.
1968, c.6, s.29; 2013, c.31, s.20; 2016, c.36, s.7
The licence shall be in such form as is determined by the Superintendent, shall specify the class or classes of insurance to be carried on by the insurer and shall expire on the thirty-first day of May next after its issue, but may be renewed from year to year.
Repealed: 2016, c.36, s.7
When an insurer has deposited with the Superintendent the security required by this Act and has otherwise complied with the requirements thereof and of any other Act of the Legislature, the Superintendent may issue a licence to it. 1968, c.6, s.30
1968, c.6, s.31
Upon written notice to the Superintendent and upon proof of an undisputed claim arising from loss insured against in the Province remaining unpaid for the space of sixty days after becoming due, or of a disputed claim, after final judgment and tender of a valid discharge, being unpaid, the Superintendent shall cancel the licence of the insurer; but the Superintendent shall first by registered letter mailed to the insurer at its chief agency or head office within the Province allow and require the insurer within ten days to show adequate cause why its licence should not be cancelled.
The Superintendent may revive the licence and the insurer may again carry on business if, within six months after notice to the Superintendent of the failure of the insurer to pay such an undisputed claim or the amount of such final judgment such undisputed claim or final judgment is paid and satisfied.
Where the insurer fails to keep unimpaired the deposit required by this Act, the Superintendent may suspend or cancel the licence of the insurer. 1968, c.6, s.32; 2013, c.31, s.20
1968, c.6, s.33; O.C. 68-516; 2013, c.31, s.20
If the Superintendent, upon examination or from annual statements or upon other evidence, finds that the assets of an insurer are insufficient to justify the continuance of the insurer in business or to provide proper security to persons effecting insurance with the insurer in the Province or that the insurer has failed to comply with any provision of law, or its charter, the Superintendent may suspend or cancel the licence of the insurer under subsection (3) or issue a modified, limited or conditional licence under subsection (5).
In the case of an insurer undertaking contracts of life insurance, if its policy reserves, and in the case of any other insurer if its unearned premiums, in both cases, respecting outstanding contracts made or deemed to be made in the Province, together with any other liabilities in the Province, exceed its assets in the Province, including the deposit in the hands of the Superintendent, the assets of such insurer shall be deemed insufficient to justify its continuance in business within the meaning of subsection (1).
After a hearing or giving notice of a hearing to the insurer and on any further investigation he or she thinks proper, the Superintendent may suspend or cancel the licence of the insurer.
Upon the publication of notice of such suspension or cancellation of licence in The Royal Gazette, any person transacting business in the Province on behalf of the insurer except for winding-up purposes is guilty of an offence.
The Superintendent may issue a modified, limited or conditional licence to an insurer if he or she considers it necessary for the protection of persons in the Province who have effected or effect contracts of insurance with the insurer.
Upon the suspension or cancellation of the licence of an insurer by any government in Canada, the Superintendent may suspend or cancel the licence of such insurer under this Act. 1968, c.6, s.34
Where the licence of an insurer is suspended or cancelled, it may be revived if the insurer makes good the deposit, or the deficiency, or remedies its default, as the case may be, to the satisfaction of the Superintendent. 1968, c.6, s.35; 1987, c.6, s.45; 2013, c.31, s.20
The Superintendent may suspend, cancel or refuse to renew the licence of an insurer who has violated a provision of this Act. 1968, c.6, s.36; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.37; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.38; O.C.68-516; 1987, c.6, s.45; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.39; O.C.68-516; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.40; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.41; O.C.68-516; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.42; 2008, c.11, s.14; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.43; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.44; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.45; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.46; 1979, c.41, s.68; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.47; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.48; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.49; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.50; 1987, c.6, s.45; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.51; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.52; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.53; 1979, c.41, s.68; 1986, c.4, s.27; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.54; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.55; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.56; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.57; 1979, c.41, s.68; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.58; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.59; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.60; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.61; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.62; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.63; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.64; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.65; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.66; O.C.68-516; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.67; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.68; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.69; 2013, c.31, s.20
Repealed: 2013, c.31, s.20 1968, c.6, s.70; 2013, c.31, s.20
2013, c.31, s.20; 2017, c.48, s.9
At any time, the Superintendent may require an insurer to deposit securities acceptable to the Superintendent in an amount he or she considers necessary and on the conditions that he or she considers proper.
The securities referred to in subsection (1) shall be deposited with the Superintendent within 30 days after the date the Superintendent requires the deposit or within a longer period of time if agreed to by the Superintendent.
An insurer may appeal to the Tribunal the decision of the Superintendent to require a deposit within 30 days after the date of the decision.
Despite subsection (3), the Tribunal may extend the period for appealing a decision, before or after the expiration of the time, if it is satisfied that there are reasonable grounds for an extension.
No part of a deposit shall be withdrawn without the approval of the Superintendent.
The Superintendent may suspend the licence of an insurer that fails to deposit securities in the amount and within the time required by
(a) the Superintendent, or
(b) the Tribunal, if the insurer has appealed the Superintendent’s decision under subsection (3).
2013, c.31, s.20
Securities deposited with the Superintendent are vested in the Superintendent without any formal transfer.
If an insurer is in compliance with this Act, the insurer is entitled to the interest and dividends paid on securities while the securities are deposited with the Superintendent.
The Superintendent may permit an insurer to substitute other securities for those deposited by the insurer.
2013, c.31, s.20
If an insurer incorporated and licensed under the laws of New Brunswick or a reciprocal or inter-insurance exchange provided for in Part XIII wants to be licensed by another province that requires a deposit, the Superintendent may hold securities as a deposit on a reciprocal basis for the other province.
The Superintendent shall hold and administer a deposit made under subsection (1) as security for the New Brunswick contracts of the insurer and for its contracts in any reciprocating province.
If a reciprocating province requires that the amount of a deposit be in a fixed amount, the Superintendent may, by order, fix the required amount of the deposit and list the reciprocating provinces with respect to the deposit.
If an insurer that has deposited securities with the Superintendent under this section ceases to carry on the business of insurance in New Brunswick or its licence is suspended or revoked under this Act, the Superintendent shall notify each reciprocating province of the cessation, suspension or revocation.
A notice given under subsection (4) shall state that the reciprocating province is entitled to submit to the Superintendent an accounting of all claims and liabilities outstanding in the reciprocating province in respect of the insurer before the deposit is released to the insurer.
If the Superintendent receives notice that an insurer that has deposited securities with the Superintendent has ceased to transact business in a reciprocating province or that the insurer’s licence to transact the business of insurance has been suspended or revoked in that province, at the request of the reciprocating province the Superintendent may take any action that the Superintendent could take if the insurer ceased to carry on the business of insurance in New Brunswick or could take if the licence of the insurer were suspended or revoked in New Brunswick.
If the Superintendent receives notice that an order has been made in another province for the administration of a deposit of an insurer in respect of which New Brunswick is a reciprocating province and that a date has been fixed by the trustee in the other province for the termination of the administration of the deposit, the Superintendent shall give notice of the termination date to persons insured under New Brunswick contracts issued by the insurer.
On the commencement of this section, the Minister of Finance shall remit to the Superintendent all deposits held by that Minister under sections 37 to 70 immediately before the commencement of this section, and the deposits so remitted shall be deemed to have been deposited under section 70.1 or 70.3, as the case may be. 2013, c.31, s.20
1968, c.6, s.71; 1993, c.8, s.3
An insurer, incorporated and licensed under the laws of the Province, may invest its surplus funds and reserve in the following securities and no others:
(a) securities in which trustees are by law permitted to invest trust funds, but the total amount of investments in first mortgages on land shall not exceed fifty per cent of the total amount of the insurer’s investments;
(b) the public stock, funds or government securities of, or securities guaranteed by, the United Kingdom or the United States of America;
(c) the bonds or debentures of any municipality in Canada, or bonds or debentures secured by rates or taxes levied under the authority of the government of any province of Canada on property situated in such province and collectable by the municipalities in which such property is situated;
(d) terminating debentures of incorporated companies that have, in Canada, for the last preceding five consecutive years, been actually supplying gas, water, heat, light, power or electricity to the public or to any municipal corporation; or of steam, electric or street railway or telegraph or telephone companies in actual operation in Canada, but loans on the security of, or the investment in, debentures of any of the companies mentioned in this paragraph shall not in the aggregate exceed ten per cent of the total amount of the insurer’s investments;
(e) in the case of a life insurer, life or endowment contracts issued by such insurer, but not in excess of the loan value of such contract; or
(f) subject to the limitation in paragraph (a), securities as may be authorized under the Canadian and British Insurance Companies Act, chapter I-15 of the Revised Statutes of Canada, 1970, and the Foreign Insurance Companies Act, chapter I-16 of the Revised Statutes of Canada, 1970, for insurers subject thereto.
Uninvested funds of the insurer shall be kept on deposit in the name of the insurer in a chartered bank of Canada, a loan company or a trust company licensed under the Loan and Trust Companies Act or a credit union incorporated under the Credit Unions Act or any former Credit Unions Act of the Province.
Each insurer shall keep such a classification of its contracts and such registers and books of account as, from time to time, are directed or authorized by the Superintendent; and if it appears at any time to the Superintendent that such books are not kept in such businesslike way as to make, at any time, a proper showing of the affairs and standing of the insurer, he shall thereupon nominate an accountant, under his direction, to audit the books and to give such instructions as will enable the insurer to keep them correctly thereafter; and the reasonable expense of the accountant and necessary travelling expenses shall be paid forthwith by the insurer upon being certified and approved by the Superintendent. 1968, c.6, s.72
Where the insurer has a share or stock capital, the insurer shall ensure that the stock register or register of members shall at all reasonable times be open to the examination of the Superintendent. 1968, c.6, s.73; 2008, c.11, s.14; 2013, c.31, s.20
1968, c.6, s.74; 2008, c.11, s.14; 2013, c.31, s.20
Every licensed insurer that carries on the business of fire insurance shall, if the Superintendent so directs, keep a record of its premium income derived from risks located in the Province and of claims paid in respect of such risks so as to show at any time its experience according to the classification of occupancy hazards of the National Board of Fire Underwriters, with such modifications as the Superintendent prescribes.
If, at any time, it appears to the Superintendent that the records referred to in subsection (1) are not kept in a manner that shows correctly the experience of the insurer, the Superintendent may nominate an accountant to proceed under his or her direction to audit the books and records of the insurer and to give any instructions that will enable the insurer to keep the records correctly.
The reasonable expense of such an audit and necessary travelling expenses shall, when certified and approved under the hand of the Superintendent, be paid forthwith by the insurer.
Every licensed insurer undertaking the business of fire insurance shall prepare and file annually with the Superintendent on or before the first day of May in each year, on a printed form to be supplied by the Superintendent, a sworn statement of the premium income and losses experienced within the Province for the year last preceding the date of the return according to the records required to be kept by this section.
Repealed: 2008, c.11, s.14
1968, c.6, s.75; 1993, c.8, s.4; 2008, c.11, s.14
Every licensed insurer that carries on the business of automobile insurance shall prepare and file with the Superintendent, or with such statistical agency as the Superintendent designates, a return respecting the experience of the insurer’s business at such time, in such form and containing such information as may be required by the Superintendent.
The Superintendent may require any agency so designated to compile the data so filed in such form as he approves; and the expense of making such compilation shall be apportioned among the insurers, whose data are compiled by such agency, by the Superintendent, who shall certify in writing the amount due from each insurer and the amount is payable by the insurer to the agency forthwith.
Every insurer shall, if the Superintendent so directs, deliver to the Superintendent, within one month after the passing thereof or at such other time as he may designate, a certified copy of its by-laws and of every repeal, amendment or consolidation thereof or addition thereto. 1968, c.6, s.76
A copy of every balance sheet or other statement published or circulated by an insurer purporting to show its financial condition, together with any auditor’s report thereon, shall be mailed or delivered by the insurer to the Superintendent concurrently with its issue to its shareholders or policyholders, or to the general public. 1968, c.6, s.77; 2008, c.11, s.14
Each auditor of an insurer, incorporated and licensed under the laws of the Province, in the report to be made to shareholders or members shall state, 1968, c.6, s.78
(a) that he has audited the books of the insurer and verified the cash, bank balance and securities;
(b) in the case of insurers transacting other than life insurance, that he has checked the reserve of unearned premiums and that it is calculated as required by the Insurance Act;
(c) that he has examined the reserve for unpaid claims and in his opinion it is adequate;
(d) that he has verified the balances owing by agents and other insurers;
(e) that the balance sheet does not include as assets items prohibited by the Insurance Act, from being shown in the annual statements required to be filed thereunder;
(f) that, after due consideration, he has formed an independent opinion as to the position of the company and that, in his independent opinion so formed, and according to the best of his information, and the explanations given him, the balance sheet sets forth fairly and truly the state of affairs of the insurer; and
(g) that all transactions of the insurer that have come within his notice have been within its powers.
1968, c.6, s.79; 1978, c.30, s.2; 2013, c.31, s.20
Every licensed insurer shall prepare annually and deliver to the Superintendent on or before the last day of March in each year, a statement of the condition of affairs of the insurer as at the thirty-first day of December last preceding, which statement shall be in such form and verified in such manner as is prescribed by the Superintendent and shall exhibit the assets, liabilities, receipts and expenditures of the insurer for the year ended on that date, and shall exhibit particulars of the business done in the Province during such year and such other information as is deemed necessary by the Superintendent.
In the case of an insurer designated by the Financial and Consumer Services Commission, the Superintendent may, in lieu of the annual statement required to be filed by all insurers under subsection (1), direct the preparation of a modified statement respecting the business of the insurer in the Province only.
In the case of a corporation such statement shall be verified by the president, vice-president or managing director, or other director appointed for the purpose by the board of directors, and by the secretary or manager of the corporation.
Every insurer shall, when required by the Superintendent, make prompt and explicit answer to any inquiry directed to the insurer by him in relation to the statement or in relation to the transactions of the insurer in the Province.
Subject to subsection (6), in the case of all classes of insurance other than life insurance, and in the case of all insurers, the statement shall show as a liability of the insurer, eighty per cent of the actual portions of unearned premiums on all business in force on the thirty-first day of December then last past, or eighty per cent of fifty per cent of the premiums written in its policies and received in respect of contracts having one year or less to run, and pro rata on those for longer periods.
In the case of non-cancellable accident and sickness insurance, the statement shall show as a liability of the insurer a reserve computed on such bases and in accordance with such methods as will place an adequate value on the liabilities thereunder, but in no case shall the value placed upon the benefits under any policy be less than the value placed upon the future premiums.
In the case of insurers transacting life insurance the statements shall show as a liability the valuation of outstanding contracts of insurance according to the standard for valuation of policies of life insurance prescribed by this Act, or such higher standard as the insurer, with the approval of the Superintendent, adopts.
The statements shall not show as assets the unpaid balances owing by agents or other insurers in respect of business written prior to the first day of October in the preceding year, or bills receivable on account thereof, or unpaid capital or premium on subscribed shares of capital stock, or investment in office furnishings or equipment, nor shall such statements include as assets any investments not authorized by any Act to which the insurer is subject.
Every licensed insurer may, in its annual statement or in any valuation of its securities, value all of its securities, having a fixed term and rate and not in default as to principal or interest, according to the following rule: If purchased at par at the par value; if purchased above or below par on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made, but the purchase price shall in no case be taken at a higher figure than the actual market value at the time of purchase. The Superintendent shall have full discretion in determining the method of calculating values according to the foregoing rule.
An insurer shall not publish or circulate a statement, purporting to show the financial condition of an insurer, differing from that shown by the statement filed with the Superintendent, or a balance sheet or other statement in form differing from that prescribed by the regulations, and if it does, is guilty of an offence. 1968, c.6, s.80
Every person who represents orally or in writing that the issue of a licence to an insurer or the printing or publication of an annual statement in the report or any other publication of the Superintendent or any other circumstances of the supervision or regulation of the business of the insurer by law is a warranty or guarantee of the financial standing of the insurer or of its ability to provide for the payment of its contracts at maturity, is guilty of an offence. 1968, c.6, s.81
1968, c.6, s.82; 1976, c.34, s.3; 1987, c.6, s.45
The valuation of contracts of life insurance issued by insurers incorporated and licensed under the law of the Province, except contracts of fraternal societies licensed under this Act, shall be based on the British Officers’ Life Tables, 1893, OM (5), and on a rate of interest of three and one-half per cent per annum; but any such insurer may, with the approval of the Superintendent, adopt the American Men Ultimate Table of Mortality AM (5), with interest at three and one-half per cent per annum for the valuation of contracts issued on and after January first, 1929.
In computing such valuation a deduction may be allowed from the value of a policy in the first policy year of an amount ascertained in the following manner, namely: In the case of a twenty payment life policy or any other form of policy, except a term policy, the net annual premium upon which is less than the corresponding net annual premium of a twenty payment life policy, the difference between the net annual premium for such policy and the corresponding net premium for a one year term insurance, and in the case of a policy with a net annual premium greater than that of a twenty payment life policy an amount equal to the deduction allowed in respect of a twenty payment life policy.
After the first policy year the deduction allowed by subsection (2) shall be diminished each year by an amount not less than one-ninth of the deduction in the first policy year so that in the tenth year from the date of issue, the value of the policy shall be not less than that ascertained in accordance with subsection (1).
In case of policies subject to less than ten annual premiums the deduction ascertained as provided in subsection (2) shall, in each year after the first policy year, be reduced by an amount not less than the equal parts thereof required to provide that the value of the policy at the end of the premium paying period shall be not less than that ascertained in accordance with subsection (1).
No insurer shall issue any contract of life insurance that does not appear to be self-supporting upon reasonable assumption as to interest, mortality and expenses.
Where a contract of life insurance provides for accident or sickness insurance benefits, the Superintendent may prescribe the basis for valuing such benefits, but no deduction shall be allowed from the basis so fixed under the provisions of subsection (2) hereof, and in the valuation of the life insurance benefits under such contracts, the amount of the net annual premium upon which the deduction provided for in subsections (1) to (5) is to be based, shall be the net annual premium exclusive of the premium for such accident or sickness benefits.
In the case of annuity contracts, whether immediate or deferred, the valuation shall be the British Officers’ Select Life Annuity Table, 1893, male or female according to the sex of the nominee, with interest at three and one-half per cent per annum.
(b) a valuation that satisfies the requirements of the Canadian and British Insurance Companies Act, chapter I-15 of the Revised Statutes of Canada, 1970.
2021, c.8, s.191968, c.6, s.83; 2021, c.8, s.20
No person in the Province shall enter into a contract of insurance with an unlicensed insurer to undertake insurance in the Province, except through a special insurance broker holding a valid licence.
A person who knowingly violates the provisions of this section is guilty of an offence.
Notwithstanding anything in this Act any person may insure property situated in the Province against fire or marine risks with an unlicensed insurer, if such insurance is effected outside the Province and without any solicitation whatsoever directly or indirectly on the part of the insurer. 1968, c.6, s.84
2019, c.36, s.12019, c.36, s.1
Any person, other than an insurer or its authorized agent, who advertises or holds themselves out as a purchaser of life insurance policies or of benefits under life insurance policies, or who deals or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of life insurance policies to themselves or any other person, is guilty of an offence.
Despite subsection (1), a person or class of persons authorized by the regulations to advertise or hold themselves out as a purchaser of life insurance policies or of benefits under life insurance policies or to deal or trade in life insurance policies for the purposes set out in subsection (1) is not guilty of an offence.
1968, c.6, s.85; 1987, c.6, s.45; 2008, c.11, s.14
An insurer shall not issue a policy of insurance through an underwriter’s agency unless such insurer is licensed to carry on business in the Province and has obtained from the Superintendent a permit to issue contracts of insurance through such agency.
The insurer shall ensure that every policy of insurance issued through an underwriter’s agency is in a form approved by the Superintendent, bears upon its face the name and address of the insurer in a prominent and conspicuous manner and does not bear upon its face the name of the underwriter’s agency.
On no other part of the policy shall the name of the underwriter’s agency appear, except that for identification purposes the words “issued through the . . . . . . . . . . . . . . . . . Underwriter’s Agency” may be inscribed on the filing back of the policy, following the name of the insurer in such manner as is approved by the Superintendent.
Upon an application for a permit under this section the insurer shall furnish to the Superintendent evidence of its approval and adoption of the form of policy to be issued through the underwriter’s agency and of the authority of the agency to bind the insurer.
The permit shall be in such form as is prescribed by the Superintendent, and shall expire on the thirty-first day of May next following its date of issue, but shall be renewable from year to year.
Every insurer issuing a policy of insurance through an underwriter’s agency shall file an annual return of the business transacted through such agency in a form prescribed by the Superintendent.
1968, c.6, s.86; 2013, c.31, s.20
If an insurer incorporated under the law of the Province does not go into actual operation within two years after incorporation, or if, after such insurer has undertaken contracts, it discontinues business for one year, or if its licence remains suspended for one year, or is terminated otherwise than by effluxion of time and is not renewed within the period of sixty days, the insurer’s corporate powers shall thereupon cease and determine, except for the sole purpose of winding up its affairs; and the court upon the application of the Superintendent, or of any person interested, may limit the time within which the insurer shall settle and close its accounts, and may, for that purpose and for the purpose of liquidation generally, appoint a receiver.
No such forfeiture shall affect prejudicially the rights of creditors as they exist at the date of the forfeiture.
In any action or proceeding where such non-user is alleged, proof of user shall be upon the insurer.
1968, c.6, s.87; 2008, c.11, s.14
When an insurer incorporated under the law of the Province proposes to go into voluntary liquidation, at least one month’s notice thereof shall be given to the Superintendent by the insurer and sections 87 to 92 inclusive of this Act shall apply.
The notice shall state the date at which the insurer will cease to take contracts, the intention of the insurer to apply on a stated date for the appointment of a liquidator, and the name and address of the proposed liquidator.
No such insurer shall go into voluntary liquidation or otherwise arrange for the winding-up of its affairs without the written consent of the Superintendent.
Where an insurer is wound up, each person contracted with on the cash plan is entitled to a refund of the unearned proportion of the cash premium calculated from the date at which the insurer, according to the notice, ceased to undertake contracts; but this does not affect any other remedy that such person has against the insurer. 1968, c.6, s.88
1968, c.6, s.89; 1994, c.50, s.3
Upon a winding-up, the liquidator may, without the consent of the policyholders, arrange for the reinsurance of contracts in some other licensed insurer, and for the purpose of securing the reinsurance, the entire assets of the insurer in the Province shall be available, except the amount required to pay the claims of the preferred creditors, the costs of liquidation, and the claims accrued under contracts, of which the insurer has received notice prior to the date of the reinsurance; all such payments are a first charge upon the assets of the insurer, and its other creditors shall be entitled to a dividend on their claims only if the assets are more than sufficient to provide for such payments and the reinsurance.
If the assets of the insurer are insufficient to provide for such payments, and the reinsurance in full, the liquidator may effect reinsurance of such a percentage of the several contracts as the available assets provide.
No contract of reinsurance made in pursuance of this section shall become effective until approved by the Superintendent and the court.
If the liquidator fails to secure reinsurance, the assets shall, subject to the payment of the costs of liquidation and the preferred claims, be available to pay the claims of the policyholders, calculated as at the date of winding-up, in the manner provided in the case of the administration of a deposit.
Nothing in this section shall prejudice or affect the priority of any security interest in, or any mortgage, lien, charge or other encumbrance on, the property of the insurer.
Where the insurer being a corporation is not constituted exclusively or chiefly for insurance purposes and the insurance branch and fund are completely severable from every other branch and fund of the corporation, the word “insurer” for the purposes of sections 88 and 89, means only the insurance branch of the corporation. 1968, c.6, s.90
1968, c.6, s.91; O.C.68-516; 2013, c.31, s.20
Where a fraternal society, incorporated under the law of the Province, transacts endowment or expectancy insurance and has an endowment fund separate and distinct from its life insurance fund, the society may, by resolution passed at a general meeting after at least one month’s notice of such intended resolution, determine that the endowment or expectancy insurance be discontinued and that the endowment or expectancy fund be distributed among the members then in good standing who are contributing to the fund, to each member pro rata according to his total contribution.
After the resolution is assented to by and filed with the Superintendent, the executive officers may proceed to ascertain the persons entitled to rank upon the fund and may distribute the fund among those entitled, and such distribution discharges the society and all executive officers thereof from all liability in respect of the fund and of the endowment or expectancy contracts undertaken by the society.
If all the members interested in the endowment or expectancy fund are also interested as holders of life insurance contracts, the general meeting, instead of determining that the endowment or expectancy fund be distributed, may determine that the fund be converted into or merged in a life insurance fund, and after the resolution is so assented to and filed, the endowment or expectancy fund shall become and be a life insurance fund.
For the purpose of a voluntary winding-up the Superintendent may renew or extend the licence of the insurer. 1968, c.6, s.92
“compensation association” means a body corporate or unincorporated association the purpose of which is to provide compensation to claimants and policyholders of insolvent insurers and that has been designated under the regulations as a compensation association.
1987, c.28, s.1; 1989, c.15, s.1
Where a compensation association has been designated by the regulations as a compensation association for
(a) automobile insurance,
(b) boiler and machinery insurance,
(c) fire insurance,
(d) inland transportation insurance,
(e) livestock insurance,
(f) public liability insurance,
(g) plate glass insurance,
(h) property damage insurance,
(i) sprinkler leakage insurance,
(j) theft insurance,
(k) weather insurance,
(l) life insurance,
(m) accident insurance,
(n) sickness insurance, or
(o) any other class of insurance designated in the regulations,
A member of a compensation association shall pay to the compensation association all assessments and levies made against the member by the compensation association and, where the member fails to pay the assessment or levy within thirty days after the day the notice of the assessment or levy is mailed to the member,
(a) the compensation association may claim the amount of the assessment or levy, with interest, as a debt due from the member or, if the insurer has ceased to be a member, from the former member, and
(b) the licence of the member to carry on insurance may be cancelled in accordance with the procedure set out in subsection 31(1).
(a) a mutual insurance corporation that is a member of the Provincial Mutual Insurance Guarantee Fund or such other insurers designated under the regulations as being adequately covered by some other plan of compensation,
(b) an insurer whose business is limited to that of reinsurance,
(d) a reciprocal or inter-insurance exchange.
The Financial and Consumer Services Commission may enter into agreements with a compensation association related to the conduct of a plan to compensate policyholders and eligible claimants of insolvent insurers. 1987, c.28, s.1; 2013, c.31, s.20
Repealed: 2016, c.36, s.7 1968, c.6, s.93; 2004, c.36, s.4; 2008, c.11, s.14; 2013, c.31, s.20; 2016, c.36, s.7
2021, c.8, s.221968, c.6, s.94; 1976, c.34, s.4; 1978, c.30, s.3; 1992, c.38, s.18; 1993, c.8, s.5; 2004, c.36, s.5; 2005, c.7, s.36; 2008, c.2, s.3; 2013, c.31, s.20; 2015, c.30, s.1; 2017, c.20, s.83; 2019, c.29, s.74; 2021, c.8, s.23
An insurer applying for a licence or renewal of a licence under this Act shall pay a fee prescribed by regulation before the licence or renewal of the licence is issued.
Repealed: 2021, c.8, s.23
As soon as possible after the close of each fiscal year, the Financial and Consumer Services Commission shall ascertain and certify the total amount of the expenditure incurred by it and the Province for or in connection with the administration of this Act during the last preceding fiscal year, and that amount is final and conclusive for all purposes of this section.
The total amount of the expenditure ascertained and certified under subsection (3) includes the following costs:
(a) the costs incurred by the Financial and Consumer Services Commission with respect to the following:
(i) a hearing before the Tribunal;
(ii) the administration of the Tribunal; and
(iii) an intervention before the Board.
(b) the costs incurred by the Province with respect to an intervention before the Board.
The Superintendent shall also ascertain from the annual statements filed by insurers under this Act and from such other information as may be necessary or available the total amount of gross premiums received in the Province during the last preceding calendar year by each licensed insurer and deduct therefrom the amount of the dividends paid or allowed, if any, by each insurer to its policyholders in the Province during the said calendar year and the finding of the Superintendent as to the amount of the net receipts resulting from the said deductions and as to the amounts of income received as aforesaid, when certified by his hand, is final and conclusive.
The total amount of the expenditure incurred by the Financial and Consumer Services Commission and the Province for or in connection with the administration of this Act ascertained and certified under the provisions of subsection (3) shall be assessed against licensed insurers as follows:
(a) each licensed insurer shall be assessed the amount prescribed by the regulations;
(b) if any portion of the total amount of the expenditure, as determined by the Financial and Consumer Services Commission, was expended directly or indirectly with respect to a class of insurance, each licensed insurer providing insurance of that class shall be assessed an amount of that portion that its net receipts with respect to that class of insurance are of the total net receipts with respect to that class of insurance of all licensed insurers providing insurance of that class; and
(c) where a balance remains of the total amount of the expenditure incurred by the Financial and Consumer Services Commission and the Province for or in connection with the administration of this Act after the assessments referred to in paragraphs (a) and (b) have been made and the total amount of those assessments has been deducted, each licensed insurer shall be further assessed such amount of that balance as his net receipts with respect to all classes of insurance are of the total net receipts with respect to all classes of insurance of all licensed insurers;
The amount so assessed against each insurer constitutes a debt payable to the Financial and Consumer Services Commission and is payable on its demand and may be recovered as a debt in any court of competent jurisdiction.
The Financial and Consumer Services Commission shall remit to the Minister the amount paid by an insurer under this section that relates to expenditures incurred by the Province for or in connection with the administration of this Act.
The annual report of the Superintendent made pursuant to section 18 of this Act shall show the total amount assessed against licensed insurers pursuant to this section and the amount paid by each insurer.
2021, c.8, s.24The Lieutenant-Governor in Council may make regulations and the Financial and Consumer Services Commission may make rules 1968, c.6, s.95; 1987, c.28, s.2; 1989, c.15, s.2; 1993, c.8, s.6; 2008, c.2, s.4; 2008, c.11, s.14; 2016, c.36, s.7; 2019, c.36, s.2; 2021, c.8, s.25
(a) extending the provisions of this Act or any provision of this Act to a system or class of insurance not specifically mentioned in this Act;
(b) providing for, and for the making of, reciprocal or other arrangements with any government in Canada in connection with the licensing, regulation and inspection of insurers;
(c) prescribing any other fact for the purposes of paragraph 9(e);
(e) prescribing an organization for the purposes of paragraph 21(4)(d);
(f) designating bodies corporate or unincorporated associations as compensation associations and designating them as compensation associations for one or more classes of insurance;
(g) prescribing the form of a balance sheet or other statement under section 80;
(h) authorizing persons or classes of persons for the purposes of subsection 84.1(2);
(i) designating classes of insurance for the purposes of paragraph 92.2(1)(o);
(j) designating insurers for the purposes of subsection 92.2(3);
(k) prescribing an amount for the purposes of paragraph 94(5)(a);
(l) respecting the marketing, solicitation, sale or arranging of insurance through a website, online service or other electronic means;
(m) requiring the payment of fees for the purposes of this Part or the regulations and prescribing the amounts of the fees, including fees in relation to:
(i) applications made under this Part,
(ii) the filing, late filing, examination or copying and certification of any document under this Part,
(iii) any action that the Superintendent is required or authorized to take under this Part or the regulations, and
(iv) any service that the Superintendent is required or authorized to provide under this Part or the regulations; and
(n) respecting an insured’s right to rescind a contract of insurance, including prescribing the obligations of an insurer to refund premiums if a contract of insurance is rescinded.
Where not inconsistent with other provisions of this Act, the provisions of this Part apply to every contract of insurance made in the Province other than contracts of life and accident and sickness insurance and contracts to which the Marine Insurance Act (Canada) applies. 1968, c.6, s.96; 2005, c.20, s.2
Where the subject matter of a contract of insurance is property in the Province, or an insurable interest of a person resident within the Province, the contract, if signed, countersigned, issued or delivered in the Province or committed to the post office or to any person to be delivered to the insured, his assign or agent in the Province, shall be deemed to evidence a contract made therein, and be construed according to the law thereof, and all money payable thereunder shall be paid at the head office or chief agency of the insurer in the Province, in lawful money in Canada. 1968, c.6, s.97
1968, c.6, s.98
All the terms and conditions of the contract of insurance shall be set out in full in the policy or by writing securely attached to it when issued and unless so set out no term of the contract or condition, stipulation, warranty or proviso modifying or impairing its effect is valid or admissible in evidence to the prejudice of the insured or beneficiary.
Subsection (1) does not apply to an alteration or modification of the contract agreed upon in writing by the insurer and the insured after the issue of the policy.
Where the contract, whether or not it provides 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 are set out in the contract and the renewal receipt refers to it by its number or date.
The application of the insured shall not, as against him, be deemed a part of or be considered with the contract of insurance, except in so far as the court determines that it contains a material misrepresentation by which the insurer was induced to enter into the contract.
No contract of insurance shall contain or have endorsed upon it, or be made subject to, any term, condition, stipulation, warranty or proviso to the effect that the contract is to be avoided by reason of any statement in the application therefor, or inducing the insurer to enter into the contract, unless such term, condition, stipulation, warranty or proviso is and is expressed to be limited to cases in which such statement is material to the contract; and no contract shall be avoided by reason of the inaccuracy of any such statement unless it is material to the contract.
The question of materiality in any contract is a question of fact; and no admission, term, condition, stipulation, warranty or proviso to the contrary, contained in the application for insurance, or in the policy, or in any agreement, or document relating thereto has any force or validity.
This section does not apply to contracts for fire or automobile insurance.
Every insurer shall upon request furnish to the insured a true copy of his application for insurance. 1968, c.6, s.99
1968, c.6, s.100
No insurer shall make a contract of insurance inconsistent with the provisions of this Act.
Any act or omission of the insurer resulting in non-compliance or imperfect compliance with any of the provisions of this Act does not render a contract invalid as against the insured.
1968, c.6, s.101; 1987, c.6, s.45
Every policy shall contain the name of the insurer, the name of the insured, the name of the person or persons to whom the insurance money is payable, the amount, or the method of determining the amount, of the premium for the insurance, the subject matter of the insurance, the indemnity for which the insurer may become liable, the event on the happening of which the liability is to accrue, the date upon which the insurance takes effect and the date it terminates or the method by which the latter is fixed or to be fixed.
This section does not apply to contracts of guarantee insurance.
1968, c.6, s.102
Where the policy has been delivered, the contract is as binding on the insurer as if the premium had been paid, although it has not in fact been paid, and although delivered by an officer or agent of the insurer who had not authority to deliver it.
The insurer may sue for the unpaid premium and may deduct the amount thereof from the amount for which he is liable under the contract of insurance.
Where a cheque, bill of exchange or promissory note or any promise to pay is given, whether originally or by way of renewal, for the whole or part of any premium and the cheque, bill of exchange or promissory note or other promise to pay is not honoured according to its tenor, the insurer may terminate the contract forthwith by giving written notice by registered mail.
1968, c.6, s.103; 1971, c.41, s.1; 2008, c.11, s.14
Every insurer, immediately upon receipt of a request, and in any event not later than sixty days after receipt of notice of loss, shall furnish to the insured or person to whom the insurance money is payable forms upon which to make proof of loss required under the contract.
The insurer by furnishing forms to make proof of loss shall not be taken to have admitted that a valid contract is in force or that the loss in question falls within the insurance provided by the contract.
