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Chapter	Title
83-184	Forms
83-197	Licence and Examination Fees for Agents and Brokers
84-73	Licence Revival Fee
85-11	Damage Appraisers
88-196	Compensation Associations
90-6	Uninsured Automobile and Unidentified Automobile Coverage
94-142	Assessment
95-5	Agents and Brokers
2003-15	Prohibited Underwriting Practices
2003-20	Injury
2003-36	Life Insurance Agent Licensing
2004-139	Automobile Rating Classification
2004-140	Recently Licensed Driver Rate Reduction
2004-141	Fault Determination
2006-32	New Brunswick Insurance Board
2009-52	Adjusters
2009-85	Levy Interest Rate
2012-52	Classes of Insurance
2012-53	Compensation Associations

1In this Act, except where inconsistent with the interpretation sections of any Part,

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

“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,

(A) directly or indirectly solicits the right to negotiate the settlement of or investigate a loss or claim under a contract or a fidelity, surety or guarantee bond issued by an insurer, or

(B) investigates, adjusts, negotiates or settles the loss or claim, or

(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;

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

“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,

caused by an automobile or the use or operation thereof, or

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

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

“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)

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

“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;

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

“employees mutual benefit society” means a society incorporated 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)

“exchange” or “reciprocal or inter-insurance exchange” means a group of subscribers exchanging reciprocal contracts of indemnity or inter-insurance with each other through the same attorney;(bourse) ou (bourse d’assurance réciproque) ou (d’interassurance)

“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)

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

“foreign jurisdiction” includes any jurisdiction other than 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)

“life insurance” means insurance whereby an insurer undertakes to pay insurance money(assurance-vie)

(a) on death,

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

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

(d) for a term dependent on human life,

and without restricting the generality of the foregoing, includes

(e) accidental death insurance but not accident insurance;

(f) disability insurance; and

(g) an undertaking, entered into by an insurer in the ordinary course of its business, to provide an annuity, or what would be an annuity except that the periodic payments may be unequal in amount;

“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,

against liability arising out of bodily injury to or the death of a person or loss or damage to property caused by an automobile or the use or operation thereof;

“mutual 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)

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

“officer” includes any trustee, director, manager, treasurer, secretary or member of the board or committee of management of an insurer, or any person appointed by the insurer, to sue 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)

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

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

“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)

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

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

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

PUBLIC POLICY RULE

Public policy rule

2Unless 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

I

SUPERINTENDENT OF INSURANCE

Duties of Superintendent, Deputy Superintendents and duties

3(1)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.

3(2)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.

1968, c.6, s.3; 1974, c.22 (Supp.), s.2; 2013, c.31, s.20

Superintendent may exempt persons from the application of this Act

2021, c.8, s.2

3.1(1)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.

3.1(2)An order under subsection (1) may be made on the Superintendent’s own motion or on the application of an interested person.

3.1(3)An order under subsection (1) may be retroactive in its operation.

3.1(4)A person to whom an order under subsection (1) applies shall comply with the terms and conditions imposed by the Superintendent under that subsection.

2021, c.8, s.2

Powers of Superintendent

4In 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

Oaths

5An 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

Shareholder

6Neither 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

No action or proceeding against Superintendent, actions and proceedings brought by superintendent, recovery of fees and penalties

7(1)Without a fiat of the Attorney General, no action or proceeding shall be brought or taken against the Superintendent for anything done or omitted in the performance, or intended or supposed performance of his duty under this Act, or under any other Act that imposes duties upon him.

7(2)Repealed: 2016, c.36, s.7

7(3)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.

7(4)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.7; 1981, c.6, s.1; 2016, c.36, s.7

BOOKS, RECORDS, CERTIFICATES AND REGISTER OF LICENCE HOLDERS

2021, c.8, s.3

Books and records

8(1)The Superintendent shall keep the following books and records:

(a) a register of all licences issued pursuant to this Act, in which shall appear the name of the insurer, the address of its head office, the address of its principal office in Canada, the name and address of its principal general agent in the Province, the number of 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.

8(2)The books and records required by this section to be kept shall be open to inspection at such time and upon payment of such fees as are prescribed.

1968, c.6, s.8; O.C. 68-516; 2013, c.31, s.20; 2021, c.8, s.4

List of persons to whom licences have been issued

2021, c.8, s.5

8.1(1)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.

8.1(2)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.5

Certificate evidence

2021, c.8, s.6

9A 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:

(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.

1968, c.6, s.9; O.C. 68-516; 2013, c.31, s.20; 2021, c.8, s.7

DUTIES RESPECTING LICENCES

Right of insurer to be licensed

10The Superintendent shall determine the right of an insurer to be licensed under this Act.

1968, c.6, s.10; 2013, c.31, s.20

Decision of Superintendent

11(1)Every decision of the Superintendent upon an application for a licence shall be in writing and notice thereof shall be forthwith given to the insurer.

11(2)Repealed: 2021, c.8, s.8

11(3)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.11; 2021, c.8, s.8

Appeal of decision

12(1)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.

12(2)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.

1968, c.6, s.12; 2013, c.31, s.20; 2017, c.48, s.9

INVESTIGATION OF INSURERS

Inquiry

13The 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

Access to documents

14The 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

Record keeping and retention period for client information

2021, c.8, s.10

14.1(1)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)

14.1(2)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.

14.1(3)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.

14.1(4)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.10

Duty to provide information

2021, c.8, s.11

15(1)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.

15(2)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.

1968, c.6, s.15; 2021, c.8, s.12

Investigation of insurers

15.1(1)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.

15.1(2)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.

2013, c.31, s.20; 2021, c.8, s.13

Inspection of head office or chief agency, report of Superintendent

16(1)The Superintendent shall visit personally, or cause to be visited, at least annually, the head office or chief agency in the Province of every licensed insurer, other than a mutual benefit society having less than 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.

16(2)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.

16(3)The officers or agents of the insurer shall produce its books and records for the inspection of the Superintendent or other person making the inspection, and shall otherwise facilitate such examination so far as is in their power.

16(4)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.

16(5)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.

16(6)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.

16(7)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.16; 2013, c.31, s.20

SERVICE OF PROCESS

Service of process

17(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).

17(1.1)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.

17(2)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.

17(3)Repealed: 1993, c.8, s.1

17(4)Repealed: 1993, c.8, s.1

17(5)Repealed: 1993, c.8, s.1

1968, c.6, s.17; 1993, c.8, s.1

Copies to be filed with the Superintendent

Repealed: 2021, c.8, s.14

2021, c.8, s.14

17.1Repealed: 2021, c.8, s.15

1993, c.8, s.2; 2021, c.8, s.15

ANNUAL REPORT

Annual report

18(1)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.

18(2)In his report the Superintendent shall allow as assets only such of the investments of any insurer as are authorized by this Act, its charter or any other Act applicable to such investments.

18(3)In his report the Superintendent shall make the necessary corrections in the annual statement of any insurer and may increase or diminish the liabilities of such insurer to the true and correct amounts thereof as ascertained from any examination of its affairs.

18(4)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.

18(5)In like manner the Superintendent may procure an appraisement of any parcel of land that constitutes the security for any loan and if from the appraisal it appears that 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.

18(6)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.

18(7)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.

18(8)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.

18(9)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.

1968, c.6, s.18; 2013, c.31, s.20; 2017, c.48, s.9

APPEAL FROM
SUPERINTENDENT’S DECISION

Repealed: 2013, c.31, s.20

2013, c.31, s.20

Repealed

19Repealed: 2013, c.31, s.20

1968, c.6, s.19; 2013, c.31, s.20

I.1

NEW BRUNSWICK INSURANCE BOARD

2004, c.36, s.2

Definitions

2004, c.36, s.2

19.1In this Part,

“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.2

Establishment of Board

2004, c.36, s.2

19.2The 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

Terms of office and revocation of appointments

2004, c.36, s.2

19.21(1)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.

19.21(2)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.2

Remuneration and expenses

2004, c.36, s.2

19.22The 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

Oath of office

2004, c.36, s.2

19.23(1)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:

I , _______________________, do solemnly swear (or affirm) that I will faithfully, truly and impartially, to the best of my judgment, skill and ability, fulfill and perform the duties that devolve upon me under the Insurance Act by reason of my duties as ________________________.

(In the case where an oath is taken add “So help me God”.)

19.23(2)An oath or affirmation taken under subsection (1) shall be filed with the Minister.

2004, c.36, s.2

Continuation in office

2004, c.36, s.2

19.24A 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

Chief executive officer

2004, c.36, s.2

19.25The Chairperson is the chief executive officer of the Board.

2004, c.36, s.2

Powers and functions of the Board

2004, c.36, s.2

19.3(1)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.

19.3(2)Every member of the Board has the power and privileges of a commissioner under the Inquiries Act and the regulations under that Act.

19.3(3)The Board may make rules governing its procedures.

19.3(4)The Board has full jurisdiction to hear and determine all matters, whether of law or fact.

2004, c.36, s.2

Constitution of the Board: panels

2004, c.36, s.2

19.31(1)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.

19.31(2)Two or more panels of the Board may be constituted and may act simultaneously.

19.31(3)A panel of the Board constitutes a quorum of the Board.

19.31(4)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.

19.31(5)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.

2004, c.36, s.2

Constitution of the Board: discretion of the Chairperson

19.32The 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

(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.2

Orders and decisions of the Board

2004, c.36, s.2

19.33Every 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

Policies and rules to be followed by the Board

2004, c.36, s.2

19.4(1)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.

19.4(2)Subsection (1) does not authorize any regulation directed specifically to any application, matter or decision pending before the Board.

2004, c.36, s.2

Powers of inquiry

2004, c.36, s.2

19.41The Board, when inquiring into, hearing or determining any matter or thing under this Act

(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.2

Authority of Board to contract

2004, c.36, s.2

19.5(1)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.

19.5(2)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.2

Authority of Board to appoint

2004, c.36, s.2

19.51(1)The Board may appoint a secretary and an assistant secretary who shall be employees of the Board.

19.51(2)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.2

Privilege of Board members and employees

2004, c.36, s.2

19.6(1)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,

if the thing done was done in good faith and without negligence.

19.6(2)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.2

Confidentiality

2004, c.36, s.2

19.61Where 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

Information to be provided to Board

2004, c.36, s.2

19.7(1)An insurer to whom the Board makes a request for documents or information of any kind shall furnish the required information to the Board.

19.7(2)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.2

Notice of hearings

2004, c.36, s.2

19.71(1)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.

19.71(2)The Board shall notify the Attorney General and the Financial and Consumer Services Commission of a hearing.

19.71(3)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.

19.71(4)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.2; 2008, c.2, s.1; 2013, c.31, s.20

Appeals

2004, c.36, s.2

19.8(1)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.

19.8(2)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.

19.8(3)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.

19.8(4)The Court of Appeal of New Brunswick may confirm, modify, vary or reverse the order or decision of the Board.

2004, c.36, s.2

Assessment of expenses

2004, c.36, s.2

19.81(1)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.

19.81(2)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.

19.81(3)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.

19.81(4)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.

19.81(5)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.2; 2023, c.17, s.114

Report of the Board

2004, c.36, s.2

19.9(1)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.

19.9(2)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.2

Transitional provisions – decision or order

2004, c.36, s.2

19.91Any 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

Transitional provisions – proceeding, hearing, matter or thing commenced

19.92After 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

Transitional provisions – documentation, information, records and files

19.93The 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

Transitional provisions – proceeding, hearing, matter or thing dealt with and completed

19.94(1)Notwithstanding sections 19.91 and 19.92, the Chairperson of the New Brunswick Insurance Board may authorize the Board of Commissioners of Public Utilities to deal with and complete any proceeding, hearing, matter or thing commenced by that Board before the commencement of this section.

