Insurance Act, R.S.P.E.I. 1988, c. I-4
- Citation: Insurance Act, R.S.P.E.I. 1988, c. I-4
- Enabled Regulations: 7 Regulations
- Version downloaded by CanLII on 2006-01-15
Warning: This document predates the last update of the collection. It might have been modified or omitted since this last update.
PLEASE NOTE
This document, prepared by the Legislative Counsel Office, is an office
consolidation of this regulation, current to August 1, 2005. It is intended for
information and reference purposes only.
This document is not the official version of these regulations. The
regulations and the amendments printed in the Royal Gazette should be
consulted to determine the authoritative text of these regulations.
For more information concerning the history of these regulations, please see
the Table of Regulations.
If you find any errors or omissions in this consolidation, please notify the
Legislative Counsel Office at (902) 368-4291 or by email to
rmmacintyre@gov.pe.ca.
CHAPTER I-4
INSURANCE ACT
1. In this Act Definitions
(a) "accident insurance" means insurance by which the insurer accident insurance
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 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;
(a.1) "accidental death insurance" means insurance undertaken by an accidental death
insurance
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;
(a.2) "adjuster" means a person who, for compensation, not being a adjuster
barrister or solicitor acting in the usual course of his profession or a
trustee or an agent of the property insured, directly or indirectly
solicits the right to negotiate the settlement of a loss under a contract
of insurance on behalf of the insured or the insurer, or holds himself
out as an adjuster of losses under such contracts;
(b) "agent" means a person who, for compensation, solicits agent
insurance on behalf of any insurer or transmits, for a person other
than himself, an application for or a policy of insurance to or from
such insurer or offers or acts or assumes to act in the negotiation of
such insurance or in negotiating the continuance or renewal of other
than life insurance contracts, but does not include a salaried
employee of the insurer who does not receive commission or a
salary in lieu thereof for negotiating such insurance;
(b.1) "aircraft insurance" means insurance against loss of or damage aircraft insurance
to an aircraft and against liability for loss or damage to persons or
property caused by an aircraft or by the operation thereof;
(b.2) "appeal" includes a judicial revision or review of a judgment, appeal
decision, order, direction, determination, finding or conviction, and
a case stated or reserved, and a removal of proceedings by way of
certiorari or otherwise;
(c) "automobile" includes a trolley bus and a self-propelled vehicle, automobile
and the trailers, accessories, and equipment of any of them but does
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2 Cap. I-4 Insurance Act
not include railway rolling stock that runs on rails, or watercraft, or
aircraft of any kind;
(c.1) "automobile insurance" means insurance
automobile
insurance (i) against liability arising out of
(A) bodily injury to or the death of a person, or
(B) loss of or damage to property, caused by an automobile or
the use or operation thereof,
(ii) 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 clause (a);
(c.2) "boiler and machinery insurance" means insurance against loss
boiler and
machinery or damage to property and against liability for loss or damage to
insurance
persons or property through the explosion, collapse, rupture, or
breakdown of, or accident to, boilers or machinery;
(d) "broker" means a person who, for compensation, acts or aids in
broker
negotiating contracts of insurance or placing risks or effecting
insurance, or in negotiating the continuance or renewal of such
contracts for a person other than himself;
(d.1) "chief agency" means the principal office or place of business
chief agency
in Prince Edward Island of any licensed insurer having its head
office out of Prince Edward Island;
(d.2) "contract" means a contract of insurance and includes a policy,
contract
certificate, interim receipt, renewal receipt, or writing evidencing the
contract, whether sealed or not, and a binding oral agreement;
(e) "court" means the Supreme Court;
court
(e.1) "credit insurance" means insurance against loss to the insured
credit insurance
through the insolvency or default of a person to whom credit is
given in respect of goods, wares or merchandise;
(e.2) "disability insurance" means insurance undertaken by an
disability insurance
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;
(f) "employees mutual benefit society" means a society incorporated
employees mutual
benefit society by the officers 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
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Insurance Act Cap. I-4 3
the corporation or for the purpose of paying pensions, annuities or
gratuities to or for dependants of such officers or employees or
funeral benefits upon the death of such officers or employees;
(f.1) "employers' liability insurance" means insurance (not being employers' liability
insurance
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 workers'
compensation insurance;
(f.2) "endowment insurance" means an undertaking to pay an endowment
insurance
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;
(g) "exchange" or "reciprocal or inter-insurance exchange" means a exchange or
reciprocal inter-
group of subscribers exchanging reciprocal contracts of indemnity or insurance exchange
inter-insurance with each other through the same attorney;
(g.01) "Facility Association" means an association of insurers Facility Association