1968, c.6, s.104
Where a person incurs a liability for injury or damage to the person or property of another, and is insured against such liability, and fails to satisfy a judgment awarding damages against him in respect of his liability, and an execution against him in respect thereof is returned unsatisfied, the person entitled to the damages may recover by action against the insurer the amount of the judgment up to the face value of the policy, but subject to the same equities as the insurer would have if the judgment had been satisfied.
This section does not apply to motor vehicle liability policies.
1981, c.35, s.1; 1987, c.6, s.45
Where an insurer denies liability under a contract evidenced by a liability policy other than a motor vehicle liability policy, it shall, upon application to the court, be made a third party in any action to which the insured is a party and in which a claim is made against the insured by any party to the action in which it is or might be asserted that indemnity is provided by the contract, whether or not the insured enters an appearance or defence in the action.
Upon being made a third party, the insurer may
(a) contest the liability of the insured to any party claiming against the insured,
(b) contest the amount of any claim made against the insured,
(c) deliver any pleadings in respect of the claim of any party claiming against the insured,
(d) have production and discovery from any party adverse in interest, and
(e) examine and cross-examine witnesses at the trial,
An insurer may avail itself of subsection (1) notwithstanding that another insurer is defending in the name of and on behalf of the insured an action to which the insured is a party.
1968, c.6, s.105; 1986, c.4, s.27
Where several actions are brought for the recovery of money payable under a contract or contracts of insurance the court may consolidate or otherwise deal therewith so that there shall be but one action for and in respect of all claims made in such actions.
Where an action is brought to recover the share of one or more minors all the other minors entitled, or the trustees, executors or guardians entitled to receive payment of the shares of such other minors, shall be made parties to the action, and the rights of all the minors shall be determined in one action.
In all actions where several persons are interested in the insurance money the court or judge may apportion among the persons entitled any sum directed to be paid, and may give all necessary directions and relief.
Where the person entitled to receive money due and payable under any contract of insurance, except insurance of the person, is domiciled or resides in a foreign jurisdiction and payment, valid according to the law of such jurisdiction, is made to such person, such payment is valid and effectual for all purposes.
1968, c.6, s.106
Where an insurer cannot obtain a sufficient discharge for insurance money for which it admits liability, the insurer may apply to the court ex parte for an order for the payment thereof into court, and the court may order the payment into court to be made upon such terms as to costs and otherwise as the court directs, and may provide to what fund or name the amount shall be credited.
The receipt of the registrar or other proper officer of the court is sufficient discharge to the insurer for the insurance money so paid into court, and the insurance money shall be dealt with according to the orders of the court.
1968, c.6, s.107; 1979, c.41, s.68; 2023, c.17, s.114
This section applies to a contract containing a condition, statutory or otherwise, providing for an appraisal to determine specified matters in the event of a disagreement between the insured and the insurer.
The insured and the insurer shall each appoint an appraiser, and the two appraisers so appointed shall appoint an umpire.
The appraisers shall determine the matters in disagreement and, if they fail to agree, they shall submit their differences to the umpire, and the finding in writing of any two determines the matters.
Each party to the appraisal shall pay the appraiser appointed by him and shall bear equally the expense of the appraisal and the umpire.
Where,
(a) a party fails to appoint an appraiser within seven clear days after being served with written notice to do so,
(b) the appraisers fail to agree upon an umpire within fifteen days after their appointment, or
(c) an appraiser or umpire refuses to act or is incapable of acting or dies,
Insurance money is payable in the Province in lawful money of Canada. 1968, c.6, s.108
1968, c.6, s.109
No term or condition of a contract shall be deemed to be waived by the insurer in whole or in part unless the waiver is stated in writing and signed by a person authorized for that purpose by the insurer.
Neither the insurer nor the insured shall be deemed to have waived any term or condition of a contract by any act relating to the appraisal of the amount of loss or to the delivery and completion of proofs or to the investigation or adjustment of any claim under the contract.
Where there has been imperfect compliance with a statutory condition as to 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 insured against, and a consequent forfeiture or avoidance of the insurance, in whole or in part, and the court deems it inequitable that the insurance be forfeited or avoided on that ground, the court may relieve against the forfeiture or avoidance on such terms as it deems just. 1968, c.6, s.110
No action shall be brought for the recovery of money payable under a contract of insurance until the expiration of sixty days after proof, in accordance with the provision of the contract, 1968, c.6, s.111
(a) of the loss, or
(b) of the happening of the event upon which the insurance money is to become payable,
1968, c.6, s.112
Subject to any statutory condition, any notice given by an insurer, when the mode thereof is not otherwise expressly provided, may be given in the case of a member or person insured by mailing it to his post office address given in his original application for insurance unless a new address has been notified in writing to the insurer.
Subject to any statutory condition, delivery of any written notice to an insurer, where the mode thereof is not otherwise expressly provided, may be by letter delivered at its head or chief office in the Province, or sent by registered post addressed to the insurer, its manager or agent at such head office or chief office or to an authorized agent of the insurer.
1968, c.6, s.113; 2008, c.11, s.14; 2021, c.8, s.26
Where a contract of fire insurance is given as collateral security to a mortgage or vendor’s lien on property, or where any such contract so given is about to expire and no specific insurer is named in the mortgage or agreement for sale, a term requiring the mortgagor or purchaser to insure is sufficiently satisfied, save as to the amount, by the production by such mortgagor or purchaser of a subsisting policy of insurance in any insurer licensed to carry on its business in the Province.
A mortgagee shall not accept or receive either directly or through his agent or employee, and no officer or employee of such mortgagee shall accept or receive, any commission or other remuneration or benefit in consideration of effecting a contract of insurance or renewal thereof under which contract loss, if any, is payable to him as mortgagee.
No agency, agent, insurer, managing general agent or special insurance broker shall pay, allow or give any commission or other remuneration or benefit to a mortgagee or to any person in their employ or on their behalf, in consideration of entering into or renewing a contract of insurance under which contract loss, if any, is payable to the person as mortgagee.
Repealed: 2008, c.11, s.14
1968, c.6, s.114
Where an insured assigns the right to refund of premium that may accrue by reason of the cancellation or termination of a contract of insurance under the terms thereof and notice of the assignment is given by the assignee to the insurer, the insurer shall pay any such refund to the assignee notwithstanding any condition in the contract, whether prescribed under this Act or not, requiring the refund to be paid to the insured or to accompany any notice of cancellation or termination to the insured.
Where the condition in the contract dealing with cancellation or termination by the insurer provides that the refund shall accompany the notice of cancellation or termination the insurer shall include in the notice a statement that in lieu of payment of the refund in accordance with the condition the refund is being paid to the assignee under this section.
1968, c.6, s.115; 1993, c.8, s.7; 2008, c.11, s.14
No licensed insurer shall undertake any contract of fire insurance upon property situate in the Province or described in any contract as situate therein, unless the contract, completed in accordance with this Act, is signed or countersigned by an agent holding a licence under this Act, who is to receive the commission or some part thereof when the premium stipulated in the contract is paid.
Notwithstanding subsection (1), a renewal of a contract of fire insurance need not be signed or countersigned by an agent.
If the policy is issued upon an application procured and submitted to such insurer and signed by the agent, it need not be signed or countersigned by him.
“Insurer” in this section shall be deemed to mean and include only a joint-stock insurance company, cash mutual insurance corporation and any insurance company described in paragraph 23(1)(f).
This section does not apply to insurance covering the rolling stock of railroad corporations or property in transit that is in the possession and custody of railroad corporations or other common carriers nor to moveable property of common carriers used or employed by them in their business as such.
This section does not apply to insurers with head office in New Brunswick, or to insurers that employ only salaried representatives and accept no applications for insurance from agents on a commission basis.
Repealed: 2008, c.11, s.14
1968, c.6, s.116
No agent holding a licence shall sign a blank policy or contract of insurance.
No such agent shall give a power of attorney to persons residing outside the Province for the purpose of countersigning contracts.
2018, c.6, s.1
If a contract contains a term or condition excluding coverage for loss or damage to property caused by a criminal or intentional act or omission of an insured or any other person, the exclusion applies only to the claim of a person
(a) whose act or omission caused the loss or damage,
(b) who abetted or colluded in the act or omission,
(c) who
(i) consented to the act or omission, and
(ii) knew or ought to have known that the act or omission would cause the loss or damage, or
(d) who is not a natural person.
Nothing in subsection (1) allows a person whose property is insured under the contract to recover more than the person’s proportionate interest in the lost or damaged property.
A person whose coverage would be excluded but for subsection (1) shall
(a) cooperate with the insurer in respect of the investigation of the loss, including by submitting to an examination under oath if requested by the insurer,
(b) in addition to producing any documents required by the contract, produce for examination, at a reasonable place and time specified by the insurer, all documents in the person’s possession or control that relate to the loss, and
(c) comply with any other requirement prescribed by regulation.
The Lieutenant-Governor in Council may make regulations prescribing requirements with which persons shall comply for the purpose of paragraph (3)(c).
1968, c.6, s.117; 2013, c.31, s.20
The Superintendent may require an insurer to file with him a copy of any form of policy or of the form of application for any policy issued or used by the insurer.
The Superintendent shall report to the Financial and Consumer Services Commission any case in which an insurer issues a policy or uses an application that in the opinion of the Superintendent is unfair, fraudulent or not in the public interest, and, if the Financial and Consumer Services Commission concurs with the report after hearing the insurer, it may order the Superintendent to prohibit the insurer from issuing or using that form of policy or application.
An insurer that after being so prohibited issues any such policy or uses any such application is guilty of an offence against this Act.
Every insurer, and every officer, director, agent and employee of an insurer, who for the purpose of inducing any person to insure with the insurer makes or uses any misleading statement purporting to show the dividends, profits or surplus that have been paid or may be paid by the insurer in respect of any policy, issued or to be issued by it, as the case may be, is guilty of an offence against this Act. 1968, c.6, s.118
Repealed: 2003, c.22, s.1 1968, c.6, s.119; 2003, c.22, s.1
1968, c.6, s.120
Nothing in this Act prohibits the fixing or charging of a special rate for the insurance of two or more vehicles owned by and registered in the name of the same person, except where the owner is engaged in the business of leasing the vehicles and the vehicles are the subject of a leasing agreement for a period in excess of thirty days.
Nothing in this section prohibits the fixing or charging of a special rate for the insurance of two or more vehicles of a lessor that are rented to the same lessee.
2003, c.29, s.1; 2004, c.36, s.6; 2008, c.2, s.5; 2013, c.31, s.20; 2021, c.8, s.27
For the purpose of this section, an insurer is withdrawing from the business of automobile insurance if the insurer does anything that results or is likely to result in a significant reduction in the amount of gross premiums written by the insurer for automobile insurance in any part of New Brunswick, including any of the following things that have or are likely to have that result:
(a) refusing to process applications for automobile insurance;
(b) declining to issue, terminating or refusing to renew contracts of automobile insurance;
(c) refusing to provide or continue coverages or endorsements in respect of contracts of automobile insurance;
(d) taking actions that directly or indirectly result in termination of contracts between the insurer and the agencies, agents or managing general agents who solicit or negotiate contracts of automobile insurance on behalf of the insurer;
(e) reducing the ability of the agencies, agents and managing general agents to solicit or negotiate contracts of automobile insurance on behalf of the insurer;
(f) reducing the insurer’s ability to act as a servicing carrier or ceasing to act as a servicing carrier under the Plan of Operation of the Facility Association;
(g) taking actions that directly or indirectly result in the termination of any contract between the insurer and the Facility Association; or
(h) engaging in any activity or failure to act that is prescribed by the regulations.
An insurer shall not withdraw from the business of automobile insurance except in accordance with this section.
An insurer that intends to withdraw from the business of automobile insurance shall file with the Superintendent a notice in the form provided by the Superintendent.
The notice shall specify the date that the insurer intends to begin to withdraw from the business of automobile insurance and shall be filed at least twelve months before that date.
The Superintendent may require the insurer to provide such information, material and evidence as the Superintendent considers necessary in addition to the information, material and evidence required to be provided in the notice.
The insurer may withdraw from the business of automobile insurance on or after the date specified in the notice under subsection (4).
The Superintendent may order that the regulations made under paragraph 267.9(1)(a.1) do not apply to a class of contracts, coverages or endorsements specified by the Superintendent to which an insurer is a party.
2021, c.8, s.28The Lieutenant-Governor in Council may make regulations and the Financial and Consumer Services Commission may make rules prescribing any activity or failure to act for the purposes of paragraph 120.1(1)(h). 2003, c.29, s.1; 2021, c.8, s.29
1968, c.6, s.121; 1989, c.17, s.2
Every insurer licensed under this Act for automobile insurance is a member of the Facility Association and shall be bound by the articles of association and by-laws of the Facility Association.
The Facility Association shall, in its articles of association or by-laws and in terms not inconsistent with this Act, establish a plan to be known as the Plan of Operation
(a) to provide automobile insurance to owners and licensed operators of automobiles who, but for the Plan of Operation, would be unable to obtain such insurance, and
(b) to provide, in accordance with sections 266.1 to 266.993, payment with respect to claims for damages made by persons who are not insured under a contract within the meaning of section 255 and who have no other insurance, or who have other insurance that is inadequate, with respect to the damages claimed,
The Facility Association shall, 1989, c.17, s.3; 2021, c.8, s.30
(a) in accordance with that aspect of the Plan of Operation referred to in paragraph 121(2)(a), ensure that automobile insurance is provided with respect to every application for automobile insurance submitted under the Plan of Operation to an insurer by an agency, agent, managing general agent or representative on behalf of any person, and
The Facility Association may, in accordance with its Plan of Operation, impose assessments on each member for the purpose of meeting the operating costs of the Facility Association and the Plan of Operation and each member shall, in accordance with the Plan of Operation, pay to the Facility Association any assessments so imposed. 1989, c.17, s.3
1989, c.17, s.3; 1997, c.46, s.1; 2003, c.29, s.2; 2004, c.36, s.8; 2008, c.11, s.14; 2013, c.31, s.20
The Facility Association shall file with the Board the rates that it proposes to charge for automobile insurance placed through the Facility Association.
The Board may, if not satisfied that the rates proposed are just and reasonable, by order fix such other rates as it finds to be just and reasonable.
Where the Facility Association wishes to make a change in the rates approved under this section, it shall make an application to the Board for approval of the change in the rates and the Board, if not satisfied that the rates proposed are just and reasonable, may by order fix such other rates as it finds to be just and reasonable.
In an application regarding rates, the burden of proof is on the applicant.
Repealed: 1997, c.46, s.1
The Board may at any time investigate the rates charged for automobile insurance placed through the Facility Association, and notwithstanding approval of those rates, may order the Facility Association to make any changes the Board considers proper.
The Facility Association shall not, and a member of the Facility Association shall not, charge any rates for automobile insurance placed through the Facility Association that have not been approved by the Board in accordance with this section.
Repealed: 2008, c.11, s.14
Where a member of the Facility Association is convicted of an offence under subsection (5), the Superintendent may suspend or cancel the licence of the member.
Repealed: 2004, c.36, s.8
Repealed: 2004, c.36, s.9 2003, c.29, s.3; 2004, c.36, s.9
The members of the board of directors and the officers and employees of the Facility Association shall furnish to the Superintendent each year such information and financial statements with respect to the Facility Association and the Plan of Operation referred to in subsection 121(2) as the Superintendent may from time to time require. 1989, c.17, s.3
The Facility Association may, in its name, 1989, c.17, s.3
(a) be prosecuted for an offence, and
(b) sue and be sued.
The articles of association and by-laws of the Facility Association shall be filed with the Superintendent on the commencement of this section and every by-law and every amendment, revision or consolidation of the articles of association or by-laws of the Facility Association made after the commencement of this section shall be filed with the Superintendent by the Facility Association at least thirty days before the effective date of the by-law or the amendment, revision or consolidation of the articles of association or by-laws. 1989, c.17, s.3; 2008, c.11, s.14
No by-law and no amendment, revision or consolidation of the articles of association or by-laws of the Facility Association made after the commencement of this section with respect to the Plan of Operation referred to in paragraphs 121(2)(a) and (b) shall come into effect in the Province unless it is approved by the Superintendent. 1989, c.17, s.3
1989, c.17, s.3; 2008, c.11, s.14
The Facility Association shall send written notice to the Superintendent of the names and residence addresses of the persons elected or appointed as officers and directors of the Facility Association immediately after their election or appointment, and their names and addresses may be made available to the public by the Superintendent.
The Facility Association shall, on the commencement of this subsection, appoint an agent for service in the Province and shall send written notice of the appointment to the Superintendent, which notice shall contain the name of the agent for service and the agent’s address and the Superintendent shall file the notice.
If the individual appointed as agent for service dies or if the agent for service resigns or the appointment is revoked, the Facility Association shall immediately appoint another agent for service and send written notice of the appointment to the Superintendent, which notice shall contain the name of the other agent for service and the agent’s address and the Superintendent shall file the notice.
The Facility Association shall immediately send written notice to the Superintendent of any change in the address of the agent for service and the Superintendent shall file the notice.
Service of any process, notice or document in any civil, criminal or administrative action or proceeding shall be deemed to have been sufficiently made upon the Facility Association if made upon the agent as shown in the most recent notice in the records of the Superintendent.
A notice or document may be sent or served upon the Facility Association by
(a) personally serving the agent for service as shown in the most recent notice in the records of the Superintendent,
(b) delivering the notice or document to the address of its agent for service, as shown in the most recent notice in the records of the Superintendent, or
(c) sending the document or notice by certified mail to that address.
A notice or document sent by certified mail in accordance with paragraph (7)(c) shall be deemed to be received or served at the time it would be delivered in the ordinary course of mail, unless there are reasonable grounds for believing that the notice or document was not received at that time or at all.
A copy of any notice or other document sent to or served on the Facility Association under this section shall be sent immediately by the Facility Association to the Superintendent unless the Superintendent otherwise advises the Facility Association.
1989, c.17, s.3
A notice given under subsection (1) does not, within the time specified in the notice, relieve the Facility Association of any of its obligations in the Province with respect to the Plan of Operation referred to in paragraphs 121(2)(a) and (b) and the Facility Association shall be liable to continue, after the expiry of the time specified in the notice, to carry out any of its obligations with respect to any matter that arose but was not concluded before the expiry of the time specified in the notice.
Any obligations of the Facility Association under this Act that are not carried out by the Facility Association in accordance with this Act and any liability of the Facility Association arising out of those obligations shall be deemed to have been assumed by the insurers licensed under this Act for automobile insurance and the insurers shall be jointly and severally liable for any damages arising out of those obligations in respect of which the Facility Association is, or would be, liable under this Act.
Notwithstanding any other provision of this Act, if the Facility Association, as continued under the Compulsory Automobile Insurance Act, chapter 83 of the Revised Statutes of Ontario, 1980, is dissolved or discontinued or for any other reason ceases to exist in Ontario, it shall be deemed to have been continued in the Province, as it existed immediately before it was discontinued or dissolved or for any other reason it ceased to exist in Ontario, for the purposes of carrying out its obligations in the Province with respect to the Plan of Operation referred to in paragraphs 121(2)(a) and (b).
(a) consist of all insurers licensed under this Act for automobile insurance, together with those officers and directors who held office with the Facility Association immediately before it was so continued,
(b) operate in the Province under the articles of association and by-laws in effect immediately before the Association was so continued,
(c) have all the rights, powers, liabilities and obligations that were vested in it under the Compulsory Automobile Insurance Act, chapter 83 of the Revised Statutes of Ontario, 1980, and the articles of association and by-laws in effect immediately before it was so continued, and
(d) be deemed to be a successor to the Facility Association for the purposes of the definition “Facility Association”.
2004, c.36, s.10
In this section
“risk sharing pool” means an arrangement under which some or all automobile insurers share, in whole or in part, specified risks.
The Lieutenant-Governor in Council may make regulations
(a) establishing, or requiring some or all automobile insurers to establish, one or more risk sharing pools;
(b) requiring some or all automobile insurers to participate in one or more risk sharing pools;
(c) respecting the management and operation of risk sharing pools, including risk sharing pools established voluntarily by automobile insurers.
1968, c.6, s.122
This part applies to insurance against loss of or damage to property arising from the peril of fire in any contract made in the Province except,
(a) insurance falling within the classes of aircraft, automobile, boiler and machinery, inland transportation, marine, plate glass, sprinkler leakage and theft insurance;
(b) where the subject matter of the insurance is rents, charges or loss of profits;
(c) where the peril of fire is an incidental peril to the coverage provided; or
(d) where the subject matter of the insurance is property that is insured by an insurer or group of insurers primarily as a nuclear risk under a policy covering against loss of or damage to the property resulting from nuclear reaction or nuclear radiation and from other perils.
1968, c.6, s.123
(a) against fire, whether resulting from explosion or otherwise, not occasioned by or happening through,
(i) in the case of goods, their undergoing any process involving the application of heat,
(ii) riot, civil commotion, war, invasion, act of foreign enemy, hostilities whether war be declared or not, civil war, rebellion, revolution, insurrection or military power;
(b) against lightning, but excluding destruction or loss to electrical devices or appliances caused by lightning or other electrical currents unless fire originates outside the article itself and only for such destruction or damage as occurs from such fire; and
(c) against explosion, not occasioned by or happening through any of the perils specified in subparagraph (a)(ii), of natural, coal or manufactured gas in a building not forming part of a gas works, whether fire ensues therefrom or not.
Unless a contract to which this Part applies otherwise specifically provides, it does not cover the insured property against loss or damage caused by contamination by radioactive material directly or indirectly resulting from fire, lightning or explosion within the meaning of subsection (1).
Where property insured under a contract covering at a specified location is necessarily removed to prevent loss or damage or further loss or damage thereto, that part of the insurance under the contract that exceeds the amount of the insurer’s liability for any loss incurred shall for seven days only or for the unexpired term of the contract if less than seven days, cover the property removed and any property remaining in the original location in the proportions that the value of the property in each of the respective locations bears to the value of the property in them all.
Nothing in subsection (1) precludes an insurer giving more extended insurance against perils mentioned therein, but in that case this Part does not apply to the extended insurance.
An insurer licensed to carry on fire insurance may include in its insurance contracts a clause or endorsement providing that, in the case of live stock insured against death or injury caused by fire or lightning, the word “lightning” is deemed to include other electrical currents.
A contract may be renewed by the delivery of a renewal receipt, identifying the policy by number, date or otherwise. 1968, c.6, s.124
After an application for insurance is made, if it is in writing, any policy sent to the insured shall be deemed to be intended to be in accordance with the terms of the application, unless the insurer points out in writing the particulars wherein it differs from the application, in which case the insured may, within two weeks from the receipt of the notification, reject the policy. 1968, c.6, s.125
1968, c.6, s.126
Where the loss, if any, under a contract has, with the consent of the insurer, been made payable to a person other than the insured, the insurer shall not cancel or alter the policy to the prejudice of that person without notice to him.
The length of and manner of giving the notice under subsection (1) shall be the same as notice of cancellation to the insured under the statutory conditions in the contract.
The conditions set forth in this section shall be deemed to be part of every contract in force in the Province, and the insurer shall ensure that they are printed on every policy with the heading “Statutory Conditions” and no variation or omission of or addition to any statutory condition shall be binding on the insured.
In this section “policy” does not include interim receipts or binders.
1980, c.27, s.3
An insurer shall not terminate a contract by virtue of statutory condition 5 of section 127 except for one or more of the following reasons:
(a) non-payment of, or of any part of, the premium due under the contract or of any charge due under any agreement ancillary to the contract; or
(b) change material to the risk within the meaning of statutory condition 4 of section 127.
Subsection (1) applies only to a contract that has been in effect for more than sixty days and that insures a natural person against
(a) loss of or damage to real property used for residential purposes, or
(b) loss of or damage to personal property usual or incidental to the occupancy of real property for residential purposes, or used for personal adornment or wear,
Subsection (1) does not apply to an insurer running off its business where the insurer has the specific approval of the Superintendent to cancel a contract.
A contract containing 1968, c.6, s.128; 1993, c.8, s.8
(a) a deductible clause,
(b) a co-insurance, average or similar clause, or
(c) a clause limiting recovery by the insured to a specified percentage of the value of any property insured at the time of loss, whether or not that clause is conditional or unconditional,
1968, c.6, s.129
Where, on the happening of any loss or damage to property insured, there is in force more than one contract covering the same interest, the insurers under the respective contracts are each liable to the insured for its rateable proportion of the loss unless it is otherwise expressly agreed in writing between the insurers.
For the purpose of subsection (1), a contract shall be deemed to be in force notwithstanding any term thereof that the policy shall 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.
Nothing in subsection (1) affects the operation of any deductible clause and,
(a) where one contract contains a deductible, the pro rata proportion of the insurer under that contract shall be first ascertained without regard to the clause and then the clause shall be applied only to affect the amount of recovery under that contract; and
(b) where more than one contract contains a deductible, the pro rata proportion of the insurers under those contracts shall be first ascertained without regard to the deductible clauses and then the highest deductible shall be pro rated among the insurers with deductibles and these pro rated amounts shall affect the amount of recovery under those contracts.
Nothing in subsection (4) shall be construed to have the effect of increasing the pro rata contribution of an insurer under a contract that is not subject to a deductible clause.
Notwithstanding subsection (1), insurance on identified articles shall be a first loss insurance as against all other insurance.
Where a contract, 1968, c.6, s.130
(a) excludes any loss that would otherwise fall within the coverage prescribed by section 123, or
(b) contains any stipulation, condition or warranty that is or may be material to the risk including, but not restricted to, a provision in respect to the use, condition, location or maintenance of the insured property,
1968, c.6, s.131
The insurer, upon making any payment or assuming liability therefor under a contract of fire insurance, shall be 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.
Where the net amount recovered after deducting the costs of recovery is not sufficient to provide a complete indemnity for the loss or damage suffered, that 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.
In this Part 1968, c.6, s.132; 1978, c.30, s.4; 1979, c.41, s.68; 2019, c.36, s.3; 2023, c.17, s.114
“actuarial basis” means the assumptions and methods used by a Fellow of the Canadian Institute of Actuaries to establish the costs of life insurance, taking into consideration the contingencies of human life, including death, accident, sickness and disease;(base actuarielle)
“application” means an application for insurance or for the reinstatement of insurance;(proposition)
“beneficiary” means a person, other than the insured or his personal representative, to whom or for whose benefit insurance money is made payable in a contract or by a declaration;(bénéficiaire)
“child” includes an adopted child; and “grandchild” includes the child of an adopted child;(enfant)
“contract” means a contract of life insurance;(contrat)
“court” means The Court of King’s Bench of New Brunswick or a judge thereof;(Cour)
“declaration” means an instrument signed by the insured(déclaration)
(a) with respect to which an endorsement is made on the policy, or
(b) that identifies the contract, or
(c) that describes the insurance or insurance fund or a part thereof,
“exempt policy” means a life insurance policy that is exempt from tax under the Income Tax Act (Canada);(police exonérée)
“family insurance” means insurance whereby the lives of the insured and one or more persons related to him by blood, marriage, or adoption are insured under a single contract between an insurer and the insured;(assurance familiale)
“instrument” includes a will;(instrument)
“insurance” means life insurance;(assurance)
“insurance money” means the amount payable by an insurer under a contract, and includes all benefits, surplus, profits, dividends, bonuses, and annuities payable under the contract;(sommes assurés)
“insured” (assuré)
(a) in the case of group insurance means, in the provisions of this Part relating to the designation of beneficiaries and the rights and status of beneficiaries, the group life insured, and
(b) in all other cases means the person who makes a contract with an insurer;
“life insurance” Repealed: 1978, c.30, s.4
“side account” means an account associated with or part of a contract and that is intended to hold funds in excess of the total amount permitted to be held in the exempt policy;(compte accessoire)
“will” includes a codicil.(testament)
1968, c.6, s.133
The rights and interests of a beneficiary for value under a contract that was in force immediately prior to July 1, 1962, are those provided in Part V of the Insurance Act then in force.
Where the person who would have been entitled to the payment of insurance money if the money had become payable immediately prior to July 1, 1962, was a preferred beneficiary within the meaning of Part V of the Insurance Act then in force, the insured may not, except in accordance with that Part
(a) alter or revoke the designation of a beneficiary, or
(b) assign, exercise rights under or in respect of, surrender or otherwise deal with, the contract,
In the case of a contract of group insurance made with an insurer authorized to transact insurance in the Province at the time the contract was made, this Part applies in determining 1968, c.6, s.134
(a) the rights and status of beneficiaries if the group life insured was resident in the Province at the time he became insured, and
(b) the rights and obligations of the group life insured if he was resident in the Province at the time he became insured.
1968, c.6, s.135; 1987, c.6, s.45
An insurer entering into a contract shall issue a policy.
Subject to subsection (3), the provisions in
(a) the application,
(b) the policy,
(c) any document attached to the policy when issued, and
(d) any amendment to the contract agreed upon in writing after the policy is issued,
In the case of a contract made by a fraternal society, the policy, the Act or instrument of incorporation of the society, its constitution, by-laws and rules, and the amendments made from time to time to any of them, the application for the contract and the medical statement of the applicant constitute the entire contract.
An insurer shall, upon request, furnish to the insured or to a claimant under the contract a copy of the application.
1968, c.6, s.136
This section does not apply to a contract
(a) of group insurance,
(b) of creditor’s group insurance, or
(c) made by a fraternal society.
An insurer shall set forth the following particulars in the policy:
(a) the name or a sufficient description of the insured and of the person whose life is insured;
(b) the amount, or the method of determining the amount, of the insurance money payable, and the conditions under which it becomes payable;
(c) the amount, or the method of determining the amount, of the premium and the period of grace, if any, within which it may be paid;
(d) whether the contract provides for participation in a distribution of surplus or profits that may be declared by the insurer;
(e) the conditions upon which the contract may be reinstated if it lapses;
(f) the options, if any,
(i) of surrendering the contract for cash,
(ii) of obtaining a loan or an advance payment of the insurance money, and
(iii) of obtaining paid-up or extended insurance.
In the case of a contract of group insurance or of creditor’s group insurance, an insurer shall set forth the following particulars in the policy: 1968, c.6, s.137
(a) the name or a sufficient description of the insured;
(b) the method of determining the persons whose lives are insured;
(c) the amount, or the method of determining the amount, of the insurance money payable, and the conditions under which it becomes payable;
(d) the period of grace, if any, within which the premium may be paid;
(e) whether the contract provides for participation in a distribution of surplus or profits that may be declared by the insurer.
In the case of a contract of group insurance, an insurer shall issue, for delivery by the insured to each group life insured, a certificate or other document in which are set forth the following particulars: 1968, c.6, s.138
(a) the name of the insurer and an identification of the contract;
(b) the amount, or the method of determining the amount, of insurance on the group life insured and on any person whose life is insured under the contract as a person dependent upon, or related to, him;
(c) the circumstances in which the insurance terminates and the rights, if any, upon such termination, of the group life insured and of any person whose life is insured under the contract as a person dependent upon, or related to, him.
1968, c.6, s.139
Subject to subsection (2), where at the time a contract would otherwise take effect the insured has no insurable interest, the contract is void.
A contract is not void for lack of insurable interest
(a) if it is a contract of group insurance, or
(b) if the person whose life is insured has consented in writing to the insurance being placed on his life.
Where the person whose life is insured is under the age of sixteen years, consent to insurance being placed on his life may be given by one of his parents or by a person standing in loco parentis to him.
Without restricting the meaning of the expression “insurable interest”, a person has an insurable interest in his own life and in the life of 1968, c.6, s.140
(a) his child or grandchild,
(b) his spouse,
(c) any person upon whom he is wholly or in part dependent for, or from whom he is receiving, support or education,
(d) his employee, and
(e) any person in the duration of whose life he has a pecuniary interest.
1968, c.6, s.141
Subject to any provision to the contrary in the application or the policy, a contract does not take effect unless
(a) the policy is delivered to an insured, his assign or agent, or to a beneficiary,
(b) payment of the first premium is made to the insurer or its authorized agent, and
(c) no change has taken place in the insurability of the life to be insured between the time the application was completed and the time the policy was delivered.
Where a policy is issued on the terms applied for and is delivered to an agent of the insurer for unconditional delivery to a person referred to in paragraph (1)(a), it shall be deemed, but not to the prejudice of the insured, to have been delivered to the insured.
1968, c.6, s.142
Where a cheque or other bill of exchange, or a promissory note or other written promise to pay, is given for the whole or part of a premium and payment is not made according to its tenor, the premium or part thereof shall be deemed not to have been paid.
Where a remittance for or on account of a premium is sent in a registered letter to an insurer and is received by it, the remittance shall be deemed to have been received at the time of the registration of the letter.
1968, c.6, s.143
Except in the case of group insurance, an assignee of a contract, a beneficiary or a person acting on behalf of one of them or of the insured may pay any premium that the insured is entitled to pay.
Where a premium, other than the initial premium, is not paid at the time it is due, the premium may be paid within a period of grace of
(a) thirty days, or in the case of an industrial contract twenty-eight days, from and excluding the day on which the premium is due, or
(b) the number of days, if any, specified in the contract for payment of an overdue premium,
Where the happening of the event upon which the insurance money becomes payable occurs during the period of grace and before the overdue premium is paid, the contract shall be deemed to be in effect as if the premium had been paid at the time it was due, but the amount of the premium, together with interest at the rate specified in the contract, but not exceeding six per cent per annum, and the balance, if any, of the current year’s premium, may be deducted from the insurance money.
1968, c.6, s.144
An applicant for insurance and a person whose life is to be insured shall each disclose to the insurer in the application, on a medical examination, if any, and in any written statements or answers furnished as evidence of insurability, every fact within his knowledge that is material to the insurance and is not so disclosed by the other.
Subject to section 145, a failure to disclose, or a misrepresentation of, such a fact renders the contract voidable by the insurer.
1968, c.6, s.145
This section does not apply to a mis-statement of age or to disability insurance.
In the case of a contract of group insurance a failure to disclose or a misrepresentation of, such a fact in respect of a person whose life is insured under the contract does not render the contract voidable; but if evidence of insurability is specifically requested by the insurer the insurance in respect of that person is voidable by the insurer unless it has been in effect for two years during the lifetime of the person, in which event it is not, in the absence of fraud, voidable.
Where an insurer fails to disclose, or misrepresents, a fact material to the insurance, the contract is voidable by the insured; but in the absence of fraud the contract is not, by reason of such a failure or misrepresentation, voidable after the contract has been in effect for two years. 1968, c.6, s.146
1968, c.6, s.147
This section does not apply to a contract of group insurance or of creditor’s group insurance.
Subject to subsection (3), where the age of a person whose life is insured is mis-stated to the insurer, the insurance money provided by the contract shall be increased or decreased to the amount that would have been provided for the same premium at the correct age.
Where a contract limits the insurable age, and the correct age of the person whose life is insured at the date of the application exceeds the age so limited, the contract is, during the lifetime of that person but not later than five years from the date the contract takes effect, voidable by the insurer within sixty days after it discovers the error.
In the case of a contract of group insurance or of creditor’s group insurance, a mis-statement to the insurer of the age of a person whose life is insured does not of itself render the contract voidable, and the provisions, if any, of the contract, with respect to age or mis-statement of age apply. 1968, c.6, s.148
1968, c.6, s.149
Where a contract contains an undertaking, express or implied, that insurance money will be paid if a person whose life is insured commits suicide, the undertaking is lawful and enforceable.