19.94(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.

19.94(3)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.2

Regulations

2004, c.36, s.2

19.95The Lieutenant-Governor in Council may make regulations

(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).

2004, c.36, s.2

II

GENERAL PROVISIONS APPLICABLE TO
INSURERS IN NEW BRUNSWICK

CARRYING ON BUSINESS

Carrying on business

20(1)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.

20(2)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;

shall be deemed to be an insurer carrying on business in the Province within the meaning of this Act.

1968, c.6, s.20

OFFICIAL LANGUAGES

Forms and documents

20.1(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.

20.1(2)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.

20.1(3)An insurer who violates subsection (1) or who fails to comply with a requirement issued by the Superintendent under subsection (2) commits an offence.

1982, c.32, s.1

Solicitors

20.2(1)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.

20.2(2)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.

20.2(3)Repealed: 2008, c.11, s.14

1986, c.48, s.1; 2008, c.11, s.14

LICENCES

Obtaining a licence

21(1)Every insurer carrying on business in the Province shall obtain from the Superintendent and hold a licence under the provisions of this Act.

21(2)Every insurer carrying on business in the Province without having obtained a licence, as required by this section, is guilty of an offence.

21(2.1)Repealed: 2016, c.36, s.7

21(3)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.

21(4)The following shall not be deemed insurers within the meaning of this Act or required or entitled to be licensed as such:

(a) employees mutual benefit societies;

(b) 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.

21(5)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.

1968, c.6, s.21; 2008, c.11, s.14; 2016, c.36, s.7; 2021, c.8, s.16

Reinsuring the risk

22Nothing 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

Classes of insurers

23(1)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.

23(2)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.

1968, c.6, s.23

Classes of insurance and terms and conditions

2021, c.8, s.17

24(1)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.

24(2)Repealed: 2016, c.36, s.7

24(3)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

24(3.1)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.

24(3.2)A holder of a licence issued to an insurer shall comply with the terms and conditions of the licence.

24(3.3)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.

24(3.4)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.

24(3.5)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.

24(3.6)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.

24(3.7)A person providing an undertaking under subsection (3.6) shall comply with the undertaking.

24(4)The licence of an insurer who commits a breach of any of the conditions of licence set out in subsection (3) may be cancelled.

24(5)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.

24(6)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.

24(7)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.

24(8)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.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

Conditions re insurers

25(1)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.

25(2)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.

25(3)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.

25(4)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.

25(5)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.

1968, c.6, s.25; 1974, c.22 (Supp.), s.3; 1976, c.34, s.2; 1983, c.42, s.3

Loan and Trust Companies Act

25.1No 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

Notice of application for licence

26The 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

Filings in office of Superintendent

27(1)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.

27(2)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.27

Expenses of incorporation and organization

28(1)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.

28(2)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.

28(3)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.28; 2008, c.11, s.14

Form of licence, term of licence

29(1)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.

29(2)Repealed: 2016, c.36, s.7

1968, c.6, s.29; 2013, c.31, s.20; 2016, c.36, s.7

Issuance of licence

30When 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

CANCELLATION OF LICENCE

Undisputed claim or final judgment unpaid

31(1)Upon written notice to the Superintendent and upon proof of an undisputed claim arising from loss insured against in the Province remaining unpaid for the space of 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.

31(2)The Superintendent may revive the licence and the insurer may again carry on business if, within six months after notice to the Superintendent of the failure of the insurer to pay such an undisputed claim or the amount of such final judgment such undisputed claim or final judgment is paid and satisfied.

1968, c.6, s.31

Deposit

32Where 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

Assets, failure to comply witht law or charter

33(1)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).

33(2)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).

33(3)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.

33(4)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.

33(5)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.

1968, c.6, s.33; O.C. 68-516; 2013, c.31, s.20

Suspension or cancellation of licence by any government in Canada

34Upon 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

Revival of licence

35Where 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

Violation of provision of Act

36The 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

DEPOSITS

Repealed: 2013, c.31, s.20

2013, c.31, s.20

Repealed

37Repealed: 2013, c.31, s.20

1968, c.6, s.37; 2013, c.31, s.20

Repealed

38Repealed: 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

39Repealed: 2013, c.31, s.20

1968, c.6, s.39; O.C.68-516; 2013, c.31, s.20

Repealed

40Repealed: 2013, c.31, s.20

1968, c.6, s.40; 2013, c.31, s.20

Repealed

41Repealed: 2013, c.31, s.20

1968, c.6, s.41; O.C.68-516; 2013, c.31, s.20

Repealed

42Repealed: 2013, c.31, s.20

1968, c.6, s.42; 2008, c.11, s.14; 2013, c.31, s.20

ADMINISTRATION OF DEPOSIT

Repealed: 2013, c.31, s.20

2013, c.31, s.20

Repealed

43Repealed: 2013, c.31, s.20

1968, c.6, s.43; 2013, c.31, s.20

Repealed

44Repealed: 2013, c.31, s.20

1968, c.6, s.44; 2013, c.31, s.20

Repealed

45Repealed: 2013, c.31, s.20

1968, c.6, s.45; 2013, c.31, s.20

Repealed

46Repealed: 2013, c.31, s.20

1968, c.6, s.46; 1979, c.41, s.68; 2013, c.31, s.20

Repealed

47Repealed: 2013, c.31, s.20

1968, c.6, s.47; 2013, c.31, s.20

Repealed

48Repealed: 2013, c.31, s.20

1968, c.6, s.48; 2013, c.31, s.20

Repealed

49Repealed: 2013, c.31, s.20

1968, c.6, s.49; 2013, c.31, s.20

Repealed

50Repealed: 2013, c.31, s.20

1968, c.6, s.50; 1987, c.6, s.45; 2013, c.31, s.20

Repealed

51Repealed: 2013, c.31, s.20

1968, c.6, s.51; 2013, c.31, s.20

Repealed

52Repealed: 2013, c.31, s.20

1968, c.6, s.52; 2013, c.31, s.20

Repealed

53Repealed: 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

54Repealed: 2013, c.31, s.20

1968, c.6, s.54; 2013, c.31, s.20

Repealed

55Repealed: 2013, c.31, s.20

1968, c.6, s.55; 2013, c.31, s.20

Repealed

56Repealed: 2013, c.31, s.20

1968, c.6, s.56; 2013, c.31, s.20

Repealed

57Repealed: 2013, c.31, s.20

1968, c.6, s.57; 1979, c.41, s.68; 2013, c.31, s.20

Repealed

58Repealed: 2013, c.31, s.20

1968, c.6, s.58; 2013, c.31, s.20

Repealed

59Repealed: 2013, c.31, s.20

1968, c.6, s.59; 2013, c.31, s.20

Repealed

60Repealed: 2013, c.31, s.20

1968, c.6, s.60; 2013, c.31, s.20

Repealed

61Repealed: 2013, c.31, s.20

1968, c.6, s.61; 2013, c.31, s.20

Repealed

62Repealed: 2013, c.31, s.20

1968, c.6, s.62; 2013, c.31, s.20

Repealed

63Repealed: 2013, c.31, s.20

1968, c.6, s.63; 2013, c.31, s.20

Repealed

64Repealed: 2013, c.31, s.20

1968, c.6, s.64; 2013, c.31, s.20

RECIPROCAL DEPOSITS

Repealed: 2013, c.31, s.20

2013, c.31, s.20

Repealed

65Repealed: 2013, c.31, s.20

1968, c.6, s.65; 2013, c.31, s.20

Repealed

66Repealed: 2013, c.31, s.20

1968, c.6, s.66; O.C.68-516; 2013, c.31, s.20

Repealed

67Repealed: 2013, c.31, s.20

1968, c.6, s.67; 2013, c.31, s.20

Repealed

68Repealed: 2013, c.31, s.20

1968, c.6, s.68; 2013, c.31, s.20

Repealed

69Repealed: 2013, c.31, s.20

1968, c.6, s.69; 2013, c.31, s.20

Repealed

70Repealed: 2013, c.31, s.20

1968, c.6, s.70; 2013, c.31, s.20

DEPOSITS

2013, c.31, s.20

Deposits

70.1(1)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.

70.1(2)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.

70.1(3)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.

70.1(3.1)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.

70.1(4)No part of a deposit shall be withdrawn without the approval of the Superintendent.

70.1(5)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; 2017, c.48, s.9

Vesting, interest and substituting of securities

70.2(1)Securities deposited with the Superintendent are vested in the Superintendent without any formal transfer.

70.2(2)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.

70.2(3)The Superintendent may permit an insurer to substitute other securities for those deposited by the insurer.

2013, c.31, s.20

Reciprocal deposits

70.3(1)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.

70.3(2)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.

70.3(3)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.

70.3(4)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.

70.3(5)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.

70.3(6)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.

70.3(7)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.

2013, c.31, s.20

Application to Court

70.4At any time, the Superintendent may make an application to a court of competent jurisdiction for directions regarding the administration of securities deposited by an insurer under section 70.1 or 70.3.

2013, c.31, s.20

Deposits held by Minister of Finance

70.5On 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

INVESTMENTS

Investments

71(1)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.

71(2)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.

1968, c.6, s.71; 1993, c.8, s.3

BOOKS OF INSURERS

Books of insurers

72Each 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

Stock register or register of members

73Where 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

RECORDS AND RETURNS

Fire insurance

74(1)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.

74(2)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.

74(3)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.

74(4)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.

74(5)Repealed: 2008, c.11, s.14

1968, c.6, s.74; 2008, c.11, s.14; 2013, c.31, s.20

Automobile insurance

75(1)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.

75(2)The Superintendent may require any agency so designated to compile the data so filed in such form as he approves; and the expense of making 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.

75(3)The provisions of subsections 74(2) and (3) apply, with appropriate changes, to this section.

1968, c.6, s.75; 1993, c.8, s.4; 2008, c.11, s.14

By-laws

76Every 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

Statements re financial condition, auditor’s report

77A 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

Content of auditor’s report

78Each 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,

(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.78

Annual statement of insurer

79(1)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.

79(2)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.

79(3)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.

79(4)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.

79(5)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.

79(6)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.

79(7)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.

79(8)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.

79(9)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.

1968, c.6, s.79; 1978, c.30, s.2; 2013, c.31, s.20

Statements differing from annual statement

80An 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

Warranty or guarantee

81Every 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

LIFE INSURANCE RESERVES

Life insurance reserves

82(1)The valuation of contracts of life insurance issued by insurers incorporated and licensed under the law of the Province, except contracts of fraternal societies licensed under this Act, shall be based on the British 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.

82(2)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.

82(3)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).

82(4)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).

82(5)No insurer shall issue any contract of life insurance that does not appear to be self-supporting upon reasonable assumption as to interest, mortality and expenses.

82(6)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.

82(7)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.

82(8)Notwithstanding subsection (1) or (7), an insurer may adopt

(a) subject to the approval of the Superintendent, a valuation that is higher in aggregate for each class of contract than that prescribed by subsection (1) or (7), or

(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.

1968, c.6, s.82; 1976, c.34, s.3; 1987, c.6, s.45

INSURANCE WITH UNLICENSED
INSURERS

Prohibition against entering into contract of insurance with unlicensed insurer

2021, c.8, s.19

83(1)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.