referred to in subsection 21(2);
(g.1) "fire insurance" means insurance (not being insurance fire 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;
(g.2) "foreign jurisdiction" includes any jurisdiction other than foreign jurisdiction
Prince Edward Island;
(h) "fraternal society" means a society, order or association fraternal society
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, bylaws and rules and this Act;
(h.1) "guarantee insurance" means the undertaking to perform an guarantee insurance
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;
(h.2) "hail insurance" means insurance against loss of or damage to hail insurance
growing crops caused by hail;
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4 Cap. I-4 Insurance Act
(i) "head office" means the place where the chief executive officer
head office
of an insurer transacts his business;
(i.1) "industrial contract" means a contract of life insurance for an
industrial contract
amount not exceeding $2,000, exclusive of any benefit, surplus,
profit, dividend or bonus also payable under the contract, and which
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;
(i.2) "inland transportation insurance" means insurance (other than
inland
transportation marine insurance) against loss of or damage to property
insurance
(i) while in transit or during delay incidental to transit, or
(ii) where, in the opinion of the Superintendent, the risk is
substantially a transit risk;
(j) "insurance" means the undertaking by one person to indemnify
insurance
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;
(j.1) "insurance fund" as applied to a fraternal society or as applied
insurance fund
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;
(j.2) "insured" means a person insured by a contract whether named
insured
or not;
(k) "insurer" includes any corporation, or any society or association
insurer
incorporated or unincorporated, any fraternal society or person, or
any underwriter or group of underwriters, that undertakes or effects,
or agrees, or offers to undertake or effect, a contract of insurance;
(k.1) "life insurance" means insurance whereby an insurer
life insurance
undertakes to pay insurance money
(i) on death, or
(ii) on the happening of an event or contingency dependent on
human life, or
(iii) at a fixed or determinable future time, or
(iv) for a term dependent on human life,
and without restricting the generality of the foregoing, includes
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Insurance Act Cap. I-4 5
(v) accidental death insurance, but not accident insurance,
(vi) disability insurance, and
(vii) 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;
(k.2) "livestock insurance" means insurance (not being insurance livestock
incidental to some other class of insurance defined by or under this
Act) against loss through the death or sickness of or accident to an
animal;
(l) "lodge" includes a primary subordinate division by whatever lodge
name known, of a fraternal society;
(l.1) "marine insurance" means insurance against marine losses; that marine insurance
is to say, the losses incident to marine adventure, and may by the
express terms of a contract or by usage of trade extend so as to
protect the insured against losses on inland waters or by land or air
which are incidental to any sea voyage;
(l.2) "Minister" means that member of the Executive Council Minister
charged for the time being with the administration of this Act;
(m) "motor vehicle" has the same meaning as automobile; motor vehicle
(m.1) "motor vehicle liability policy" means a policy, or that part of motor vehicle
liability policy
a policy, evidencing a contract insuring
(i) the owner or driver of an automobile, or
(ii) a person who is not the owner or driver thereof where the
automobile is being used or operated by his employee or agent or
any other person on his behalf,
against liability arising out of bodily injury to or the death of a
person or loss or damage to property caused by an automobile or
the use or operation thereof;
(m.2) "mutual benefit society" means a mutual corporation formed mutual benefit
society
for the purpose of providing sick and funeral benefits for its
members where the amounts paid for sick benefits do not exceed
$12 per week and for funeral benefits $400, or for this and any other
purposes except life insurance, but does not include any employees'
mutual benefit society;
(n) "mutual insurance" means a contract of insurance, other than mutual insurance
life, accident and sickness insurance, in which the consideration is
not fixed or certain at the time the contract is made and 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
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6 Cap. I-4 Insurance Act
insurer in respect of all similar contracts whether or not the
maximum amount of such consideration is predetermined, and
includes a contract of insurance in which, although part of the
consideration may be fixed or certain at the time the contract is
made, the insured is liable to the insurer in respect of other similar
contracts of insurance made or to be made by the insurer during the
term of the contract, and the term "cash plan" or "cash premium
plan" shall not refer to such mutual insurance;
(n.1) "mutual insurance company" means an insurer incorporated
mutual insurance
company under the laws of the province and carrying on a mutual insurance
business in the province and which is not licensed under the laws of
any other government;
(n.2) "non-owners' policy" means a motor vehicle liability policy
non-owners' 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;
(o) "officer" includes any trustee, director, manager, treasurer,
officer