Where a contract provides that in case a person whose life is insured commits suicide within a certain period of time the contract is void or the amount payable under it is reduced, if the contract lapses and is subsequently reinstated on one or more occasions, the period of time commences to run from the date of the latest reinstatement.
1968, c.6, s.150
This section does not apply to a contract of group insurance or to a contract made by a fraternal society.
Where a contract lapses and the insured within two years applies for reinstatement of the contract, if within that time he
(a) pays the overdue premiums and other indebtedness under the contract to the insurer, together with interest at the rate specified in the contract, but not exceeding six per cent per annum, compounded annually; and
(b) produces
(i) evidence satisfactory to the insurer of the good health, and
(ii) other evidence satisfactory to the insurer of the insurability,
Subsection (2) does not apply where the cash surrender value has been paid or an option of taking paid-up or extended insurance has been exercised.
2019, c.36, s.42019, c.36, s.4
This section does not apply to a contract that provides an annuity or that is prescribed by regulation.
With respect to a contract for which an exempt policy has been issued, subject to any lesser amount provided for in the contract, the funds held in a side account cannot exceed the sum of
(a) the funds required to pay future costs of insurance, related premium taxes, administrative fees or charges, and
(b) any additional funds that are eligible to be held in an exempt policy, as determined under subsection (4).
With respect to a contract for which an exempt policy has been issued but, after issue, ceases to be an exempt policy, the funds held in a side account cannot exceed the funds required to pay future costs of insurance, related premium taxes, administrative fees or charges.
1968, c.6, s.151
An insured may in a contract or by a declaration designate his personal representative or a beneficiary to receive insurance money.
Subject to section 152 the insured may alter or revoke the designation by a declaration.
A designation in favour of the “heirs”, “next of kin” or “estate” of the insured, or the use of words of like import in a designation shall be deemed to be a designation of the personal representative of the insured.
1968, c.6, s.152
An insured may, in a contract or by a declaration, other than a declaration that is part of a will, filed with the insurer at its head or principal office in Canada during the lifetime of the person whose life is insured, designate a beneficiary irrevocably; and in that event the insured, while the beneficiary is living, may not alter or revoke the designation without the consent of the beneficiary and the insurance money is not subject to the control of the insured or of his creditors and does not form part of his estate.
Where the insured purports to designate a beneficiary irrevocably in a will or in a declaration that is not filed as provided in subsection (1), the designation has the same effect as if the insured had not purported to make it irrevocable.
1968, c.6, s.153
A designation in an instrument purporting to be a will is not ineffective by reason only of the fact that the instrument is invalid as a will, or that the designation is invalid as a bequest under the will.
Notwithstanding the Wills Act, a designation in a will is of no effect against a designation made later than the making of the will.
Where a designation is contained in a will, if subsequently the will is revoked by operation of law or otherwise, the designation is thereby revoked.
Where a designation is contained in an instrument that purports to be a will, if subsequently the instrument if valid as a will would be revoked by operation of law or otherwise, the designation is thereby revoked.
1968, c.6, s.154
An insured may, in a contract or by a declaration, appoint a trustee for a beneficiary and may alter or revoke the appointment by a declaration.
A payment made by an insurer to a trustee for a beneficiary discharges the insurer to the extent of the payment.
1968, c.6, s.155
Where a beneficiary predeceases the person whose life is insured, and no disposition of the share of the deceased beneficiary in the insurance money is provided in the contract or by a declaration, the share is payable
(a) to the surviving beneficiary, or
(b) if there is more than one surviving beneficiary, to the surviving beneficiaries, in equal shares, or
(c) if there is no surviving beneficiary, to the insured or his personal representative.
Where two or more beneficiaries are designated otherwise than alternatively, but no division of the insurance money is made, the insurance money is payable to them in equal shares.
A beneficiary may enforce for his own benefit, and a trustee appointed pursuant to section 154 may enforce as trustee, the payment of insurance money made payable to him in the contract or by a declaration and in accordance with the provisions thereof; but the insurer may set up any defence that it could have set up against the insured or his personal representative. 1968, c.6, s.156
1968, c.6, s.157
Where a beneficiary is designated, the insurance money, from the time of the happening of the event upon which the insurance money becomes payable, is not part of the estate of the insured and is not subject to the claims of the creditors of the insured.
While a designation in favour of a spouse, child, grandchild or parent of a person whose life is insured, or any of them, is in effect, the insurance money and the rights and interests of the insured therein and in the contract are exempt from execution or seizure.
Where a beneficiary 1968, c.6, s.158; 1972, c.5, s.2
(a) is not designated irrevocably, or
(b) is designated irrevocably but has attained the age of nineteen years and consents,
1968, c.6, s.159
Notwithstanding the designation of a beneficiary irrevocably, the insured is entitled while living to the dividends or bonuses declared on a contract, unless the contract otherwise provides.
Unless the insured otherwise directs, the insurer may apply the dividends or bonuses declared on the contract for the purpose of keeping the contract in force.
1968, c.6, s.160
Notwithstanding the Wills Act, where in a contract or in an agreement in writing between an insurer and an insured it is provided that a person named in the contract or in the agreement has, upon the death of the insured, the rights and interests of the insured in the contract,
(a) the rights and interests of the insured in the contract do not, upon the death of the insured, form part of his estate, and
(b) upon the death of the insured, the person named in the contract or in the agreement has the rights and interests given to the insured by the contract and by this Part and shall be deemed to be the insured.
Where the contract or agreement provides that two or more persons named in the contract or in the agreement shall, upon the death of the insured, have successively on the death of each of them, the rights and interests of the insured in the contract, this section applies successively, mutatis mutandis, to each of such persons and to his rights and interests in the contract.
Notwithstanding any nomination made pursuant to this section, the insured may, prior to his death, assign, exercise rights under or in respect of, surrender, or otherwise deal with, the contract as if the nomination had not been made, and may alter or revoke the nomination by agreement in writing with the insurer.
1968, c.6, s.161
Where an assignee of a contract gives notice in writing of the assignment to the insurer at its head or principal office in Canada, he has priority of interest as against
(a) an assignee other than one who gave notice earlier in like manner, and
(b) a beneficiary other than one designated irrevocably as provided in section 152, prior to the time the assignee gave notice to the insurer of the assignment in the manner prescribed in this subsection.
Where a contract is assigned as security, the rights of a beneficiary under the contract are affected only to the extent necessary to give effect to the rights and interests of the assignee.
Where a contract is assigned unconditionally and otherwise than as security, the assignee has all the rights and interests given to the insured by the contract and by this Part and shall be deemed to be the insured.
A provision in a contract to the effect that the rights or interests of the insured, or in the case of group insurance the group life insured, are not assignable is valid.
A group life insured may in his own name enforce a right given to him under a contract, subject to any defence available to the insurer against him or against the insured. 1968, c.6, s.162
Except in respect of his rights as beneficiary, a minor who has attained the age of sixteen years has the capacity of a person of the age of nineteen years 1968, c.6, s.163; 1972, c.5, s.2
(a) to make an enforceable contract, and
(b) in respect of a contract.
A beneficiary who has attained the age of eighteen years has the capacity of a person of the age of nineteen years to receive insurance money payable to him and to give a discharge therefor. 1968, c.6, s.164; 1972, c.5, s.2
Where an insurer receives sufficient evidence of 1968, c.6, s.165
(a) the happening of the event upon which insurance money becomes payable,
(b) the age of the person whose life is insured,
(c) the right of the claimant to receive payment, and
(d) the name and age of the beneficiary, if there is a beneficiary,
1968, c.6, s.166
Subject to subsection (4), insurance money is payable in the Province.
Unless a contract otherwise provides, a reference therein to dollars means Canadian dollars.
Where a person entitled to receive insurance money is not domiciled in the Province, the insurer may pay the insurance money to that person or to any other person who is entitled to receive it on his behalf by the law of the domicile of the payee.
In the case of a contract of group insurance, insurance money is payable in the province or territory of Canada in which the group life insured was resident at the time he became insured.
Notwithstanding where a contract was made, an action on it may be brought in a court by a resident of the Province if the insurer was authorized to transact insurance in the Province at the time the contract was made or at the time the action is brought. 1968, c.6, s.167
1968, c.6, s.168
Subject to subsection (2), an action or proceeding against an insurer for the recovery of insurance money shall not be commenced more than one year after the furnishing of the evidence required by section 165, or more than six years after the happening of the event upon which the insurance money becomes payable, whichever period first expires.
1968, c.6, s.169
Until an insurer receives at its head or principal office in Canada an instrument or an order of a court affecting the right to receive insurance money, or a notarial copy or a copy verified by statutory declaration, of any such instrument or order, it may make payment of the insurance money and shall be as fully discharged to the extent of the amount paid as if there were no such instrument or order.
Subsection (1) does not affect the rights or interests of any person other than the insurer.
Where an insurer admits the validity of the insurance but does not admit the sufficiency of the evidence required by section 165 and there is no other question in issue except a question under section 171, the insurer or the claimant may, before or after action is brought and upon at least thirty days notice, apply to the court for a declaration as to the sufficiency of the evidence furnished, and the court may make the declaration or may direct what further evidence shall be furnished and on the furnishing thereof may make the declaration or, in special circumstances, may dispense with further evidence. 1968, c.6, s.170
Where a claimant alleges that the person whose life is insured should be presumed to be dead by reason of his not having been heard of for seven years, and there is no other question in issue except a question under section 170, the insurer or the claimant may, before or after action is brought and upon at least thirty days notice, apply to the court for a declaration as to presumption of the death and the court may make the declaration. 1968, c.6, s.171
1968, c.6, s.172
Upon making a declaration under section 170 or section 171, the court may make such order respecting the payment of the insurance money and respecting costs as it deems just and, subject to section 174, a declaration or direction or order made under this subsection is binding upon the applicant and upon all persons to whom notice of the application has been given.
A payment made under an order made under subsection (1) discharges the insurer to the extent of the amount paid.
Where the court finds that the evidence furnished under section 165 is not sufficient or that a presumption of death is not established, it 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 evidence to be furnished by the claimant, publication of advertisements, further inquiry or any other matter or respecting costs. 1968, c.6, s.175
1968, c.6, s.176; 2021, c.8, s.31
When an insurer admits liability for insurance money and it appears to the insurer that any of the following occur, the insurer may apply ex parte for an order under this section:
(a) there are adverse claimants; or
(b) there is no person capable of giving and authorized to give a valid discharge for the insurance money who is willing to do so.
The insurer may apply to the court ex parte for an order for payment of the money into court under this section at any time after 30 days from the date of the happening of the event on which the insurance money becomes payable, and the court may on notice, if any, as it thinks necessary, make an order accordingly.
2021, c.8, s.32When an insurer admits liability for insurance money and the insurance money is unclaimed property as that term is defined in the Unclaimed Property Act, the insurer shall submit a report and deliver to the Director of Unclaimed Property the unclaimed property referred to in the report in accordance with the Unclaimed Property Act. 2021, c.8, s.32
Unless a contract or a declaration otherwise provides, where the person whose life is insured and a beneficiary die at the same time or in circumstances rendering it uncertain which of them survived the other, the insurance money is payable in accordance with subsection 155(1) as if the beneficiary had predeceased the person whose life is insured. 1968, c.6, s.177
1968, c.6, s.178; 1986, c.4, s.27
Subject to subsections (2) and (3), where insurance money is payable in instalments and a contract, or an instrument signed by the insured and delivered to the insurer, provides that a beneficiary has not the right to commute the instalments or to alienate or assign his interest therein, the insurer shall not, unless the insured subsequently directs otherwise in writing, 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 children who are minors.
A court may, upon the application of a beneficiary and upon at least ten days notice, declare that in view of special circumstances
(a) the insurer may, with the consent of the beneficiary, commute instalments of insurance money, or
(b) the beneficiary may alienate or assign his interest in the insurance money.
After the death of the beneficiary, his personal representative may, with the consent of the insurer, commute any instalments of insurance money payable to the beneficiary.
In this section “instalments” includes insurance money held by the insurer under section 179.
1968, c.6, s.179
An insurer may hold insurance money
(a) subject to the order of an insured or a beneficiary, or
(b) upon trusts or other agreements for the benefit of the insured or the beneficiary,
The insurer is not bound to hold insurance money as provided in subsection (1) under the terms of a declaration to which it has not agreed in writing.
Where an insurer does not, within thirty days after receipt of the evidence required by section 165, pay the insurance money to some person competent to receive it 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 deems just, and payment made in accordance with the order discharges the insurer to the extent of the amount paid. 1968, c.6, s.180
1968, c.6, s.182; O.C. 68-516; 1979, c.41, s.68; 1980, c.32, s.14; 2019, c.29, s.74; 2021, c.8, s.33; 2023, c.17, s.114
Where an insurer admits liability for insurance money payable to a minor and there is no person capable of giving, and authorized to give a discharge therefor, who is willing to do so, the insurer may, at any time after thirty days from the date of the happening of the event upon which the insurance money becomes payable, pay the money, less the applicable costs mentioned in subsection (2), into court to the credit of the minor.
The insurer may retain out of the insurance money, for costs incurred upon payment into court under subsection (1), 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.
No order is necessary for payment into court under subsection (1), but a 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 residence of the minor, and upon such payment being made the insurer shall forthwith notify the Minister and deliver to him a copy of the affidavit.
Where it appears that a representative of a beneficiary who is under disability may, under the law of the domicile of the beneficiary, accept payments on behalf of the beneficiary, the insurer may make payment to the representative; and any such payment discharges the insurer to the extent of the amount paid. 1968, c.6, s.183
No officer, agent or employee of an insurer and no person soliciting insurance, whether or not he is an agent of the insurer shall, to the prejudice of the insured, be deemed to be the agent of the insured in respect of any question arising out of a contract. 1968, c.6, s.184
An insurer does not incur any liability for any default, error, or omission in giving or withholding information as to any notice or instrument that it has received and that affects the insurance money. 1968, c.6, s.185
2019, c.36, s.5The Lieutenant-Governor in Council may make regulations prescribing contracts for the purpose of subsection 150.1(1). 2019, c.36, s.5
In this Part 1968, c.6, s.186; 1979, c.41, s.68; 2023, c.17, s.114
“application” means a written application for insurance or for the reinstatement of insurance;(proposition)
“beneficiary” means a person designated or appointed in a contract or by a declaration, other than the insured or his personal representative, to whom or for whose benefit insurance money payable in the event of death by accident is to be paid;(bénéficiaire)
“blanket insurance” means that class of group insurance that covers loss arising from specific hazards incident to or defined by reference to a particular activity or activities;(assurance globale)
“contract” means a contract of insurance;(contrat)
“court” means The Court of King’s Bench of New Brunswick or a judge thereof;(Cour)
“declaration” means an instrument signed by the insured,(déclaration)
(a) with respect to which an endorsement is made on the policy, or
(b) that identifies the contract, or
(c) that describes the insurance or insurance fund or a part thereof,
“family insurance” means insurance whereby the lives or well-being, or the lives and well-being, of the insured and one or more persons related to him by blood, marriage or adoption are insured under a single contract between an insurer and the insured;(assurance familiale)
“instrument” includes a will;(instrument)
“insurance” means accident insurance, sickness insurance, or accident insurance and sickness insurance;(assurance)
“insured” ,(assuré)
(a) in the case of group insurance means, in the provisions of this Part relating to the designation of beneficiaries or of personal representatives as recipients of insurance money and their rights and status, the group person insured, and
(b) in all other cases means the person who makes a contract with an insurer;
“person insured” means a person in respect of an accident to whom, or in respect of whose sickness, insurance money is payable under a contract, but does not include a group person insured;(personne assurée)
“will” includes a codicil.(testament)
1968, c.6, s.187
Notwithstanding any agreement, condition or stipulation to the contrary, this Part, except as provided in this Part, applies
(a) to a contract made in the Province, and
(b) only to a contract made,
This Part does not apply to
(a) accidental death insurance,
(b) creditor’s group insurance,
(c) disability insurance, or
In the case of a contract of group insurance made with an insurer authorized to transact insurance in the Province at the time the contract was made, this Part applies in determining, 1968, c.6, s.188
(a) the rights and status of beneficiaries and personal representatives as recipients of insurance money, if the group person insured was resident in the Province at the time he became insured, and
(b) the rights and obligations of the group person insured if he was resident in the Province at the time he became insured.
An insurer entering into a contract shall issue a policy. 1968, c.6, s.189
1968, c.6, s.190
This section does not apply to
(a) a contract of group insurance, or
(b) a contract made by a fraternal society.
An insurer shall set forth the following particulars in the policy:
(a) the name or a sufficient description of the insured and of the person insured,
(b) the amount or the method of determining the amount of the insurance money payable and the conditions under which it becomes payable,
(c) the amount or the method of determining the amount of the premium and the period of grace, if any, within which it may be paid,
(d) the conditions upon which the contract may be reinstated if it lapses, and
(e) the term of the insurance or the method of determining the day upon which the insurance commences and terminates.
In the case of a contract of group insurance, an insurer shall set forth the following particulars in the policy: 1968, c.6, s.191
(a) the name or a sufficient description of the insured,
(b) the method of determining the group persons insured and persons insured,
(c) the amount or the method of determining the amount of the insurance money payable and the conditions under which it becomes payable,
(d) the period of grace, if any, within which the premium may be paid, and
(e) the term of the insurance or the method of determining the day upon which the insurance commences and terminates.
1989, c.16, s.1
In this section
“original maximum benefit period” means, in respect of a contract of group insurance, the maximum period provided under the contract for the payment of any benefit payable under the contract in respect of loss of income;(période maximale d’origine des prestations)
“prescribed time period” means, in respect of a contract of group insurance, a continuous period of six months following the termination of the contract or a benefit provision in the contract or such longer continuous period as may be provided in the contract.(période de temps prescrite)
When a contract of group insurance or a benefit provision in a contract of group insurance is terminated, the insurer continues, as though the contract or benefit provision had remained in full force and effect, to be liable to pay to or in respect of any group person insured under the contract benefits under the contract relating to
(a) loss of income because of disability,
(b) death, or
(c) dismemberment,
Notwithstanding subsection (2), an insurer does not remain liable under a contract or benefit provision described in that subsection to pay a benefit for loss of income for the recurrence after the termination of that contract or benefit provision of a disability that recurs after a continuous period of six months, or such longer period as may be provided in the contract, during which the group person insured was not disabled.
An insurer who is liable under subsection (2) to pay a benefit for loss of income as a result of the disability of a group person insured is not liable to pay benefits for any period longer than the remaining portion of the original maximum benefit period in respect of the disability of the group person insured.
If a contract of group insurance, in this subsection called the “replacement contract”, is entered into within thirty-one days after the termination of another contract of group insurance, in this subsection called the “other contract”, and insures the same group or part of the group insured under the other contract,
(a) the replacement contract shall provide or shall be deemed to provide that any person who was insured under the other contract at the time of its termination is insured under the replacement contract from and after the termination of the other contract if
(i) the insurance on that person under the other contract terminated solely by reason of the termination of the other contract, and
(ii) the person is a member of a class eligible for insurance under the replacement contract,
(b) every person who was insured under the other contract and who is insured under the replacement contract is entitled to receive credit for satisfaction of any deductible earned before the effective date of the replacement contract, and
(c) no person who was insured under the other contract shall be excluded from eligibility under the replacement contract solely because of not being actively at work on the effective date of the replacement contract,
1968, c.6, s.192
Except as provided in subsection (2), in the case of a contract of group insurance an insurer shall issue for delivery by the insured to each group person insured a certificate or other document in which are set forth the following particulars:
(a) the name of the insurer and a sufficient identification of the contract,
(b) the amount or the method of determining the amount of insurance on the group person insured and on any person insured, and
(c) the circumstances under which the insurance terminates, and the rights, if any, upon such termination of the group person insured and of any person insured.
This section does not apply to a contract of blanket insurance or to a contract of group insurance of a non-renewable type issued for a term of six months or less.
1968, c.6, s.193
Subject to section 194 and except as otherwise provided in this section, the insurer shall set forth in the policy every exception or reduction affecting the amount payable under the contract, either in the provision affected by the exception or reduction, or under a heading such as “Exceptions” or “Reductions”.
Where the exception or reduction affects only one provision in the policy it shall be set forth in that provision.
Where the exception or reduction is contained in an endorsement, insertion or rider, the endorsement, insertion or rider shall, unless it affects all amounts payable under the contract, make reference to the provisions in the policy affected by the exception or reduction.
The exception or reduction mentioned in section 206 need not be set forth in the policy.
This section does not apply to a contract made by a fraternal society.
Subject to section 195, the conditions set forth in this section shall be deemed to be part of every contract other than a contract of group insurance, and the insurer shall ensure that they are printed on or attached to the policy forming part of such contract with the heading “Statutory Conditions”. 1968, c.6, s.194; 2008, c.11, s.14
1968, c.6, s.195
Where a statutory condition is not applicable to the benefits provided by the contract it may be omitted from the policy or varied so that it will be applicable.
Statutory conditions 3, 4 and 9 may be omitted from the policy if the contract does not contain any provisions respecting the matters dealt with therein.
Statutory conditions 5 and 6 shall be omitted from the policy if the contract does not provide that it may be terminated by the insurer prior to the expiry of any period for which a premium has been accepted.
Statutory conditions 3, 4, 5, 6 and 9, and subject to the restriction in subsection (5), statutory condition 7, may be varied but if by reason of the variation the contract is less favourable to the insured, a person insured or a beneficiary than it would be if the condition had not been varied, the condition shall be deemed to be included in the policy in the form in which it appears in section 194.
Paragraphs (1)(a) and (b) of statutory condition 7 may not be varied in policies providing benefits for loss of time.
Statutory conditions 10 and 11 may be varied by shortening the periods of time prescribed therein, and statutory condition 12 may be varied by lengthening the period of time prescribed therein.
The title of a statutory condition shall be reproduced in the policy along with the statutory condition, but the number of a statutory condition may be omitted.
In the case of a contract made by a fraternal society,
(a) the following provision shall be printed on every policy in substitution for subsection (1) of statutory condition 1:
(b) statutory condition 5 shall not be printed on the policy.
In the case of a policy of accident insurance of a non-renewable type issued for a term of six months or less or in relation to a ticket of travel, the statutory conditions need not be printed on or attached to the policy if the policy contains the following notice printed in conspicuous type: 1968, c.6, s.196
1968, c.6, s.197
Where a policy evidencing a contract or a certificate evidencing the renewal of a contract is delivered to the insured and the initial or renewal premium therefor or a part thereof has not been paid,
(a) the contract or renewal thereof is as binding on the insurer as if such premium had been paid although delivered by an officer or an agent of the insurer who did not have authority to deliver it, and
(b) the contract may be terminated for the non-payment of the premium by the insurer upon ten days notice of termination given in writing to the insured and mailed postage prepaid and registered to the latest address of the insured on the records of the insurer and the ten days shall begin on the day following the date of mailing such notice.
This section does not apply to a contract of group insurance or to a contract made by a fraternal society.
1968, c.6, s.198
An insurer may
(a) deduct unpaid premiums from an amount that it is liable to pay under a contract, or
(b) sue the insured for unpaid premiums.
Where a cheque or other bill of exchange or a promissory note or other written promise to pay is given for the whole or part of a premium and payment is not made according to its tenor the premium or part thereof shall be deemed never to have been paid.
Paragraph (1)(a) does not apply to a contract of group insurance.
This section does not apply to a contract made by a fraternal society.
Without restricting the meaning of the expression “insurable interest”, a person has an insurable interest in his own life and well-being and in the life and well-being of 1968, c.6, s.199
(a) his child or grandchild,
(b) his spouse,
(c) any person upon whom he is wholly or in part dependent for, or from whom he is receiving, support or education,
(d) his officer or employee, and
(e) any person in whom he has a pecuniary interest.
1968, c.6, s.200
Subject to subsection (2), where at the time a contract would otherwise take effect, the insured has no insurable interest, the contract is void.
A contract is not void for lack of insurable interest
(a) if it is a contract of group insurance, or
(b) if the person insured has consented in writing to the insurance.
Where the person insured is under the age of sixteen years, consent to the insurance may be given by one of his parents or by a person standing in loco parentis to him.
1968, c.6, s.201; 1972, c.5, s.2
Except in respect of his rights as beneficiary, a minor who has attained the age of sixteen years has the capacity of a person of the age of nineteen years
(a) to make an enforceable contract, and
(b) in respect of a contract.
A beneficiary who has attained the age of eighteen years has the capacity of a person of the age of nineteen years to receive insurance money payable to him and to give a valid discharge therefor.
1968, c.6, s.202
An applicant for insurance on his own behalf and on behalf of each person to be insured, and each person to be insured, shall disclose to the insurer in any application, on a medical examination, if any, and in any written statements or answers furnished as evidence of insurability, every fact within his knowledge that is material to the insurance and is not so disclosed by the other.
In the case of a contract of group insurance, a failure to disclose or a misrepresentation of such a fact with respect to a group person insured or a person insured under the contract does not render the contract voidable, but if evidence of insurability is specifically requested by the insurer, the insurance in respect of such a person is, subject to section 203, voidable by the insurer.
1968, c.6, s.203
(a) where a contract, including renewals thereof, except a contract of group insurance, has been in effect continuously for two years with respect to a person insured, a failure to disclose or a misrepresentation of a fact with respect to that person required by section 202 to be disclosed does not, except in the case of fraud, render the contract voidable;
(b) where a contract of group insurance, including renewals thereof, has been in effect continuously for two years with respect to a group person insured or a person insured, a failure to disclose or a misrepresentation of a fact with respect to that group person insured or person insured required by section 202 to be disclosed does not, except in the case of fraud, render the contract voidable with respect to that group person insured or person insured.
Where a claim arises from a loss incurred or a disability beginning before a contract, including renewals thereof, has been in force for two years with respect to the person in respect of whom the claim is made, subsection (1) does not apply to that claim.
Sections 202 and 203 apply mutatis mutandis to a failure at the time of reinstatement of a contract to disclose or a misrepresentation at that time, and the period of two years to which reference is made in section 203 commences to run in respect of a reinstatement from the date of reinstatement. 1968, c.6, s.204
Where a contract contains a general exception or reduction with respect to pre-existing disease or physical conditions and the person insured or group person insured suffers or has suffered from a disease or physical condition that existed before the date the contract came into force with respect to that person and the disease or physical condition is not by name or specific description excluded from the insurance respecting that person, 1968, c.6, s.205
(a) the prior existence of the disease or physical condition is not, except in the case of fraud, available as a defence against liability in whole or in part for a loss incurred or a disability beginning after the contract, including renewals thereof, has been in force continuously for two years immediately prior to the date of loss incurred or commencement of disability with respect to that person; and
(b) the existence of the disease or physical condition is not, except in the case of fraud, available as a defence against liability in whole or in part if the disease or physical condition was disclosed in the application for the contract.
1968, c.6, s.206
(a) the benefits payable under the contract shall be increased or decreased to the amount that would have been provided for the same premium at the correct age, or
(b) the premium may be adjusted in accordance with the correct age as of the date the person insured became insured.
In the case of a contract of group insurance, if there is a mis-statement to the insurer of the age of a group person insured or person insured, the provisions, if any, of the contract with respect to age or mis-statement of age shall apply.
Where the age of a person affects the commencement or termination of the insurance, the true age governs.
1968, c.6, s.207
Unless otherwise provided in the policy, an insured may in a contract or by a declaration designate his personal representative or a beneficiary to receive insurance money payable in the event of death by accident, and may from time to time alter or revoke the designation by declaration.
A designation in an instrument purporting to be a will is not ineffective by reason only of the fact that the instrument is invalid as a will or that the designation is invalid as a bequest under the will.
A designation in a will is of no effect against a designation made later than the making of the will.
If a designation is contained in a will and subsequently the will is revoked by operation of law or otherwise, the designation is thereby revoked.
If a designation is contained in an instrument that purports to be a will and subsequently the instrument, if it had been valid as a will would have been revoked by operation of law or otherwise, the designation is thereby revoked.
1968, c.6, s.208
A designation in favour of the “heirs”, “next-of-kin” or “estate”, or the use of words of like import in a designation shall be deemed to be a designation of the personal representative.
Where a beneficiary predeceases the person insured or group person insured, as the case may be, and no disposition of the share of the deceased beneficiary in the insurance money is provided in the contract or by declaration, the share is payable,
(a) to the surviving beneficiary, or
(b) if there is more than one surviving beneficiary, to the surviving beneficiaries in equal shares, or
(c) if there is no surviving beneficiary, to the insured or group person insured, as the case may be, or his personal representative.
A beneficiary designated under section 207 may upon the death by accident of the person insured or group person insured enforce for his own benefit, and a trustee appointed pursuant to section 209 may enforce as trustee, the payment of insurance money payable to him, and the payment to the beneficiary or trustee discharges the insurer to the extent of the amount paid, but the insurer may set up any defence that it could have set up against the insured or his personal representative.
An insured may in a contract or by a declaration appoint a trustee for a beneficiary, and may alter or revoke the appointment by a declaration. 1968, c.6, s.209
1968, c.6, s.210
Until an insurer receives at its head or principal office in Canada an instrument or an order of a court affecting the right to receive insurance money, or a notarial copy or a copy verified by statutory declaration of any such instrument or order, it may make payment of the insurance money and shall be as fully discharged to the extent of the amount paid as if there were no such instrument or order.
Subsection (1) does not affect the rights or interests of any person other than the insurer.
Where an assignee of a contract gives notice in writing of the assignment to the insurer at its head or principal office in Canada he has priority of interest as against
(a) any assignee other than one who gave notice earlier in like manner, and
(b) a beneficiary.
Where a contract is assigned unconditionally and otherwise than as security, the assignee has all the rights and interests given by the contract and by this Part to the insured, and shall be deemed to be the insured.
A provision in a contract to the effect that the rights or interests of the insured, or in the case of a contract of group insurance the group person insured, are not assignable, is valid.
1968, c.6, s.211
Where a beneficiary is designated, any insurance money payable to him is not, from the time of the happening of the event upon which it becomes payable, part of the estate of the insured, and is not subject to the claims of the creditors of the insured.
While there is in effect a designation of beneficiary in favour of any one or more of a spouse, child, grandchild or parent of the person insured or group person insured, the rights and interests of the insured in the insurance money and in the contract so far as either relate to accidental death benefits are exempt from execution or seizure.
A group person insured may, in his own name, enforce a right given by a contract to him, or to a person insured thereunder as a person dependent upon or related to him, subject to any defence available to the insurer against him or such person insured or against the insured. 1968, c.6, s.212
Unless a contract or a declaration otherwise provides, where a person insured or group person insured and a beneficiary die at the same time or in circumstances rendering it uncertain which of them survived the other, the insurance money is payable in accordance with subsection 208(2) as if the beneficiary had predeceased the person insured or group person insured. 1968, c.6, s.213
1968, c.6, s.214; 2021, c.8, s.34
When an insurer admits liability for the insurance money, and it appears to the insurer that any of the following occur, the insurer may apply for an ex parte order under this section:
(a) there are adverse claimants; or
(b) there is no person capable of giving and authorized to give a valid discharge for the insurance money who is willing to do so.
An insurer may apply ex parte to the court for an order for payment of money into court under this section, and the court may on notice, if any, as it deems necessary, make an order accordingly.
The court may fix without taxation the costs incurred on or in connection with any application or order made under this section, and may order the costs to be paid out of the insurance money or by the insurer or otherwise as it deems just.
A payment made in accordance with an order under this section discharges the insurer to the extent of the payment.
2021, c.8, s.35When an insurer admits liability for insurance money and the insurance money is unclaimed property as that term is defined in the Unclaimed Property Act, the insurer shall submit a report and deliver to the Director of Unclaimed Property the unclaimed property referred to in the report in accordance with the Unclaimed Property Act. 2021, c.8, s.35
1968, c.6, s.215; O.C. 68-516; 2019, c.29, s.74; 2021, c.8, s.36
Where an insurer admits liability for insurance money payable to a minor and there is no person capable of giving and authorized to give a valid discharge therefor who is willing to do so, the insurer may at any time after thirty days from the date of the happening of the event upon which the insurance money becomes payable, pay the money less the applicable costs mentioned in subsection (2) into court to the credit of the minor.
The insurer may retain out of the insurance money for costs incurred upon payment into court under subsection (1), 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.
No order is necessary for payment into court under subsection (1), but the registrar shall receive the money upon the insurer filing with him an affidavit showing the amount payable and the name, date of birth and residence of the minor, and upon such payment being made the insurer shall forthwith notify the Minister and deliver to him a copy of the affidavit.
Where it appears that a representative of a beneficiary who is under disability may under the law of the domicile of the beneficiary accept payments on behalf of the beneficiary, the insurer may make payment to the representative and any such payment discharges the insurer to the extent of the amount paid. 1968, c.6, s.216
Notwithstanding that insurance money is payable to a person, the insurer may if the contract so provides, but subject always to the rights of an assignee, pay an amount not exceeding two thousand dollars to 1968, c.6, s.217
(a) a relative by blood or connection by marriage of a person insured or the group person insured, or
(b) any person appearing to the insurer to be equitably entitled thereto by reason of having incurred expense for the maintenance, medical attendance or burial of a person insured or the group person insured, or to have a claim against the estate of a person insured or the group person insured in relation thereto,
1968, c.6, s.218
Subject to subsection (2), insurance money is payable in the Province.
In the case of a contract of group insurance, insurance money is payable in the province or territory of Canada in which the group person insured was resident at the time he became insured.
Unless a contract otherwise provides, a reference therein to dollars means Canadian dollars whether the contract by its terms provides for payment in Canada or elsewhere.
Where a person entitled to receive insurance money is not domiciled in the Province the insurer may pay the insurance money to that person or to any person who is entitled to receive it on his behalf by the law of the domicile of the payee and any such payment discharges the insurer to the extent of the amount paid.
Where insurance money is by the contract payable to a person who has died or to his personal representative and such deceased person was not at the date of his death domiciled in the Province, the insurer may pay the insurance money to the personal representative of such person appointed under the law of his domicile, and any such payment discharges the insurer to the extent of the amount paid.
Regardless of the place where a contract was made, a claimant who is resident of the Province may bring an action in the Province if the insurer was authorized to transact insurance in the Province at the time the contract was made or at the time the action is brought. 1968, c.6, s.219
An insurer does not incur any liability for any default, error or omission in giving or withholding information as to any notice or instrument that it has received and that affects the insurance money. 1968, c.6, s.220
The insurer shall not in the policy give undue prominence to any provision or statutory condition as compared to other provisions or statutory conditions, unless the effect of that provision or statutory condition is to increase the premium or decrease the benefits otherwise provided for in the policy. 1968, c.6, s.221
1968, c.6, s.222; 1973, c.52, s.2
Where there has been imperfect compliance with a statutory condition as to any matter or thing to be done or omitted by the insured, person insured or claimant with respect to the loss insured against and a consequent forfeiture or avoidance of the insurance in whole or in part, and a court before which a question relating thereto is tried deems it inequitable that the insurance should be forfeited or avoided on that ground, the court may relieve against the forfeiture or avoidance on such terms as it deems just.