83(2)A person who knowingly violates the provisions of this section is guilty of an offence.

1968, c.6, s.83; 2021, c.8, s.20

Exception

84Notwithstanding 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

Dealing or trading in life insurance policies prohibited

2019, c.36, s.1

84.1(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.

84.1(2)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.

2019, c.36, s.1

UNDERWRITERS’ AGENCIES

Underwriters’ agencies

85(1)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.

85(2)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.

85(3)On no other part of the policy shall the name of the underwriter’s agency appear, except that for identification purposes the words “issued through the . . . . . . . . . . . . . . . . . Underwriter’s Agency” may be inscribed on the filing back of the policy, following the name of the insurer in such manner as is approved by the Superintendent.

85(4)Upon an application for a permit under this section the insurer shall furnish to the Superintendent evidence of its approval and adoption of the form of policy to be issued through the underwriter’s agency and of the authority of the agency to bind the insurer.

85(5)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.

85(6)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.85; 1987, c.6, s.45; 2008, c.11, s.14

FORFEITURE FOR NON-USER OR
DISCONTINUANCE

Forfeiture for non-user or discontinuance

86(1)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.

86(2)No such forfeiture shall affect prejudicially the rights of creditors as they exist at the date of the forfeiture.

86(3)In any action or proceeding where such non-user is alleged, proof of user shall be upon the insurer.

1968, c.6, s.86; 2013, c.31, s.20

WINDING-UP

Voluntary liquidation

87(1)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.

87(2)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.

87(3)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.

1968, c.6, s.87; 2008, c.11, s.14

Person contracted with on cash plan

88Where 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

Reinsurance of contracts

89(1)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.

89(2)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.

89(3)No contract of reinsurance made in pursuance of this section shall become effective until approved by the Superintendent and the court.

89(4)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.

89(5)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.

1968, c.6, s.89; 1994, c.50, s.3

Insurance branch of corporation

90Where 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

Fraternal society

91(1)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.

91(2)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.

91(3)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.

1968, c.6, s.91; O.C.68-516; 2013, c.31, s.20

Renewing or extending licence

92For the purpose of a voluntary winding-up the Superintendent may renew or extend the licence of the insurer.

1968, c.6, s.92

COMPENSATION ASSOCIATIONS

Definition of “compensation association”

92.1For the purposes of sections 92.2, 92.3 and 95,

“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

Member of compensation association

92.2(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,

every insurer while licensed to carry on that class of insurance and, with the exception of those classes of insurance referred to in paragraphs (l), (m) and (n), for one hundred and eighty-three days after ceasing to be so licensed, shall be deemed to be a member of the compensation association and shall be bound by the by-laws and articles of incorporation of the compensation association.

92.2(2)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).

92.2(3)Subsections (1) and (2) do not apply to

(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,

(c) an insurer named in an agreement entered into under section 92.3 as an insurer to whom subsections (1) and (2) do not apply, or

(d) a reciprocal or inter-insurance exchange.

1987, c.28, s.1; 1989, c.15, s.1

Agreements with compensation associations

92.3The 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

PENALTIES

Repealed: 2016, c.36, s.7

2016, c.36, s.7

Repealed

93Repealed: 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

APPLICATION FEES, REGULATIONS AND RULES

2021, c.8, s.21

Application fees and assessments against licensed insurers

2021, c.8, s.22

94(1)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.

94(2)Repealed: 2021, c.8, s.23

94(3)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.

94(3.1)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.

94(4)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.

94(5)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;

and the assessments made in paragraphs (a), (b) and (c), when certified by the Financial and Consumer Services Commission, are binding upon the said insurers and each of them and are final and conclusive.

94(6)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.

94(6.1)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.

94(7)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.

94(8)Subsections (5), (6) and (7) do not apply to the expenditure incurred by the Board in carrying out its duties under sections 267.2 to 267.9.

1968, 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

Regulations and rules

2021, c.8, s.24

95The Lieutenant-Governor in Council may make regulations and the Financial and Consumer Services Commission may make rules

(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);

(d) prescribing any other matter for the purposes of paragraphs 15(1)(i) and 15(2)(g);

(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.

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

III

INSURANCE CONTRACTS IN
NEW BRUNSWICK

Insurance contracts in New Brunswick

96Where 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

Idem

97Where 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

POLICY OF INSURANCE

Terms and conditions

98(1)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.

98(2)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.

98(3)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.

98(4)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.

98(5)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.

98(6)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.

98(7)This section does not apply to contracts for fire or automobile insurance.

1968, c.6, s.98

Application for insurance

99Every insurer shall upon request furnish to the insured a true copy of his application for insurance.

1968, c.6, s.99

Non-compliance or imperfect compliance

100(1)No insurer shall make a contract of insurance inconsistent with the provisions of this Act.

100(2)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.100

Contents

101(1)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.

101(2)This section does not apply to contracts of guarantee insurance.

1968, c.6, s.101; 1987, c.6, s.45

Contract binding

102(1)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.

102(2)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.

102(3)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.102

LOSS UNDER POLICY

Forms

103(1)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.

103(2)An insurer who neglects or refuses to comply with subsection (1), in addition to being liable to prosecution, cannot rely on the provisions of section 111 as a defence to an action brought, after the neglect or refusal, for the recovery of money payable under the contract of insurance.

103(3)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.103; 1971, c.41, s.1; 2008, c.11, s.14

Recovery by action

104(1)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.

104(2)This section does not apply to motor vehicle liability policies.

1968, c.6, s.104

Third party to an action

104.1(1)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.

104.1(2)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,

to the same extent as if it were a defendant in the action.

104.1(3)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.

1981, c.35, s.1; 1987, c.6, s.45

Multiple claims or rights, apportionment of sums, payment in foreign jurisdiction

105(1)Where several actions are brought for the recovery of money payable under a contract or contracts of insurance the court may consolidate or otherwise deal therewith so that there shall be but one action for and in respect of all claims made in such actions.

105(2)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.

105(3)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.

105(4)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.105; 1986, c.4, s.27

Sufficient discharge

106(1)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.

106(2)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.106

Condition re appraisal

107(1)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.

107(2)The insured and the insurer shall each appoint an appraiser, and the two appraisers so appointed shall appoint an umpire.

107(3)The appraisers shall determine the matters in disagreement and, if they fail to agree, they shall submit their differences to the umpire, and the finding in writing of any two determines the matters.

107(4)Each party to the appraisal shall pay the appraiser appointed by him and shall bear equally the expense of the appraisal and the umpire.

107(5)Where,

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

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

(c) an appraiser or umpire refuses to act or is incapable of acting or dies,

a judge of the court sitting in the judicial district in which the appraisal is to be made may appoint an appraiser or umpire, as the case may be, upon the application of the insured or of the insurer.

1968, c.6, s.107; 1979, c.41, s.68; 2023, c.17, s.114

Lawful money

108Insurance money is payable in the Province in lawful money of Canada.

1968, c.6, s.108

Waiver of term or condition

109(1)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.

109(2)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.

1968, c.6, s.109

Relief against forfeiture or avoidance

110Where 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

Timing re bringing of action

111No 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,

(a) of the loss, or

(b) of the happening of the event upon which the insurance money is to become payable,

or of such shorter period as may be fixed by the contract of insurance.

1968, c.6, s.111

NOTICES

Notices

112(1)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.

112(2)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.112

INSURANCE AS
COLLATERAL SECURITY

Insurance as collateral security

113(1)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.

113(2)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.

113(3)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.

113(4)Repealed: 2008, c.11, s.14

1968, c.6, s.113; 2008, c.11, s.14; 2021, c.8, s.26

Idem

114(1)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.

114(2)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.114

CONTRACTS SIGNED OR
COUNTERSIGNED BY AGENT

Contracts signed or countersigned by agent

115(1)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.

115(1.1)Notwithstanding subsection (1), a renewal of a contract of fire insurance need not be signed or countersigned by an agent.

115(2)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.

115(3)“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).

115(4)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.

115(5)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.

115(6)Repealed: 2008, c.11, s.14

1968, c.6, s.115; 1993, c.8, s.7; 2008, c.11, s.14

Blank policy or contract of insurance, power of attorney

116(1)No agent holding a licence shall sign a blank policy or contract of insurance.

116(2)No such agent shall give a power of attorney to persons residing outside the Province for the purpose of countersigning contracts.

1968, c.6, s.116

RECOVERY BY INNOCENT PERSONS

2018, c.6, s.1

Recovery by innocent persons

116.1(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.

116.1(2)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.

116.1(3)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.

116.1(4)The Lieutenant-Governor in Council may make regulations prescribing requirements with which persons shall comply for the purpose of paragraph (3)(c).

2018, c.6, s.1

MISCELLANEOUS

Policy or application issued or used by insurer

117(1)The Superintendent may require an insurer to file with him a copy of any form of policy or of the form of application for any policy issued or used by the insurer.

117(2)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.

117(3)An insurer that after being so prohibited issues any such policy or uses any such application is guilty of an offence against this Act.

1968, c.6, s.117; 2013, c.31, s.20

Inducing person to insure with insurer

118Every 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

119Repealed: 2003, c.22, s.1

1968, c.6, s.119; 2003, c.22, s.1

Special rate for the insurance of two or more vehicles

120(1)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.

120(2)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.

1968, c.6, s.120

Withdrawing from automobile insurance business

120.1(1)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.

120.1(2)An insurer shall not withdraw from the business of automobile insurance except in accordance with this section.

120.1(3)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.

120.1(4)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.

120.1(5)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.

120.1(6)The insurer may withdraw from the business of automobile insurance on or after the date specified in the notice under subsection (4).

120.1(7)Despite subsection (6), the Superintendent may authorize the insurer to withdraw from the business of automobile insurance before the date specified in the notice under subsection (4).

120.1(7.1)Despite subsection (6), the Superintendent may prohibit the insurer from withdrawing from the business of automobile insurance until a date specified by the Superintendent that is not later than six months after the date specified in the notice under subsection (4).

120.1(8)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.

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

Offence

120.2Despite section 386, an insurer who violates or fails to comply with section 120.1 commits an offence and is liable upon conviction to a fine of not more than one million dollars.

2003, c.29, s.1; 2004, c.36, s.7; 2016, c.36, s.7

Regulations and rules

2021, c.8, s.28

120.3The 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

Facility Association

121(1)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.

121(2)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,

and shall, in accordance with those articles of association or by-laws and this Act, establish and implement the Plan of Operation and carry out its obligations in the Province with respect to that Plan.

1968, c.6, s.121; 1989, c.17, s.2

Obligations of Facility Association

121.1The Facility Association shall,

(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

(b) in accordance with that aspect of the Plan of Operation referred to in paragraph 121(2)(b), carry out, in accordance with sections 266.1 to 266.993, its obligations with respect to applications made to it for payment of damages under those sections.

1989, c.17, s.3; 2021, c.8, s.30

Assessments for operating costs

121.2The 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

Insurance rates to be approved by New Brunswick Insurance Board

121.3(1)The Facility Association shall file with the Board the rates that it proposes to charge for automobile insurance placed through the Facility Association.

121.3(2)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.

121.3(2.1)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.

121.3(2.11)In an application regarding rates, the burden of proof is on the applicant.

121.3(2.2)The Board may at any time require the Facility Association to provide information relating to rates filed under subsection (1) or to an application for approval of a change in rates under subsection (2.1).

121.3(3)Repealed: 1997, c.46, s.1

121.3(4)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.

121.3(5)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.