secretary or member of the board or committee of management of an
insurer or person appointed by the insurer to sue and be sued in its
behalf;
(o.1) "owner's policy" means a motor vehicle liability policy
owner's 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;
(o.2) "paid in" when applied to the capital stock of an insurer or to
paid in
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;
(p) "paid up" when applied to the capital stock of an insurer or to
paid up
any shares thereof, means capital stock or shares on which there
remains no liability, actual or contingent, to this issuing insurer;
(p.1) "person" includes a partnership;
person
(p.2) "plate glass insurance" means insurance (not being insurance
plate glass
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;
(q) "policy" means the instrument evidencing a contract;
policy
(q.1) "premium" means the single or periodical payment to be made
premium
for the insurance, and includes dues and assessments;
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Insurance Act Cap. I-4 7
(q.2) "premium note" means an instrument given as consideration premium note
for insurance whereby the maker undertakes to pay such 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;
(r) "property" includes profits, earnings and other pecuniary property
interests, and expenditure for rents, interest, taxes and other
outgoings and charges and in respect of inability to occupy the
insured premis es, but only to the extent of express provision in the
contract;
(r.1) "property damage insurance" means insurance against loss or property damage
insurance
damage to property which is not included in or incidental to some
other class of insurance defined by or under this Act;
(r.2) "provincial company" means a company incorporated by or provincial company
under an Act of the Legislature;
(s) "public liability insurance" means insurance against loss or public liability
insurance
damage to the person or property of others which is not included in
or incidental to some other class of insurance defined by or under
this Act;
(s.1) "regulations" means regulations made under the authority of regulations
this Act;
(s.2) "sick and funeral benefits" includes insurance against sickness, sick and funeral
benefits
disability or death;
(t) "sickness insurance" means insurance by which the insurer sickness insurance
undertakes to pay insurance money in the event of sickness of the
person or persons insured, but does not include disability insurance;
(t.1) "sprinkler leakage insurance" means insurance against loss of sprinkler leakage
insurance
or damage to property through the breakage or leakage of a sprinkler
equipment or other fire protection system, or of pumps, water pipes
or plumbing and its fixtures;
(t.2) "Superintendent" means the Superintendent of Insurance; Superintendent
(u) "theft insurance" means insurance against loss or damage theft insurance
through theft, wrongful conversion, burglary, house-breaking,
robbery or forgery;
(u.1) "weather insurance" means insurance against loss or damage weather insurance
through windstorm, cyclone, tornado, rain, hail, flood, or frost, but
does not include hail insurance;
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8 Cap. I-4 Insurance Act
(u.2) "workers' compensation insurance" means insurance of an
workers'
compensation employer against the cost of compensation prescribed by statute for
insurance
bodily injury, disability or death of a worker through accident or
disease arising out of or in the course of his employment. R.S.P.E.I.
1974, Cap. I-5, s.1; 1976,c.15,s.1; 1994,c.27,s.1.
PART I
SUPERINTENDENT AND HIS DUTIES
2. (1) The Lieutenant Governor in Council may appoint an officer to be
Appointment of
Superintendent called the Superintendent of Insurance.
(2) The Superintendent shall act under the instructions of the Minister,
Duties of
Superintendent have general supervision of the business of insurance within the
province, see that the laws relating thereto are enforced and obeyed, and
examine and report to the Minister upon all matters connected therewith.
(3) The Lieutenant Governor in Council may appoint officers and
Officers & clerks
clerks under the Superintendent. R.S.P.E.I. 1974, Cap. I-5, s.2.
3. In carrying out his duties and in exercising his powers under this Act
Power to receive
affidavit & examine or under any other Act relating to insurance, the Superintendent may
& compel witnesses
require and may take and receive affidavits, statutory declarations and
depositions, and may examine witnesses upon oath; and he shall have the
same power to summon persons to attend as witnesses, to enforce their
attendance, to compel them to produce books, documents and things, and
to give evidence as any court has in civil cases. R.S.P.E.I. 1974, Cap. I-5,
s.3.
4. An oath required by this Act to be taken, may be administered by the
Oaths,
administration of Superintendent. R.S.P.E.I. 1974, Cap. I-5, s.4.
5. Neither the Superintendent nor any officer under him shall be
Superintendent not
to own certain interested as a shareholder, directly or indirectly, in any insurance
shares
company doing business in the province. R.S.P.E.I. 1974, Cap. I-5, s.5.
6. (1) Without a fiat of the Attorney General, no action or proceeding
Limitation of action
against shall be brought or taken against the Superintendent for anything done or
Superintendent
omitted in the performance, or intended or supposed performance of his
duty under this Act, or under any other Act which imposes duties upon
him.
(2) The Superintendent may bring actions and institute proceedings in
Actions,
Superintendent may his name of office for the enforcement of this Act or for the recovery of
bring
fees and penalties payable hereunder.