Where a policy issued after the first day of September, 1973, includes disability benefits to be payable only during confinement of the insured, the provision does not bind the insured and the benefits in respect of disability under the policy are payable during the disability, regardless of whether the insured is confined or not.
No officer, agent, employee or servant of the insurer, and no person soliciting insurance, whether or not he is an agent of the insurer shall, to the prejudice of the insured, person insured or group person insured, be deemed to be the agent of the insured or of the person insured or group person insured in respect of any question arising out of the contract. 1968, c.6, s.223
In this Part 1968, c.6, s.224; 1971, c.41, s.3
“contract” means a contract of automobile insurance;(contrat)
1968, c.6, s.225
This Part applies only to contracts providing automobile insurance made or renewed in New Brunswick on or after the first day of January, 1969.
This Part does not apply to contracts insuring only against,
(a) loss of or damage to an automobile while in or on described premises,
(b) loss of or damage to property carried in or upon an automobile, or
(c) liability for loss of or damage to property carried in or upon an automobile.
This Part does not apply to a contract providing insurance in respect of an automobile not required to be registered under the Motor Vehicle Act, unless it is insured under a contract evidenced by a form of policy approved under this Part.
This Part does not apply to a contract insuring solely the interest of a person who has a lien upon, or has as security legal title to, an automobile and who does not have possession of the automobile.
1968, c.6, s.226; 1971, c.41, s.4; 1996, c.55, s.1; 2004, c.36, s.11; 2008, c.2, s.6
No insurer shall use a form of application, policy, endorsement or renewal or continuation certificate in respect of automobile insurance other than a form approved by the Superintendent.
An insurer may require additional information in an approved application form, but such additional information does not constitute part of the application for the purposes of section 229.
Where, in the opinion of the Superintendent, any provision of this Part, including any statutory condition, is wholly or partly inappropriate to the requirements of a contract or is inapplicable by reason of the requirements of any Act, he may approve a form of policy, or part thereof, or endorsement evidencing a contract sufficient or appropriate to insure the risks required or proposed to be insured, and the contract evidenced by the policy or endorsement in the form so approved is effective and binding according to its terms notwithstanding that those terms are inconsistent with, vary, omit or add to any provision or condition of this Part.
Except as to matters mentioned in section 237, the Superintendent may, if he considers it to be in the public interest, approve a form of motor vehicle liability policy or endorsement thereto that extends the insurance beyond that prescribed in this Part.
The Superintendent, in granting an approval under subsection (4), may require the insurer to charge an additional premium for the extension and to state that fact in the policy or in any endorsement.
The Superintendent may approve a form of owner’s policy containing insuring agreements and provisions in conformity with this Part for use by insurers in general, and that, for the purposes of section 228 shall be the “standard owner’s policy”.
The Superintendent may amend the form of owner’s policy approved under subsection (6).
Repealed: 2008, c.2, s.6
Repealed: 2008, c.2, s.6
Where the Superintendent approves or amends the form referred to in subsection (6), the Superintendent shall cause a copy of the form or the amendment to be published in The Royal Gazette, but it shall not be necessary for the Superintendent to publish in The Royal Gazette endorsement forms approved for use with the standard owner’s policy.
(a) shall be deemed to be incorporated in every contract in existence on that date, but
(b) do not alter the rights or obligations of any person in relation to an accident that occurs before that date.
The Superintendent, at the time a form or an amendment is published under subsection (7), may specify and cause to be published in The Royal Gazette
(a) the date on which any or all of the provisions of the form or the amendment are effective,
(b) the circumstances to which any or all of the provisions of the form or the amendment apply, and
(c) any other matter relating to the transition from the application of the provisions of the previous form to the application of the provisions of the new form or the amendment.
The Superintendent may revoke an approval given under this section, and, upon notification of the revocation in writing, no insurer shall thereafter use or deliver a form that contravenes the notification.
The Superintendent shall, on request of any interested insurer, specify in writing his reasons for granting, refusing or revoking an approval of a form.
No person carrying on the business of financing the sale or purchase of automobiles and no automobile dealer or insurance agent and no officer or employee of a person, dealer or insurance agent shall act as the agent of an applicant for the purpose of signing an application for automobile insurance. 1968, c.6, s.227; 2021, c.8, s.37
1968, c.6, s.228; 1971, c.41, s.5; 2004, c.36, s.12; 2008, c.2, s.7; 2008, c.11, s.14
An insurer shall ensure that a copy of the written application, signed by the insured or his or her agent, or, if no signed application is made, a copy of the purported application, or a copy of such part of the application or purported application as is material to the contract, is embodied in, endorsed upon or attached to the policy when issued by the insurer.
If no signed written application is received by the insurer prior to the issue of the policy, the insurer shall deliver or mail to the insured named in the policy, or to the agent for delivery or mailing to the insured, a form of application to be completed and signed by the insured and returned to the insurer.
Subject to subsection (5), the insurer shall deliver or mail to the insured named in the policy, or to the agent for delivery or mailing to the insured, the policy or a true copy thereof and every endorsement or other amendment to the contract.
Where a written application signed by the insured or his agent is made for a contract, the policy evidencing the contract 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 notification he informs the insurer in writing that he rejects the policy.
Where an insurer adopts the standard owner’s policy, it may, instead of issuing the policy, issue a certificate in the form approved by the Superintendent that when issued shall be of the same force and effect as if it was in fact the standard owner’s policy, subject to the limits and coverages shown on the certificate and any endorsements issued concurrently or subsequently, but at the request of an insured at any time, the insurer shall provide a copy of the standard owner’s policy wording as approved by the Superintendent.
Where an insurer issues a certificate under the provisions of subsection (5), proof of the terms of the policy may be given by production of a copy of The Royal Gazette containing the form of standard owner’s policy approved by the Superintendent.
Prima facie proof of the contents of the standard owner’s policy may be given by the production of what purports to be an insurer’s owner’s policy and proof of the contents of the standard owner’s policy may be given by the production of a copy of the policy and a certificate purporting to be under the hand of the Superintendent that the copy is the standard owner’s policy approved under subsection 226(6), which copy and certificate shall be admissible in evidence without proof of the signature or official position of the Superintendent.
Upon every application form and policy, there shall be printed or stamped in conspicuous type a copy of subsection 229(1).
1968, c.6, s.229; 1987, c.6, s.45
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 fails to disclose in the application any fact required to be stated therein;
(b) the insured contravenes a term of the contract or commits a fraud; or
(c) the insured wilfully makes a false statement in respect of a claim under the contract;
No statement of the applicant shall be used in defence of a claim under the contract unless it is contained in the signed written application therefor or, where no signed written application is made, in the purported application, or part thereof, that is embodied in, endorsed upon or attached to the policy.
No statement contained in a purported copy of the application, or part thereof, other than a statement describing the risk and the extent of the insurance, shall be used in defence of a claim under the contract unless the insurer proves that the applicant made the statement attributed to him in the purported application, or part thereof.
An insurer shall not decline to issue, refuse to renew, or terminate a contract or refuse to provide or continue any coverage or endorsement on any ground set out in the regulations. 2003, c.22, s.2
1968, c.6, s.230; 1971, c.41, s.6; 1974, c.22 (Supp.), s.4; 1980, c.27, s.4; 2008, c.11, s.14
(a) the conditions set forth in this section are statutory conditions and shall be deemed to be part of every contract, and the insurer shall ensure that they are printed in every policy with the heading “Statutory Conditions”, and
(b) no variation or omission of or addition to a statutory condition is binding on the insured.
In this section, “policy” does not include an interim receipt or binder.
1980, c.27, s.5
An insurer shall not terminate a contract by virtue of statutory condition 8 of section 230 except for one or more of the following reasons:
(a) non-payment of, or any part of, the premium due under the contract or of any charge under any agreement ancillary to the contract;
(b) the insured has knowingly given false particulars of the described automobile to the prejudice of the insurer;
(c) the insured has knowingly misrepresented or failed to disclose in an application for insurance any fact required to be stated therein; or
(d) material change in risk within the meaning of statutory condition 1 of section 230.
Subsection (1) applies only to a contract that has been in effect for more than sixty days and that insures a natural person in respect of an automobile of the private passenger or station wagon type, but does not apply to a contract insuring such a person in respect of an automobile used in the course of carrying on a business, trade or profession.
Subsection (1) does not apply to an insurer running off its business where the insurer has the specific approval of the Superintendent to cancel a contract.
1968, c.6, s.231; 1977, c.22, s.1
Where a contract does not insure against liability for loss or damage to persons and property, statutory condition 3 in section 230 is not a part of the policy and may be omitted from the printing of the conditions in the policy.
Where a contract does not insure against loss of or damage to the automobile, statutory condition 4 in section 230 is not a part of the policy and may be omitted from the printing of the conditions in the policy.
1968, c.6, s.232
Every contract evidenced by an owner’s policy insures the person named therein and every other person who with his consent personally drives an automobile owned by the insured named in the contract and within the description or definition thereof in the contract against liability imposed by law upon the insured named in the contract or that other person for loss or damage,
(a) arising from the ownership, use or operation of any such automobile, and
(b) resulting from bodily injury to or the death of any person, and damage to property.
Where the contract evidenced by an owner’s policy also provides insurance against liability in respect of an automobile not owned by the insured named in the contract, an insurer may stipulate in the contract that the insurance is restricted to such persons as are specified in the contract.
Where the insured named in the owner’s policy dies, the following persons shall be deemed to be insured under the policy:
(a) the spouse of the deceased insured if residing in the same dwelling premises at the time of his death;
(b) in respect of the described automobile, a newly-acquired automobile that was acquired by the deceased insured prior to his death and a temporary substitute automobile, all as defined by the policy,
(i) any person having proper temporary custody thereof until grant of probate or administration to the personal representative of the deceased insured,
(ii) the personal representative of the deceased insured.
Every contract evidenced by a non-owner’s policy insures the person named therein and such other person, if any, as is specified in the policy against liability imposed by law upon the insured named in the contract or that other person for loss or damage, 1968, c.6, s.233
(a) arising from the use or operation of an automobile within the definition thereof in the policy, other than an automobile owned by him or registered in his name, and
(b) resulting from bodily injury to or the death of any person, and damage to property.
For the purposes of this Part, a person shall not be deemed to be the owner of an automobile for the reason only that he has a lien on the automobile or has legal title to the automobile as security. 1968, c.6, s.234
Any person insured by but not named in a contract to which section 232 or 233 applies may recover indemnity in the same manner and to the same extent 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. 1968, c.6, s.236
Every contract evidenced by a motor vehicle liability policy shall provide that, where a person insured by the contract is involved in an accident resulting from the ownership, use or operation of an automobile in respect of which insurance is provided under the contract and resulting in loss or damage to persons or property, the insurer shall, 1968, c.6, s.237
(a) upon receipt of notice of loss or damage caused to persons or property, make such investigations, conduct such negotiations with the claimant and effect such settlement of any resulting claims as are deemed expedient by the insurer;
(b) defend in the name and on behalf of the insured and at the cost of the insurer any civil action that is at any time brought against the insured on account of loss or damage to persons or property;
(c) pay all costs taxed against the insured in any civil action defended by the insurer and any interest accruing after entry of judgment upon that part of the judgment that is within the limits of the insurer’s liability; and
(d) where the injury is to a person, reimburse the insured for outlay for such medical aid as is immediately necessary at the time.
Liability arising from contamination of property being carried in an automobile shall not be deemed to be liability arising from the ownership, use or operation of such automobile. 1971, c.41, s.7
The insurer is not liable under a contract evidenced by a motor vehicle liability policy for any liability, 1968, c.6, s.238; 1985, c.41, s.6
(a) imposed by any workmen’s compensation law upon any person insured by the contract;
(b) Repealed: 1985, c.41, s.6
(c) resulting from bodily injury to or the death of any employee of any person insured by the contract while engaged in the operation or repair of the automobile.
The insurer may provide under a contract evidenced by a motor vehicle liability policy, in either or both of the following cases, that it shall not be liable, 1968, c.6, s.239
(a) to indemnify any person engaged in the business of selling, repairing, maintaining, servicing, storing or parking automobiles for any loss or damage sustained while engaged in the use or operation of or while working upon the automobile in the course of that business unless the person is the owner of the automobile or is his employee;
(b) for loss of or damage to property carried in or upon the automobile or to any property owned or rented by or in the care, custody or control of the insured.
Subject to the limitations and exclusions of the endorsement, the insurer may provide by endorsement to a contract evidenced by a motor vehicle liability policy that it shall not be liable for loss or damage resulting from the ownership, use or operation of any machinery or apparatus, including its equipment, mounted on or attached to the automobile while such automobile is at the site of the use or operation of that machinery or apparatus. 1968, c.6, s.240; 1974, c.22(Supp.), s.5
1968, c.6, s.241; 1971, c.41, s.8
The insurer may provide under a contract evidenced by a motor vehicle liability policy, in one or more of the following cases, that it shall not be liable while,
(a) the automobile is rented or leased to another person;
(b) the automobile is used to carry explosives or to carry radioactive material for research, education, development or industrial purposes or for purposes incidental thereto;
(c) the automobile is used as a taxicab, public omnibus, livery, jitney or sightseeing conveyance or for carrying passengers for compensation or hire;
(d) where the insured vehicle is an automobile, other than a trailer, it is used for towing a trailer owned by the insured unless like indemnity is also provided by the insurer in respect of the trailer;
(e) where the insured vehicle is a trailer, it is towed by an automobile owned by the insured unless like indemnity is also provided by the insurer in respect of the automobile.
In paragraph (1)(b), “radioactive material” means,
(a) spent nuclear fuel rods that have been exposed to radiation in a nuclear reactor,
(b) radioactive waste material,
(c) unused enriched nuclear fuel rods, or
(d) any other radioactive material of such quantity and quality as to be harmful to persons or property if its container were destroyed or damaged.
Paragraph (1)(a) does not include the use by an employee of his automobile on the business of his employer and for which he is paid.
Paragraph (1)(c) does not include,
(a) the use by a person of his automobile for the carriage of another person in return for the former’s carriage in the automobile of the latter;
(b) the occasional and infrequent use by a person of his automobile for the carriage of another person who shares the cost of the trip;
(c) the use by a person of his automobile for the carriage of a temporary or permanent domestic servant of the insured or his spouse;
(d) the use by a person of his automobile for the carriage of a client or customer or a prospective client or customer; or
(e) the occasional and infrequent use by the insured of his automobile for the transportation of children to or from school or school activities conducted within the educational programme.
1992, c.83, s.1; 2000, c.26, s.168; 2006, c.16, s.93; 2008, c.2, s.8; 2023, c.36, s.17
“provincial authority” means the Minister of Health.
The provincial authority may, in respect of personal injuries arising out of the use or operation of a motor vehicle registered in the Province, impose a levy on each insurer for the purpose of recovering
(a) the cost of the entitled services provided to beneficiaries under the Medical Services Payment Act,
(b) the cost of the entitled services provided to persons under the Hospital Services Act, and
(c) the cost of social services provided to persons under the Family Services Act or the Child and Youth Well-Being Act.
Repealed: 2008, c.2, s.9 1992, c.83, s.1; 2008, c.2, s.9
1992, c.83, s.1; 2008, c.2, s.10; 2013, c.31, s.20; 2019, c.29, s.74; 2021, c.8, s.38; 2023, c.17, s.114
Before April 1 of each year, the provincial authority shall establish an estimate of the amount of the levy applicable on January 1 of the current calendar year.
Before May 15 of each year, the provincial authority shall give notice to each insurer of the amount of the estimated levy the insurer is obliged to pay.
The amount of the estimated levy an insurer is obliged to pay constitutes a debt payable to the Crown and shall be paid in accordance with subsection (4).
On receipt of the notice given under subsection (2), an insurer shall remit to the Minister equal quarterly payments as follows:
(a) the first payment shall be made before June 30 of the year in respect of which the estimate is made;
(b) the second payment shall be made before September 30 of the year in respect of which the estimate is made;
(c) the third payment shall be made before December 31 of the year in respect of which the estimate is made;
(d) the fourth payment shall be made before March 15 of the year following the year in respect of which the estimate is made.
1992, c.83, s.1; 2008, c.2, s.11; 2013, c.31, s.20; 2019, c.29, s.74; 2021, c.8, s.39
The provincial authority shall annually re-evaluate the accuracy of the levy estimate and shall make adjustments if necessary.
The provincial authority shall give notice to an insurer of an adjustment made under subsection (1) to the estimated levy.
If the adjusted amount is greater than the estimated levy, the insurer, when making the next quarterly payment under subsection 242.3(4), shall remit payment of the adjusted amount to the Minister.
If the adjusted amount is less than the estimated levy, the insurer shall credit the surplus amount to the next quarterly payment.
No interest is payable on the surplus or deficit resulting from the re-evaluation by the provincial authority under subsection (1).
Repealed: 2008, c.2, s.12 1992, c.83, s.1; 2008, c.2, s.12
2008, c.2, s.13; 2013, c.31, s.20; 2019, c.29, s.74; 2021, c.8, s.40
If an insurer fails to remit any portion of the levy within 90 days of any of the dates of payment set out in subsection 242.3(4), the Minister shall report this to the Superintendent, who may revoke the licence of the defaulting insurer after giving notice to the insurer and holding a hearing.
Notice of a revocation under subsection (1) shall be published by the Superintendent once in The Royal Gazette as soon as reasonably practicable after the revocation takes effect.
Any portion of the levy remaining unpaid after the date on which it is due bears interest at the rate prescribed by regulation. 2008, c.2, s.13
2008, c.2, s.13
The Superintendent, without the consent of the policy holders or the defaulting insurer, may appoint an administrator for the automobile insurance contracts of a defaulting insurer whose licence is revoked under section 242.6 and the appointment shall remain in force until revoked by the Superintendent.
The remuneration of an administrator appointed under subsection (1) shall be in the absolute discretion of the Superintendent and all costs including remuneration associated with the appointment of the administrator and reinsurance of the automobile insurance contracts shall be borne by the defaulting insurer.
The administrator appointed under subsection (1) shall have a right of access to, and the defaulting insurer shall provide, all books and records relating to all automobile insurance contracts of the defaulting insurer in force at the time of the revocation of the licence.
2008, c.2, s.13
Where the licence of a defaulting insurer is revoked under section 242.6, all automobile insurance contracts, the terms and conditions of such contracts and all rights, duties, obligations and liabilities of the insured and insurer thereunder remain in full force and effect until such contracts have been reinsured under subsection (1).
An administrator appointed under section 242.8 may make a valid and effectual assignment to the reinsurer of all right, title and interest of a defaulting insurer whose licence has been revoked, in and to the automobile insurance contracts of the defaulting insurer in force at the time of reinsurance.
Where an assignment of contracts to a reinsurer is made by an administrator under subsection (3), all right, title and interest in the unearned premiums existing in respect of such contracts shall, effective as of the time of reinsurance, vest in the reinsurer and the defaulting insurer shall immediately pay over to the reinsurer an amount equal to the amount of the unearned premiums then in existence.
Where right, title and interest in unearned premiums vests in the reinsurer under subsection (4), the interest so vested in the reinsurer shall constitute a debt owing by the defaulting insurer to the reinsurer and shall be a first charge against all assets of the defaulting insurer in the Province.
1968, c.6, s.242; 1975, c.81, s.1; 1978, c.30, s.5; 1985, c.31, s.1
Every contract evidenced by a motor vehicle liability policy insures, in respect of any one accident, to the limit of at least two hundred thousand dollars exclusive of interest and costs, against liability resulting from bodily injury to or the death of one or more persons and loss of or damage to property.
The contract shall be interpreted to mean that where, by reason of any one accident, liability results from bodily injury or death and from loss or damage to property
(a) claims against the insured arising out of bodily injury or death have priority to the extent of one hundred and eighty thousand dollars over claims arising out of loss of or damage to property; and
(b) claims against the insured arising out of loss of or damage to property have priority to the extent of twenty thousand dollars over claims arising out of bodily injury or death.
The insurer may, instead of specifying a limit in the policy for an inclusive amount, specify a limit of liability of at least two hundred thousand dollars, exclusive of interest and costs, against liability resulting from bodily injury to or the death of one or more persons and a limit of liability of at least two hundred thousand dollars exclusive of interest and costs, against liability for loss of or damage to property.
Nothing in this Part precludes an insurer, with respect to a limit or limits in excess of those specified in subsection (1) or (3), from increasing or reducing the limit or limits specified in the contract with respect to the use or operation of the automobile by a named person, but no reduction is effective for a limit less than that required under subsection (1) or (3).
1968, c.6, s.243
Every motor vehicle liability policy issued in New Brunswick shall provide that, in the case of liability arising out of the ownership, use or operation of the automobile in any province or territory of Canada,
(a) the insurer shall be liable up to the minimum limits prescribed for that province or territory if those limits are higher than the limits prescribed by the policy,
(b) the insurer shall not set up any defence to a claim that might not be set up if the policy were a motor vehicle liability policy issued in that province or territory, and
(c) the insured, by acceptance of the policy, constitutes and appoints the insurer his irrevocable attorney to appear and defend in any province or territory of Canada in which an action is brought against the insured arising out of the ownership, use or operation of the automobile.
A provision in a motor vehicle liability policy in accordance with paragraph (1)(c) is binding on the insured.
1968, c.6, s.244
Nothing in this Part precludes an insurer from providing insurance under a contract evidenced by a motor vehicle liability policy restricted to a limit in excess of that provided by another designated contract evidenced by a motor vehicle liability policy, whether the designated contract is a first loss insurance or an excess insurance.
Where the contract designated in the excess contract terminates or is terminated, the excess contract is also automatically terminated.
Nothing in this Part precludes an insurer from entering into an agreement with its insured under a contract evidenced by a motor vehicle liability policy providing that the insured will reimburse the insurer in an agreed amount in respect of any claim by or judgment in favour of a third party against the insured, and the agreement may be enforced against the insured according to its tenor. 1968, c.6, s.245
1968, c.6, s.246
In this section, “nuclear energy hazard” means the radioactive, toxic, explosive or other hazardous properties of prescribed substances under the Atomic Energy Control Act, chapter A-19 of the Revised Statutes of Canada, 1970.
Where an insured is covered, whether named therein or not, under a contract evidenced by a motor vehicle liability policy for loss or damage resulting from bodily injury to or the death of any person or damage to property arising directly or indirectly out of a nuclear energy hazard and is also covered, whether named therein or not, against such loss or damage under a contract evidenced by a policy of nuclear energy hazard liability insurance issued by a group of insurers and in force at the time of the event giving rise to the loss or damage,
(a) the motor vehicle liability insurance is excess to the nuclear energy hazard liability insurance, and the insurer under the contract of motor vehicle liability insurance is not liable to pay beyond the minimum limits prescribed by section 243, and
(b) the unnamed insured under the contract of nuclear energy liability insurance may, in respect of such loss or damage, recover indemnity under that contract in the same manner and to the same extent as if named therein as the insured, and for that purpose he shall be deemed to be a party to the contract and to have given consideration therefor.
For the purpose of this section, a contract of nuclear energy hazard liability insurance shall be deemed to be in force at the time of the event giving rise to the loss or damage, notwithstanding that the limits of liability thereunder have been exhausted.
1971, c.41, s.9
Where an insurer makes a payment on behalf of an insured under a contract evidenced by a Motor Vehicle Liability policy to a person who is or alleges himself to be entitled to recover from the insured covered by the policy, the payment constitutes, to the extent of the payment, a release by the person or his personal representative of any claim that the person or his personal representative or any person claiming through or under him or by virtue of the Fatal Accidents Act may have against the insured and the insurer.
Nothing in this section precludes the insurer making the payment from demanding, as a condition precedent to such payment, a release from the person or his personal representative or any other person to the extent of such payment.
Where the person commences an action the court shall adjudicate upon the matter first without reference to the payment but in giving judgment the payment shall be taken into account and the person shall only be entitled to judgment for the net amount, if any.
The intention of this section is to permit payments to a claimant without prejudice to the defendant or his insurer, either as an admission of liability or otherwise, and the fact of any payment shall not be disclosed to the judge or jury until after judgment but before formal entry thereof.
1968, c.6, s.247; 1971, c.41, s.9A; 1979, c.41, s.68; 2023, c.17, s.114
Where a person is insured under more than one contract evidenced by a motor vehicle liability policy, whether the insurance is first loss insurance or excess, and a question arises under paragraph 237(b) between an insurer and the insured or between the insurers as to which insurer shall undertake the obligation to defend in the name and on behalf of the insured, whether or not any insurer denies liability under its contract, the insured or any insurer may apply to a judge of the court, and the judge shall give such directions as may appear proper with respect to the performance of the obligation.
On an application under subsection (1), the only parties entitled to notice thereof and to be heard thereon are the insured and his insurers, and no material or evidence used or taken upon such an application is admissible upon the trial of an action brought against the insured for loss or damage to persons or property arising out of the use or operation of the automobile in respect of which the insurance is provided.
An order under subsection (1) does not affect the rights and obligations of the insurers in respect of payment of any indemnity under their respective policies.
Where indemnity is provided to the insured under two or more contracts and one or more of them are excess insurance, the insurers shall, as between themselves, contribute to the payment of expenses, costs and reimbursement for which provision is made in section 237 in accordance with their respective liabilities for damages awarded against the insured.
1968, c.6, s.248; 1974, c.22 (Supp.), s.6
Any person who has a claim against an insured for which indemnity is provided by a contract evidenced by a motor vehicle liability policy, notwithstanding that such person is not a party to the contract, may, upon recovering a judgment therefor in any province or territory of Canada against the insured, have the insurance money payable under the contract applied in or towards satisfaction of his judgment and of any other judgments or claims against the insured covered by the contract and may, on behalf of himself and all persons having such judgments or claims, maintain an action against the insurer to have the insurance money so applied.
No action shall be brought against an insurer under subsection (1) after the expiration of one year from the final determination of the action against the insured, including appeals if any.
A creditor of the insured is not entitled to share in the insurance money payable under any contract unless his claim is one for which indemnity is provided for by the contract.
The right of a person who is entitled under subsection (1) to have insurance money applied upon his judgment or claim is not prejudiced by,
(a) an assignment, waiver, surrender, cancellation or discharge of the contract, or of any interest therein or of the proceeds thereof, made by the insurer after the happening of the event giving rise to a claim under the contract,
(b) any act or default of the insured before or after that event in contravention of this Part or of the terms of the contract, or
(c) any contravention of the Criminal Code, chapter C-34 of the Revised Statutes of Canada, 1970, or a statute of any province or territory of Canada or of any state or the District of Columbia of the United States of America by the owner or driver of the automobile,
It is not a defence to an action under this section that an instrument issued as a motor vehicle liability policy by a person engaged in the business of an insurer and alleged by a party to the action to be such a policy is not a motor vehicle liability policy, and this section applies mutatis mutandis to the instrument.
The insurer may require any other insurers liable to indemnify the insured in whole or in part in respect of judgments or claims to which reference is made in subsection (1) to be made parties to the action and contribute according to their respective liabilities, whether the contribution is rateably or by way of first loss or excess insurance, as the case may be, and the insured shall on demand furnish the insurer with particulars of all other insurance covering the subject matter of the contract.
Where any person has recovered a judgment against the insured and is entitled to bring action under subsection (1), and the insurer admits liability to pay the insurance money under the contract and the insurer considers that,
(a) there are or may be other claimants, or
(b) there is no person capable of giving and authorized to give valid discharge for payment who is willing to do so,
The receipt of the proper officer of the court is sufficient discharge to the insurer for the insurance money paid into court under subsection (7), and the insurance money shall be dealt with as the court may order upon application of any person interested therein.
Notwithstanding anything contained therein to the contrary, every contract evidenced by a motor vehicle liability policy shall, for the purposes of this section, be deemed to provide all the types of coverage mentioned in section 242, but the insurer is not liable to a claimant with respect to such coverage in excess of the limits mentioned in section 243.
(a) with respect to that type of coverage, and
(b) as against a claimant,
Where one or more contracts provide for coverage in excess of the limits mentioned in section 243, the insurer may,
(a) with respect to the coverage in excess of those limits, and
(b) as against a claimant,
Repealed: 1974, c.22 (Supp.), s.6
The insured shall reimburse the insurer upon demand in the amount that the insurer has paid by reason of this section and that it would not otherwise be liable to pay.
Where an insurer denies liability under a contract evidenced by a motor vehicle liability policy, it shall, upon application to the court, be made a third party in any action to which the insured is a party and in which a claim is made against the insured by any party to the action in which it is or might be asserted that indemnity is provided by the contract, whether or not the insured enters an appearance or defence in the action.
Upon being made a third party, the insurer may,
(a) contest the liability of the insured to any party claiming against the insured,
(b) contest the amount of any claim made against the insured,
(c) deliver any pleadings in respect of the claim of any party claiming against the insured,
(d) have production and discovery from any party adverse in interest, and
(e) examine and cross-examine witnesses at the trial,
An insurer may avail itself of subsection (15) notwithstanding that another insurer is defending in the name and on behalf of the insured an action to which its insured is a party.
1968, c.6, s.249
Every insured against whom an action is commenced for damages occasioned by an automobile shall give notice thereof in writing to the insurer within five days after service of every notice or process in the action.
Every insured against whom an action is commenced for damages occasioned by an automobile shall, upon recovery of a judgment against the insured, disclose to a judgment creditor entitled to the benefit of any motor vehicle liability policy particulars of such contract within ten days after written demand therefor.
Subject to subsection 226(1), the insurer may provide in a contract such exclusions and limitations, in respect of loss of or damage to or the loss of use of the automobile, as it considers necessary. 1968, c.6, s.250
1968, c.6, s.251
A contract or part of a contract providing insurance against loss of or damage to an automobile and the loss of use thereof may contain a clause to the effect that, in the event of loss, the insurer shall pay only,
(a) an agreed portion of any loss that may be sustained, or
(b) the amount of the loss after deduction of a sum specified in the policy,
Where a clause is inserted in accordance with subsection (1), there shall be printed or stamped upon the face of the policy in conspicuous type the words: “This policy contains a partial payment of loss clause”.
1968, c.6, s.252
Where a claim is made under any contract other than a contract evidenced by a motor vehicle liability policy, the insurer shall, notwithstanding any agreement, adjust the amount of the claim with the insured named in the contract as well as with any person having an interest indicated in the contract.
Where notice is given or proof of loss is made by a person other than the insured, because the insured cannot be located or neglects or refuses or is unable to give notice and make claim under statutory conditions 4 and 7 in section 230, the insurer may, notwithstanding subsection (1) but in any event not earlier than sixty days from delivery of the proof required under clause (c) of subcondition (1) of said statutory condition 4, adjust and pay the claim to the other person having an interest indicated in the contract.
2004, c.36, s.13
This section applies if
(a) an automobile or its contents, or both, suffers damage arising directly or indirectly from the use or operation in New Brunswick of one or more other automobiles,
(b) the automobile that suffers the damage or in respect of which the contents suffer damage is insured under a contract evidenced by a motor vehicle liability policy issued by an insurer that is licensed to undertake automobile insurance in New Brunswick or that has filed with the Superintendent, in the form provided by the Superintendent, an undertaking to be bound by this section, and
(c) at least one other automobile involved in the accident is insured under a contract evidenced by a motor vehicle liability policy issued by an insurer that is licensed to undertake automobile insurance in New Brunswick or that has filed with the Superintendent, in the form provided by the Superintendent, an undertaking to be bound by this section.
This section applies, with necessary modifications, in respect of an automobile the owner, operator or lessee of which is exempt from the requirement to be insured under the Motor Vehicle Act, if the organization that is financially responsible for the damages resulting from the accident involving the automobile files with the Superintendent an undertaking to be bound by this section.
If this section applies, an insured is entitled to recover for the damages to the insured’s automobile and its contents and for loss of use from the insured’s insurer under the coverage described in subsection 232(1) as though the insured were a third party.
An insured may bring an action against the insurer if the insured is not satisfied that the degree of fault established under the fault determination rules accurately reflects the actual degree of fault or the insured is not satisfied with a proposed settlement and the matters in issue shall be determined in accordance with the ordinary rules of law.
If this section applies,
(a) an insured has no right of action against any person involved in the incident other than the insured’s insurer for damages to the insured’s automobile or its contents or for loss of use,
(b) an insured has no right of action against a person under an agreement, other than a contract of automobile insurance, in respect of damages to the insured’s automobile or its contents or loss of use, except to the extent that the person is at fault or negligent in respect of those damages or that loss, and
(c) an insurer, except as permitted by regulation, has no right of indemnification from or subrogation against any person for payments made to its insured under this section.
Nothing in this Part precludes an insurer, in a contract belonging to a class prescribed by regulation, from agreeing with an insured that, in the event that a claim is made by the insured under this section, the insurer shall pay only
(a) an agreed portion of the amount that the insured would otherwise be entitled to recover, or
(b) the amount that the insured would otherwise be entitled to recover, reduced by a sum specified in the agreement.
Subsection (7) does not apply unless, before the insurer enters into the contract referred to in that subsection, the insurer offers to enter into another contract with the prospective insured that does not contain the agreement referred to in that subsection but is identical to the contract referred to in subsection (7) in all other respects except for the amount of the premium.
In the circumstances prescribed by regulation, a contract belonging to a class prescribed for the purpose of subsection (7) shall provide that, in the event that a claim is made by the insured under this section, the insurer shall pay only the amount that the insured would otherwise be entitled to recover, reduced by a sum specified in the contract.
This section does not affect an insured’s right to recover in respect of any physical damage cover in respect of the insured automobile.
This section does not apply to damage to those contents of an automobile that are being carried for reward.
This section does not apply if both automobiles are owned by the same person.
This section does not apply to damage to an automobile owned by the insured or to its contents if the damage is caused by the insured while driving another automobile.
This section does not apply if the damage occurred before the coming into force of this section.
The Lieutenant-Governor in Council may make regulations 2004, c.36, s.13
(a) prescribing rules for determining the degree of fault in various situations for loss or damage arising directly or indirectly from the use or operation of an automobile;
(b) respecting indemnification and subrogation where section 254.1 applies;
(c) prescribing classes of contracts for the purposes of subsection 254.1(7);
(e) prescribing the amount, or the minimum or maximum amount, of a reduction required by a provision described in paragraph 254.1(7)(b) or subsection 254.1(9).