121.3(5.1)Repealed: 2008, c.11, s.14

121.3(5.11)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.

121.3(5.2)Sections 267.8 and 267.9 and the regulations under section 267.9 apply with the necessary modifications to the Facility Association and to any filing under this section.

121.3(6)Repealed: 2004, c.36, s.8

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

Repealed

121.31Repealed: 2004, c.36, s.9

2003, c.29, s.3; 2004, c.36, s.9

Information and financial statements to be furnished to Superintendent

121.4The 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

Capacity of Facility Association

121.5The Facility Association may, in its name,

(a) be prosecuted for an offence, and

(b) sue and be sued.

1989, c.17, s.3

Articles and by-laws to be filed with Superintendent

121.6The 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

Articles and by-laws of no effect until filed

121.7No 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

Notice of election or appointment, agent for service, service of notice or document

121.8(1)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.

121.8(2)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.

121.8(3)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.

121.8(4)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.

121.8(5)The address of an agent for service shown in the notice sent to the Superintendent under subsection (2), (3) or (4) shall be an office that is accessible to the public during normal business hours.

121.8(6)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.

121.8(7)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.

121.8(8)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.

121.8(9)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; 2008, c.11, s.14

Continuation of obligations of Facility Association

121.9(1)The Facility Association shall not cease to carry out any of its obligations in the Province with respect to the Plan of Operation referred to in paragraphs 121(2)(a) and (b) unless it gives to the Superintendent at least six months notice of its intention to do so.

121.9(2)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.

121.9(3)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.

121.9(4)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).

121.9(5)Where the Facility Association is deemed to have been continued in the Province under subsection (4), it shall, 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”.

1989, c.17, s.3

Risk sharing pools

121.91(1)In this section

“risk sharing pool” means an arrangement under which some or all automobile insurers share, in whole or in part, specified risks.

121.91(2)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.

2004, c.36, s.10

IV

FIRE INSURANCE

Loss of or damage to property arising from the peril of fire

122(1)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.

122(2)Notwithstanding subsection (1), this Part applies to insurance of an automobile as provided in subsection 24(7).

1968, c.6, s.122

Coverage

123(1)Subject to subsection (4) of this section and to paragraph 130(a), in any contract to which this Part applies, the contract shall be deemed to cover the insured property,

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

(i) in the case of goods, their 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.

123(2)Unless a contract to which this Part applies otherwise specifically provides, it does not cover the insured property against loss or damage caused by contamination by radioactive material directly or indirectly resulting from fire, lightning or explosion within the meaning of subsection (1).

123(3)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.

123(4)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.

123(5)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.

1968, c.6, s.123

Renewal

124A contract may be renewed by the delivery of a renewal receipt, identifying the policy by number, date or otherwise.

1968, c.6, s.124

Policy in accordance with terms of application

125After 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

Loss payable to person other than insured

126(1)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.

126(2)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.

1968, c.6, s.126

Statutory Conditions

127(1)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.

127(2)In this section “policy” does not include interim receipts or binders.

STATUTORY CONDITIONS

Misrepresentation

1If any person applying for insurance falsely describes the property to the prejudice of the insurer, or misrepresents or fraudulently omits to communicate any circumstance which is material to be made known to the insurer in order to enable it to judge of the risk to be undertaken, the contract shall be void as to any property in relation to which the misrepresentation or omission is material.

Property of Others

2Unless otherwise specifically stated in the contract, the insurer is not liable for loss or damage to property owned by any person other than the insured, unless the interest of the insured therein is stated in the contract.

Change of Interest

3The insurer shall be liable for loss or damage occurring after an authorized assignment under the Bankruptcy Act or change of title by succession, by operation of law, or by death.

Material Change

4Any change material to the risk and within the control and knowledge of the insured shall avoid the contract as to the part affected thereby, unless the change is promptly notified in writing to the insurer or its local agent; and the insurer when so notified may return the unearned portion, if any, of the premium paid and cancel the contract, or may notify the insured in writing that, if he desires the contract to continue in force, he must, within fifteen days of the receipt of the notice, pay to the insurer an additional premium; and in default of such payment the contract shall no longer be in force and the insurer shall return the unearned portion, if any, of the premium paid.

Termination of Insurance

5(1)This contract may be terminated

(a) by the insurer giving to the insured fifteen days’ notice of termination by registered mail, or five days’ written notice of termination personally delivered, or

(b) by the insured at any time on request.

127(2)Where this contract is terminated by the insurer

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

(b) the refund shall accompany the notice unless the premium is subject to adjustment or determination as to amount, in which case the refund shall be made as soon as practicable.

127(3)Where this contract is terminated by the insured, the insurer shall refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium for the expired time, but in no event shall the short rate premium for the expired time be deemed to be less than any minimum retained premium specified.

127(4)The refund may be made by money, postal or express company money order or by cheque payable at par.

127(5)The fifteen days mentioned in clause (a) of subcondition (1) of this condition commences to run on the day following the receipt of the registered letter at the post office to which it is addressed.

1980, c.27, s.2

Requirements After Loss

6(1)Upon the occurrence of any loss of or damage to the insured property, the insured shall, if such loss or damage is covered by the contract, in addition to observing the requirements of conditions 9, 10 and 11,

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

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

(i) giving a complete inventory of the destroyed and damaged property and showing in detail quantities, costs, actual cash value and particulars of amount of loss claimed,

(ii) stating when and how the loss occurred, and if caused by fire or explosion due to ignition, how the fire or explosion originated, so far as the insured knows or believes,

(iii) stating that the loss did not occur through any wilful act or neglect or the procurement, means or connivance of the insured,

(iv) showing the amount of other insurances and the names of other insurers,

(v) showing the interest of the insured and of all others in the property with particulars of all liens, encumbrances and other charges upon the property,

(vi) showing any changes in title, use, occupation, location, possession or exposures of the property since the issue of the contract,

(vii) showing the place where the property insured was at the time of loss;

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

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

127(2)The evidence furnished under clauses (c) and (d) of subparagraph (1) of this condition shall not be considered proofs of loss within the meaning of conditions 12 and 13.

Fraud

7Any fraud or wilfully false statement in a statutory declaration in relation to any of the above particulars, shall vitiate the claim of the person making the declaration.

Who may give notice and proof

8Notice of loss may be given, and proof of loss may be made, by the agent of the insured named in the contract in case of absence or inability of the insured to give the notice or make the proof, and absence or inability being satisfactorily accounted for, or in the like case, or if the insured refuses to do so, by a person to whom any part of the insurance money is payable.

Salvage

9(1)The insured, in the event of any loss or damage to any property insured under the contract, shall take all reasonable steps to prevent further damage to any such property so damaged and to prevent damage to other property insured hereunder including, if necessary, its removal to prevent damage or further damage thereto.

127(2)The insurers shall contribute pro rata towards any reasonable and proper expense in connection with steps taken by the insured and required under subparagraph (1) of this condition according to the respective interests of the parties.

Entry, Control, Abandonment

10After any loss or damage to insured property, the insurer shall have an immediate right of access and entry by accredited agents sufficient to enable them to survey and examine the property, and to make an estimate of the loss or damage, and, after the insured has secured the property, a further right of access and entry sufficient to enable them to make appraisement or particular estimate of the loss or damage, but the insurer shall not be entitled to the control or possession of the insured property, and without the consent of the insurer there can be no abandonment to it of insured property.

Appraisal

11In the event of disagreement as to the value of the property insured, the property saved or the amount of the loss, those questions shall be determined by appraisal as provided under the Insurance Act before there can be any recovery under this contract whether the right to recover on the contract is disputed or not, and independently of all other questions. There shall be no right to an appraisal until a specific demand therefor is made in writing and until after proof of loss has been delivered.

1980, c.27, s.2

When Loss Payable

12The loss shall be payable within sixty days after completion of the proof of loss, unless the contract provides for a shorter period.

Replacement

13(1)The insurer, instead of making payment, may repair, rebuild, or replace the property damaged or lost, giving written notice of its intention so to do within thirty days after receipt of the proofs of loss.

127(2)In that event the insurer shall commence to so repair, rebuild, or replace the property within forty-five days after receipt of the proofs of loss, and shall thereafter proceed with all due diligence to the completion thereof.

Action

14Every action or proceeding against the insurer for the recovery of any claim under or by virtue of this contract shall be absolutely barred unless commenced within one year next after the loss or damage occurs.

Notice

15Any written notice to the insurer may be delivered at, or sent by registered mail to, the chief agency or head office of the insurer in the Province. Written notice may be given to the insured named in this contract by letter personally delivered to him or by registered mail addressed to him at his latest post office address as notified to the insurer. In this condition, the expression “registered” means registered in or outside Canada.

1968, c.6, s.127; 1971, c.41, s.2; 1980, c.27, s.2; 2008, c.11, s.14

Statutory conditions – termination of contract by virtue of statutory condition 5 of section 127

127.1(1)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.

127.1(2)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,

but does not apply to a contract insuring such a person in respect of property any part of which is used in a business, trade or profession.

127.1(3)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.

1980, c.27, s.3

Statutory conditions – clause which may limit amount payable

128A contract containing

(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,

shall have printed or stamped upon its face in red ink, or in bold print of not less than 12 point size, the words “This policy contains a clause which may limit the amount payable”, and unless those words are so printed or stamped the clause is not binding upon the insured.

1968, c.6, s.128; 1993, c.8, s.8

Statutory conditions – more than one contract covering same interest

129(1)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.

129(2)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.

129(3)Nothing in subsection (1) affects the validity of any divisions of the sum insured into separate items, or any limits of insurance on specified property, or any clause referred to in section 128 or any contract condition limiting or prohibiting the having or placing of other insurance.

129(4)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.

129(5)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.

129(6)Notwithstanding subsection (1), insurance on identified articles shall be a first loss insurance as against all other insurance.

1968, c.6, s.129

Statutory conditions – exclusion, stipulation, condition or warranty

130Where a contract,

(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,

the exclusion, stipulation, condition or warranty is not binding upon the insured, if it is held to be unjust or unreasonable by the court before which a question relating thereto is tried.

1968, c.6, s.130

Statutory conditions – subrogation, dividing amount recovered proportionately

131(1)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.

131(2)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.

1968, c.6, s.131

V

LIFE INSURANCE

Definitions

132In this Part

“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)

“creditor’s group insurance” means insurance effected by a creditor in respect of the lives of his debtors whereby the lives of the debtors are insured severally under a single contract;(assurance-groupe de créancier)

“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,

in which he designates, or alters or revokes the designation of, his personal representative or a beneficiary as one to whom or for whose benefit insurance money is to be payable;

“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)

“group insurance” means insurance, other than creditor’s group insurance and family insurance, whereby the lives of a number of persons are insured severally under a single contract between an insurer and an employer or other person;(assurance-groupe)

“group life insured” means a person whose life is insured by a contract of group insurance but does not include a person whose life is insured under the contract as a person dependent upon, or related to, him;(personne assurée par une assurance-groupe sur la vie)

“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.132; 1978, c.30, s.4; 1979, c.41, s.68; 2019, c.36, s.3; 2023, c.17, s.114

APPLICATION OF PART

Application of part – general

133(1)Notwithstanding any agreement, condition, or stipulation to the contrary, this Part applies to a contract made in the Province on or after July 1, 1962, and, subject to subsections (2) and (3), applies to a contract made in the province before that day.

133(2)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.

133(3)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,

but this subsection does not apply after a time at which the insurance money, if it were then payable, would be payable wholly to a person other than a preferred beneficiary within the meaning of that Part.

