Acts and Regulations

I-12 - Insurance Act

Section 355
Disposition versions

Full text
Arranging insurance with unlicensed insurers
2021, c.8, s.55
355(1) 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.
355(2)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.
355(3)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.
355(4)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.
355(5)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.
355(6)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).
1968, c.6, s.352; 2008, c.11, s.14; 2021, c.8, s.56
Special insurance broker may effect insurance with unlicensed insurers
355(1)Where sufficient insurance on property in the Province at reasonable rates of insurance in the form required by the insured cannot be obtained by the insured from insurers licensed to do business in the Province, a special insurance broker, duly licensed, may effect insurance with unlicensed insurers, but shall in the case of every contract so effected obtain from the insured a signed and dated statement describing the property insured, its location and the amount of insurance required, and stating that the insurance cannot be obtained in licensed companies at reasonable rates and that the application for such insurance at the stated rate of premium was previously made to and refused by named companies licensed in the Province.
355(2)Every such broker shall keep a separate account of insurance effected by him under his licence in books in the form prescribed by the Superintendent and shall make those books available for inspection by the Superintendent or any of his officers.
355(3)Within ten days after the end of each month every such broker shall make to the Superintendent a return under oath, in the form and manner by him prescribed, containing particulars of all insurance effected by him under this section during such month.
355(4)In respect of all premiums on insurance effected under a special broker’s licence, the licensee shall pay to the Province such taxes as would be payable if such premiums had been received by a licensed insurer, and payment therefor shall accompany the monthly return provided for in subsection (3).
1968, c.6, s.352; 2008, c.11, s.14
Broker’s licences for business with unlicensed insurers
355(1)Where sufficient insurance on property in the Province at reasonable rates of insurance in the form required by the insured cannot be obtained by the insured from insurers licensed to do business in the Province, a special insurance broker, duly licensed, may effect insurance with unlicensed insurers, but shall in the case of every contract so effected obtain from the insured a signed and dated statement describing the property insured, its location and the amount of insurance required, and stating that the insurance cannot be obtained in licensed companies at reasonable rates and that the application for such insurance at the stated rate of premium was previously made to and refused by named companies licensed in the Province.
355(2)Every such broker shall keep a separate account of insurance effected by him under his licence in books in the form prescribed by the Superintendent, which books shall be open to inspection by the Superintendent or any of his officers.
355(3)Within ten days after the end of each month every such broker shall make to the Superintendent a return under oath, in the form and manner by him prescribed, containing particulars of all insurance effected by him under this section during such month.
355(4)In respect of all premiums on insurance effected under a special broker’s licence, the licensee shall pay to the Province such taxes as would be payable if such premiums had been received by a licensed insurer, and payment therefor shall accompany the monthly return provided for in subsection (3).
1968, c.6, s.352