1968, c.6, s.253; 1989, c.17, s.4; 1991, c.27, s.19
In this section
“insured automobile” means the automobile as defined or described under the contract;(automobile assurée)
“person insured under the contract” means,(personne assurée aux termes du contrat)
(a) in respect of a claim for damage to the insured automobile, the owner of the automobile,
(b) in respect of a claim for damage to the contents of the insured automobile, the owner of the contents,
(c) in respect of a claim for bodily injuries or death,
(i) any person while driving, being carried in or upon or entering or getting on to or alighting from the insured automobile,
(ii) the insured named in the contract and, if residing in the same dwelling premises as the insured named in the contract, his or her spouse and any dependent relative,
(iii) if the insured named in the contract is a corporation, unincorporated association or partnership, any director, officer, employee or partner of the insured named in the contract, for whose regular use the insured automobile is furnished and, if residing in the same dwelling place, his or her spouse and any dependent relative,
“unidentified automobile” means an automobile with respect to which the identity of either the owner or driver cannot be ascertained;(automobile non identifiée)
“uninsured automobile” means an automobile with respect to which neither the owner nor driver of it has applicable and collectible bodily injury liability and property damage liability insurance for its ownership, use or operation, but does not include an automobile owned by or registered in the name of the insured or his or her spouse.(automobile non assurée)
Every contract evidenced by a motor vehicle liability policy shall provide for payment by the insurer of all sums that
(a) a person insured under the contract is legally entitled to recover from the owner or driver of an uninsured automobile or unidentified automobile as damages for bodily injuries resulting from an accident involving an automobile,
(b) a person is legally entitled to recover from the owner or driver of an uninsured automobile or unidentified automobile as damages for bodily injury to or the death of a person insured under the contract resulting from an accident involving an automobile, and
(c) a person insured under the contract is legally entitled to recover from the identified owner or driver of an uninsured automobile as damages for accidental damage to the insured automobile or its contents, or to both the insured automobile and its contents, resulting from an accident involving an automobile,
A dependent relative referred to in the definition “person insured under the contract” in subsection (1)
(a) who is the owner of an automobile insured under a contract, or
(b) who sustains bodily injuries or dies as the result of an accident while driving, being carried in or upon or entering or getting on to or alighting from his or her own uninsured automobile,
The Lieutenant-Governor in Council may make regulations
(a) prescribing, amending or altering the terms, conditions, provisions, exclusions and limits with respect to payments under subsection (2);
(b) deeming any term, condition, provision, exclusion, or limit as prescribed, amended or altered by a regulation made under paragraph (a) to be included in any motor vehicle liability policy made or renewed on or after the effective date of the regulation and in any motor vehicle liability policy that is subsisting on the effective date of the regulation;
(c) requiring that terms, conditions, provisions, exclusions and limits as prescribed, amended or altered by a regulation made under paragraph (a) be attached to or included in every motor vehicle liability policy as a schedule in or to the policy.
Any payments made or available to a person under a contract of insurance referred to in subsection (2) constitute, to the extent of such payments, a release by the person or the person’s personal representative or any person claiming through or under the person or by virtue of the Fatal Accidents Act, of any claim that the person may have under subsection (2), but nothing in this subsection precludes an insurer from demanding, as a condition precedent to payment, a release to the extent of the payment from the person insured or the person’s personal representative or any other person.
A release within the meaning of subsection (5) shall not enure to the benefit of the person or persons against whom the insurer has a right to subrogation under this Act.
This section applies to all contracts evidenced by motor vehicle liability policies made or renewed on or after the commencement of this subsection, and all contracts evidenced by motor vehicle liability policies that were subsisting on the commencement of this subsection shall be deemed to provide for the payments referred to in subsection (2) in respect of an accident arising out of the use or operation of an automobile occurring on or after the commencement of this subsection.
1968, c.6, s.254; 1971, c.41, s.10
Where in a contract an insurer provides insurance against expenses for medical, surgical, dental, ambulance, hospital, professional nursing or funeral services, the insurance applies only in respect of reasonable expenses,
(a) of or incurred for any person who sustains bodily injury or death while driving or being carried in or upon or entering or getting on to or alighting from or, if not the occupant of another automobile, as a result of being struck by an automobile owned by the insured named in the contract in respect of which insurance of the class mentioned in paragraph (a) of the definition of “automobile insurance” in section 1 is provided under the contract, and
(b) of the insured named in the contract and his or her spouse and any dependent relative residing in the same dwelling premises as the insured named in the contract who sustains bodily injury or death while driving or being carried in or upon or entering or getting on to or alighting from or as a result of being struck by any other automobile that is defined in the contract for the purposes of that insurance.
Where an insurer makes a payment under a contract of insurance referred to in subsection (1), the payment constitutes, to the extent of such payment, a release by the insured person or his personal representatives of any claim that the insured person or his personal representatives or any person claiming through or under him or by virtue of the Fatal Accidents Act may have against the insurer and any other person who may be liable to the insured person or his personal representatives if that other person is insured under a contract of the same type as is specified in subsection (1), but nothing in this subsection precludes an insurer from demanding, as a condition precedent to payment, a release to the extent of the payment from the person insured or his personal representatives or any other person.
The insurance mentioned in paragraph (1)(a) is a first loss insurance, and any other automobile insurance of the same type available to the injured person or in respect of a deceased person is excess insurance only.
The insurance mentioned in paragraph (1)(a) is excess insurance to any other insurance not being automobile insurance of the same type indemnifying the injured person or in respect of a deceased person for the expenses.
The insurance mentioned in paragraph (1)(b) is excess insurance to any other insurance indemnifying the injured person or in respect of a deceased person for the expenses.
1968, c.6, s.255; 1971, c.41, s.11
Where in a contract an insurer provides accident insurance benefits in respect of the death of or injury to an insured person arising out of an accident involving an automobile, the insurance applies only in respect of,
(a) any person who sustains bodily injury or death while driving or being carried in or upon or entering or getting on to or alighting from or, if not the occupant of another automobile, as a result of being struck by an automobile owned by the insured named in the contract in respect of which insurance of the class mentioned in paragraph (a) of the definition of “automobile insurance” in section 1 is provided under the contract, and
(b) the insured named in the contract and his or her spouse and any dependent relative residing in the same dwelling premises as the named insured who sustains bodily injury or death while driving or being carried in or upon or entering or getting on to or alighting from or as a result of being struck by any other automobile that is defined in the policy for the purposes of the insurance.
Where an insurer makes a payment under a contract of insurance to which subsection (1) refers, the payment constitutes, to the extent of such payment, a release by the insured person or his personal representatives of any claim that the insured person or his personal representatives or any person claiming through or under him or by virtue of the Fatal Accidents Act may have against the insurer and any other person who may be liable to the insured person or his personal representatives if that other person is insured under a contract of the same type as is specified in subsection (1), but nothing in this subsection precludes an insurer from demanding, as a condition precedent to payment, a release to the extent of the payment from the person insured or his personal representatives or any other person.
Subject to subsection (5), the insurance mentioned in paragraph (1)(a) is a first loss insurance, and any other automobile insurance of the same type available to the injured person or in respect of a deceased person is excess insurance only.
Subject to subsection (5), the insurance mentioned in paragraph (1)(b) is excess insurance over any other automobile insurance of the same type available to the injured person or in respect of a deceased person.
Where a person is entitled to benefits under more than one contract providing insurance of the type mentioned in this section, he or his personal representative or any person claiming through or under him or by virtue of the Fatal Accidents Act may recover only an amount equal to,
(a) one benefit, if the benefits under the contracts are of the same limit, or
(b) the highest benefit, if the benefits under the contracts are not of the same limit.
1968, c.6, s.256
Where a person is injured or killed in an accident in New Brunswick involving an automobile, that person or his personal representative may serve,
(a) a demand by registered mail on the owner of the automobile, or
(b) a demand by registered mail on the insurer of the owner of the automobile,
An owner or insurer who does not, within ten days after receiving a demand made under subsection (1), comply with the demand is guilty of an offence.
Any person insured by but not named in a contract to which section 255, 256 or 257 applies may recover under the contract in the same manner and to the same extent 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. 1968, c.6, s.257; 1971, c.41, s.12
1971, c.41, s.13
(a) is an occupant of a motor vehicle involved in an accident, the insurer of the owner of the motor vehicle shall, in the first instance, be liable for payment of the benefits provided by the insurance, or
(b) is a pedestrian and is struck by a motor vehicle, the insurer of the owner of that motor vehicle shall, in the first instance, be liable for the payment of the benefits provided by the insurance.
1968, c.6, s.258; 1979, c.41, s.68; 2021, c.8, s.41
(a) there are adverse claimants, or
(b) there is no person capable of giving and authorized to give a valid discharge for the insurance money who is willing to do so.
An insurer may apply to a judge of the court ex parte for an order for payment of the money into the court under this section at any time after 30 days after the date on which the insurance money becomes payable, and the court may on notice, if any, as it thinks necessary, make an order accordingly.
The receipt of the proper officer of the court is sufficient discharge to an insurer for the insurance money paid into the court, and the insurance money shall be dealt with as the judge of the court orders.
2021, c.8, s.42When an insurer admits liability for insurance money payable under section 255, 256 or 257 and the insurance money is unclaimed property as that term is defined in the Unclaimed Property Act, the insurer shall submit a report and deliver to the Director of Unclaimed Property the unclaimed property referred to in the report in accordance with the Unclaimed Property Act. 2021, c.8, s.42
Every action or proceeding against an insurer under a contract in respect of insurance provided under section 255, 256 or 257 shall be commenced within the limitation period specified in the contract, but in no event shall the limitation period be less than one year after the happening of the accident. 1968, c.6, s.259
1981, c.35, s.2
Where any person makes a claim for damages in respect of bodily injury or death sustained by the person or any other person while driving or being carried in or upon or entering or getting on to or alighting from or as a result of being struck by an automobile, he shall furnish the person against whom the claim is made full particulars of all insurance available to the claimant under contracts falling within the scope of section 256 or 257.
Where a claimant is entitled to the benefit of insurance referred to in section 256 or 257 this, to the extent of payments made or available to the claimant thereunder, constitutes a release by the claimant of any claim against the person liable to the claimant or the insurer of the person liable to the claimant.
This section applies only with respect to accidents occurring after the coming into force of the section.
Every contract evidenced by a motor vehicle liability policy provides 1968, c.6, s.261; 1980, c.27, s.6; 1989, c.17, s.5; 1993, c.8, s.9; 2004, c.36, s.14; 2008, c.2, s.14
(a) insurance described in section 256 against expenses for medical, surgical, dental, ambulance, hospital, professional nursing or funeral services, and
(b) accident insurance benefits described in section 257 in respect of death of or injury to an insured person,
1968, c.6, s.262; 1971, c.41, s.14
Subject to section 247, insurance under a contract evidenced by a valid owner’s policy of the kind mentioned in the definition “owner’s policy” in section 1 is, in respect of liability arising from or occurring in connection with the ownership, use or operation of an automobile owned by the insured named in the contract and within the description or definition thereof in the policy, a first loss insurance, and insurance attaching under any other valid motor vehicle liability policy is excess insurance only.
Subject to sections 247, 256, 257 and to subsection (1) of this section, if the insured named in a contract has or places any other valid insurance, whether against liability for the ownership, use or operation of or against loss of or damage to an automobile or otherwise, of his interest in the subject-matter of the contract or any part thereof, the insurer is liable only for its rateable proportion of any liability, expense, loss or damage.
“Rateable proportion” as used in subsection (2) means,
(a) if there are two insurers liable and each has the same policy limits, each of the insurers is liable to share equally in any liability, expense, loss or damage;
(b) if there are two insurers liable with different policy limits, the insurers are liable to share equally up to the limit of the smaller policy limit;
“accident” means an accident arising out of the use or operation of an automobile.(accident)
1996, c.55, s.2
Where a person who is required by section 200.1 of the Motor Vehicle Act to be wearing a seat belt assembly sustains bodily injury or dies in an accident while the person is not wearing a seat belt assembly, the amount recoverable by the person, or his or her personal representative, as damages for bodily injury or death in an action arising out of the accident shall be reduced by twenty-five per cent, unless the person or his or her personal representative, as the case may be, establishes that the failure to wear a seat belt assembly did not contribute to the bodily injury or death.
Where a person to whom subsection (1) applies contributed to his or her bodily injury or death by other acts or omissions in addition to the failure to wear a seat belt assembly, and the person or his or her personal representative does not establish that the failure to wear a seat belt assembly did not contribute to the bodily injury or death, the reduction in the amount of damages shall be determined with regard to all the circumstances but shall not be less than twenty-five per cent.
Subsection (1) does not apply to a person who sustains bodily injury or dies in an accident while the person is wearing a seat belt assembly but is not wearing it in a properly adjusted and securely fastened manner as required under section 200.1 of the Motor Vehicle Act.
This section applies only to accidents occurring on or after the commencement of this section.
2003, c.22, s.3
In this section “soft tissue injury” and “minor personal injury” shall be as prescribed and defined in the regulations.
In an action for damages arising out of an accident, the amount recoverable as damages for the non-pecuniary loss of the plaintiff for soft tissue injury shall not exceed the amount set out in the regulations.
In an action for damages arising out of an accident, the amount recoverable as damages for the non-pecuniary loss of the plaintiff for minor personal injury shall not exceed the amount set out in the regulations.
This section applies only to accidents occurring on or after the commencement of this section.
1996, c.55, s.2
In an action for damages arising out of an accident, the amount recoverable by the plaintiff as damages for loss of income between the date of the accident and the date of the judgment shall be calculated on the basis of the income the plaintiff would have received during that period less any applicable income tax.
This section applies only to accidents occurring on or after the commencement of this section.
1996, c.55, s.2; 2003, c.22, s.4
In an action for damages arising out of an accident, the amount recoverable by the plaintiff as damages for loss of income between the date of the accident and the date of the judgment shall, subject to subsection (4), be reduced by
(a) all payments that the plaintiff received for loss of income during that period under an enactment of any jurisdiction or under an income continuation benefit plan,
(a.1) all payments that the plaintiff received for loss of earning capacity during that period under a policy of disability insurance, and
(b) all payments that the plaintiff received during that period under a sick leave plan arising by reason of the plaintiff’s occupation or employment, whether or not the plaintiff’s credits under that plan can be characterized as a capital asset.
Where payments referred to in subsection (1) are taxable as income, the amount of the reduction made under that subsection shall be the amount of the payments less the applicable income tax.
Notwithstanding any enactment or agreement or the terms of any plan or policy of disability insurance, but subject to subsection (4),
(a) a person who makes a payment referred to in subsection (1) is not subrogated to the right of recovery of the plaintiff against another person in respect of that payment, and
(b) a plaintiff who has received a payment referred to in subsection (1) and who subsequently receives an award of damages is not required to reimburse the person who made the payment.
Paragraph (1)(a) does not apply to payments made under an enactment that expressly permits the person who makes the payments to recover the amount of the payments from the plaintiff or the defendant.
This section applies only to accidents occurring on or after the commencement of this section.
1996, c.55, s.2
Notwithstanding subsection 45(1) of the Judicature Act, in an action for damages arising out of an accident, interest shall not be awarded, for any period between the date of the accident and the date of the judgment, in respect of any damages for the non-pecuniary loss of the plaintiff.
This section applies only to accidents occurring on or after the commencement of this section.
1996, c.55, s.2; 2023, c.17, s.114
At any time after an action for damages arising out of an accident is commenced, the plaintiff may apply to a judge of the court for an order requiring the defendant to make an advance payment of special damages.
The judge may make an order under subsection (1) on any terms he or she thinks appropriate, if the judge is satisfied that the plaintiff will prove that the defendant is liable for those damages.
The judge may order that payment under subsection (1) be made by lump sum, by instalment or by a combination of both.
In calculating the amount of an advance payment, the judge may take into account any circumstances he or she considers relevant including
(a) the amount of special damages already incurred or likely to be incurred before judgment by the plaintiff,
(b) the amount, if any, counterclaimed by the defendant,
(c) the extent, if any, to which the plaintiff may be found to be contributorily negligent,
(d) any failure by the plaintiff to mitigate the amount of special damages, and
(e) the needs and resources of the plaintiff and the means of the defendant.
This section applies only to accidents occurring on or after the commencement of this section.
1968, c.6, s.263; 1973, c.74, s.44; 1977, c.22, s.2; 1979, c.41, s.68; 2023, c.17, s.114
An insurer who makes any payment or assumes liability therefor under a contract 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 those rights.
Where the net amount recovered whether by action or on settlement is, after deduction of the costs of the recovery, not sufficient to provide complete indemnity for the loss or damage suffered, the amount remaining shall be divided between the insurer and the insured in the proportion in which the loss or damage has been borne by them.
Where the interest of an insured in any recovery is limited to the amount provided under a clause in the contract to which section 253 applies, the insurer shall have control of the action.
Where the interest of an insured in any recovery exceeds that referred to in subsection (3) and the insured and the insurer cannot agree as to,
(a) the solicitors to be instructed to bring the action in the name of the insured,
(b) the conduct and carriage of the action or any matters pertaining thereto,
(c) any offer of settlement or the apportionment thereof, whether action has been commenced or not,
(d) the acceptance of any money paid into court or the apportionment thereof,
(e) the apportionment of costs, or
(f) the launching or prosecution of an appeal,
On an application under subsection (4), the only parties entitled to notice and to be heard thereon are the insured and the insurer, and no material or evidence used or taken upon the application is admissible upon the trial of an action brought by or against the insured or the insurer.
A settlement or release given before or after an action is brought does not bar the right of the insured or the insurer, as the case may be, unless they have concurred therein.
1989, c.17, s.6
Sections 266.2 to 266.993 apply only to a claim for damages by a person who is not insured under a contract within the meaning of section 255 and who has no other insurance, or who has other insurance that is inadequate, with respect to the damages claimed, and, subject to subsection (4), no person other than one who is not insured under a contract within the meaning of section 255 and who has no other insurance, or who has other insurance that is inadequate, with respect to the damages claimed, shall apply to the Facility Association for payment of damages in accordance with sections 266.2 to 266.993.
Notwithstanding any other provision of this Act, no person shall apply to the Facility Association under section 266.2 or 266.3 for payment of damages in respect of damage to an automobile owned by or registered in the name of the person, notwithstanding that the person may have had no applicable and collectible insurance with respect of that automobile at the time of the accident in which the damage was incurred, if, at the time of the accident, the person was driving the automobile or had the care or control of it, whether it was in motion or not.
Where a question arises between a person’s insurer and the Facility Association as to whether a person is insured under a contract of insurance within the meaning of section 255 or has other insurance with respect to the damages claimed, the person may, at the person’s option, make a claim for damages against the insurer or apply to the Facility Association for payment of damages in accordance with sections 266.2 to 266.993.
Where, in the circumstances described in subsection (4), a person elects to make a claim for damages against the person’s insurer and liability is denied on the grounds that the person is not insured under a contract within the meaning of section 255 and has no other insurance with respect to the damages claimed, the person may proceed, in accordance with sections 266.2 to 266.993, to apply to the Facility Association for payment of damages.
Where, in the circumstances described in subsection (4) or (5), a person elects to proceed, in accordance with sections 266.2 to 266.993, to apply to the Facility Association for payment of damages and the Facility Association makes a payment to the person in accordance with those sections, the Facility Association is subrogated to the extent of those payments to the rights of the person to whom the amount is paid and, where in the opinion of the Facility Association, the person is insured under a contract within the meaning of section 255 or has other insurance with respect to the damages claimed, the Facility Association may bring an action in its name or in the name of such person against the insurer to recover the amount of the payment.
No payment made by the Facility Association in the circumstances described in subsection (6) bars the person to whom it is made from making a claim against the person’s insurer for damages in excess of the amount of the payment by the Facility Association.
1989, c.17, s.6; 1991, c.27, s.19; 2023, c.17, s.114
A person who would have a cause of action against an owner of an automobile or a driver of an automobile, other than an automobile owned by or under the care and control of the person, for damages for injuries to or the death of any person or damage to property, arising out of the operation, care or control of the automobile in the Province, except a person entitled to make application under section 266.3, may make application on a form provided by the Facility Association for payment by the Facility Association of the damages in respect of such death, personal injury, or property damage.
Upon receipt of an application under subsection (1), the Facility Association shall, by registered or certified mail, forward a notice of the application for payment by the Facility Association to the owner and the driver of the automobile against whom liability for the damages occasioned by the operation of the automobile is alleged, to their latest known addresses or to their latest addresses as recorded with the Registrar of Motor Vehicles.
The Facility Association may, in respect of an application made under subsection (1), make payment, subject to the same conditions, limits, deductions and exclusions which would apply to an application by a judgment creditor in accordance with sections 266.3 to 266.993, with the necessary modifications, of an amount that it considers proper in all the circumstances if
(b) subject to paragraph (c), the owner and driver of the automobile against whom liability for the damages occasioned by the operation of the automobile is alleged, execute a consent to the payment of the sum for damages by the Facility Association and also execute under seal an undertaking in a form provided by the Facility Association to repay to the Facility Association the amount to be paid by the Facility Association, or
(c) the person to whom a notice is sent in accordance with subsection (2) does not reply within thirty days of the date upon which the notice was sent either
(i) by mail, or
(ii) by attending in person at the place named in the notice,
Where an amount is paid out by the Facility Association under subsection (3) or (5), the Facility Association shall, to the extent of the amount paid out, be deemed to be a creditor of every person against whom liability for the damages occasioned by the operation of the automobile is alleged and who was given notice under subsection (2), and upon the filing with a clerk of the court of a certificate of the Facility Association in a form prescribed by regulation stating the amount paid out, judgment may be entered in that amount in the name of the Facility Association as a judgment of the court, and, without the consent of the Facility Association, no execution under a judgment obtained with respect to the damages referred to above shall be made by any person other than the Facility Association against the property of the judgment debtor until the judgment debt of the Facility Association is satisfied.
The Facility Association may in its discretion make interim payments to claimants claiming damages for personal injury where the responsible person or persons do not dispute their liability after a notice is sent to them in accordance with subsection (2).
Subject to section 266.8, where a person obtains in any court in the Province a judgment 1989, c.17, s.6; 1991, c.27, s.19
(a) against an owner of an automobile or a driver of an automobile, other than an automobile owned by or under the care or control of the person, for damages for injuries to or the death of any person or damage to property, arising out of the operation, care or control of the automobile in the Province, or
(b) against a Party Unknown, as contemplated by section 266.91, for damages for injury to or the death of any person arising out of the operation, care or control of an automobile in the Province,
The Facility Association shall pay out to the person the amount of the judgment including the costs included in the judgment, or that part of the judgment including the costs to which the person is entitled, if 1989, c.17, s.6
(a) the person makes an affidavit
(i) as to what amount the person has recovered or is or was entitled to recover, from any source, for or in respect of any injury, death or damage to a person or property arising out of the operation, care or control of the automobile by the owner or driver of it against whom the judgment was obtained whether or not, in the action damages were claimed for or in respect of the injury, death or damage and as to what compensation or services or benefits with a pecuniary value the person has recovered or received or is or was entitled to recover or receive for or in respect of the injury, death or damage,
(ii) that the application is not made by or on behalf of an insurer in respect of any amount paid or payable by the insurer by reason of the existence of a contract of insurance and that, subject to subsection 266.1(4), no part of the amount sought to be paid by the Facility Association is sought in lieu of making a claim or receiving a payment that is or was payable by reason of the existence of a contract of insurance and that no part of the amount sought will be paid to an insurer to reimburse or otherwise indemnify an insurer in respect of any amount paid or payable by the insurer by reason of the existence of a contract of insurance, and
(b) the solicitor for the person makes an affidavit
(i) that the judgment is a judgment as described in section 266.3,
(ii) giving particulars of the amount of damages for or in respect of injury or death, damage to property and the costs, included in the judgment,
(iii) that in so far as the solicitor was advised by any person and learned of any facts during the litigation
(iv) that the action was defended throughout to judgment or that there was a default or a consent or agreement by or on behalf of the defendant and that the solicitor complied with section 266.8, and
(c) the affidavits together with
(i) a copy of the statement of claim,
(ii) a certified copy of the judgment,
(iii) the assignment of judgment, and
(iv) where applicable, the solicitor’s taxed bill of costs,
1989, c.17, s.6; 2023, c.17, s.114
Where, on an application to the Facility Association,
(a) all the documents required under section 266.4 are not forwarded,
(b) any matter required to be in an affidavit is omitted,
(d) for any reason, the Facility Association wishes the application for payment to go before a judge of the court for an order for payment by the Facility Association,
The Facility Association shall advise the person to remedy any objection it may have against payment and if the objection is remedied to the satisfaction of the Facility Association, it shall then make payment as hereinbefore provided.
When a person is advised that payment shall not be made except by order of a judge of the court, the person may apply to a judge of the court by way of Notice of Application, upon notice to the Facility Association, for an order directing payment by the Facility Association of the amount in respect of the judgment to which the person is entitled under sections 266.2 to 266.993. 1989, c.17, s.6; 2023, c.17, s.114
1989, c.17, s.6
The Judge may make an order directed to the Facility Association requiring it, subject to sections 266.2 to 266.993, to pay the amount in respect of the judgment to which the judgment creditor is entitled in accordance with those sections, if the applicant, in and by the application, satisfies the Judge
(a) that the applicant has obtained a judgment as set out in section 266.3, stating whether against an owner, a driver or a Party Unknown, the amount of the judgment, and the amount owing on the judgment at the date of the application,
(b) that, subject to subsection 266.1(4), the applicant has commenced action against all persons against whom the applicant might reasonably be considered as having a cause of action for or in respect of any injury, death or damage to person or property arising out of the operation, care or control of the automobile by the owner or driver against whom the judgment was obtained,
(c) that the applicant has prosecuted every action in good faith to judgment or dismissal,
(d) that, with respect to the amount to be paid, the applicant has not recovered and is and was not entitled to recover, from any source, any amount for or in respect of the injury, death or damage to person or property described in paragraph (b),
(e) that, with respect to the amount to be paid, the applicant has not received and is and was not entitled to receive from any source any compensation or services or benefits with a pecuniary value for or in respect of the injury, death or damage to person or property described in paragraph (b),
(f) that the application is not made by or on behalf of an insurer in respect of any amount paid or payable by the insurer by reason of the existence of a contract of insurance, and that, subject to subsection 266.1(4), no part of the amount sought to be paid out by the Facility Association is sought in lieu of making a claim or receiving a payment that is or was payable by reason of the existence of a contract of insurance and that no part of the amount sought will be paid to an insurer to reimburse or otherwise indemnify an insurer in respect of any amount paid or payable by the insurer by reason of the existence of a contract of insurance,
(g) that the amount sought to be paid out by the Facility Association does not exceed the maximum amount payable under section 266.98.
The Facility Association may appear and be heard on the application and may show cause why the order should not be made.
1989, c.17, s.6
Where an action is commenced and the defendant
(a) fails to file and serve a statement of defence,
(b) fails to appear in person or by counsel at an examination for discovery, trial or appeal or notifies the plaintiff that such failure is likely, or
(c) consents or agrees to the entering of judgment,
Where the Facility Association receives notice under subsection (1), it may, if it considers it advisable, on behalf and in the name of the defendant, take any step to enforce the defendant’s right to compensation or indemnity in respect of or arising out of the claim that is available to the defendant, and take any step in the proceedings, including a consent to judgment in such amount as it may consider proper in the circumstances and all acts done in accordance with this subsection shall be deemed to be the acts of the defendant.
1989, c.17, s.6; 2013, c.32, s.16
No money is required to be paid by the Facility Association in compliance with an order made under section 266.7 until the judgment of the applicant or the portion of the judgment for which the Facility Association is liable or the applicant’s interest in the judgment is assigned to the Facility Association.
Upon filing a copy of the assignment of judgment, certified by the Facility Association to be a true copy, with the Registrar, or clerk, as the case may be, of the court in which the judgment was obtained, the Facility Association shall, to the extent of the amount of the assignment, be deemed to be the judgment creditor.
If the judgment creditor has delivered an enforcement instruction to the sheriff under the Enforcement of Money Judgments Act and a copy of the assignment of judgment, certified in accordance with subsection (2), is delivered to the sheriff who is enforcing the judgment, subsection (2) applies with the necessary modifications.
Where injury to or the death of any person arises out of the operation, care or control of an automobile in the Province but the identity of the automobile, the owner and the driver of it cannot be established, any person who would have a cause of action against the owner or driver in respect of such injury or death may, upon notice to the Facility Association, apply to a judge of the court for an order permitting the person to bring an action in the court against a nominal defendant to be designated as a Party Unknown. 1989, c.17, s.6; 2023, c.17, s.114
The Judge may make an order permitting the applicant to bring an action against a Party Unknown if satisfied 1989, c.17, s.6
(a) that there are reasonable grounds for bringing the action,
(b) that all reasonable efforts have been made to ascertain the identity of the automobile involved and of the owner and driver of it,
(c) that the identity of the automobile involved and of the owner and driver of it cannot be established, and
(d) that the application is not made by or on behalf of an insurer in respect of any amount paid or payable by reason of the existence of a contract of insurance, and that, subject to subsection 266.1(4), no part of the amount sought to be recovered in the intended action is sought in lieu of making a claim or receiving a payment that is or was payable by reason of the existence of a contract of insurance, and that no part of the amount so sought will be paid to an insurer to reimburse or otherwise indemnify the insurer in respect of any amount paid or payable by it by reason of the existence of a contract of insurance.
1989, c.17, s.6
In any such action the Facility Association may plead the general issue and give the special matter in evidence.
1989, c.17, s.6
Where an action for damages for injury to or the death of any person, arising out of the operation, care or control of an automobile in the Province has been dismissed and the Judge in dismissing the action states in writing that the injury or death arose out of the operation, care or control of an automobile
(a) the identity of which and of the owner and driver of which is not established, or
(b) at a time when such automobile was, without the consent of the owner, in the possession of some person other than the owner and the identity of the driver is not established,
1989, c.17, s.6
Where an action for damages for injury to or the death of any person arising out of the operation, care or control of an automobile in the Province is commenced and the defendant by the pleadings alleges that the plaintiff’s damage was caused by a Party Unknown, the plaintiff may make application to add the Party Unknown as a defendant and section 266.92 shall apply with the necessary modifications.
This section does not limit or restrict any right to add or join any person as a party to an action in accordance with the practice of the court in which the action is pending.
1989, c.17, s.6; 2023, c.17, s.114
Where judgment has been obtained against a Party Unknown, the Facility Association may at any time bring action against any person for a declaratory judgment, declaring that person to have been, at the time of the accident, the owner or driver of the automobile in respect of the operation, care or control of which the judgment was obtained, and the court may give judgment accordingly.
Such action may be brought in the court.
Notwithstanding section 266 of the Motor Vehicle Act when a declaratory judgment has been rendered under this section
(a) the person declared in the judgment to be the owner or driver shall be deemed to have been the defendant in the action in which judgment was obtained against the Party Unknown and the judgment against the Party Unknown shall be deemed to be a judgment against such person, and
(b) the Facility Association shall be deemed to have obtained a judgment against such person for the amount of all moneys paid by it in respect of the judgment against the Party Unknown and shall accordingly have all the rights of a judgment creditor, including the right to recover any money that would have been payable in respect of the death or injury under any contract of insurance that was in force at the time of the accident, notwithstanding any Act limiting the time within which an action may be brought.
Where the injury or death arose out of the operation, care or control of the automobile at a time when the automobile was, without the owner’s consent, in the possession of some person other than the owner, such action shall be disposed of in the same manner as though the identity of the owner had not been established.
In an action against a Party Unknown, a judgment against a Party Unknown shall not be granted unless the Court in which the action is brought is satisfied that all reasonable efforts have been made by the claiming party to ascertain the identity of the automobile and the owner and driver of it and that such identity cannot be established. 1989, c.17, s.6
1989, c.17, s.6; 1991, c.27, s.19
The Facility Association is not required to pay
(a) any amount in respect of a judgment in favour of a person who ordinarily resides outside of New Brunswick, unless such person resides in a jurisdiction that provides substantially the same benefits to persons who ordinarily reside in New Brunswick, but no payment shall include an amount that would not be payable by the law of the jurisdiction in which such person resides,
(b) more than two hundred thousand dollars, exclusive of costs for injury to or the death of one or more persons or damage to property resulting from any one accident occurring on or after the commencement of this paragraph except that payments with respect to damages for damage to property shall be limited to claims for damages in excess of two hundred fifty dollars,
(c) if the amount of damages included in the judgment is less than the maximum amount payable under paragraph (b), shall be deducted from the maximum amount payable under paragraph (b) and only the amount of the judgment to the extent that the deductions do not reduce the amount of the judgment is required to be paid by the Facility Association, and
(d) if the amount of damages included in the judgment is greater than the maximum amount payable under paragraph (b), shall be deducted from the amount of damages included in the judgment and only the amount of damages included in the judgment after such deductions, or the maximum amount payable under paragraph (b), whichever is less, is required to be paid by the Facility Association.
In computing the amount payable by the Facility Association, no reduction shall be made
(a) with respect to any amount recovered or recoverable by the judgment creditor under a contract of life insurance, where the amount is payable in respect of the death of the person,
(b) with respect to any compensation or the pecuniary value of any services or benefits which the judgment creditor received, or is or was entitled to receive, under the Social Welfare Act, the Medical Services Payment Act or the Hospital Services Act,
(c) with respect to
(i) any amount recovered by the judgment creditor, or which the judgment creditor is entitled to recover, from such sources as may be prescribed by regulation, or
(ii) any amount of compensation, or the pecuniary value of any benefits or services, received by the judgment creditor, or which the judgment creditor is entitled to receive, from such sources as may be prescribed by regulation or where the compensation, benefits or services are of a kind prescribed by regulation.
In this section “residence” shall be determined as of the date of the accident as a result of which the damages are claimed.
1989, c.17, s.6
Subject to section 266.2, no costs, other than costs taxed on a party and party basis, are required to be paid by the Facility Association.
Where an action has been maintained in part by an insurer and a part only of the amount of the judgment in the action is payable by the Facility Association, there shall not be paid by the Facility Association more than that part of the party and party costs of the action that bears the same ratio to the whole of such costs as the part of the judgment payable by the Facility Association bears to the total amount of the judgment.
2023, c.17, s.114The practice and procedure of the court or the court in which the application or action is brought, including the right of appeal and the practice and procedure relating to appeals apply to any application or action under sections 266.2 to 266.993. 1989, c.17, s.6; 2023, c.17, s.114
No application for the payment of damages shall be made to the Facility Association by or on behalf of the Governments of Canada, the United States of America, a province, a state, or any political subdivision or corporation or agency of such Governments. 1989, c.17, s.6
For the purposes of sections 266.2 to 266.992 all owners and drivers whose liability results in payment by the Facility Association shall be deemed to be sui juris and all actions taken by the Facility Association in the settlement of claims and actions on their behalf shall be deemed to be taken upon their instructions and with their full consent. 1989, c.17, s.6
The Lieutenant-Governor in Council may make regulations 1989, c.17, s.6
(b) prescribing sources for the purposes of subparagraph 266.98(2)(c)(i);
(c) prescribing, for the purposes of subparagraph 266.98(2)(c)(ii), sources of compensation, benefits and services, and kinds of compensation, benefits, and services.
Part VII of the Insurance Act as it was in force immediately before the first day of January, 1969 continues to apply to contracts of automobile insurance made before the first day of January, 1969, until the contract expires or is cancelled or renewed. 1968, c.6, s.264
1975, c.81, s.2; 2004, c.36, s.16
“Board” Repealed: 2004, c.36, s.16(conseil)
“rates” means rates, surcharges, premiums or any other amount payable by an insured for automobile insurance.(tarifs)
Sections 267.1 to 267.9 apply to every insurer carrying on the business of automobile insurance in the Province.
The Board has the general supervision of the rates an insurer charges or proposes to charge for automobile insurance. 1975, c.81, s.2; 1997, c.46, s.2
1975, c.81, s.2; 1997, c.46, s.3; 2003, c.22, s.5; 2003, c.29, s.4; 2004, c.36, s.17
Every insurer shall file with the Board the rates it proposes to charge for automobile insurance at least once every 12 months from the date of last filing.
When an insurer files rates under subsection (1), it shall
(a) provide to the Board any information required by the Board, the Superintendent or the regulations, and
(b) specify the date on which it proposes to begin to charge those rates.