1968, c.6, s.133

Application of part – contract of group insurance

134In 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

(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.134

ISSUANCE OF POLICY AND CONTENTS
THEREOF

Policy and contents

135(1)An insurer entering into a contract shall issue a policy.

135(2)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,

constitute the entire contract.

135(3)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.

135(4)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.135; 1987, c.6, s.45

Particulars in policy – general

136(1)This section does not apply to a contract

(a) of group insurance,

(b) of creditor’s group insurance, or

(c) made by a fraternal society.

136(2)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.

1968, c.6, s.136

Particulars in policy – contract of group insurance or creditor’s group insurance

137In the case of a contract of group insurance or of creditor’s group insurance, an insurer shall set forth the following particulars in the policy:

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

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

(c) the amount, or the method of 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.

1968, c.6, s.137

Particulars in certificate or document – contract of group insurance

138In 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:

(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.138

CONDITIONS GOVERNING FORMATION
OF CONTRACT

No insurable interest, person under the age of 16 years

139(1)Subject to subsection (2), where at the time a contract would otherwise take effect the insured has no insurable interest, the contract is void.

139(2)A contract is not void for lack of insurable interest

(a) if it is a contract of group insurance, or

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

139(3)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.

1968, c.6, s.139

Insurable interest

140Without restricting the meaning of the expression “insurable interest”, a person has an insurable interest in his own life and in the life of

(a) his child or grandchild,

(b) his spouse,

(c) any person upon whom he is wholly or in part dependent for, or from whom he is receiving, support or education,

(d) his employee, and

(e) any person in the duration of whose life he has a pecuniary interest.

1968, c.6, s.140

When contract takes effect

141(1)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.

141(2)Where a policy is issued on the terms applied for and is delivered to an agent of the insurer for unconditional delivery to a person referred to in paragraph (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.141

Premium and payment not made according to its tenor, remittance

142(1)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.

142(2)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.142

Payment of premiums

143(1)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.

143(2)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,

whichever is the longer period.

143(3)Where the happening of the event upon which the insurance money becomes payable occurs during the period of grace and before the overdue premium is paid, the contract shall be deemed to be in effect as if the premium had been paid at the time it was due, but the 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.143

Disclosure by applicant and person whose life is to be insured

144(1)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.

144(2)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.144

Failure to disclose or misrepresentation by applicant or person whose life is to be insured

145(1)This section does not apply to a mis-statement of age or to disability insurance.

145(2)Subject to subsection (3), where a contract has been in effect for two years during the lifetime of the person whose life is insured, a failure to disclose, or a misrepresentation of, a fact required to be disclosed by section 144 does not, in the absence of fraud, render the contract voidable.

145(3)In the case of a contract of group insurance a failure to disclose or a misrepresentation of, such a fact in respect of a person whose life is insured under the contract does not render the 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.

1968, c.6, s.145

Failure to disclose or misrepresentation by insurer

146Where 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

Misrepresentation re age

147(1)This section does not apply to a contract of group insurance or of creditor’s group insurance.

147(2)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.

147(3)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.

1968, c.6, s.147

Misrepresentation re age in contract of group insurance or creditor’s group insurance

148In 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

Suicide

149(1)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.

149(2)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.149

Reinstatement of contract

150(1)This section does not apply to a contract of group insurance or to a contract made by a fraternal society.

150(2)Where a contract lapses and the insured within two years applies for reinstatement of the contract, if within that time he

(a) pays the overdue premiums and other 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,

of the person whose life is insured;

the insurer shall reinstate the contract.

150(3)Subsection (2) does not apply where the cash surrender value has been paid or an option of taking paid-up or extended insurance has been exercised.

150(4)Sections 144 and 145 apply, mutatis mutandis, to reinstatement of a contract.

1968, c.6, s.150

LIMITS ON FUNDS HELD

2019, c.36, s.4

Limits on funds held

2019, c.36, s.4

150.1(1)This section does not apply to a contract that provides an annuity or that is prescribed by regulation.

150.1(2)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).

150.1(3)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.

150.1(4)The funds referred to in subsections (2) and (3) shall be determined from time to time by the insurer on an actuarial basis based on the expected remaining lifetime of the person whose life is insured under the contract.

150.1(5)Any funds that exceed the limits set out in subsection (2) or (3) shall not be considered premiums, and shall not be held in a contract or in a side account regardless of the date of issuance of the policy.

2019, c.36, s.4

DESIGNATION OF BENEFICIARIES

Designation of personal representative or beneficiary

151(1)An insured may in a contract or by a declaration designate his personal representative or a beneficiary to receive insurance money.

151(2)Subject to section 152 the insured may alter or revoke the designation by a declaration.

151(3)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.151

Designation of beneficiary irrevocably

152(1)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.

152(2)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.152

Designation in a will or instrument purporting to be a will

153(1)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.

153(2)Notwithstanding the Wills Act, a designation in a will is of no effect against a designation made later than the making of the will.

153(3)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.

153(4)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.153

Appointment of trustee

154(1)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.

154(2)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.154

Share in insurance money

155(1)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.

155(2)Where two or more beneficiaries are designated otherwise than alternatively, but no division of the insurance money is made, the insurance money is payable to them in equal shares.

1968, c.6, s.155

Payment of insurance money

156A 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

Insurance money payable

157(1)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.

157(2)While a designation in favour of a spouse, child, grandchild or parent of a person whose life is insured, or any of them, is in effect, the insurance money and the rights and interests of the insured therein and in the contract are exempt from execution or seizure.

1968, c.6, s.157

DEALINGS WITH CONTRACT DURING
LIFETIME OF INSURED

Beneficiary not designated irrevocably or consent

158Where a beneficiary

(a) is not designated irrevocably, or

(b) is designated irrevocably but has attained the age of nineteen years and consents,

the insured may assign, exercise rights under or in respect of, surrender, or otherwise deal with, the contract as provided therein or in this Part or as may be agreed upon with the insurer.

1968, c.6, s.158; 1972, c.5, s.2

Dividends or bonuses

159(1)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.

159(2)Unless the insured otherwise directs, the insurer may apply the dividends or bonuses declared on the contract for the purpose of keeping the contract in force.

1968, c.6, s.159

Rights and interests of insured

160(1)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.

160(2)Where the contract or agreement provides that two or more persons named in the contract or in the agreement shall, upon the death of the insured, have successively on the death of each of them, the rights and interests of the insured in the contract, this section applies successively, mutatis mutandis, to each of such persons and to his rights and interests in the contract.

160(3)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.160

Assignee of contract

161(1)Where an assignee of a contract gives notice in writing of the assignment to the insurer at its head or principal office in Canada, he has priority of interest as against

(a) an assignee other than one who gave 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.

161(2)Where a contract is assigned as security, the rights of a beneficiary under the contract are affected only to the extent necessary to give effect to the rights and interests of the assignee.

161(3)Where a contract is assigned unconditionally and otherwise than as security, the assignee has all the rights and interests given to the insured by the contract and by this Part and shall be deemed to be the insured.

161(4)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.

1968, c.6, s.161

Group life insured

162A 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

MINORS

Minor who has attained the age of 16 years

163Except 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.

1968, c.6, s.163; 1972, c.5, s.2

Minor who has attained the age of 18 years

164A 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

PROCEEDINGS UNDER CONTRACT

Payment of insurance money

165Where an insurer receives sufficient evidence of

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

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

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

(d) the name and age of the beneficiary, if there is a beneficiary,

it shall, within thirty days after receiving the evidence, pay the insurance money to the person entitled thereto.

1968, c.6, s.165

Where insurance money is payable

166(1)Subject to subsection (4), insurance money is payable in the Province.

166(2)Unless a contract otherwise provides, a reference therein to dollars means Canadian dollars.

166(3)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.

166(4)In the case of a contract of group insurance, insurance money is payable in the province or territory of Canada in which the group life insured was resident at the time he became insured.

1968, c.6, s.166

Action on a contract

167Notwithstanding 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

Limitation period

168(1)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.

168(2)Where a declaration has been made under section 171, an action or proceeding to which reference is made in subsection (1) shall not be commenced more than one year after the date of the declaration.

1968, c.6, s.168

Instrument or order of a court affecting right to receive insurance money

169(1)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.

169(2)Subsection (1) does not affect the rights or interests of any person other than the insurer.

1968, c.6, s.169

Declaration as to the sufficiency of evidence

170Where 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

Declaration as to the presumption of death

171Where 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

Order respecting payment of insurance money and costs

172(1)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.

172(2)A payment made under an order made under subsection (1) discharges the insurer to the extent of the amount paid.

1968, c.6, s.172

Stay of pending action

173Unless the court otherwise orders, an application made under section 170 or section 171 operates as a stay of any pending action with respect to the insurance money.

1968, c.6, s.173

Appeal

174An appeal lies to the Court of Appeal from any declaration, direction or order made under sections 170, 171 or subsection 172(1).

1968, c.6, s.174

Further order

175Where 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

Ex parte application

176(1)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.

176(2)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.

1968, c.6, s.176; 2021, c.8, s.31

Transfer of insurance money under the Unclaimed Property Act

2021, c.8, s.32

176.1When 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

Simultaneous deaths

177Unless 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

Money payable in instalments

178(1)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.

178(2)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.

178(3)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.

178(4)In this section “instalments” includes insurance money held by the insurer under section 179.

1968, c.6, s.178; 1986, c.4, s.27

Insurer holding insurance money

179(1)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,

as provided in the contract, by an agreement in writing to which it is a party, or by a declaration, with interest at a rate agreed upon therein or, where no rate is agreed upon, at the rate declared from time to time by the insurer in respect of insurance money so held by it.

179(2)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.

1968, c.6, s.179

Order as to distribution of money

180Where 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

Costs

181The court may fix, without taxation, the costs incurred in connection with an application or order made under section 176 or section 180, and may order them to be paid out of the insurance money or by the insurer or the applicant or otherwise as it deems just.

1968, c.6, s.181

Insurance money payable to minor

182(1)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.

182(2)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.

182(3)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.

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

Payment to representative

183Where 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

MISCELLANEOUS PROVISIONS

Not an agent

184No 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

Notice or instrument that affects insurance money

185An 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

Regulations

2019, c.36, s.5

185.1The Lieutenant-Governor in Council may make regulations prescribing contracts for the purpose of subsection 150.1(1).

2019, c.36, s.5

VI

ACCIDENT AND SICKNESS INSURANCE

Definitions

186In this Part

“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)

“creditor’s group insurance” means insurance effected by a creditor whereby the lives or well-being, or the lives and well-being, of a number of his debtors are insured severally under a single contract;(assurance-groupe de créancier)

“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,

in which he designates or alters or revokes the designation of his personal representative or a beneficiary as one to whom or for whose benefit shall be paid the insurance money that is payable in the event of death by accident;

“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)

“group insurance” means insurance other than creditor’s group insurance and family insurance, whereby the lives or well-being, or the lives and well-being, of a number of persons are insured severally under a single contract between an insurer and an employer or other person;(assurance-groupe)

“group person insured” means a person who is insured under a contract of group insurance and upon whom a right is conferred by the contract, but does not include a person who is insured thereunder as a person dependent upon or related to him;(personne couverte par une assurance-groupe)

“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.186; 1979, c.41, s.68; 2023, c.17, s.114

Application of Part – general

187(1)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,

on and after the first day of October, 1970, and sections 186, 187, 189, 196, 199, 200, 201, 205 and sections 207 to 223 inclusive, apply also to a contract made, or in effect, before that day.