Except as otherwise provided in section 267.5, an insurer may charge the rates filed in accordance with this section as of the date specified under paragraph (1.1)(b).
Repealed: 2004, c.36, s.18 2003, c.29, s.5; 2004, c.36, s.18
1975, c.81, s.2; 1997, c.46, s.4; 2003, c.29, s.6; 2004, c.36, s.19
No automobile insurer shall charge rates that are not permitted to be charged in accordance with the provisions of this Act.
Subsection (1) does not prevent an insurer from continuing to charge the rates the insurer was charging on the commencement of this section if those rates were approved or deemed to have been approved by the Board in accordance with this Act as it read immediately before the commencement of this section.
Repealed: 1997, c.46, s.5 1975, c.81, s.2; 1997, c.46, s.5
The Board may at any time require an insurer to provide information relating to rates filed under subsection 267.2(1). 1975, c.81, s.2; 1997, c.46, s.6
1975, c.81, s.2; 1997, c.46, s.7; 2003, c.22, s.6; 2004, c.36, s.20
Where at any time the Board considers that the rates charged or proposed to be charged by an insurer may not be just and reasonable, the Board may investigate those rates.
Where the Board is considering whether to investigate rates under subsection (1), it shall advise the Superintendent and shall consider any information provided to the Board by the Superintendent.
Where, within thirty days after an insurer files rates in accordance with section 267.2, the Board notifies the insurer that it intends to investigate those rates under this section, the insurer shall not charge those rates unless the Board notifies the insurer that the insurer may do so, or unless the rates are the same rates as filed within the past 12 months.
Where the Board decides to investigate the rates under this section, the burden of proof is upon the insurer to prove that the rates are just and reasonable.
Where, after an investigation under this section, the Board determines that the rates charged or proposed to be charged by an insurer are not just and reasonable, the Board may, by order, require the insurer to make any change or changes the Board considers proper.
Where the Board investigates the rates charged or proposed to be charged by an insurer, the Board shall consider the factors prescribed by regulation when determining whether the rates are just and reasonable.
2003, c.22, s.7
An insurer shall appear before the Board where the insurer
(a) files rates more than twice in a period of 12 months, or
(b) files rates where the average rate increase is more than 3% greater than the rates charged by it in the 12 months before the date on which it proposes to begin to charge the rates.
An insurer shall not charge the proposed rates referred to in subsection (1) unless the Board notifies the insurer that the insurer may do so.
Repealed: 1997, c.46, s.8 1975, c.81, s.2; 1989, c.17, s.7; 1997, c.46, s.8
1975, c.81, s.2; 2003, c.29, s.7; 2004, c.36, s.21; 2008, c.11, s.14; 2013, c.31, s.20; 2016, c.36, s.7
Repealed: 2008, c.11, s.14
Repealed: 2016, c.36, s.7
Repealed: 2004, c.36, s.21
Repealed: 2004, c.36, s.21
Repealed: 2004, c.36, s.22 1975, c.81, s.2; 1980, c.27, s.7; 2004, c.36, s.22
Repealed: 2004, c.36, s.23 1975, c.81, s.2; 2004, c.36, s.23
Repealed: 2004, c.36, s.24 1975, c.81, s.2; 2004, c.36, s.24
1975, c.81, s.2; 1997, c.46, s.9; 2003, c.22, s.8; 2004, c.36, s.25; 2008, c.2, s.15; 2021, c.8, s.43
The Lieutenant-Governor in Council may make regulations
(a) prescribing the basic rating groups, classes, and whatever else may be necessary to the establishment of minimal requirements for a common rating structure which all automobile insurers shall be required to observe in the development of rates;
(a.1) prescribing grounds for which an insurer cannot, in circumstances specified by the regulations, decline to issue, refuse to renew, or terminate a contract of automobile insurance or refuse to provide or continue any coverage or endorsement in respect of a contract of automobile insurance;
(b) respecting rate reductions in the case of automobiles owned by the same person;
(b.1) prescribing rate reductions in the case of recently licensed drivers with good driving records;
(b.2) defining “recently licensed driver” and “good driving record”;
(b.3) defining “common collision injury” and “common collision impairment”;
(b.4) prescribing categories of common collision injuries or common collision impairments;
(c) Repealed: 1997, c.46, s.9
(d) Repealed: 1997, c.46, s.9
(e) Repealed: 1997, c.46, s.9
(f) Repealed: 2021, c.8, s.43
(f.1) Repealed: 2004, c.36, s.25
(f.11) respecting factors to be considered by the Board when investigating rates;
(f.2) respecting information to be provided by an insurer under paragraph 267.2(1.1)(a);
(f.3) defining “soft tissue injury” and “minor personal injury” for the purposes of section 265.21;
(f.4) prescribing and defining categories of soft tissue injury;
(f.5) prescribing and defining categories of minor personal injury;
(f.6) prescribing amounts which damages for non-pecuniary loss for soft tissue injury shall not exceed;
(f.7) prescribing amounts which damages for non-pecuniary loss for minor personal injury shall not exceed;
(g) prescribing the exclusions, restrictions, terms and conditions with respect to a motor vehicle liability policy referred to in section 243; and
(g.01) establishing or governing a system or process for the examination, assessment and treatment or rehabilitation of bodily injuries suffered by an insured as a result of an accident in respect of which an insurer makes payments under a contract of insurance referred to in section 256, including, without limitation, regulations
(i) establishing procedures, guidelines, criteria, requirements or standards to be followed or met, as applicable, by claimants, insurers and health care providers,
(ii) establishing time limits for the purposes of obtaining an examination, assessment, diagnosis or treatment, and
(iii) establishing protocols for the purposes of examining, assessing, treatment or rehabilitation of bodily injuries;
(g.02) governing the payment of any fees, levies or other assessments in respect of a system or process established under paragraph (g.01), including, without limitation, regulations prescribing
(i) the amount of the fees, levies or other assessments or the manner in which and by whom any of those amounts are to be determined, and
(ii) to whom and by whom the fees, levies or other assessments are to be paid;
(g.1) requiring insurers to file with the Board by a specified date rates that reflect any changes of law that have taken effect or will take effect before the rates are charged;
(g.2) specifying the date to be specified by insurers under paragraph 267.2(1.1)(b) when they file rates in accordance with the regulations under paragraph (g.1);
(g.3) prescribing the interest rate for the purposes of section 242.7;
Paragraph 267.51(1)(a) does not apply where an insurer files rates in accordance with regulations made under paragraph (1)(g.1).
The Lieutenant-Governor in Council may make regulations and the Financial and Consumer Services Commission may make rules prescribing the manner of gathering statistics and other information.
A regulation made under paragraph (1)(g.02) may authorize the Superintendent to prescribe the fees and disbursements or the maximum fees and disbursements to be paid for any service, activity, function or thing authorized under the regulation, including any of the following:
(a) diagnostic imaging;
(b) laboratory testing;
(c) specialized testing;
(d) supplies;
(e) treatment plans;
(f) visits with a health care provider;
(g) therapies;
(h) assessments;
(i) reports and other claim forms prescribed in the regulation; and
(j) any other service, activity, function or thing prescribed in the regulation.
When the Superintendent prescribes fees and disbursements or maximum fees and disbursements to be paid under the authority of subsection (1)(g.02), the Superintendent shall issue a bulletin setting out the fees and disbursements or maximum fees and disbursements and publish the bulletin as soon as practicable, in any manner the Superintendent considers appropriate.
The Superintendent may issue and publish from time to time, in any manner the Superintendent considers appropriate, a bulletin respecting guidelines for the management of injuries and care pathways and any other matter the Superintendent considers appropriate.
Repealed: 1997, c.46, s.9
This Part applies to livestock insurance and to any insurer carrying on the business of livestock insurance in the Province. 1968, c.6, s.265
Every insurer licensed for the transaction of livestock insurance, may within the limits and subject to the conditions prescribed by its licence, insure against loss of livestock, by fire, lightning, accident, disease or other means, except that of design on the part of the insured, or by the invasion of any enemy or by insurrection. 1968, c.6, s.266
The statutory conditions set out in Part IV of this Act, except where inapplicable to the nature of the risk, apply to livestock insurance contracts. 1968, c.6, s.267
1968, c.6, s.268
A contract of livestock insurance shall not exceed the term of three years.
A contract made for one year or any shorter period may be renewed, from time to time, at the discretion of the insurer, by renewal receipt instead of by policy, on the assured paying the required premium; and all payments for renewals shall be made at or before the end of the period for which the policy was granted or renewed, otherwise the policy is void.
This Part applies to weather insurance and to any insurer carrying on the business of weather insurance in the Province, but does not apply to weather insurance provided by an endorsement to a contract of fire insurance. 1968, c.6, s.269
Every insurer licensed for the transaction of weather insurance may, within the limit and subject to the conditions prescribed by its licence, insure against such atmospheric disturbances, discharges or conditions as the contract of insurance specifies. 1968, c.6, s.270
The statutory conditions set out in Part IV of this Act, except where inapplicable to the nature of the risk, apply to weather insurance contracts together with the following additional conditions: 1968, c.6, s.271; 1987, c.6, s.45
(a) the insurance may be terminated by the insurer by giving seven days notice to that effect, and
(b) the insurer is not liable for loss or damage occurring to buildings or structures or to their respective contents where they have been weakened by alterations made subsequently to the contract, unless permission to make such alterations was previously granted in writing signed by the insurer or its authorized agent.
A contract of weather insurance shall not exceed the term of three years. 1968, c.6, s.272
In this Part 1968, c.6, s.273; 2005, c.7, s.36; 2017, c.20, s.83
“actuary” means a Fellow of the Institute of Actuaries of Great Britain, or of the Faculty of Actuaries in Scotland or of the Society of Actuaries;(actuaire)
“local government” means a local government as defined in subsection 1(1) of the Local Governance Act; (gouvernement local)
“municipality” Repealed: 2017, c.20, s.83
“rates of contribution” means the regular net premiums, dues, rates or contributions receivable from the members for the purpose of the payment at maturity of the society’s certificates or contracts of insurance;(taux de contribution)
“society” means fraternal society.(société)
1968, c.6, s.274; 2021, c.8, s.44
Except as otherwise provided in this Act or the regulations, the provisions of this Part apply to all fraternal societies duly licensed and carrying on the business of life insurance in the Province, and to clubs, societies or associations, incorporated or unincorporated, that receive, either as trustees or otherwise, contributions or money from its members out of which gratuities or benefits are paid, directly or indirectly, on the death of any of its members.
The Lieutenant-Governor in Council may make regulations and the Financial and Consumer Services Commission may make rules restricting, qualifying or prescribing exceptions to the application of subsection (1).
No fraternal society shall be licensed 1968, c.6, s.275
(a) if it undertakes insurance contracts with persons other than its own members,
(b) if it insures or indemnifies against contingencies other than sickness, accident, disability, or death, or funeral expenses,
(c) if the sum or sums payable by it on the death of any one member, other than a funeral benefit or a double indemnity accident benefit, exceed in all ten thousand dollars, unless the excess over that amount is reinsured,
(d) if it undertakes old age or endowment insurance other than as authorized in this Part, or annuities upon lives other than annuities issued as part of or arising directly from contracts of life or endowment insurance,
(e) if it has upon its books less than seventy-five members in good standing,
(f) if it is in effect the property of its officers or of any other person or persons or is conducted as a mercantile or business enterprise, or for the purpose of mercantile profits, or if its funds are under the control of persons or officers appointed for a period exceeding four years,
(g) if it is a society that has not been authorized to carry on business in the Province before the passing of this Act, unless it files with the Superintendent a declaration of its actuary of its ability to carry out its contracts, or
(h) that undertakes contracts of insurance but is not formed exclusively for that purpose and that does not for the purpose of such contracts keep distinct and separate funds, securities, books and vouchers.
Paragraph 278(d) does not apply to 1968, c.6, s.276; 2017, c.20, s.83
(a) contracts guaranteeing the fidelity of officers, servants or employees of the branches or subdivisions of the corporation,
(b) a society that before the coming into force of this Act was bona fide transacting exclusively with its members endowment insurance in the Province, and that has continued so to do up to the date of application for licence,
(c) in so far as it relates to annuities upon lives, a society, the membership of which is limited by its constitution or laws to local government or government employees undertaking annuities on lives in the nature of old age pensions.
A society incorporated under the laws of the Province, is not entitled to a licence unless its head office is located and maintained in the Province and the secretary and treasurer are actual residents of the Province. 1968, c.6, s.277
1968, c.6, s.278
Where two or more lodges or branches of a society, though separately incorporated, are under the financial or administrative control of a central governing body in the Province or a duly authorized provincial representative of the society, such governing body if incorporated or such provincial representative of the society, may, if the Superintendent thinks proper, be dealt with as the society.
In the case of a society incorporated elsewhere than in the Province the central governing or controlling body in the Province incorporated by virtue of the law of the Province may, if the Superintendent thinks proper, be dealt with as the society.
1968, c.6, s.279; 2013, c.31, s.20; 2017, c.48, s.9
Every society shall with its application for licence file in the office of the Superintendent, certified copies in duplicate of those articles of its constitution and rules that contain material terms not set out in the form of contract adopted for use by it, and of every amendment, revision or consolidation thereof, within thirty days after the passing thereof.
The Superintendent may, within thirty days after the date of such filing, take exception to any amendment or revision if in his opinion, such amendment or revision or any part thereof is
(a) contrary to the provisions of this Act,
(b) actuarially unsound,
(c) oppressive to or discriminatory in application against any class of the membership of the society, or
(d) unjust or unreasonable.
If the Superintendent takes exception to an amendment or revision, he or she shall notify the society in writing without delay, giving reasons, and the society or any member or person affected by the decision of the Superintendent may appeal the decision to the Tribunal, within 30 days after the date of the decision, and the Tribunal may approve the amendment or revision.
Despite subsection (3), the Tribunal may extend the period for appealing a decision, before or after the expiration of the time, if it is satisfied that there are reasonable grounds for an extension.
The constitution and rules and any amendment, revisions or consolidation thereof not excepted to, or if excepted to, that has been further amended, in accordance with the Superintendent’s direction, or approved by the Tribunal, shall be certified by the Superintendent to be duly passed by the society, and filed, and thereupon shall be deemed to be the rules in force on and after the date of the certificate until a subsequent amendment, revision or consolidation is in like manner certified and filed, and so from time to time, and are binding and obligatory upon all members of the society and upon everyone entitled to any benefit under any membership in or certificate of the society.
The failure of the Superintendent to take exception to any rule of the society or amendment or revision and his certifying and filing thereof does not make valid any provisions of such rule that are inconsistent with this Act.
Where, because of a provision in any of its rules, a society otherwise entitled ought not, in the opinion of the Superintendent, to be licensed, it is not entitled to a licence until it has repealed or amended such rules in accordance with the direction of the Superintendent, or they have on appeal been approved by the Tribunal. 1968, c.6, s.280; 2013, c.31, s.20
1968, c.6, s.281
A copy of all rules of a society relating to its insurance contracts and to the management and application of its insurance funds shall be delivered by the society to any person requiring the same on payment of twenty-five cents.
If an officer or agent of a society, with intent to mislead or defraud, gives to any person a copy of rules other than the rules then in force on the pretence that the same are the rules then in force, he is guilty of an offence.
1968, c.6, s.282
Where, by the constitution and rules of a society, provision is made for the payment of an ascertained or ascertainable sum to a member in the event of his becoming totally disabled, or of his reaching a stated age, or upon the concurrence of both events, whether such provision is combined with other life insurance or not, the society may with the approval of the Superintendent, so amend its constitution and rules as to provide for the payment of such sum in equal consecutive annual instalments without interest, the payment of the instalments to be completed within a period not exceeding ten years from the happening of the event, but no person who has become or becomes so entitled shall receive payment unless at the maturity of each instalment such person continues to be a member and has paid all his dues and assessments.
If the member dies after becoming totally disabled or reaching the stated age, but before the payment of all instalments, the instalments unpaid shall form part of the insurance money or benefits payable upon the death of the member.
No unmatured contract of insurance creates any claim or liability against the society while a going society, or against the estate of the society in a winding-up or liquidation, but in a winding-up or liquidation the insured or beneficiary for value under such unmatured contract is entitled to share in the surplus assets of the society.
1968, c.6, s.283
The liabilities of a member under his contract are at any date limited to the assessments, fees and dues that became payable within the preceding twelve months and of which at such date notice had been given in accordance with the constitution and rules of the society.
A member may at any time withdraw from the society by delivering to it or sending by registered post, notice in writing of his intention to withdraw and paying or tendering the assessments, fees and dues payable within the preceding twelve months.
Upon his withdrawal, the member is released from all further accruing liability under his contract.
This section is subject to the provisions of any rules to the contrary certified by and filed with the Superintendent.
1968, c.6, s.284
No forfeiture or suspension is incurred by reason of any default in paying a contribution or assessment, except such as are payable in fixed sums and at fixed dates, until after notice to the member stating the amount due by him and that in case of default of payment within a reasonable time, not less than thirty days, to the proper officer to be named in the notice, his interest or benefit will be forfeited or suspended, and default has been made by him in paying any contribution or assessment in accordance with the notice.
In subsection (1), “fixed dates” includes any numbered day, or any Monday, Tuesday, or as the case may be, numbered, alternate or recurring, of a stated month or months.
Where under the constitution and rules of the society a defaulting member is entitled to be reinstated on payment of arrears, after a stated number of days default, this section shall not prejudice the rights of such member.
1968, c.6, s.285
Where it is stipulated that the benefit of the contract shall be suspended or reduced or forfeited for any other reason than for non-payment of money such condition is not valid unless it is held to be just and reasonable under the circumstances of the case.
In any contract in which total abstinence from intoxicating liquors is made an express condition such condition shall be deemed to be just and reasonable.
1968, c.6, s.286
Subject to subsection (2), any notice required to be given to a member for any purpose of this Act or of the rules of the society may be effectually given if written or printed notice is delivered, or is sent by registered post to the member, or is left at his latest known place of abode or of business or by publication in the official paper of the society.
A notice of the reduction of any benefit payable under a contract of insurance or of the increase of the premium payable thereunder shall be sent by registered post to the member at his latest known place of abode or of business.
1968, c.6, s.287; 2017, c.20, s.83
In addition to the annual statement required to be filed under this Act, each society shall file with the Superintendent not later than the first day of May in each year a valuation of its certificates or contracts of insurance in force at the preceding thirty-first day of December, and such valuation shall be prepared having regard to the prospective liabilities of the society under its contracts and to the rates of contribution of members in force at the date of valuation and shall be made and certified by an actuary appointed by the society and shall include a valuation balance sheet in such form and detail as the Superintendent prescribes.
Where the valuation balance sheet shows that the society is in a position to provide for the payment of its contracts as they mature, without deduction or abatement and without increase in its existing rates of contribution, the society shall file with the Superintendent a declaration of the actuary to that effect.
A summary of the valuation certified by the actuary and a statement as to the financial condition of the society disclosed by such valuation shall be mailed to each insured member not later than the first day of June in each year or by publication in the official paper of the society.
A society, the membership of which is limited by its constitution or laws to local government or government employees shall not be required to file the valuation or to publish the summary thereof unless and until required by the Superintendent in writing so to do.
1968, c.6, s.288; 2013, c.31, s.20
If it appears to the Superintendent from the statement and reports filed with him or her, or from an examination or valuation, that the assets of a society, applicable for the purpose are insufficient to provide for the payment of its contracts at maturity without deduction or abatement and without increase in its existing rates of contribution, the Superintendent shall require the society to make an increase in its rates of contribution or a reduction in the benefits payable under its contracts or any other change that will enable the society to provide for the payment of its contracts at maturity.
An increase in rates of contribution, a reduction in benefits payable or any other change required by the Superintendent under subsection (1) shall be made within the time specified by the Superintendent, which shall not exceed four years from the date the society receives notice of the requirement.
On receipt of notice of such requirement the society shall, in accordance with its laws or constitution, put into effect such changes as are approved by the actuary appointed by the society for the purpose.
For the purpose of considering the request of the Superintendent, the governing executive authority of the society may call a special meeting of the supreme legislative body of the society upon such notice as it deems reasonable.
A society incorporated under the laws of the Province may by amendment of its constitution and rules reduce the benefits payable under its contracts of insurance or some of them, or increase the rates of contribution payable by its members as a whole or some class or classes thereof, or make such other changes as are necessary to comply with the requirement of the Superintendent and such amendments when adopted by a majority of the votes duly cast by the members of the supreme legislative body of the society at a general meeting thereof are binding upon the members of the society and upon their beneficiaries and the legal personal representatives of any of them, and upon all persons deriving legal rights from any member or beneficiary. 1968, c.6, s.289; 2013, c.31, s.20
1968, c.6, s.290; 2013, c.31, s.20
If a society does not comply with the requirement of the Superintendent within the time allowed, the Superintendent shall appoint a readjustment committee of three persons, of whom at least one shall be an actuary, who shall without delay investigate the assets, liabilities, rates of contribution and plans of insurance of the society and prepare a report containing the amendments to the society’s constitution and rules reducing the benefits payable under its contracts or some of them or increasing the rates of contribution payable by its members as a whole or some class or classes of members, or making any other changes that are considered necessary to provide for the payment of all its contracts as they mature.
The readjustment committee shall file its report in the office of the Superintendent and deliver to the society a certified copy thereof whereupon the amendments contained therein shall be and become part of the constitution and rules of the society and shall be valid and binding upon its members, their beneficiaries, the legal personal representatives of any of them and all persons deriving legal right from any member or beneficiary.
The readjustment committee shall in the amendments fix a date not more than six months after the date of filing of the report when the reduction of benefits or increase in the rate of contribution, provided for by such amendments, shall come into force.
The society shall furnish the readjustment committee with any required information, and bear the expense of the investigation and report.
1968, c.6, s.291; 2013, c.31, s.20; 2017, c.20, s.83
If it appears to the Superintendent from the statements and reports filed with him or her or from an examination or valuation that the assets of a society, the membership of which is limited to local government or other government employees, applicable for the purpose, are insufficient to provide for the payment of its contracts of insurance at maturity without deduction or abatement and without increase in its existing rates of contribution, the Superintendent shall make a special report as to the financial condition of the society to the head or responsible officer of the local government or other government of which the members are employees.
The Superintendent shall not make any order or assume any responsibility for the readjustment of rates or benefits of the society but a synopsis of his special report shall be embodied in his annual report.
1968, c.6, s.292
Where a society, unable to furnish the declaration of an actuary, has adopted or hereafter adopts new rates of contribution that in the opinion of the actuary appointed by it, filed with the Superintendent make reasonable provision for the payment in full at maturity of its contracts issued or to be issued to its members on such new rates, such society shall, after the payment of the matured contracts, create and from time to time maintain, out of the contributions of such members and interest thereon, a reserve fund not less than the amount which, with the rates of contributions to be collected from such members, is, in the opinion of the actuary, required to pay such contracts in full as they mature; and such fund shall be a separate fund of the society and shall not be liable for payment of the debts and obligations of the society under its contracts with those members who have not contributed under the new rates.
The society may provide in its constitution and rules for the issue of new certificates to members admitted to the society prior to the establishment of such fund upon such terms and conditions as will, in the opinion of the actuary appointed by it, certified in writing to the Superintendent, enable the society to pay in full the contracts of insurance issued to such members as they mature and the provisions of subsection (1) apply to such new certificates.
The annual valuation of the actuary of the society maintaining such a separate fund shall show clearly and separately and in such detail as the Superintendent requires, the financial position of the society in respect of the certificates of insurance included, and those not included within the scope of the separate fund.
When a society that has been maintaining such a separate fund files with the Superintendent a declaration of the actuary appointed by the society, the separate fund may, with the approval of the Superintendent, be merged with other similar funds of the society.
Nothing herein contained prevents a society that maintains such a separate fund, from maintaining a common expense fund.
A society, that files with the Superintendent the declaration of an actuary or a society that is maintaining a separate fund for its contracts, may provide in its constitution and rules for the issue of contracts of life insurance wherein the regular rates of contributions payable thereunder are limited to a period of twenty or more years, if such rates of contribution have been approved by an actuary and such certificates of insurance are subject to the provisions of subsection 295(1); but such limitation of payments does not affect the right of the society to make an assessment or assessments in respect of such certificates in accordance with its constitution and rules either during or after the period of such limited payments. 1968, c.6, s.293
In the event of an epidemic or other similar contingency impairing the funds of a society, the governing executive authority of the society may with the approval of the Superintendent impose a special assessment or special assessments upon the members or upon such class or classes thereof and with such incidence as in its opinion is deemed necessary and equitable, and such special assessment or assessments are binding on the members of the society. 1968, c.6, s.294
A society that files with the Superintendent the declaration of an actuary may, if its constitution so provides and subject thereto, 1968, c.6, s.295
(a) issue to its members old age insurance contracts providing for the payment of the money due on maturity thereof either at death or upon the insured attaining any age not less than sixty-five years,
(b) in case the society has more than five thousand members in a life insurance department, issue to its members endowment insurance contracts providing for the payment of the insurance money to such members at the expiration of twenty or more years from the date of such contracts, or to the beneficiary or beneficiaries under any of such contracts in case of death of any of such members prior to the expiration of the endowment period, or
(c) grant such surrender values or other equities as are approved by the actuary of the society and authorized by its constitution.
The governing executive authority of a society may with the approval of the Superintendent make such additional levies from time to time upon members of the society as are necessary, in the opinion of the governing executive authority, properly to carry on the work of the society and prevent any deficit in its general or expense fund, and such additional levies are binding on the members of the society. 1968, c.6, s.296
Every society shall, before putting into effect any new or additional benefits or any new scale of rates of contribution under certificates of insurance, file with the Superintendent a certificate of an actuary approving of such benefits or rates of contribution. 1968, c.6, s.297
A society whose valuation balance sheet shows a surplus of assets of more than five per cent over and above all net liabilities may apply such portion of such surplus as is approved by the actuary appointed by the society, in the manner prescribed by the constitution and rules of the society. 1968, c.6, s.298
1968, c.6, s.299; 1987, c.6, s.45; 2013, c.31, s.20
No mutual benefit society shall be licensed, or have its licence renewed,
(a) if it has upon its books less than seventy-five members in good standing, subject to subsection (2); but the Superintendent may under special circumstances authorize a licence to be issued or renewed in the case of a society having not less than fifty members in good standing,
(b) if it insures or indemnifies against contingencies other than sickness, disability or funeral expenses,
(c) if it contracts for sick benefits for an amount in excess of thirty dollars per week or for a funeral benefit in excess of two hundred and fifty dollars,
(d) if it undertakes insurance contracts with persons other than its own members,
(e) if it is in effect the property of its officers or of any other person, or is conducted as a mercantile or business enterprise, or for the purpose of mercantile profit, or if its funds are under the control of persons or officers appointed for life and not under the control of the insured, or
(f) if it has charge of, or manages or distributes charity or gratuities or donations only.
The Superintendent may, in his discretion, renew the licence of any mutual benefit society notwithstanding that it has upon its books, at the time of application for such renewal, less than seventy-five members in good standing.
1968, c.6, s.301; 1985, c.52, s.1; 1986, c.47, s.1
The provisions of this Part apply to every provincial mutual company licensed under the provisions of this Act to undertake fire, theft and livestock insurance and such other classes of insurance as are approved by the Superintendent, in this Part called “the insurer”.
Wherever the provisions of the statutory conditions set out in Part IV are in conflict with the provisions of this Part, the provisions of this Part, prevail with respect to provincial mutual companies.
In this Part unless the context otherwise requires,
“board” means the board of directors of a company incorporated and licensed under the laws of the Province to carry on a mutual insurance business in the Province;(conseil)
“member” means a person holding a contract of insurance issued by a provincial mutual insurance company.(membre)
Subject to the provisions of section 306 the insurer may issue policies of fire, theft and livestock insurance and such other classes of insurance as are approved by the Superintendent for any term not exceeding three years. 1968, c.6, s.302; 1985, c.52, s.2; 1986, c.47, s.2
1968, c.6, s.303; 1973, c.52, s.3; 1978, c.30, s.6; 1985, c.52, s.3; 1986, c.47, s.3; 1987, c.6, s.45; 2013, c.31, s.20
If not inconsistent with the provisions of its charter or by-laws an insurer empowered to write mutual insurance for fire, livestock or theft insurance or such other classes of insurance as are approved by the Superintendent may effect such insurance on the premium note plan, for a period not exceeding three years, on farm and other non-hazardous property.
No insurer shall undertake
(a) any risk on or in respect of any one property or risk subject to the hazard of a single fire or other single peril under a contract of fire insurance,
(b) any risk under a contract of livestock or theft insurance, or
(c) any risk under a contract of any other class of insurance approved by the Superintendent,
The Superintendent may permit an insurer to increase the amount of the net liability of an insurer on or in respect of risks
(a) subject to the hazard of a single fire or other single peril under a contract of fire insurance,
(b) under a contract of livestock insurance,
(c) under a contract of theft insurance, or
(d) under a contract of any other class of insurance approved by the Superintendent.
A risk subject to the hazard of a single fire or any other single peril shall be deemed to include the total amount at risk on buildings or their contents where such buildings are distant less than thirty-five feet from each other.
No policy of insurance shall be issued by an insurer until applications for fire insurance have been received and approved by the board 1968, c.6, s.304
(a) from at least fifty persons, and
(b) to an amount of at least one hundred thousand dollars.
1968, c.6, s.305
The form, terms and conditions of the applications and policies of insurance of the insurer shall be determined by the board in conformity with the provisions of this Act and shall be subject to the approval of the Superintendent and any policy may be renewed at the discretion of the board by a renewal receipt instead of a new policy, on the insured giving his premium note therefor.
Every application and policy shall bear the words “Mutual Company - subject to pro rata distribution of assets and losses” together with a statement of the company’s total reserves as of the thirty-first day of December preceding the date of the application or policy, printed or stamped in large type and in red ink at the head thereof.
The board may, subject to the provisions of this Act, and with the approval of the Superintendent, adopt a tariff of rates for premium notes, and vary the same from time to time, and determine the sum to be insured on any property. 1968, c.6, s.306
The board may when authorized by by-law make arrangements with an insurer, whether licensed under this Part, or not, for the reinsurance of a risk or any portion thereof, and may accept reinsurance of a risk, or any portion thereof, from any insurer on such conditions with respect to the rate and payment of premiums thereon as are agreed between them. 1968, c.6, s.307
1968, c.6, s.308
Subject to the approval of the Superintendent, the board may enter into a general reinsurance agreement with any other insurer or insurers licensed under the provisions of this Part for the reinsurance of risks on such terms and conditions as may be agreed upon.
Any such agreement may dispense with the issue of policies of reinsurance and may provide for reinsurance on the cash plan.
Every such agreement shall be in writing and under the corporate seals of the parties thereto.
If the policy is cancelled or avoided by the insurer, the liability of the insured on his premium note ceases from the date of such cancellation or avoidance on account of any loss that occurs thereafter, but the insured shall nevertheless be liable to pay his proportion of the losses and expenses of the insurer to the time of cancelling or avoiding the policy and, on payment of his proportion of all assessments then payable and to become payable in respect of losses and expenses sustained up to that time, shall be entitled to a return of his premium note, and a condition to this effect shall be endorsed on the policy. 1968, c.6, s.309
1968, c.6, s.310
If the insured property or any interest therein is alienated or partly alienated and the assignee has the policy transferred to him, the insurer, upon application, and upon the assignee giving a new premium note or other proper security to its satisfaction for such portion of the premium note as remains unpaid, and, within thirty days next after such alienation, may accept the assignment; thereupon the assignee is entitled to all the rights and privileges, and subject to all the liabilities and conditions, to which the original party insured was entitled and subject.
Where the assignee is a mortgagee, the insurer may permit the policy to remain in force, and to be transferred to him by way of additional security, without requiring any premium note from such assignee, or without his becoming in any manner personally liable; but in such cases the premium note and liability of the mortgagor in respect thereof continue and are in no wise affected by the assignment.
1968, c.6, s.311; 1987, c.6, s.45
The insurer may accept premium notes for insurance and may issue policies thereon and such notes shall be assessed for the losses and expenses of the insurer in manner hereinafter provided; the form of such premium notes shall be approved by the Superintendent.
No member is liable in respect of any loss, claim or demand whatsoever against the insurer beyond the amount unpaid upon his premium note.
No premium note, whether purporting to do so or not, creates any lien upon the lands on which the insured property is situate. 1968, c.6, s.312
1968, c.6, s.313
Subject to section 326, the board shall demand and collect a cash payment on the premium note at the time of the application for insurance of such amount as may be fixed by by-law; and if the amount so collected in cash is more than sufficient to pay all losses and expenses during the continuance of the policy, then any surplus becomes part of the reserve fund.
The board may make assessments upon premium notes before losses have happened or expenses been incurred and any surplus from any such assessment becomes part of the reserve fund.
1968, c.6, s.314
All assessments on premium notes shall be made by the board with the approval of the Superintendent and, subject to the provisions of section 318, such assessments shall be made at such intervals and for such sums as the board determines and the Superintendent approves to be necessary to meet losses, expenses and reserve of the insurer during the currency of the policies for which the notes were given and every insured shall pay the assessments from time to time payable by him to the insurer during the continuance of his policy.
Notice of the assessment shall be mailed by the insurer to each member, directed to his post office address as given in his application, or in writing to the insurer, and to each encumbrancer of the property insured known to the insurer and such assessment shall become payable thirty days after the mailing of such notice.
A notice of assessment shall include the number of the policy, the period over which the assessment extends, the amount of the assessment, and the time when and the place where payable, and shall be in a form approved by the Superintendent.
1968, c.6, s.315
If any assessment, in respect of a policy, is not paid within thirty days after the mailing of such notice, the policy is null and void as against the insured as to any claim for losses occurring during the time he is in default; but the policy shall become revived when the assessment is paid, unless the secretary gives notice to the contrary to the party assessed.
Nothing in this section relieves the insured from his liability to pay such assessment or any subsequent assessment, nor is he entitled to recover the amount of any loss or damage that happens to property insured under the policy while he is so in default.
Any assessment shall always be in proportion to the amount of the premium notes held by the insurer having regard to the branch or department to which the policies respectively appertain, but where an insurer alters its rate and still holds in respect of subsisting contracts premium notes at the prior rate, the insurer, as between the respective premium notes so differing in rate, may make and levy such differential assessments as will, in risks of the same amount and of the same class of hazard, equalize the cost of insurance to the makers of the respective premium notes. 1968, c.6, s.316
If any member fails to pay an assessment within thirty days after notice thereof has been mailed to him, the insurer may sue for and recover the same with costs of suit, and such proceeding is not a waiver of any forfeiture incurred by such non-payment. 1968, c.6, s.317
In any action brought to recover an assessment, a certificate purporting to be signed by the Superintendent that he had approved of the assessment and a certificate purporting to be signed by the Secretary of the company, specifying the assessment and the amount due from the defendant in respect of such assessment, is without further proof of the signature or official position of the person signing the same prima facie evidence in any court of the facts set forth in any such certificate. 1968, c.6, s.318
Forty days after the expiration of the term of insurance, the premium note given for such insurance shall, on application therefor, be given up to the signer thereof, if all losses and expenses with which the note is chargeable have been paid. 1968, c.6, s.319
If there is any loss on property insured by the insurer, the board may retain the amount of the premium note given for insurance thereof, until the time has expired for which insurance has been made, and at the expiration of such time the insured has the right to demand and receive the retained sum or such part thereof as remains after deducting assessments on such note. 1968, c.6, s.320
No executions shall issue against the insurer upon any judgment until after the expiration of one month from the recovery thereof. 1968, c.6, s.321
In the case of a pro rata distribution of assets to satisfy indebtedness for losses under contracts issued by the insurer, the same percentage of payment shall be made to each member whether such payments are made at one time or in instalments. 1968, c.6, s.322
1968, c.6, s.323; 2013, c.31, s.20
The insurer shall form a reserve fund to consist of all money that remains on hand at the end of each year after payment of expenses and losses; and in addition shall levy an annual assessment, not exceeding twenty-five per cent, and not less than five per cent, on the premium notes held by the insurer until such reserve reaches the sum of five hundred dollars for every one hundred thousand dollars of the first one million dollars insurance in force, and three thousand dollars for each additional one million dollars or part thereof in force, up to which minimum level it shall be maintained.
To maintain the reserve if it becomes less than subsection (1) requires, the insurer shall, with the Superintendent’s approval,
(a) assess the premium notes, or
(b) increase the cash payment on the premium notes when the insurance is applied for.
Such reserve fund may, from time to time, be applied by the board to pay off such liabilities of the insurer as are not provided for out of the ordinary receipts for the same or any succeeding year.
The reserve fund is the property of the insurer as a whole and no member has a right to claim any share or interest therein in respect of any payment contributed by him towards it; nor shall such fund be applied or dealt with by the insurer or the board other than in paying its creditors, except on the order of the Tribunal.
1982, c.32, s.2; 1986, c.47, s.5; 1987, c.L-11.2, s.282
The Superintendent may approve the terms of an agreement to establish and maintain a fund to be known as the Mutual Insurance Guarantee Fund and to be held in trust by a trust company licensed under the Trust, Building and Loan Companies Licensing Act or the Loan and Trust Companies Act, as the case may be.
Subject to the approval of the Superintendent, an insurer licensed to transact business on the premium note plan may, notwithstanding any restriction in its letters patent or Act of incorporation, enter into, together with other insurers of the same class, the agreement approved under subsection (1).
1982, c.32, s.2; 1986, c.47, s.6
The assets of the Mutual Insurance Guarantee Fund may be used as directed by a board of trustees established under the agreement approved under subsection 326.1(1), with the approval of the Superintendent, for the purpose of satisfying claims by policyholders and third parties that cannot be met by the assets of an insurer who is a party to the agreement.
The assets of the Mutual Insurance Guarantee Fund shall
(a) be maintained at no less than a book value of two hundred thousand dollars including the value of any assessments made to restore the book value of two hundred thousand dollars, or such further amount as may be specified from time to time by the Superintendent;
(b) be maintained or increased by assessments on parties to the agreement on the basis set out in the agreement approved under subsection (1);
(c) be an authorized investment within the meaning of subsection 79(8) and the value to be included by each licensed insurer shall be proportional to its contribution to the trust and shall be subject to examination by the Superintendent in the same manner as the other assets and property of licensed insurers;
(d) be invested and valued in the same manner and be subject to the same restrictions as the assets of a provincial mutual company carrying on business on the premium note plan.
No assessment referred to in paragraph (2)(b) shall be paid by an insurer if its effect would be to reduce the surplus of that insurer below the minimum amount specified by the Superintendent, and such a waiver of an assessment shall not be cause for the insurer’s expulsion from the Mutual Insurance Guarantee Fund.
The Superintendent shall be deemed to have an interest in the Mutual Insurance Guarantee Fund as representative of all persons who may be claimants against insurers that are parties to the agreement and the trustees shall from time to time furnish the Superintendent with such information and accounts with respect to the Fund as the Superintendent may require.
The Superintendent may permit the withdrawal from the trust agreement of an insurer upon terms and conditions or, where an insurer is in default of payment of its assessment under the agreement, the Superintendent may withdraw his approval given under subsection 326.1(2). 1982, c.32, s.2
An insurer who becomes a party to the agreement approved under subsection 326.1(1) shall, except with the approval of the Superintendent, cease to undertake contracts of insurance or renew existing contracts of insurance on the premium note plan. 1982, c.32, s.2
All parties to the agreement and their officers and directors shall be deemed to be persons engaged in the business of insurance for the purposes of this Act and the regulations and any contravention of the trust agreement constitutes an offence. 1982, c.32, s.2
An account filed with the Superintendent under subsection 326.2(4), except so far as mistake or fraud is shown, is binding and conclusive upon all interested persons as to all matters shown in the account and the trustees’ administration thereof, unless the Superintendent, within six months of the date upon which the account is filed with him, requires in writing that such account be filed and passed before a judge of the court. 1982, c.32, s.2; 2023, c.17, s.114
In this Part 1968, c.6, s.324
“attorney” means a person authorized to act for subscribers;(fondé de pouvoir)
“subscribers” means persons exchanging with each other reciprocal contracts of indemnity or inter-insurance.(souscripteurs)
Any person may exchange with other persons in the Province and elsewhere reciprocal contracts of indemnity or inter-insurance for any class of insurance for which an insurance company may be licensed under the provisions of this Act, except life insurance, accident insurance, sickness insurance and guarantee insurance. 1968, c.6, s.325
No person shall be deemed to be an insurer within the meaning of this Act by reason of exchanging with other persons reciprocal contracts of indemnity or inter-insurance under the provisions of this Act. 1968, c.6, s.326
1968, c.6, s.327
Reciprocal contracts of indemnity or inter-insurance may be executed on behalf of subscribers by any other person acting as attorney under a power of attorney, a copy of which has been duly filed as hereinafter provided.
Notwithstanding any condition or stipulation of any such power of attorney or of any such contract of indemnity or inter-insurance, any action or proceeding in respect of any such contract may be maintained in any court of competent jurisdiction in the Province.
The persons constituting the exchange shall, through their attorney, file with the Superintendent a declaration, verified by oath, setting forth 1968, c.6, s.328
(a) the name of the attorney and the name or designation under which such contracts are issued, which name or designation shall not be so similar to any other name or designation previously adopted by any exchange or by any licensed insurer as in the opinion of the Superintendent to be likely to result in confusion or deception,
(b) the classes of insurance to be effected or exchanged under such contracts,
(c) a copy of the form of the contract, agreement or policy under or by which such reciprocal contracts of indemnity or inter-insurance are to be affected or exchanged,
(d) a copy of the form of power of attorney under which such contracts are to be effected or exchanged,
(e) the location of the office from which such contracts are to be issued,
(f) a financial statement in the form prescribed by the Superintendent,
(g) evidence satisfactory to the Superintendent that it is the practice of the exchange to require its subscribers to maintain in the hands of the attorney, as a condition of membership in the exchange, a premium deposit reasonably sufficient for the risk assumed by the exchange,
(h) evidence satisfactory to the Superintendent that the management of the affairs of the exchange is subject to the supervision of an advisory board or committee of the subscribers in accordance with the terms of the power of attorney.
Upon an exchange complying with the provisions of this Part, the Superintendent may issue a licence in a form provided by the Superintendent. 1968, c.6, s.329; 1973, c.74, s.44; 2013, c.31, s.20; 2015, c.30, s.2
A licence shall not be issued to an exchange to effect or exchange contracts of indemnity or inter-insurance 1968, c.6, s.330; 1987, c.6, s.45
(a) against loss by fire, until evidence satisfactory to the Superintendent has been filed with him that applications have been made for indemnity upon at least seventy-five separate risks in the Province or elsewhere, aggregating not less than one and one-half million dollars, as represented by executed contracts or bona fide applications to become concurrently effective;
(b) in respect of automobiles, until evidence satisfactory to the Superintendent has been filed with him that applications have been made for indemnity upon at least five hundred automobiles, as represented by executed contracts or bona fide applications, to become concurrently effective, and that arrangements satisfactory to the Superintendent are in effect for the reinsurance of all liabilities in excess of such limits as the Superintendent may prescribe.
Where the office from which such contracts are to be issued is not in the Province, service upon the Superintendent of notice of process in any action or proceeding in the Province in respect of a contract of indemnity or inter-insurance effected by the exchange shall be deemed service upon the subscribers who are members of the exchange at the time of such service. 1968, c.6, s.331
There shall be filed with the Superintendent by the attorney, as often as the Superintendent requires, a statement of the attorney under oath showing, in the case of fire insurance, the maximum amount of indemnity upon any single risk and a statement of the attorney, verified by oath, to the effect that he has examined the commercial rating of the subscribers of the exchange as shown by the reference book of a commercial agency, having at least five hundred subscribers, and that from such examination or other information in his possession it appears that no subscriber has assumed on any single risk an amount greater than ten per cent of the net worth of such subscriber. 1968, c.6, s.332
1968, c.6, s.333; 2008, c.11, s.14
The persons constituting the exchange shall at all times maintain with such attorney, as a reserve fund, a sum in cash or approved securities equal to fifty per cent of the annual deposits or advance premiums collected or credited to the accounts of subscribers on contracts in force having one year or less to run, and pro rata on those for longer periods.
Except as hereinafter provided, the persons constituting the exchange shall also maintain as a guarantee fund or surplus, an additional sum, in excess of all liabilities, in cash or approved securities, amounting to not less than fifty thousand dollars.
In the case of a fire insurance exchange whose principal office is in the Province, the guarantee fund or surplus referred to in subsection (2) shall not be less than twenty-five thousand dollars.
In the case of an automobile insurance exchange whose principal office is in the Province, the guarantee fund or surplus referred to in subsection (2) shall, during the first year of operation of the exchange, be maintained at an amount not less than ten thousand dollars, and thereafter not less than twenty-five thousand dollars.
If at any time the amounts on hand are less than the foregoing requirements, the subscribers or the attorney shall forthwith make up the deficiency.
Where funds other than those that accrued from premiums or deposits of subscribers are supplied to make up a deficiency as herein provided for, such funds shall be deposited and held by the attorney for the benefit of subscribers under such terms and conditions as the Superintendent requires so long as a deficiency exists and may thereafter be returned to the depositor.
In this section “approved securities” means securities the investment in which is authorized by section 337.
1968, c.6, s.334
If the principal office of the exchange is in the Province, the surplus insurance funds and the reserve fund of the exchange shall be invested in the class of securities authorized by this Act, for the investment of the reserve funds of an insurer.
If the principal office of the exchange is outside the Province it shall be a condition precedent to the issue of a licence under this Act that evidence satisfactory to the Superintendent be filed with him showing that the class of security in which funds of the exchange are required by law to be invested, and are in fact invested, is within the limits of investment prescribed for the investment of the reserve funds of an insurance corporation by the jurisdiction in which the office of the exchange is situate.
No exchange shall undertake any liability on a contract of indemnity, inter-insurance or insurance except on behalf of a subscriber. 1968, c.6, s.335
1968, c.6, s.336; 2008, c.11, s.14
No person shall act as attorney, or for or on behalf of any attorney, in the exchange of reciprocal contracts of indemnity or inter-insurance, or in acts or transactions in connection therewith, unless and until a licence has been issued and unless such licence is in force.
Any person who, in contravention of subsection (1) undertakes or effects or agrees or offers to undertake or effect any exchange of reciprocal contracts of indemnity or inter-insurance or any act or transaction in connection therewith, commits an offence.
1968, c.6, s.337; 1983, c.7, s.9; 2013, c.31, s.20
Where a licensed exchange or attorney fails or refuses to comply with or contravenes any provision of this Act, the licence of the exchange may be suspended or revoked by the Superintendent after due notice and opportunity for a hearing before the Superintendent has been given to the exchange or its attorney, but such suspension or revocation does not affect the validity of any reciprocal contracts of indemnity or inter-insurance effected prior thereto or the rights and obligations of subscribers under such contracts.
Notice of such suspension or revocation shall be given by the Superintendent once in The Royal Gazette as soon as reasonably may be after such suspension or revocation.
Notwithstanding anything in this Act any person may insure against fire any property situated in the Province in any exchange not licensed under this Act, and any property so insured or to be insured may be inspected and any loss incurred in respect thereof adjusted, if such insurance is effected outside of the Province and without any solicitation in the Province directly or indirectly on the part of the attorney. 1968, c.6, s.338
In this Part “reinsurance” means an agreement whereby contracts made in the Province by a licensed insurer or any class or group thereof are undertaken or reinsured by another insurer either by novation, transfer, assignment or as a result of amalgamation of the insurers. 1968, c.6, s.339
Nothing in this Part affects contracts of reinsurance of individual risks made by insurers in the ordinary course of business. 1968, c.6, s.340
1968, c.6, s.341
An insurer incorporated and licensed under the laws of the Province may amalgamate its property and business with those of any other licensed insurer, or may transfer its contracts to or reinsure them with, or transfer its property and business or any part thereof to any other insurer, and such insurers may enter into all contracts and agreements necessary to such amalgamation, transfer or reinsurance upon compliance with the conditions of this Part.
Any insurer so incorporated and licensed may, in like manner, reinsure the contracts of any other insurer, or purchase and take over the business and property or any portion thereof of any other insurer.
Every agreement respecting such an amalgamation, transfer, reinsurance or purchase, shall be approved by the Superintendent before coming into force; and the insurers, parties thereto, shall file with the Superintendent a petition for that purpose within sixty days from the date of execution of the agreement. 1968, c.6, s.342; 2013, c.31, s.20
1968, c.6, s.343
In the case of insurers undertaking life insurance, before such a petition is heard, notice thereof, together with the following documents:
(a) a statement of the nature and terms of the agreement for reinsurance,
(b) an abstract containing the material facts embodied in the agreement under which such reinsurance is proposed to be effected, and
(c) copies of the actuarial or other reports upon which such agreement is founded including a report by an independent actuary approved by the Superintendent,
Such service shall be effected in each case by forwarding by registered mail such notice and documents directed to the registered or other known address of the member or policyholder, so as to reach him if delivered in due course of mail at least thirty days before the day appointed for the hearing of the petition.
In case a fraternal society be a party to such agreement, such notice and documents shall be deemed to be served on its members if published in any official publication of the society at least thirty days before the day appointed for the hearing of the petition.
The agreement shall be open to the inspection of the members and policyholders at the principal offices of the insurers within the Province for a period of thirty days after service of such notice.
Upon the filing of the petition the insurers parties to the agreement shall deposit with the Superintendent the following documents, that is to say, 1968, c.6, s.344
(a) a certified copy of the agreement for reinsurance,
(b) a statement of the nature and terms of reinsurance,
(c) certified copies of the statements of assets and liabilities of the insurers parties to the agreement,
(d) certified copies of the actuarial or other reports upon which the agreement is founded,
(e) a declaration under the hands of the president or principal officer and manager or secretary of each insurer verifying the copy of agreement and stating that to the best of their knowledge and belief every payment made or to be made to any person whatsoever on account of the reinsurance is therein fully set forth and that no other payments beyond those set forth have been made or are to be made either in money, policies, bonds, valuable securities or other property by or with the knowledge of any of the parties to the reinsurance,
(f) evidence of the service and publication of the notices required to be served or published, if any,
(g) such other information and reports as the Superintendent requires.
Upon receipt of the petition, the Superintendent shall fix a day for hearing the petition and notice of the hearing shall be given in The Royal Gazette at least ten days before the date so fixed, and in case of insurers undertaking life insurance thirty days before such date. 1968, c.6, s.345
After hearing the directors, shareholders, members, policyholders and any other persons that he or she considers entitled to be heard on the petition or giving them an opportunity to be heard, the Superintendent may approve the agreement if he or she is satisfied that no sufficient objection to the agreement has been established. 1968, c.6, s.346; 2013, c.31, s.20
No such agreement shall be approved if it appears to the Superintendent that, upon the consummation of the reinsurance, an impairment or deficiency will exist in the balance sheet of the continuing or reinsuring insurer when its liabilities including capital stock, if any, are calculated according to the provisions of this Act. 1968, c.6, s.347; 2013, c.31, s.20
2021, c.8, s.46No person shall carry on business, act or offer or undertake to act or represent themselves in the Province as an adjuster, agent, special insurance broker or restricted insurance representative, unless the person 1968, c.6, s.348; 1976, c.34, s.5; 2021, c.8, s.47
(a) holds the appropriate licence issued under this Act, or
(b) is exempted under this Act or the regulations from the requirement to hold the licence.
2021, c.8, s.48No business acting or carrying on business or offering or undertaking to act or carry on business shall represent itself in the Province, or allow itself to be represented, as an adjusting firm, an agency, a managing general agent, a restricted insurance representative or a third party administrator, as the case may be, unless the business 2021, c.8, s.48
(a) holds the appropriate licence issued under this Act, or
(b) is exempted under this Act or the regulations from the requirement to hold the licence.
2021, c.8, s.48No insurer and no officer, agent or employee of the insurer and no adjusting firm, agency or managing general agent shall allow an agent, adjuster or restricted insurance representative to act on their behalf, unless the agent, adjuster or restricted insurance representative, as the case may be, 2021, c.8, s.48
(a) holds the appropriate licence issued under this Act, or
(b) is exempted under this Act or the regulations from the requirement to hold the licence.
2021, c.8, s.48An insurer shall not allow an adjusting firm, an agency, a managing general agent or a third party administrator to act on its behalf, unless the adjusting firm, agency, managing general agent or third party administrator, as the case may be, 2021, c.8, s.48
(a) holds the appropriate licence issued under this Act, or
(b) is exempted under this Act or the regulations from the requirement to hold the licence.
2021, c.8, s.48 A managing general agent shall not allow an agency to act on its behalf, unless the agency 2021, c.8, s.48
(a) holds an agency licence issued under this Act, or
(b) is exempted under this Act or the regulations from the requirement to hold the licence.
2021, c.8, s.482021, c.8, s.48
No insurer and no officer, representative or employee of an insurer, and no managing general agent or agency shall directly or indirectly pay, or allow, or offer or agree to pay or allow, any commission or other compensation or anything of value to any person for acting or attempting or assuming to act as an agency, agent, restricted insurance representative, managing general agent or special insurance broker in respect of insurance in the Province or for having or claiming or appearing to have any influence or control over the insured or prospect for insurance, unless the agency, agent, restricted insurance representative, managing general agent or special insurance broker, as the case may be,
(a) holds the appropriate licence issued under this Act, or
(b) is exempted under this Act or the regulations from the requirement to hold the licence.
Nothing in subsection (1) affects the payment or allowance by an agent of part of the agent’s commission to agents or brokers licensed in another Province or territory.
An unlicensed agency, agent, special insurance broker, restricted insurance representative or managing general agent shall not be entitled to withhold anything paid on account of a premium and, if a premium is received, shall remit the full amount received to the insurer.
Nothing in this Act prevents an insurer from compensating a bona fide salaried employee of its head or branch office in respect of insurance issued by the employing insurer on the life of the employee, or requires that the employee be licensed as an agent to effect the insurance.
2021, c.8, s.48 An agent or agency shall not hold itself out as a broker or brokerage, unless 2021, c.8, s.48
(a) the agent or agency is a party to two or more subsisting agency contracts with different insurers, and
(b) none of the agency contracts require the agent or agency to exclusively sell insurance offered by one insurer.
Repealed: 2016, c.4, s.3 2015, c.30, s.3; 2016, c.4, s.3
2021, c.8, s.491968, c.6, s.349; 1973, c.52, s.4; 1974, c.22 (Supp.), s.7; 1980, c.27, s.8; 1982, c.32, s.3; 1987, c.6, s.45; 1988, c.20, s.1; 1993, c.22, s.1; 2008, c.2, s.16; 2013, c.31, s.20; 2015, c.30, s.4; 2016, c.36, s.7; 2017, c.48, s.9; 2021, c.8, s.50
The Superintendent shall issue or renew a licence to act and carry on business as an adjuster, agent, restricted insurance representative or special insurance broker, as the case may be, to a person if the person
(a) has submitted an application in a form provided by the Superintendent,
(b) has paid the application fee prescribed by regulation,
(c) has satisfied all of the requirements for the issuance of the licence under this Act and the regulations,
(d) has satisfied the Superintendent
(i) that the person is suitable to hold the licence, and
(ii) that the proposed licence is not for any reason objectionable, and
(e) intends to represent themselves and carry on business as an adjuster, an agent, a restricted insurance representative or a special insurance broker, as the case may be.
The Superintendent shall issue or renew an adjusting firm licence, an agency licence, a managing general agent licence, a restricted insurance representative licence or a third party administrator licence to a partnership, a corporation or a sole proprietorship if the partnership, corporation or sole proprietorship, as the case may be,
(a) has submitted an application in a form provided by the Superintendent,
(b) has paid the application fee prescribed by regulation,
(c) has satisfied all of the requirements for the issuance of the licence under this Act and the regulations,
(d) has satisfied the Superintendent
(i) that it is suitable to hold a licence, and
(ii) that the proposed licence is not for any reason objectionable, and
(e) intends to represent itself and carry on business as an adjusting firm, an agency, a managing general agent or a third party administrator, as the case may be.
An applicant for a licence or renewal of a licence under this Part shall not make a material misstatement or omission in the application.
Subject to the regulations and to any terms and conditions imposed on a licence, a restricted insurance representative licence authorizes the holder and the holder’s employees to solicit, negotiate, sell or arrange the classes or types of insurance prescribed by regulation and specified on the licence and that are offered in the course of the business activity specified on the licence.
The Superintendent may issue an agent licence for the class or classes of licence prescribed by regulation.
All officers, partners or employees of an agency, managing general agent or third party administrator that act or carry on business as an agent shall hold an agent licence, separate from the licence held by the agency, managing general agent or third party administrator, as the case may be.
All officers, partners or employees of an adjusting firm that act as an adjuster shall hold an adjuster licence, separate from the licence held by the adjusting firm.
If an applicant for a licence under this Part is a partnership, each member of the partnership shall be named in the application.
If a partnership that holds a licence under this Part is terminated before the expiration of the licence, the licence shall be cancelled and the partners shall immediately give notice in writing to the Superintendent.
If an applicant for a licence under this Part is a partnership, a corporation or a sole proprietorship, the licence shall be issued in the name of the partnership, corporation or sole proprietorship, as the case may be.
If a partnership that holds a licence under this Part commits an offence under this Act or the regulations, any member of the partnership may be charged with, convicted of and sentenced for that offence.
An agency licence or a managing general agent licence shall not be issued to a corporation if it appears to the Superintendent that the application is made for the purpose of acting as agent wholly or chiefly in the insurance of property owned by the corporation or by its shareholders or members, or in the placing of insurance for one person, firm, corporation, estate or family.
Except as otherwise provided in this section, an adjusting firm and an agency are subject to the provisions of this Act and the regulations with respect to adjusters and agents.
If the charter of a corporation that holds a licence under this Part is dissolved or revoked, on the dissolution or revocation, the licence shall be cancelled and the corporation shall immediately give written notice of the dissolution or revocation to the Superintendent.
Every director or officer of a corporation who holds a licence under this Part who assents to or acquiesces in conduct that the director or officer knows or reasonably ought to know amounts to the corporation committing an offence referred to in this Act or the regulations also commits the offence.
A holder of a licence issued under this Part is exempt from payment of any licence fee or special tax imposed by a local government for the transaction of the business of insurance.
The Superintendent may restrict, at any time, a licence issued under this Part or the regulations by imposing any terms and conditions that the Superintendent considers appropriate on the licence.
The holder of a licence shall comply with the terms and conditions imposed on the licence under this Part by the Superintendent.
The Superintendent shall not impose terms and conditions on a licence under this Part without giving the applicant for the licence or the holder of the licence an opportunity to be heard.
On consent, the Superintendent may accept a written undertaking requiring any of the following persons to do any act, or refrain from doing any act, specified by the Superintendent and the person shall comply with the undertaking:
(a) an applicant;
(b) a licensee under this Part;
(c) a sponsoring insurer;
(d) an employee of a restricted insurance representative;
(e) a designated representative;
(f) a damage appraiser;
(g) a supervising agent or adjuster; and
(h) any other person prescribed by regulation.
The holders of any of the following licences shall be sponsored, for the term of the licence, by an insurance company that holds a valid licence for the same class of insurance as the holder:
(a) an agent licence;
(b) an agency licence;
(c) a managing general agent licence; and
(d) a third party administrator licence.
A restricted insurance representative shall be sponsored for the term of a licence by an insurer that has an agreement with the business that allows the business to act on behalf of the insurer and is licensed in New Brunswick
(a) for the class of insurance for which the restricted licence is issued, or
(b) for the class of insurance which includes the type of insurance for which the restricted licence is issued.
A holder of the following licences may hold more than one class of licence if the holder complies with the requirements of this Act and the regulations with respect to the licence:
(a) an agent licence;
(b) an agency licence;
(c) a managing general agent licence; and
(d) a third party administrator licence.
If the sponsorship of a licensee is terminated by an insurer, the licence shall be immediately cancelled and the sponsor shall provide notice to the Superintendent in a manner required by the Superintendent and within the time prescribed by regulation.
A licence issued under this Part may be revoked or suspended by the Superintendent, or refused renewal or reinstatement by the Superintendent, if the Superintendent is of the opinion that the holder of the licence
(a) violated a provision of this Act or the regulations,
(b) made a material misstatement or omission in the application for the licence,
(c) committed a fraudulent act or practice,
(d) failed or refused to comply with the terms and conditions to which the licence is subject,
(e) violated or failed to comply with a written undertaking made by that person under this Act or the regulations,
(f) demonstrated incompetency or untrustworthiness to transact the insurance business for which the licence has been granted,
(g) employed on salary or otherwise a person whose application for licence as an agent or an adjuster has been refused or whose licence has been revoked or suspended, without having first obtained the written approval of the Superintendent, or
(h) is otherwise unsuitable to hold the licence.
The Superintendent may prohibit an individual from soliciting, negotiating, selling or arranging insurance on behalf of a restricted insurance representative if the Superintendent is of the opinion that the individual
(a) violated a provision of this Act or the regulations,
(b) violated or failed to comply with a written undertaking made by that person under this Act or the regulations,
(c) committed a fraudulent act or practice,
(d) demonstrated incompetency or untrustworthiness in soliciting, negotiating, selling or arranging insurance on behalf of a restricted insurance representative, or
(e) is otherwise unsuitable to solicit, negotiate, sell or arrange insurance on behalf of a restricted insurance representative.
The Superintendent shall not refuse to issue a licence without giving the applicant or licence holder an opportunity to be heard.
No licence shall be revoked, suspended, or refused renewal or reinstatement under subsection (25) or no individual shall be prohibited from soliciting, negotiating, selling or arranging insurance on behalf of a restricted insurance representative under subsection (26) without giving the holder or individual an opportunity to be heard.
Repealed: 2015, c.30, s.5 1968, c.6, s.350; 2008, c.2, s.17; 2013, c.31, s.20; 2015, c.30, s.5
2021, c.8, s.521968, c.6, s.351; 1971, c.41, s.15; 2008, c.2, s.18; 2013, c.31, s.20; 2015, c.30, s.6; 2017, c.48, s.9; 2021, c.8, s.53
The Superintendent may issue to any suitable person a licence to act as a special insurance broker to negotiate, continue or renew contracts of insurance with insurers not authorized to transact the business of insurance in the Province.
Before being issued a licence under subsection (1), an applicant shall execute and deliver to the Superintendent security to the satisfaction of the Superintendent in an amount not less than $5,000 that the licensee will faithfully comply with all the requirements of this Act and the regulations or any other Act of the Legislature.
2021, c.8, s.54A holder of a special insurance broker licence may negotiate, continue or renew all classes of insurance, other than life insurance, accident insurance, sickness insurance, automobile insurance or a class of insurance prescribed by regulation. 2021, c.8, s.54
2021, c.8, s.551968, c.6, s.352; 2008, c.11, s.14; 2021, c.8, s.56
Subject to subsection (2), a special insurance broker may assist or act on behalf of a person who wishes to enter into or renew an insurance contract with an unlicensed insurer if
(a) sufficient insurance cannot be arranged with an insurer licensed to do business in the Province,
(b) sufficient insurance cannot be arranged at reasonable rates with an insurer licensed to do business in the Province, or
(c) sufficient insurance cannot be arranged on the terms required by the insured with an insurer licensed to do business in the Province.
Before a person enters into or renews an insurance contract, a special insurance broker shall obtain from the applicant a written statement that
(a) is dated and signed by the applicant,
(b) describes fully the nature and the amount of the insurance the applicant requires,
(c) states that
(i) the insurance cannot be obtained from licensed insurers in the Province, obtained at reasonable rates from licensed insurers in the Province or obtained on the terms required by the insured from licensed insurers in the Province, and
(ii) the application for the insurance at the stated rate of premium was previously made to and refused by named insurers licensed in the Province, and
(d) contains any further information that the Superintendent may require.
Before a person enters into or renews an insurance contract, a special insurance broker shall advise the applicant, in writing, of the following:
(a) that the unlicensed insurer is not regulated under this Act;
(b) that the Superintendent has no authority under this Act with respect to the unlicensed insurer;
(c) that the orderly payment of claims may be more difficult than it would be if the applicant obtained insurance from an insurer licensed under this Act;
(d) that the applicant may not have the protection of any compensation plan operated by a compensation association designated under the regulations;
(e) that the applicant may have to take legal proceedings in a foreign jurisdiction to enforce the contract of insurance; and
(f) any other information that the Superintendent considers necessary.
Every special insurance broker shall keep a separate record of insurance entered into or renewed by the special insurance broker under the licence in the form the Superintendent requires and shall make those records available for inspection by the Superintendent.
Within 10 days after the end of each month, every special insurance broker shall make a return to the Superintendent, in the form and manner the Superintendent requires, containing particulars of all insurance effected by the special insurance broker during the month and provide any other information required by the Superintendent.
In respect of all premiums on insurance effected under a special insurance broker’s licence, the special insurance broker shall pay to the Province any taxes as would be payable if the premiums had been received by a licensed insurer, and payment for the taxes shall accompany the monthly return under subsection (5).
2021, c.8, s.57When the Superintendent is satisfied that all insurances effected by a licensed special insurance broker are no longer in force or have been reinsured and that the taxes owing to the Province have been paid, the special insurance broker is entitled to a release or cancellation of the security referred to in subsection 354(2). 1968, c.6, s.353; 2013, c.31, s.20; 2021, c.8, s.58
1968, c.6, s.354; 2021, c.8, s.59
A special insurance broker licensed under this Act shall accept applications for insurance with unlicensed insurers only from the insured, a licensed agent or another licensed special insurance broker and shall not pay or allow compensation or anything of value in respect of the application to any person not licensed as an agent or special insurance broker under this Act.
A contract of insurance with an unlicensed insurer made by or through an agent not licensed as a special insurance broker under this Act shall be considered unlawfully made within the meaning of section 369.
If an insurance contract is not made or cancelled due to a special insurance broker’s failure or neglect to remit a premium to the insurer, the special insurance broker shall be personally liable to the insured or intended insured in the same manner as if the insurance contract had been made or not cancelled and the special insurance broker was the insurer.
2021, c.8, s.61Subject to the terms and conditions that the Superintendent considers appropriate, the Superintendent may issue a temporary authorization to an adjuster from another jurisdiction to act within the Province when, in the opinion of the Superintendent, an emergency situation requires that the adjuster be granted the authorization. 1968, c.6, s.355; 1974, c.22 (Supp.), s.8; 2013, c.31, s.20; 2015, c.30, s.7; 2017, c.48, s.9; 2021, c.8, s.62
2021, c.8, s.641976, c.34, s.6; 1978, c.30, s.7; 2008, c.2, s.19; 2013, c.31, s.20; 2015, c.30, s.8; 2017, c.48, s.9; 2021, c.8, s.65
An insurance company or an adjusting firm that uses the services of a damage appraiser shall ensure that the damage appraiser has the appropriate qualifications and competency to appraise any insurance claim that the damage appraiser is involved in on behalf of the insurance company or adjusting firm, as the case may be, and shall oversee the activities of the damage appraiser with respect to any insurance claim.
If the Superintendent is of the opinion, on reasonable grounds, that a damage appraiser does any of the following, the Superintendent, after providing the damage appraiser an opportunity to be heard, may prohibit the damage appraiser from acting as a damage appraiser under this Act:
(a) violated or failed to comply with a written undertaking made by the damage appraiser under this Act or the regulations;
(b) committed a fraudulent act or practice;
(c) committed any of the prohibited acts referred to in subsection (3);
(d) demonstrated incompetency or untrustworthiness; or
(e) is otherwise unsuitable.
In the appraisal of any insurance claim, a damage appraiser shall not
(a) possess any interest in the property the damage appraiser is engaged to appraise,
(b) seek to make a profit or seek or acquire an interest, other than fees or salary, in the property the damage appraiser is engaged to appraise,
(c) knowingly report the need to replace parts when the parts are repairable in a satisfactory manner, or agree or conspire with a garage, body shop or other repair facility to replace parts when the parts are repairable in a satisfactory manner,
(d) act or attempt to act as an adjuster in connection with a property the damage appraiser is appraising,
(e) fail or refuse to comply with any standards of practice and duties prescribed by regulation for damage appraisers, or
(f) fail or refuse to comply with or contravene a provision of this Act or the regulations.
2021, c.8, s.662021, c.8, s.66
A decision of the Superintendent referred to below may be appealed to the Tribunal within 30 days after the date of the decision:
(a) refusing to issue, renew or reinstate a licence under this Part;
(b) suspending or revoking a licence under this Part;
(c) imposing a term and condition on a licence under this Part;
(d) prohibiting an individual from soliciting, negotiating, selling or arranging insurance on behalf of a restricted insurance representative under subsection 352(26);
(e) prohibiting a damage appraiser from acting as a damage appraiser under this Act; or
(f) any other decision prescribed by regulation.
Despite subsection (1), the Tribunal may extend the period for appealing a decision, before or after the expiration of the time, if it is satisfied that there are reasonable grounds for an extension.
Repealed: 2021, c.8, s.68 2021, c.8, s.68Repealed: 2021, c.8, s.69 1968, c.6, s.356; 1976, c.34, s.7; 2008, c.11, s.14; 2013, c.31, s.20; 2017, c.48, s.9; 2021, c.8, s.69
Repealed: 2021, c.8, s.71 2021, c.8, s.71Repealed: 2021, c.8, s.72 1968, c.6, s.357; 1976, c.34, s.8; 2008, c.11, s.14; 2013, c.31, s.20; 2017, c.48, s.9; 2021, c.8, s.72
2021, c.8, s.74Despite any condition or stipulation to the contrary, payments in cash, in whole or in part, to a representative of an insurer of the amount of a premium or assessment due in respect of a contract of insurance, other than life insurance, issued by the insurance insurer is a payment to the insurer. 1968, c.6, s.358; 2021, c.8, s.75
2021, c.8, s.76An insurer that authorizes the following persons to act on the insurer’s behalf shall establish and maintain a system that is reasonably designed to ensure that each person complies with this Act, the regulations or any terms and conditions of their licence: 2021, c.8, s.76
(a) an adjuster;
(b) an adjusting firm;
(c) an agency;
(d) an agent;
(e) an employee of a restricted insurance representative engaged in the business of insurance;
(f) a managing general agent;
(g) a restricted insurance representative; and
(h) a third party administrator.