187(2)Sections 188, 189, 190, 190A, 190C, 190J and 190M of Part VI of the Insurance Act in force immediately prior to the day on which this Part comes into force apply to a contract made in the Province, or in effect, prior to that day, being the first day of October, 1970.

187(3)This Part does not apply to

(a) accidental death insurance,

(b) creditor’s group insurance,

(c) disability insurance, or

(d) insurance provided under section 255, 256 or 257.

1968, c.6, s.187

Application of Part – contract of group insurance

188In 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,

(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.

1968, c.6, s.188

Policy

189An insurer entering into a contract shall issue a policy.

1968, c.6, s.189

Particulars in policy – general

190(1)This section does not apply to

(a) a contract of group insurance, or

(b) a contract made by a fraternal society.

190(2)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.

1968, c.6, s.190

Particulars in policy – contract of group insurance

191In the case of a contract of group insurance, an insurer shall set forth the following particulars in the policy:

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

(b) the method of determining the 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.

1968, c.6, s.191

Contract of group insurance or benefit provision in contract of group insurance terminated

191.1(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)

191.1(2)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,

arising from an accident or sickness that occurred before the termination of the contract or benefit provision, if the disability, death or dismemberment is reported to the insurer within the prescribed time period.

191.1(3)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.

191.1(4)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.

191.1(5)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,

but if the replacement contract provides that the full benefits required to be paid under subsection (2) by the insurer of the other contract are to be paid instead under the replacement contract, the insurer of the other contract is not liable to pay those benefits.

1989, c.16, s.1

Particulars in certificate or document – contract of group insurance

192(1)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.

192(2)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.192

Exception or reduction

193(1)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”.

193(2)Where the exception or reduction affects only one provision in the policy it shall be set forth in that provision.

193(3)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.

193(4)The exception or reduction mentioned in section 206 need not be set forth in the policy.

193(5)This section does not apply to a contract made by a fraternal society.

1968, c.6, s.193

Statutory conditions

194Subject 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”.

STATUTORY CONDITIONS

The Contract

1(1)The application, this policy, any document attached to this policy when issued, and any amendment to the contract agreed upon in writing after the policy is issued, constitute the entire contract, and no agent has authority to change the contract or waive any of its provisions.

Waiver

194(2)The insurer shall be deemed not to have waived any condition of this contract, either in whole or in part, unless the waiver is clearly expressed in writing signed by the insurer.

Copy of Application

194(3)The insurer shall, upon request, furnish to the insured or to a claimant under the contract a copy of the application.

Material Facts

2No statement made by the insured or person insured at the time of application for this contract shall be used in defence of a claim under or to avoid this contract unless it is contained in the application or any other written statements or answers furnished as evidence of insurability.

Changes in Occupation

3(1)If after the contract is issued the person insured engages for compensation in an occupation that is classified by the insurer as more hazardous than that stated in this contract, the liability under this contract is limited to the amount that the premium paid would have purchased for the more hazardous occupation according to the limits, classification of risks and premium rates in use by the insurer at the time the person insured engaged in the more hazardous occupation.

194(2)If the person insured changes his occupation from that stated in this contract to an occupation classified by the insurer as less hazardous and the insurer is so advised in writing, the insurer shall either,

(a) reduce the premium rate; or

(b) issue a policy for the unexpired term of this contract at the lower rate of premium applicable to the less hazardous occupation;

according to the limits, classification of risks, and premium rates used by the insurer at the date of receipt of advice of the change in occupation, and shall refund to the insured the amount by which the unearned premium on this contract exceeds the premium at the lower rate for the unexpired term.

Relation of Earnings to Insurance

4Where the benefits for loss of time payable hereunder either alone or together with any other benefits, compensation or right of payment for or in respect of loss of time due to disability exceed the money value of the time of the person insured, the insurer is liable only for that proportion of the benefits for loss of time stated in this policy that the money value of the time of the person insured reduced by all such other benefits, compensation, or rights of payment other than as are provided under this and similar contracts or as are provided under a contract of group insurance, or a life insurance contract providing disability benefits bears to the aggregate of the benefits for loss of time payable hereunder and under similar contracts and any contract of group insurance or life insurance contract providing disability benefits and the excess premium, if any, for the current term shall be returned to the insured.

Termination by Insured

5The insured may terminate this contract at any time by giving written notice of termination to the insurer by registered mail to its head office or chief agency in the province, or by delivery thereof to an authorized agent of the insurer in the province, and the insurer shall upon surrender of this policy refund the amount of premium paid in excess of the short rate premium calculated to the date of receipt of such notice according to the table in use by the insurer at the time of termination.

Termination by Insurer

6(1)The insurer may terminate this contract at any time by giving written notice of termination to the insured and by refunding concurrently with the giving of notice the amount of premium paid in excess of the pro rata premium for the expired time.

194(2)The notice of termination may be delivered to the insured, or it may be sent by registered mail to the latest address of the insured on the records of the insurer.

194(3)Where the notice of termination is delivered to the insured, five days notice of termination shall be given; where it is mailed to the insured, ten days notice of termination shall be given, and the ten days shall begin on the day following the date of mailing of notice.

Notice and Proof of Claim

7(1)The insured or a person insured, or a beneficiary entitled to make a claim, or the agent of any of them, shall

(a) give written notice of claim to the insurer

(i) by delivery thereof, or by sending it by registered mail to the head office or chief agency of the insurer in the province, or

(ii) by delivery thereof to an authorized agent of the insurer in the province,

not later than thirty days from the date a claim arises under the contract on account of an accident, sickness or disability;

(b) within ninety days from the date a claim arises under the contract on account of an accident, sickness or disability, furnish to the insurer such proof as is reasonably possible in the circumstances of the happening of the accident or the commencement of the sickness or disability and the loss occasioned thereby, the right of the claimant to receive payment, his age, and the age of the beneficiary if relevant; and

(c) if so required by the insurer, furnish a satisfactory certificate as to the cause or nature of the accident, sickness or disability for which claim may be made under the contract and as to the duration of such disability.

Failure to Give Notice or Proof

194(2)Failure to give notice of claim or furnish proof of claim within the time prescribed by this statutory condition does not invalidate the claim if the notice or proof is given or furnished as soon as reasonably possible, and in no event later than one year from the date of the accident or the date a claim arises under the contract on account of sickness or disability if it is shown that it was not reasonably possible to give notice or furnish proof within the time so prescribed.

Insurer to Furnish Forms for Proof of Claim

8The insurer shall furnish forms for proof of claim within fifteen days after receiving notice of claim, but where the claimant has not received the forms within that time he may submit his proof of claim in the form of a written statement of the cause or nature of the accident, sickness or disability giving rise to the claim and of the extent of the loss.

Rights of Examination

9As a condition precedent to recovery of insurance moneys under this contract,

(a) the claimant shall afford to the insurer an opportunity to examine the person of the person insured when and so often as it reasonably requires while the claim hereunder is pending; and

(b) in the case of death of the person insured, the insurer may require an autopsy subject to any law of the applicable jurisdiction relating to autopsies.

When Moneys Payable Other Than For Loss of Time

10All moneys payable under this contract, other than benefits for loss of time, shall be paid by the insurer within sixty days after it has received proof of claim.

When Loss of Time Benefits Payable

11The initial benefits for loss of time shall be paid by the insurer within thirty days after it has received proof of claim, and payment shall be made thereafter in accordance with the terms of the contract but not less frequently than once in each succeeding sixty days while the insurer remains liable for the payments if the person insured when required to do so furnishes before payment proof of continuing disability.

Limitation of Actions

12An action or proceeding against the insurer for the recovery of a claim under this contract shall not be commenced more than one year after the date the insurance money became payable or would have become payable if it had been a valid claim.

1968, c.6, s.194; 2008, c.11, s.14

Statutory conditions – omission or variation

195(1)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.

195(2)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.

195(3)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.

195(4)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.

195(5)Paragraphs (1)(a) and (b) of statutory condition 7 may not be varied in policies providing benefits for loss of time.

195(6)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.

195(7)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.

195(8)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:

The Contract

1(1)This 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, and no agent has authority to change the contract or waive any of its provisions.

and

(b) statutory condition 5 shall not be printed on the policy.

1968, c.6, s.195

Notice of statutory conditions

196In 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:

“Notwithstanding any other provision herein contained, this contract is subject to the statutory conditions in the Insurance Act respecting contracts of accident insurance.”

1968, c.6, s.196

Statutory conditions – initial or renewal premium or part of it not paid

197(1)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.

197(2)This section does not apply to a contract of group insurance or to a contract made by a fraternal society.

1968, c.6, s.197

Statutory conditions – unpaid premiums

198(1)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.

198(2)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.

198(3)Paragraph (1)(a) does not apply to a contract of group insurance.

198(4)This section does not apply to a contract made by a fraternal society.

1968, c.6, s.198

Statutory conditions – insurable interest

199Without 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

(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.199

Statutory conditions – no insurable interest, person under the age of 16 years

200(1)Subject to subsection (2), where at the time a contract would otherwise take effect, the insured has no insurable interest, the contract is void.

200(2)A contract is not void for lack of insurable interest

(a) if it is a contract of group insurance, or

(b) if the person insured has consented in writing to the insurance.

200(3)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.200

POLICIES ON LIVES OF MINORS

Policies on lives of minors

201(1)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.

201(2)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.201; 1972, c.5, s.2

MISREPRESENTATION AND NON-DISCLOSURE

Disclosure by applicant and person whose life is to be insured

202(1)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.

202(2)Subject to sections 203 and 206, a failure to disclose, or a misrepresentation of, such a fact renders a contract voidable by the insurer.

202(3)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.202

Failure to disclose or misrepresentation by applicant or person whose life is to be insured

203(1)Subject to section 206 and except as provided in subsection (2),

(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.

203(2)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.

1968, c.6, s.203

Failure to disclose or misrepresentation at the time of reinstatement of a contract

204Sections 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

Pre-existing disease or physical condition

205Where 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,

(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.205

Misrepresentation re age

206(1)Subject to subsections (2) and (3), if the age of the person insured has been mis-stated to the insurer then, at the option of the insurer, either

(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.

206(2)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.

206(3)Where the age of a person affects the commencement or termination of the insurance, the true age governs.

1968, c.6, s.206

BENEFICIARIES

Designation of personal representative or beneficiary, designation in a will or instrument purporting to be a will

207(1)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.

207(2)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.

207(3)A designation in a will is of no effect against a designation made later than the making of the will.

207(4)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.

207(5)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.207

Share in insurance money

208(1)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.

208(2)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.

208(3)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.

1968, c.6, s.208

Appointment of trustee

209An 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

Instrument or order of a court affecting right to receive insurance money, assignment

210(1)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.

210(2)Subsection (1) does not affect the rights or interests of any person other than the insurer.

210(3)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.

210(4)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.

210(5)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.210

Insurance money payable

211(1)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.

211(2)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.

1968, c.6, s.211

Enforcing right of group person

212A 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

Simultaneous deaths

213Unless 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

Ex parte application

214(1)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.

214(2)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.

214(3)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.

214(4)A payment made in accordance with an order under this section discharges the insurer to the extent of the payment.

1968, c.6, s.214; 2021, c.8, s.34

Transfer of insurance money under Unclaimed Property Act

2021, c.8, s.35

214.1When 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

Insurance money payable to minor

215(1)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.

215(2)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.

215(3)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.

1968, c.6, s.215; O.C. 68-516; 2019, c.29, s.74; 2021, c.8, s.36

Payment to representative

216Where 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

Payment to relative or other person

217Notwithstanding 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

(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,

and any such payment discharges the insurer to the extent of the amount paid.

1968, c.6, s.217

Where insurance money is payable

218(1)Subject to subsection (2), insurance money is payable in the Province.

218(2)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.

218(3)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.

218(4)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.

218(5)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.

1968, c.6, s.218

Action in the Province

219Regardless 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

Notice or instrument that affects insurance money

220An 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

Undue prominence to provision

221The 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

Relief against forfeiture or avoidance, confinement of insured

222(1)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.

222(2)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.

1968, c.6, s.222; 1973, c.52, s.2

Not an agent

223No 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

VII

AUTOMOBILE INSURANCE

Definitions

224In this Part

“contract” means a contract of automobile insurance;(contrat)

“insured” means a person insured by a contract whether named or not and includes any person who is stated in a contract to be entitled to benefits payable under the insurance mentioned in subsection 256(1) and subsection 257(1), whether described therein as an insured person or not.(assuré)

1968, c.6, s.224; 1971, c.41, s.3

Automobile insurance

225(1)This Part applies only to contracts providing automobile insurance made or renewed in New Brunswick on or after the first day of January, 1969.

225(2)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.

225(3)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.

225(4)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.225

APPROVAL OF FORMS

Approval of forms

226(1)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.

226(2)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.

226(3)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.

226(4)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.

226(5)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.

226(6)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”.

226(6.1)The Superintendent may amend the form of owner’s policy approved under subsection (6).

226(6.2)Repealed: 2008, c.2, s.6

226(6.3)Repealed: 2008, c.2, s.6

226(7)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.

226(7.1)Unless the Superintendent specifies otherwise under subsection (7.2), the provisions of a form or an amendment published under subsection (7) are effective on the date they are published and

(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.

226(7.2)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.

226(8)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.

226(9)The Superintendent shall, on request of any interested insurer, specify in writing his reasons for granting, refusing or revoking an approval of a form.

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

APPLICATION AND POLICY

Not an agent

227No 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

Application, form of application, policy, certificate

228(1)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.

228(2)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.

228(3)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.

228(4)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.

228(5)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.

228(6)Where a certificate is issued pursuant to subsection (5), subsection (9) of this section and subsection 253(2) apply, mutatis mutandis.

228(7)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.

228(8)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.

228(9)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.228; 1971, c.41, s.5; 2004, c.36, s.12; 2008, c.2, s.7; 2008, c.11, s.14

Right to recover indemnity forfeited, statements in defence of a claim

229(1)Where,

(a) an applicant for a contract,

(i) gives false particulars of the described automobile to be insured to the prejudice of the insurer, or

(ii) knowingly misrepresents or 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;

a claim by the insured is invalid and the right of the insured to recover indemnity is forfeited.

229(2)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.

229(3)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.

1968, c.6, s.229; 1987, c.6, s.45

Prohibited grounds

229.1An 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

Statutory conditions

230(1)Subject to subsection 226(3), section 231 and section 253,

(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.

230(2)In this section, “policy” does not include an interim receipt or binder.

STATUTORY CONDITIONS

In these statutory conditions, unless the context otherwise requires, the word “insured” means a person insured by this contract whether named or not.

Material Change in Risk

1(1)The insured named in this contract shall promptly notify the insurer or its local agent in writing of any change in the risk material to the contract and within his knowledge.

(2)Without restricting the generality of the foregoing, the words “change in the risk material to the contract” include:

(a) any change in the insurable interest of the insured named in this contract in the automobile by sale, assignment or otherwise, except through change of title by succession, death or proceedings under the Bankruptcy Act (Canada);

and in respect of insurance against loss of or damage to the automobile,

(b) any mortgage, lien or encumbrance affecting the automobile after the application for this contract;

(c) any other insurance of the same interest, whether valid or not, covering loss or damage insured by this contract or any portion thereof.

Prohibited Use by Insured

2(1)The insured shall not drive or operate the automobile,

(a) Repealed: 1974, c.22 (Supp.), s.4

(b) unless he is for the time being either authorized by law or qualified to drive or operate the automobile; or

(c) while he is prohibited under order of any court from driving or operating an automobile; or

(d) while he is under the age of sixteen years or under such other age as is prescribed by the law of the province in which he resides at the time this contract is made as being the minimum age at which a license or permit to drive an automobile may be issued to him; or

(e) for any illicit or prohibited trade or transportation; or

(f) in any race or speed test.

Prohibited Use by Others

(2)The insured shall not permit, suffer, allow or connive at the use of the automobile,

(a) Repealed: 1974, c.22 (Supp.), s.4

(b) by any person,

(i) unless that person is for the time being either authorized by law or qualified to drive or operate the automobile, or

(ii) while that person is under the age of sixteen years or under such other age as is prescribed by the law of the province in which he resides at the time this contract is made as being the minimum age at which a licence or permit to drive an automobile may be issued to him; or

(c) by any person who is a member of the household of the insured while that person is prohibited under order of any court from driving or operating an automobile; or

(d) for any illicit or prohibited trade or transportation; or

(e) in any race or speed test.

Requirements Where Loss or Damage to Persons or Property

3(1)The insured shall,

(a) promptly give to the insurer written notice, with all available particulars, of any accident involving loss or damage to persons or property and of any claim made on account of the accident;

(b) verify by statutory declaration, if required by the insurer, that the claim arose out of the use or operation of the automobile and whether or not the person operating or responsible for the operation of the automobile at the time of the accident is a person insured under this contract; and

(c) forward immediately to the insurer every letter, document, advice or writ received by him from or on behalf of the claimant.

(2)The insured shall not,

(a) voluntarily assume any liability or settle any claim except at his own cost; or

(b) interfere in any negotiations for settlement or in any legal proceeding.

(3)The insured shall, whenever requested by the insurer, aid in securing information and evidence and the attendance of any witness and shall co-operate with the insurer, except in a pecuniary way, in the defence of any action or proceeding or in the prosecution of any appeal.

Requirements Where Loss or Damage to Automobile

4(1)Where loss of or damage to the automobile occurs, the insured shall, if the loss or damage is covered by this contract,

(a) promptly give notice thereof in writing to the insurer with the fullest information obtainable at the time;

(b) at the expense of the insurer, and as far as reasonably possible, protect the automobile from further loss or damage; and

(c) deliver to the insurer within ninety days after the date of the loss or damage a statutory declaration stating, to the best of his knowledge and belief, the place, time, cause and amount of the loss or damage, the interest of the insured and of all others therein, the encumbrances thereon, all other insurance, whether valid or not, covering the automobile and that the loss or damage did not occur through any wilful act or neglect, procurement, means or connivance of the insured.

Requirements Where Loss or Damage to Automobile

(2)Any further loss or damage accruing to the automobile directly or indirectly from a failure to protect it as required under subcondition (1) of this condition is not recoverable under this contract.

Requirements Where Loss or Damage to Automobile

(3)No repairs, other than those that are immediately necessary for the protection of the automobile from further loss or damage, shall be undertaken and no physical evidence of the loss or damage shall be removed,

(a) without the written consent of the insurer; or

(b) until the insurer has had a reasonable time to make the examination for which provision is made in statutory condition 5.

Examination of Insured

(4)The insured shall submit to examination under oath, and shall produce for examination at such reasonable place and time as is designated by the insurer or its representative all documents in his possession or control that relate to the matters in question, and he shall permit extracts and copies thereof to be made.

Insurer Liable for Cash Value of Automobile

(5)The insurer shall not be liable for more than the actual cash value of the automobile at the time any loss or damage occurs, and the loss or damage shall be ascertained or estimated according to the actual cash value with proper deduction for depreciation, however caused, and shall not exceed the amount that it would cost to repair or replace the automobile, or any part thereof, with material of like kind and quality, but, if any part of the automobile is obsolete and out of stock, the liability of the insurer in respect thereof shall be limited to the value of that part at the time of loss or damage, not exceeding the maker’s latest list price.

Repair or Replacement

(6)Except where an appraisal has been made, the insurer, instead of making payment, may, within a reasonable time, repair, rebuild or replace the property damaged or lost with other of like kind and quality if, within seven days after the receipt of the proof of loss, it gives written notice of its intention to do so.

No Abandonment; Salvage

(7)There shall be no abandonment of the automobile to the insurer without the insurer’s consent. If the insurer exercises the option to replace the automobile or pays the actual cash value of the automobile, the salvage, if any, shall vest in the insurer.

In Case of Disagreement

(8)In the event of disagreement as to the nature and extent of the repairs and replacements required, or as to their adequacy, if effected, or as to the amount payable in respect of any loss or damage, those questions shall be determined by appraisal as provided under the Insurance Act before there can be recovery under this contract, whether the right to recover on the contract is disputed or not, and independently of all other questions. There shall be no right to an appraisal until a specific demand therefor is made in writing and until after proof of loss has been delivered.

Inspection of Automobile

5The insured shall permit the insurer at all reasonable times to inspect the automobile and its equipment.

Time and Manner of Insurance Money

6(1)The insurer shall pay the insurance money for which it is liable under this contract within sixty days after the proof of loss has been received by it or, where an appraisal is made under subcondition (8) of statutory condition 4, within fifteen days after the award is rendered by the appraisers.

When Action May Be Brought

(2)The insured shall not bring an action to recover the amount of a claim under this contract unless the requirements of statutory conditions 3 and 4 are complied with or until the amount of the loss has been ascertained as therein provided or by a judgment against the insured after trial of the issue or by agreement between the parties with the written consent of the insurer.

Limitation of Actions

(3)Every action or proceeding against the insurer under this contract in respect of loss or damage to the automobile shall be commenced within two years next after the happening of the loss and not afterwards, and in respect of loss or damage to persons or property shall be commenced within two years next after the cause of action arose and not afterwards.

Who May Give Notice and Proofs of Claim

7Notice of claim may be given and proofs of claim may be made by the agent of the insured named in this contract in case of absence or inability of the insured to give the notice or make the proof, such absence or inability being satisfactorily accounted for or, in the like case or if the insured refuses to do so, by a person to whom any part of the insurance money is payable.

Termination

8(1)This contract may be terminated,

(a) by the insurer giving to the insured fifteen days’ notice of termination by registered mail or five days’ written notice of termination personally delivered;

(b) by the insured at any time on request.

(2)Where this contract is terminated by the insurer,

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

(b) the refund shall accompany the notice unless the premium is subject to adjustment or determination as to the amount, in which case the refund shall be made as soon as practicable.

(3)Where this contract is terminated by the insured, the insurer shall refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium for the expired time, but in no event shall the short rate premium for the expired time be deemed to be less than any minimum retained premium specified.

(4)The refund may be made by money, postal or express company money order or cheque payable at par.

(5)The fifteen days mentioned in clause (a) of subcondition (1) of this condition commences to run on the day following the receipt of the registered letter at the post office to which it is addressed.

Notice

9Any written notice to the insurer may be delivered at, or sent by registered mail to, the chief agency or head office of the insurer in the province. Written notice may be given to the insured named in this contract by letter personally delivered to him or by registered mail addressed to him at his latest post office address as notified to the insurer. In this condition, the expression “registered” means registered in or outside Canada.

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

Statutory conditions – termination of contract by virtue of statutory condition 8 of section 230

230.1(1)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.

230.1(2)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.

230.1(3)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.