2021, c.8, s.762021, c.8, s.76
An insurer that authorizes any of the persons referred to in paragraphs 361.1(a) to (h) to act on the insurer’s behalf shall notify the Superintendent in writing if the insurer has reasonable grounds to believe that a person who acts on behalf of the insurer is not suitable to carry on business authorized under the licence.
The notice referred to in subsection (1) shall be given within 15 days after the insurer determines that there are reasonable grounds to believe that the person is not suitable to carry on business authorized under the licence.
Repealed: 2021, c.8, s.77 2021, c.8, s.77Repealed: 2021, c.8, s.78 1968, c.6, s.359; 1976, c.34, s.10; 2021, c.8, s.78
Repealed: 2021, c.8, s.79 2021, c.8, s.79Repealed: 2021, c.8, s.80 1968, c.6, s.360; 2021, c.8, s.80
2021, c.8, s.811968, c.6, s.361; 1973, c.52, s.5; 1978, c.30, s.8; 1983, c.42, s.4; 2008, c.11, s.14; 2016, c.36, s.7; 2021, c.8, s.82
When the following persons receive trust money, the person shall have at least one account for deposits and the account shall be designated as a trust account both in the books of the person and in the records of the institution:
(a) an adjuster or adjusting firm;
(b) an agency;
(c) an agent;
(d) a managing general agent;
(e) a restricted insurance representative; and
(f) a special insurance broker.
Despite subsection (1), if a licence of a person referred to in subsection (1) is suspended or cancelled under this Act, the Superintendent may order the institution in which the person’s trust account is held to refrain from paying out all or any part of the money in the account for the period of the suspension or cancellation.
Repealed: 2021, c.8, s.83 2021, c.8, s.83Repealed: 2021, c.8, s.84 1983, c.42, s.5; 2021, c.8, s.84
Every agent, managing general agent, restricted insurance representative and third party administrator and every insurer shall make a return to the Superintendent, in the form and at the times the Superintendent requires, 1968, c.6, s.362; 2021, c.8, s.85
(a) identifying all persons duly authorized as its or their agents in the Province,
(b) identifying all persons to whom it or they have paid or allowed or agreed to pay or allow directly or indirectly, compensation for placing or negotiating insurance on lives, property or interests in the Province, or negotiating the continuance or renewal of the contract, or for attempting to do so, and
(c) including any information required by the Superintendent.
Repealed: 2013, c.31, s.20 1968, c.6, s.363; 1976, c.34, s.11; 2013, c.31, s.20
Repealed: 2016, c.36, s.7 1968, c.6, s.364; 1976, c.34, s.11; 2016, c.36, s.7
2021, c.8, s.861968, c.6, s.365; 2008, c.11, s.14; 2021, c.8, s.87
No insurer or officer, employee or representative of the insurer and no agency, agent, managing general agent, restricted insurance representative or special insurance broker shall, directly or indirectly, do any of the following to any person insured or applying for insurance in respect of life, person or property in the Province:
(a) make or attempt to make any agreement as to the premium to be paid for a policy other than as set out in the policy; 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, or
(ii) any other consideration or thing of value intended to be in the nature of a rebate of premium.
Nothing in subsection (1) affects any payment by way of dividend, bonus, profit or savings that is provided for by the policy.
2021, c.8, s.88An agent or restricted insurance representative shall be personally liable to the insured on all contracts of insurance unlawfully made by or through the agent or restricted insurance representative directly or indirectly with an unlicensed insurer, in the same manner as if the agent or the restricted insurance representative were the insurer. 1968, c.6, s.366; 2021, c.8, s.89
For the purposes of sections 369.1 to 369.4, 1980, c.27, s.9; 2016, c.36, s.7
“person” means a person engaged in the business of insurance and includes any individual, corporation, association, partnership, reciprocal or inter-insurance exchange, member of the society known as Lloyds, fraternal society, mutual benefit society, agent, broker, adjuster, or damage appraiser;(personne)
“unfair or deceptive acts or practices in the business of insurance” includes,(actes ou pratiques malhonnêtes ou fallacieux dans le commerce de l’assurance)
(a) the commission of any act prohibited under this Act or the regulations,
(b) any discrimination between individuals of the same class and of the same expectation of life, in the amount or payment or return of premiums, or rates charged by it for contracts of life insurance or annuity contracts, or in the dividends or other benefits payable thereon or in the terms and conditions thereof,
(c) any discrimination in any rate or schedule of rates between risks in the Province of essentially the same physical hazards in the same territorial classification,
(d) any illustration, circular, memorandum or statement that misrepresents, or by omission is so incomplete that it misrepresents, the terms, benefits or advantages of any policy or contract of insurance issued or to be issued,
(e) any false or misleading statement as to the terms, benefits or advantages of any contract or policy of insurance issued or to be issued,
(f) any incomplete comparison of any policy or contract of insurance with that of any other insurer for the purpose of inducing, or intending to induce, an insured to lapse, forfeit or surrender a policy or contract,
(g) any payment, allowance or gift, or any offer to pay, allow or give, directly or indirectly, any money or thing of value as an inducement to any prospective insured to insure,
(h) any charge by a person for a premium allowance or fee other than as stipulated in a contract of insurance upon which a sales commission is payable to such person, or
(i) any consistent practice or conduct that results in unreasonable delay or resistance to the fair adjustment and settlement of claims.
No person shall engage in any unfair or deceptive act or practice in the business of insurance. 1980, c.27, s.9
The Superintendent may examine and investigate the affairs of every person engaged in the business of insurance in the Province in order to determine whether the person has been, or is, engaged in any unfair or deceptive act or practice. 1980, c.27, s.9
1980, c.27, s.9; 2013, c.31, s.20; 2017, c.48, s.9
Where the Superintendent is of the opinion, on reasonable grounds, that any person is engaging in any unfair or deceptive act or practice in the business of insurance, the Superintendent may order that the person cease engaging in his business or any part thereof named in the order, and an order under this subsection may be made subject to such terms and conditions as the Superintendent may specify in the order and may be revoked when the Superintendent is satisfied that the unfair and deceptive acts or practices are corrected and not likely to recur.
No order shall be made under subsection (1) without a hearing unless in the opinion of the Superintendent the length of time required for a hearing could be prejudicial to the public interest, in which event a temporary order may be made which shall expire fifteen days from the date of the making thereof or such longer time as is consented to by the person entitled to the hearing.
A notice of every order made under subsection (1) shall be served upon every person named therein and upon such other persons as the Superintendent considers appropriate and thereupon no person shall engage in that part of the business of insurance that is the subject of the order.
A decision of the Superintendent to make an order under subsection (1) may be appealed to the Tribunal within 30 days after the date of the decision.
Despite subsection (4), the Tribunal may extend the period for appealing a decision, before or after the expiration of the time, if it is satisfied that there are reasonable grounds for an extension.
Repealed: 2016, c.36, s.7 1980, c.27, s.9; 1987, c.6, s.45; 2004, c.36, s.26; 2016, c.36, s.7
Where under an agreement between an insurer, in this section called the “continuing insurer”, and another insurer, in this section called the “retiring insurer”, in contemplation of the retiring insurer ceasing to do business in the Province, the continuing insurer assumes liability under the contracts of insurance specified in the agreement issued by the retiring insurer and the retiring insurer ceases to carry on business in the Province, an insured or other person entitled to rights under those contracts may enforce the rights as though those contracts had been issued by the continuing insurer. 1968, c.6, s.367
If a provision of this Act is inconsistent or in conflict with a provision of the Right to Information and Protection of Privacy Act, the provision of this Act prevails. 2016, c.36, s.7
The Financial and Consumer Services Commission is responsible for the administration of this Act. 2015, c.30, s.9
2021, c.8, s.902021, c.8, s.90
The Lieutenant-Governor in Council may make regulations and the Financial and Consumer Services Commission may make rules
(a) prescribing any other person for the purposes of the definition “adjuster” in section 1;
(b) prescribing any other person for the purposes of the definition “damage appraiser” in section 1;
(c) prescribing the classes, types or levels of licences that may be issued under this Part;
(d) prescribing the form and content of licences issued under this Part;
(e) prescribing requirements and qualifications pertaining to the issuance and renewal of each class, type or level of licence prescribed under paragraph (c);
(f) prescribing the terms and conditions to which each class, type or level of licence prescribed under paragraph (c) is subject;
(g) prescribing obligations on insurers, any person licensed under this Act or other person with respect to persons or classes of persons who are exempt from the requirement to hold a licence or any provision of this Part or the regulations;
(h) respecting the expiration, renewal or reinstatement of licences issued under this Part;
(i) respecting the verification or confirmation of information or materials submitted as part of an application for a licence under this Part;
(j) prescribing persons or entities that are or are not eligible to apply for and hold a restricted insurance representative licence and specifying and defining classes or types of insurance for which a restricted insurance representative licence can be issued for the purposes of section 352;
(k) prescribing any other persons for the purpose of paragraph 352(20)(h);
(l) prescribing any decision for the purposes of paragraph 358.2(1)(f);
(m) exempting any person or class of persons from the requirement to hold a licence or any of the provisions of this Part or the regulations and prescribing terms and conditions for an exemption;
(n) prescribing the manner and form in which applications under this Part are made and the information to be included in the application;
(o) prescribing the circumstances in which the Superintendent may refuse to issue or renew a licence under this Part without affording the applicant or holder of the licence an opportunity to be heard;
(p) respecting the respective responsibilities of agencies, adjusting firms, restricted insurance representatives, managing general agents and third party administrators;
(q) prescribing training or continuing education requirements for the purposes of licence holders under this Part;
(r) prescribing training or continuing education requirements for the purposes of the employees of restricted insurance representatives engaged in the business of insurance;
(s) respecting the rights and obligations of insurers with respect to licensees and others who act on the insurer’s behalf;
(t) requiring insurers that appoint licensees to act on their behalf to establish and maintain a system to screen each licensee and supervise activities of each licensee;
(u) respecting the termination of the sponsorship of a licence;
(v) respecting the appointment, requirements, eligibility, qualifications and responsibilities of a designated representative for agencies, adjusting firms, restricted insurance representatives, managing general agents and third party administrators;
(w) requiring licence holders to furnish a fidelity bond or other security and the form, terms and the amount of the security;
(x) respecting errors and omissions insurance, or requiring membership in a compensation fund, including prescribing the minimum amount of errors and omissions insurance and the form, requirements and terms of the insurance or the fund to which they are required to be a member;
(y) prescribing financial security requirements for licence holders and the manner in which financial security is to be forfeited;
(z) prescribing provisions of this Part and the regulations that apply to special insurance brokers and restricted insurance representatives, with the modifications, if any, that the regulations specify;
(aa) prescribing classes of insurance that cannot be negotiated, continued or renewed by a special insurance broker with an unlicensed insurer;
(bb) prescribing, for each class, type or level of licence issued under this Part, standards of practice and duties of licence holders, including prescribing a code of conduct or ethics;
(cc) prescribing standards of practice and duties of restricted insurance representative engaged in the business of insurance, including prescribing a code of conduct or ethics;
(dd) prescribing standards of practice and duties for damage appraisers, including prescribing a code of conduct or ethics;
(ee) respecting the marketing, soliciting, sale or arranging of insurance through a website, online service or other electronic means;
(ff) prescribing disclosure requirements for licence holders and employees of restricted insurance representatives engaged in the business of insurance;
(gg) prescribing the manner in which trust money shall be dealt with by an adjuster, adjusting firm, agency, agent, managing general agent, restricted insurance representative, special insurance broker or third party administrator, including prescribing the records to be kept by them with respect to trust money and trust accounts;
(hh) prescribing the accounts and records to be maintained by licence holders under this Part;
(ii) requiring licence holders to supply information and make returns to the Superintendent;
(jj) prescribing the duties of insurers and agents in connection with the replacement of insurance contracts;
(kk) requiring the payment of fees for the purposes of this Part or the regulations and prescribing the amounts of such fees, including fees in relation to:
(i) applications made under this Part,
(ii) late fees,
(iii) any action that the Superintendent is required or authorized to take under this Part or the regulations, or
(iv) any service that the Superintendent is required or authorized to provide under this Part or the regulations;
(ll) respecting the suspension, cancellation, and revocation of licences or the non-renewal or non-reinstatement of a licence issued under this Part;
(mm) authorizing the establishment of an advisory board with whom the Superintendent may consult concerning the issuance, renewal, suspension or revocation of a licence under this Part, and the constitution, functions, powers and procedures of the advisory board;
(nn) prescribing forms and providing for their use;
(oo) permitting the Superintendent to approve forms or a class of forms, and to revoke approval of a form or a class of forms;
(pp) prescribing offences for the purposes of paragraph 386(1)(f);
(qq) defining any term or expression used in this Act but not defined in this Act, for the purposes of this Act, the regulations, or both, including defining, enlarging or restricting the meaning of any word or expression differently for different provisions in this Act; and
(rr) generally for the better administration of this Act.
A regulation made under paragraph (1)(q) or (r) may authorize the Superintendent to establish, on criteria determined by the Superintendent to be appropriate, all or some of the training or educational requirements for the purposes of licence holders under this Part and for employees of restricted insurance representatives engaged in the business of insurance.
2021, c.8, s.902021, c.8, s.90
The Lieutenant-Governor in Council may, by order, amend or repeal a rule made by the Financial and Consumer Services Commission.
Subject to the approval of the Minister, the Financial and Consumer Services Commission, concurrently with making a rule, may make a regulation that amends or repeals any provision of a regulation made by the Lieutenant-Governor in Council under this Act or by the Financial and Consumer Services Commission under this subsection that in the opinion of the Financial and Consumer Services Commission is necessary or advisable to effectively implement the rule.
A regulation made under subsection (2) is not effective before the rule referred to in that subsection comes into force.
A regulation or rule authorized by this Act may incorporate by reference, in whole or in part, any laws, any by-laws or other regulatory instruments or any codes, standards, procedures or guidelines as they are amended from time to time before or after the making of the regulation or the rule or as they read at a fixed time and may require compliance with any law, any by-law or other regulatory instrument or any code, standard, procedure or guideline so incorporated.
Regulations or rules may vary for or be made in respect of different persons, matters or things or different classes or categories of persons, matters or things.
A regulation or a rule may be general or particular in its application, may be limited as to time or place or both and may exclude any place from the application of the regulation or rule.
The Regulations Act does not apply to the rules made under this Act.
If there is a conflict or an inconsistency between a regulation made by the Lieutenant-Governor in Council under this Act and a rule made by the Financial and Consumer Services Commission under this Act, the regulation prevails but in all other respects a rule has the same force and effect as a regulation.
2021, c.8, s.902021, c.8, s.90
As soon as practicable after a rule is made under this Act, the Financial and Consumer Services Commission shall
(a) publish the rule electronically, and
(b) publish in The Royal Gazette notice of the rule in accordance with the regulations made under the Financial and Consumer Services Commission Act.
Without delay after the Financial and Consumer Services Commission makes a rule under this Act, it shall make a copy of the rule available for public inspection at each of the Financial and Consumer Services Commission’s offices during the normal business hours of the Financial and Consumer Services Commission.
When notice of a rule has been published in The Royal Gazette in accordance with paragraph (1)(b), a person affected by the rule shall be deemed to have notice of it on the date the rule is published in accordance with paragraph (1)(a).
2021, c.8, s.90The Secretary of the Financial and Consumer Services Commission may make changes respecting form, style, numbering and typographical, clerical or reference errors in a rule made by the Financial and Consumer Services Commission without changing the substance of the rule if the changes are made before the date the rule is published in accordance with paragraph 371.3(1)(a). 2021, c.8, s.90
2021, c.8, s.902021, c.8, s.90
The Secretary of the Financial and Consumer Services Commission may maintain a consolidation of the rules made by the Financial and Consumer Services Commission.
In maintaining a consolidation of the rules, the Secretary of the Financial and Consumer Services Commission may make changes respecting form and style and respecting typographical errors without changing the substance of a rule.
The Financial and Consumer Services Commission may publish the consolidated rules in the frequency that it considers appropriate.
A consolidated rule does not operate as new law but shall be interpreted as a consolidation of the law contained in the original rule and any subsequent amendments.
In the event of an inconsistency between a consolidated rule published by the Financial and Consumer Services Commission and the original rule or a subsequent amendment, the original rule or amendment prevails to the extent of the inconsistency.
Repealed: 2021, c.8, s.91 2021, c.8, s.91Repealed: 2021, c.8, s.92 2016, c.36, s.7; 2021, c.8, s.92
2016, c.36, s.7; 2021, c.8, s.93
Without limiting any other compliance powers under this Act or the regulations, the Financial and Consumer Services Commission may appoint in writing a person as a compliance officer for the purpose of ensuring compliance with this Act and the regulations.
The Financial and Consumer Services Commission shall issue to every compliance officer a certificate of appointment and every compliance officer, in the execution of his or her duties under this Act or the regulations, shall produce his or her certificate of appointment on request.
For the purpose of determining whether this Act and the regulations are being complied with, a compliance officer, in carrying out a compliance review, may
(a) enter the premises of any insurer or other person licensed under this Act during normal business hours,
(b) require an insurer or other person licensed under this Act or an officer or employee of either of them to produce for inspection, examination, auditing or copying any books, accounts, records or documents relating to the business or affairs of the insurer or other person licensed under this Act,
(c) inspect, examine, audit or copy the books, accounts, records or documents relating to the business or affairs of an insurer or other person licensed under this Act, and
(d) question an insurer or other person licensed under this Act or an officer or employee of either of them in relation to the business or affairs of the insurer or other person licensed under this Act.
In carrying out a compliance review, a compliance officer may
(a) use a data processing system at the premises where the books, accounts, records or documents are kept,
(b) reproduce any book, account, record or document, and
(c) use any copying equipment at the premises where the books, accounts, records or documents are kept to make copies of any book, account, record or document.
A compliance officer may carry out a compliance review within or outside the Province.
A compliance officer shall not enter a private dwelling under subsection (3) unless the compliance officer has the consent of the occupier or has obtained an entry warrant under the Entry Warrants Act.
Before or after attempting to enter or to have access to any premises, a compliance officer may apply for an entry warrant under the Entry Warrants Act.
The Financial and Consumer Services Commission may, in circumstances prescribed by regulation, require an insurer or other person licensed under this Act in respect of which a compliance review was carried out to pay the Financial and Consumer Services Commission any fee prescribed by regulation and to reimburse the Financial and Consumer Services Commission for any expenses prescribed by regulation.
The Lieutenant-Governor in Council may make regulations and the Financial and Consumer Services Commission may make rules prescribing circumstances, fees and expenses for the purposes of subsection (8).
2016, c.36, s.7
A compliance officer who removes books, accounts, records or documents to make a copy or extract of them or any part of them shall give a receipt to the occupier of the premises for the books, accounts, records or documents removed and return the books, accounts, records or documents as soon as possible after the making of copies or extracts.
A copy or extract of any book, account, record or document related to a compliance review and purporting to be certified by a compliance officer is admissible in evidence in any action, proceeding or prosecution and is proof, in the absence of evidence to the contrary, of the original without proof of the appointment, authority or signature of the person purporting to have certified the copy or extract.
No person shall knowingly make a false or misleading statement, either orally or in writing, to a compliance officer while the compliance officer is engaged in carrying out his or her duties under this Act or the regulations. 2016, c.36, s.7
2016, c.36, s.7
No person shall obstruct or interfere with a compliance officer who is carrying out or attempting to carry out a compliance review under this Part, or withhold, destroy, conceal, alter or refuse to produce any information or thing reasonably required by a compliance officer for the purposes of the compliance review.
A refusal of consent to enter a private dwelling is not and shall not be considered to be interfering with or obstructing within the meaning of subsection (1), except if an entry warrant has been obtained.
2016, c.36, s.7
The Superintendent may make an order under subsection (2)
(a) for the administration of this Act or the regulations, or
(b) to assist in the administration of similar legislation of another jurisdiction.
By an order applicable generally or to one or more persons named or otherwise described in the order, the Superintendent may require any of the following persons to provide information or to produce books, accounts, records or documents or classes of books, accounts, records or documents specified or otherwise described in the order within the time or at the intervals specified in the order:
(a) the holder of a licence issued under this Act;
(b) a former holder of a licence issued under this Act; or
(c) any person that does not hold a licence under this Act and that is, or the Superintendent has reason to suspect is, carrying out a regulated activity.
The Superintendent may require that the authenticity, accuracy or completeness of information provided or of a book, account, record or document or a class of books, accounts, records or documents produced pursuant to an order under subsection (2) be verified by affidavit.
The Superintendent may require that the information provided or that the books, accounts, records or documents or classes of books, accounts, records or documents produced pursuant to an order made under subsection (2) be delivered in electronic form, if the information or the books, accounts, records or documents or classes of books, accounts, records or documents are already available in that form.
2016, c.36, s.7
Without limiting any other investigative powers under this Act or the regulations, the Financial and Consumer Services Commission may, by order, appoint a person as an investigator to make any investigation that the Financial and Consumer Services Commission considers expedient
(a) for the administration of this Act or the regulations, or
(b) to assist in the administration of similar legislation of another jurisdiction.
In its order, the Financial and Consumer Services Commission shall specify the scope of an investigation to be carried out under subsection (1).
2016, c.36, s.7
An investigator may, with respect to the person who is the subject of the investigation, investigate, inspect and examine
(a) the business or affairs of that person,
(b) any books, accounts, records, documents or communications connected with that person, and
(c) any property or assets owned, acquired or disposed of, in whole or in part, by that person or by a person acting on behalf of or as representative of that person.
For the purposes of an investigation under this Part, an investigator may inspect and examine any book, account, record, document or thing, whether in possession or control of the person in respect of whom the investigation is ordered or any other person.
An investigator making an investigation under this Part may, on production of the order appointing him or her,
(a) enter the business premises of any person named in the order during normal business hours and inspect and examine any book, account, record, document or thing that is used in the business of that person and that relates to the order,
(b) require the production of any book, account, record, document or thing referred to in paragraph (a) for inspection or examination, and
Inspection or examination under this section shall be completed as soon as possible and the books, accounts, records, documents or things shall be returned promptly to the person who produced them.
No person shall withhold, destroy, conceal, alter or refuse to give any information or withhold, destroy, conceal, alter or refuse to produce any book, account, record, document or thing reasonably required under subsection (3) by an investigator.
2016, c.36, s.7
An investigator making an investigation under this Part has the same power to summon and enforce the attendance of witnesses, to compel witnesses to give evidence under oath or in any other manner and to compel witnesses to produce books, accounts, records, documents and things or classes of books, accounts, records, documents and things as the court has for the trial of civil actions.
On the application of an investigator to the court, the failure or refusal of a person to attend, to take an oath, to answer questions or to produce books, accounts, records, documents and things or classes of books, accounts, records, documents and things in the custody, possession or control of the person makes the person liable to be committed for contempt as if in breach of an order or judgment of the court.
A person giving evidence at an investigation conducted under this section may be represented by legal counsel.
Testimony given by a person under this section shall not be admitted into evidence against that person in any prosecution other than for perjury in the giving of that testimony or the giving of evidence contradictory to that testimony.
Every investigator in carrying out his or her duties under this Act and the regulations is a person employed for the preservation and maintenance of the public peace and has and may exercise all the powers, authorities and immunities of a peace officer as defined in the Criminal Code (Canada). 2016, c.36, s.7
2016, c.36, s.7
On request to the investigator by the person who, at the time of the seizure, was in lawful possession of books, accounts, records, documents or things seized under this Part, the books, accounts, records, documents or things seized shall, at a time and place mutually convenient to the person who was in lawful possession of them at the time of the seizure and the investigator, be made available for consultation and copying by the person.
If books, accounts, records, documents or things are seized under this Part and the matter for which the books, accounts, records, documents or things were seized is concluded, the investigator shall return those books, accounts, records, documents or things to the person who was in lawful possession of them at the time of the seizure within 60 days after the day that the matter is concluded.
If books, accounts, records, documents or things are seized under this Part and the person who was in lawful possession of the books, accounts, records, documents or things at the time of the seizure alleges that the books, accounts, records, documents or things are not relevant in respect of the matter for which they were seized, that person may apply by notice of motion to the court for the return of the books, accounts, records, documents or things.
On a motion under subsection (3), the court shall order the return of any books, accounts, records, documents or things that it determines are not relevant to the matter for which they were seized to the person who was in lawful possession of the books, accounts, records, documents or things at the time of the seizure.
2016, c.36, s.7
If an investigation has been made under this Part, the investigator shall, at the request of the Financial and Consumer Services Commission, provide a report of the investigation to the Financial and Consumer Services Commission or any transcripts of evidence or any material or other things in the investigator’s possession relating to the investigation.
A report that is provided to the Financial and Consumer Services Commission under this section is privileged and is inadmissible in evidence in any action or proceeding.
2016, c.36, s.7; 2021, c.8, s.94
For the purpose of protecting the integrity of an investigation under this Part, the Financial and Consumer Services Commission may make an order that applies for the duration of the investigation, prohibiting a person from disclosing to any person other than the person’s lawyer the following information:
(a) the fact that an investigation is being conducted;
(b) the name of any person examined or sought to be examined;
(c) the nature or content of any questions asked;
(d) the nature or content of any demands for the production of any document or other thing; or
(e) the fact that any document or other thing was produced.
An order under subsection (1) does not apply to disclosures authorized by the regulations or by the Superintendent in writing.
An investigator making an investigation under this Part may make, or authorize the making of, any disclosure of information that may be required for the effectual conduct of the investigation.
The Lieutenant-Governor in Council may make regulations and the Financial and Consumer Services Commission may make rules authorizing disclosures for the purposes of subsection (2).
None of the following persons is compellable to give evidence in any court or in any proceeding of a judicial nature concerning any information that comes to the knowledge of the person in the exercise of the powers or performance of the duties of that person in relation to an investigation under this Part: 2016, c.36, s.7
(a) an investigator;
(b) the Financial and Consumer Services Commission;
(c) a member of the Financial and Consumer Services Commission;
(d) an employee of the Financial and Consumer Services Commission;
(e) a member of the Tribunal; and
(f) a person engaged by the Financial and Consumer Services Commission under section 18 of the Financial and Consumer Services Commission Act.
2016, c.36, s.7
A person who does any of the following commits an offence, and is liable on conviction, for each offence, if a director or officer of a person, to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both, if an individual who is not a director or officer of a person, to a fine of not more than $250,000 or to imprisonment for a term of not more than one year, or to both, and if a person other than an individual, to a fine of not more than $250,000:
(a) makes a statement in any information or material submitted, provided, produced, delivered or given to or filed with the Financial and Consumer Services Commission, the Superintendent, a compliance officer, an investigator or any person acting under the authority of the Financial and Consumer Services Commission or the Superintendent that is misleading or untrue or does not state a fact that is required to be stated or that is necessary to make the statement not misleading;
(b) withholds, destroys, conceals, alters or refuses to produce any information or thing reasonably required for the purposes of an administrative proceeding under this Act or the regulations;
(c) violates or fails to comply with a provision of this Act that is listed in Schedule A;
(d) violates or fails to comply with a decision, ruling, order, temporary order or direction of the Financial and Consumer Services Commission, the Superintendent or the Tribunal made or given under this Act or the regulations;
(e) violates or fails to comply with a written undertaking made by that person to the Financial and Consumer Services Commission, the Superintendent or the Tribunal under this Act or the regulations; or
(f) violates or fails to comply with any provision of the regulations.
Despite subsection (1), on a second or subsequent conviction for an offence under this Act, a person is liable, if a director or officer of a person, to a fine of not more than $200,000 or to imprisonment for a term of not more than one year, or to both, if an individual who is not a director or officer of a person, to a fine of not more than $500,000 or to imprisonment for a term of not more than one year, or to both, and if a person other than an individual, to a fine of not more than $500,000.
Without limiting the availability of other defences, no person commits an offence under paragraph (1)(a) if
(a) the person did not know and in the exercise of reasonable diligence could not have known that the statement was misleading or untrue or that it omitted to state a fact that was required to be stated or that was necessary to make the statement not misleading in light of the circumstances in which it was made, and
(b) on becoming aware that the statement was misleading or untrue or that it omitted to state a fact that was required to be stated or that was necessary to make the statement not misleading, the person notified the Financial and Consumer Services Commission.
In any prosecution under this Act, if it appears that the defendant has done any act or omitted to do any act and that act or omission is one in respect of which the defendant would be liable to some penalty under this Act or the regulations unless the defendant has been duly licensed, it is incumbent upon the defendant to prove that the defendant is duly licensed. 2016, c.36, s.7
In carrying on a regulated activity, no person shall make a statement that the person knows or reasonably ought to know is misleading or untrue or does not state a fact that is required to be stated or that is necessary to make the statement not misleading. 2016, c.36, s.7
2016, c.36, s.7; 2023, c.2, s.186
On the application of the Financial and Consumer Services Commission, the Tribunal may make one or more of the following orders if the Tribunal considers it expedient for the administration of this Act or the regulations or to assist in the administration of similar legislation of another jurisdiction:
(a) an order directing a person having on deposit or under control or for safekeeping any funds, securities or property to retain the funds, securities or property and to hold them;
(b) an order directing a person to refrain from withdrawing the person’s funds, securities or property from any other person having any of them on deposit or under control or for safekeeping; or
(c) an order directing a person to hold all funds, securities or property of clients or others in the person’s possession or control in trust for any interim receiver, custodian, trustee, receiver, receiver and manager or liquidator appointed under the Business Corporations Act, the Companies Act, the Judicature Act, this Act, the Bankruptcy and Insolvency Act (Canada), the Winding-up and Restructuring Act (Canada) or any other Act of the Legislature or of Canada.
An order under subsection (1) that names a financial institution shall apply only to the branches of the financial institution identified in the order.
An order under subsection (1) is effective for seven days after its making, but the Financial and Consumer Services Commission may apply to the court to continue the order or for any other order that the court considers appropriate.
An order under subsection (1) may be made ex parte but, in that event, copies of the order shall be sent without delay by any means that the Tribunal determines to all persons named in the order.
A person in receipt of an order under subsection (1) who is in doubt as to the application of the order to any funds, securities or property or as to a claim being made to that person by any person not named in the order may apply to the Tribunal for direction or clarification.
The Tribunal, on the application of the Financial and Consumer Services Commission or of a person directly affected by the order, may revoke an order under subsection (1) or permit the release of any funds, securities or property in respect of which the order was made.
A notice of an order under subsection (1) may be registered or recorded against the lands or claims identified in the order by submitting the notice to the appropriate registry office established under the Registry Act or to the appropriate land titles office established under the Land Titles Act.
The Tribunal may order a notice submitted under subsection (7) to be revoked or modified and, if an order is made, the Financial and Consumer Services Commission shall submit a copy of the revocation or modification to the appropriate registry office or land titles office.
On submission of a notice under subsection (7) or a copy of a written revocation or modification under subsection (8), the notice or the copy of the revocation or modification shall be registered or recorded in the registry office or land titles office, as the case may be, by the registrar and has the same effect as the registration or recording of a certificate of pending litigation.
Repealed: 2021, c.8, s.95 2021, c.8, s.95Repealed: 2021, c.8, s.96 2016, c.36, s.7; 2021, c.8, s.96
If an insurer violates any prohibition or fails to comply with the requirements of or commits an offence under this Act or the regulations, the Superintendent may suspend or cancel the licence of the insurer. 2016, c.36, s.7
2016, c.36, s.7
On the application of the Financial and Consumer Services Commission, the Tribunal, if in its opinion it is in the public interest to do so, may make one or more of the following orders:
(a) an order that a licence be suspended or restricted for the period specified in the order or be cancelled, or that terms and conditions be imposed on the licence;
(b) an order that any exemptions contained in this Act or the regulations do not apply to a person permanently or for any period specified in the order;
(c) an order that a person cease conducting all or any regulated activities;
(d) an order that a person submit to a review of the person’s practices and procedures relating to regulated activities and institute any changes directed by the Tribunal;
(e) if the Tribunal is satisfied that this Act or the regulations have not been complied with, an order that any document or statement described in the order
(i) be provided by a person,
(ii) not be provided to a person, or
(iii) be amended to the extent that amendment is practicable;
(f) an order that a person be reprimanded;
(g) an order that a person amend, in the manner specified in the order, any information or material of any kind described in the order that is disseminated to the public;
(h) an order that a person cease violating or comply with, and that the directors and officers of the person cause the person to cease violating or to comply with, this Act and the regulations;
(i) if a person has not complied with this Act or the regulations, an order requiring the person to disgorge to the Financial and Consumer Services Commission any amounts obtained as a result of the non-compliance.
The Tribunal may impose any terms and conditions that the Tribunal considers appropriate on an order under this section.
A person who is the subject of an order made under this section shall comply with any terms and conditions imposed on the order.
Unless the parties and the Tribunal consent, no order shall be made under this section without a hearing.
Despite subsection (4), if in the opinion of the Tribunal the length of time required to hold a hearing could be prejudicial to the public interest, the Tribunal, without a hearing, may make a temporary order under paragraph (1)(a), (b), (c) or (f).
The temporary order shall take effect immediately and shall expire on the fifteenth day after its making unless extended by the Tribunal.
The Tribunal may extend a temporary order until the hearing is concluded if a hearing is commenced within the 15-day period.
The Financial and Consumer Services Commission shall without delay give written notice of an order or temporary order made under this section to any person directly affected by the order or temporary order.
2016, c.36, s.7
On the application of the Financial and Consumer Services Commission and after conducting a hearing, the Tribunal may order a person to pay an administrative penalty of, in the case of an individual, not more than $100,000, and in the case of a person other than an individual, not more than $500,000, if the Tribunal
(a) determines that the person has violated or failed to comply with this Act or the regulations, and
(b) is of the opinion that it is in the public interest to make the order.
The Tribunal may make an order under this section despite the imposition of any other penalty on the person or the making of any other order by the Tribunal, the Financial and Consumer Services Commission or the Superintendent related to the same matter.
If a person other than an individual violates or has not complied with this Act or the regulations, a director or officer of the person who authorized, permitted or acquiesced in the violation or non-compliance shall be deemed also to have violated or not complied with this Act or the regulations, whether or not any proceeding has been commenced against the person under this Act or the regulations or any order has been made against the person under section 392. 2016, c.36, s.7
2016, c.36, s.7
Despite any other provision of this Act or the regulations, an administrative proceeding conducted by the Financial and Consumer Services Commission, the Tribunal or the Superintendent under this Act or the regulations may be disposed of by
(a) an agreement approved by the Financial and Consumer Services Commission, the Tribunal or the Superintendent, as the case may be,
(b) a written undertaking made by a person to the Financial and Consumer Services Commission, the Tribunal or the Superintendent that has been accepted by the Financial and Consumer Services Commission, the Tribunal or the Superintendent, as the case may be, or
(c) a decision of the Financial and Consumer Services Commission, the Tribunal or the Superintendent, as the case may be, made without a hearing or without compliance with a requirement of this Act or the regulations, if the parties have waived the hearing or compliance with the requirement.
An agreement, written undertaking or decision made, accepted or approved under subsection (1) may be enforced in the same manner as a decision made by the Financial and Consumer Services Commission, the Tribunal or the Superintendent under any other provision of this Act or under the regulations.
Unless otherwise provided in this Act, no proceeding under this Act or the regulations shall be commenced more than six years after the date of the occurrence of the last event on which the proceeding is based. 2016, c.36, s.7