1980, c.27, s.5

Statutory conditions – application

231(1)Except as otherwise provided in the contract, the statutory conditions set forth in section 230 do not apply to insurance coming within section 255, 256 or 257.

231(2)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.

231(3)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.231; 1977, c.22, s.1

MOTOR VEHICLE LIABILITY POLICIES

Contract evidenced by owner’s policy

232(1)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.

232(2)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.

232(3)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.

1968, c.6, s.232

Contract evidenced by non-owner’s policy

233Every 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,

(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.

1968, c.6, s.233

Not owner of automobile

234For 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

Application of sections 232 and 233

235Insurance under sections 232 and 233 applies to the ownership, use or operation of the insured automobile within Canada and the United States of America and upon a vessel plying between ports of those countries.

1968, c.6, s.235

Person insured by but not named in contract

236Any 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

Content of contract

237Every 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,

(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.

1968, c.6, s.237

Liability arising from contamination of property being carried in an automobile

238Liability 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

Insurer not liable

239The insurer is not liable under a contract evidenced by a motor vehicle liability policy for any liability,

(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.

1968, c.6, s.238; 1985, c.41, s.6

Liability re business and property

240The 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,

(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.

1968, c.6, s.239

Liability re machinery or apparatus

241Subject 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

Liability re certain circumstances

242(1)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.

242(2)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.

242(3)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.

242(4)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.

1968, c.6, s.241; 1971, c.41, s.8

LEVY

Imposition of levy

242.1(1)In this section and in sections 242.3 and 242.4

“provincial authority” means the Minister of Health.

242.1(2)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.

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

Repealed

242.2Repealed: 2008, c.2, s.9

1992, c.83, s.1; 2008, c.2, s.9

Estimate and payment of levy

242.3(1)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.

242.3(2)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.

242.3(3)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).

242.3(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.10; 2013, c.31, s.20; 2019, c.29, s.74; 2021, c.8, s.38; 2023, c.17, s.114

Re-evaluation of levy

242.4(1)The provincial authority shall annually re-evaluate the accuracy of the levy estimate and shall make adjustments if necessary.

242.4(2)The provincial authority shall give notice to an insurer of an adjustment made under subsection (1) to the estimated levy.

242.4(3)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.

242.4(4)If the adjusted amount is less than the estimated levy, the insurer shall credit the surplus amount to the next quarterly payment.

242.4(5)No interest is payable on the surplus or deficit resulting from the re-evaluation by the provincial authority under subsection (1).

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

Repealed

242.5Repealed: 2008, c.2, s.12

1992, c.83, s.1; 2008, c.2, s.12

LIABILITY COVERAGE

Repealed: 2013, c.31, s.20

2013, c.31, s.20

Licence revocation

242.6(1)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.

242.6(2)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.

2008, c.2, s.13; 2013, c.31, s.20; 2019, c.29, s.74; 2021, c.8, s.40

Interest

242.7Any 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

Administrator

242.8(1)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.

242.8(2)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.

242.8(3)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

Reinsurance

242.9(1)An administrator appointed under section 242.8 may arrange for the reinsurance by some other licensed insurer of all automobile insurance contracts of a defaulting insurer whose licence has been revoked under section 242.6.

242.9(2)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).

242.9(3)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.

242.9(4)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.

242.9(5)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.

2008, c.2, s.13

LIABILITY COVERAGE

2013, c.31, s.20

Limit of liability

243(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.

243(2)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.

243(3)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.

243(4)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.242; 1975, c.81, s.1; 1978, c.30, s.5; 1985, c.31, s.1

Any province or territory of Canada

244(1)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.

244(2)A provision in a motor vehicle liability policy in accordance with paragraph (1)(c) is binding on the insured.

1968, c.6, s.243

Excess contract

245(1)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.

245(2)Where the contract designated in the excess contract terminates or is terminated, the excess contract is also automatically terminated.

1968, c.6, s.244

Agreement re reimbursement

246Nothing 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

Nuclear energy hazard

247(1)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.

247(2)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.

247(3)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.

1968, c.6, s.246

Payment constitutes release

248(1)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.

248(2)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.

248(3)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.

248(4)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.

1971, c.41, s.9

Insurance under more than one contract

249(1)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.

249(2)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.

249(3)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.

249(4)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.247; 1971, c.41, s.9A; 1979, c.41, s.68; 2023, c.17, s.114

Insurance money payable to satisfy judgment

250(1)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.

250(2)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.

250(3)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.

250(4)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,

and nothing mentioned in paragraph (a), (b) or (c) is available to the insurer as a defence in an action brought under subsection (1).

250(5)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.

250(6)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.

250(7)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 insurer may apply to the court ex parte for an order for payment of the money into court, and the court may, upon such notice, if any, as it thinks necessary, make an order accordingly.

250(8)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.

250(9)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.

250(10)Where one or more contracts provide for coverage of a type mentioned in section 240 or 241, the insurer may,

(a) with respect to that type of coverage, and

(b) as against a claimant,

avail itself of any defence that it is entitled to set up against the insured, notwithstanding subsection (4).

250(11)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,

avail itself of any defence that it is entitled to set up against the insured, notwithstanding subsection (4).

250(12)Repealed: 1974, c.22 (Supp.), s.6

250(13)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.

250(14)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.

250(15)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,

to the same extent as if it were a defendant in the action.

250(16)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.248; 1974, c.22 (Supp.), s.6

Notice to insurer, disclosure to judgment creditor

251(1)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.

251(2)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.

1968, c.6, s.249

PHYSICAL DAMAGE COVER

Exclusions and limitations

252Subject 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

Partial payment of loss clause

253(1)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,

and in either case not exceeding the amount of the insurance.

253(2)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.251

Claim under another contract

254(1)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.

254(2)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.

1968, c.6, s.252

DIRECT COMPENSATION -
PROPERTY DAMAGE

2004, c.36, s.13

Direct compensation — property damage

254.1(1)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.

254.1(2)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.

254.1(3)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.

254.1(4)Recovery under subsection (3) shall be based on the degree of fault of the insurer’s insured as determined under the fault determination rules prescribed by regulation under paragraph 254.2(a).

254.1(5)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.

254.1(6)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.

254.1(7)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.

254.1(8)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.

254.1(9)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.

254.1(10)Subsection (8) does not apply to a contract that contains a provision required by subsection (9).

254.1(11)If a contract contains an agreement referred to in subsection (7) or a provision required by subsection (9), the policy shall have printed or stamped on its face in conspicuous type the words “This policy contains a partial payment of recovery clause for property damage”.

254.1(12)This section does not affect an insured’s right to recover in respect of any physical damage cover in respect of the insured automobile.

254.1(13)This section does not apply to damage to those contents of an automobile that are being carried for reward.

254.1(14)This section does not apply if both automobiles are owned by the same person.

254.1(15)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.

254.1(16)This section does not apply if the damage occurred before the coming into force of this section.

2004, c.36, s.13

Regulations

254.2The Lieutenant-Governor in Council may make regulations

(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);

(d) prescribing the circumstances in which a contract belonging to a class prescribed under paragraph (c) must contain a provision described in subsection 254.1(9);

(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).

2004, c.36, s.13

LIMITED ACCIDENT INSURANCES

Policy shall provide for payment, regulations, payment constitutes release

255(1)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,

(A) while driving, being carried in or upon or entering or getting on to or alighting from an uninsured automobile, or

(B) who is struck by an uninsured or unidentified automobile, but does not include a person struck while driving, being carried in or upon or entering or getting on to or alighting from railway rolling stock that runs on rails,

(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,

(A) while driving, being carried in or upon or entering or getting on to or alighting from an uninsured automobile, or

(B) who is struck by an uninsured or unidentified automobile, but does not include a person struck while driving, being carried in or upon or entering or getting on to or alighting from railway rolling stock that runs on rails,

if such director, officer, employee or partner or his or her spouse is not the owner of an automobile insured under a contract;

“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)

255(2)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,

subject to the terms, conditions, provisions, exclusions and limits prescribed by regulation.

255(3)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,

shall be deemed not to be a dependent relative for the purposes of this section.

255(4)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.

255(5)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.

255(6)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.

255(7)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.253; 1989, c.17, s.4; 1991, c.27, s.19

Reasonable expenses, payment constitutes release

256(1)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.

256(2)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.

256(3)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.

256(4)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.

256(5)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.254; 1971, c.41, s.10

Accident insurance benefits, payment constitutes release, benefits under more than one contract

257(1)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.

257(2)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.

257(3)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.

257(4)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.

257(5)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.255; 1971, c.41, s.11

Demand re accident in New Brunswick

258(1)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,

requiring the owner or insurer, as the case may be, to state in writing to the person making the demand whether or not that owner has insurance of the type mentioned in section 256 or 257 or either of them, and, where the demand is made under paragraph (a), requiring the owner, if he has such insurance, to state the name of the insurer.

258(2)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.

1968, c.6, s.256

Person insured by but not named in contract

259Any 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

Person entitled to benefits

260(1)Where a person, entitled to benefits provided by insurance under section 256 and section 257 or either of them

(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.

260(2)Nothing in this section affects the operation of the provisions of subsections (2) to (5) inclusive of sections 256 and 257.

1971, c.41, s.13

Ex parte application

261(1)When an insurer admits liability for insurance money payable under section 255, 256 or 257 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.

261(2)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.

261(3)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.

1968, c.6, s.258; 1979, c.41, s.68; 2021, c.8, s.41

Transfer of insurance money under Unclaimed Property Act

2021, c.8, s.42

261.1When 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

Limitation period

262Every 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

Particulars of insurance available to claimant

263(1)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.

263(2)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.

263(3)This section applies only with respect to accidents occurring after the coming into force of the section.

1981, c.35, s.2

Contract includes

264Every contract evidenced by a motor vehicle liability policy provides

(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,

as set forth in Subsections 1 and 2 of Section B, Accident Benefits, of the New Brunswick Standard Automobile Policy approved by the Superintendent under section 226.

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

OTHER INSURANCE

Other Insurance

265(1)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.

265(2)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.

265(3)“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;

(c) if there are more than two insurers liable, paragraphs (a) and (b) apply mutatis mutandis.

1968, c.6, s.262; 1971, c.41, s.14

DAMAGES

1996, c.55, s.2

Definition

265.1In sections 265.2 to 265.6

“accident” means an accident arising out of the use or operation of an automobile.(accident)

1996, c.55, s.2

Effect of failure to wear a seat belt on damages recoverable

265.2(1)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.

265.2(2)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.

265.2(3)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.

265.2(4)This section applies only to accidents occurring on or after the commencement of this section.

1996, c.55, s.2

Soft tissue and minor personal injury

265.21(1)In this section “soft tissue injury” and “minor personal injury” shall be as prescribed and defined in the regulations.

265.21(2)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.

265.21(3)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.

265.21(4)This section applies only to accidents occurring on or after the commencement of this section.

2003, c.22, s.3

Calculation of damages for loss of income

265.3(1)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.

265.3(2)This section applies only to accidents occurring on or after the commencement of this section.

1996, c.55, s.2

Calculation of damages for loss of income – reductions

265.4(1)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.

265.4(2)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.

265.4(3)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.

265.4(4)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.

265.4(5)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

Pre-judgment interest not to be awarded on damages for non-pecuniary losses

265.5(1)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.

265.5(2)This section applies only to accidents occurring on or after the commencement of this section.

1996, c.55, s.2

Interim payment of special damages

265.6(1)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.

I-12 - Insurance Act