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Insurance Act Cap. I-4 9
(3) No action or proceeding for the recovery of fees and penalties Recovery of fees,
leave required
payable hereunder shall be commenced without the leave of the
Superintendent. R.S.P.E.I. 1974, Cap. I-5, s.6; 1997,c.20,s.3; 2000, c.5,
s.3.
BOOKS AND RECORDS
7. (1) The Superintendent shall keep the following books and records: Superintendent
must keep certain
(a) a register of all licenses 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 the license,
particulars of the classes of insurance for which the insurer is
licensed, and such other information as the Superintendent considers
necessary;
(b) a record of all securities deposited by each insurer with the
Provincial Treasurer, naming them in detail, 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 agents licensed or authorized under this Act.
(2) The books and records required by this section to be kept shall be Inspection of books
and records
open to inspection at such time and upon payment of such fees as are
prescribed. R.S.P.E.I. 1974, Cap. I-5, s.7; 1983, c.1, s.6; 1986, c.5, s.2;
1993, c.29, s.4.
8. The Superintendent shall cause to be published yearly in the Gazette a List of insurers,
suspensions etc.
list of the insurers licensed at the date of the list, and he shall forthwith published annually
cause notice of the issue of a license to an insurer not theretofore
licensed and of the suspension, cancellation, revocation or reviver of a
license to be given by publication in the Gazette. R.S.P.E.I. 1974, Cap. I-
5, s.8.
9. (1) A certificate under the hand and seal of office of the Evidence of being
licensed, certificate
Superintendent that on a stated day an insurer mentioned therein was or of Superintendent
was not licensed under this Act, or that any insurer was originally
admitted to license or that the license of any insurer was renewed,
suspended, revived, revoked or cancelled on a stated day, is evidence of
the facts stated in the certificate, without proof of the signature of the
Superintendent or official signing the same.
(2) A certificate of the filing of any document required to be filed in Evidence of filing
documents
the office of the Provincial Treasurer or of the Superintendent shall be
evidence of the filing if signed or purporting to be signed by the
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10 Cap. I-4 Insurance Act
Superintendent. R.S.P.E.I. 1974, Cap. I-5, s.9; 1983, c.1, s.6; 1986, c.5,
s.2; 1993, c.29, s.4.
DUTIES RESPECTING LICENSES
10. The Superintendent shall determine the right of any insurer to be
Determination of
right to be licensed licensed under this Act, subject to appeal, and to the right of the
Lieutenant Governor in Council or of the Minister to suspend or cancel
any license as hereinafter provided. R.S.P.E.I. 1974, Cap. I-5, s.10.
11. (1) Every decision of the Superintendent upon an application for a
Decisions of
Superintendent, in license shall be in writing and notice thereof shall be forthwith given to
writing
the insurer.
(2) The insurer, or any person interested is entitled, upon payment of
Certified copy of
decision the prescribed fee, to a certified copy of the decision.
(3) The evidence and proceedings in any matter before the
Reporting evidence
by stenographer Superintendent may be reported by a stenographer sworn before the
Superintendent faithfully to report the same. R.S.P.E.I. 1974, Cap. I-5,
s.11.
12. An applicant for a license may appeal from the decision of the
Appeal to Lt. Gov.
in C. Superintendent refusing a license to the Lieutenant Governor in Council.
R.S.P.E.I. 1974, Cap. I-5, s.12.
INVESTIGATION OF INSURERS
13. The Superintendent may direct to an insurer any inquiry concerning
Inquiries re
contracts or its contracts or financial affairs, and the insurer shall make prompt and
financial affairs of
explicit answer to any such inquiry, and is, in case of refusal or neglect
an insurer
to answer, guilty of an offence. R.S.P.E.I. 1974, Cap. I-5, s.13.
14. The Superintendent, or any person authorized under his hand, shall,
Access to books,
securities and at all reasonable times, have access to all the books, securities and
documents of an
documents of an insurer, agent or adjuster, which relate to contracts of
insurer
insurance, and any officer or person in charge, possession, custody or
control of such books, securities or documents who refuses or neglects to
afford such access is guilty of an offence. R.S.P.E.I. 1974, Cap. I-5, s.14.
15. The officers, adjusters and agents of every licensed insurer, every
Information to be
provided other licensed person, and every insurer, shall furnish the Superintendent
on his request with full information relative to any contract issued by the
insurer or to the insured, and made or deemed to be made within the
province or relative to any settlement or adjustment under any such
contract. R.S.P.E.I. 1974, Cap. I-5, s.15.
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Insurance Act Cap. I-4 11
16. (1) The Superintendent shall visit personally, or cause to be visited at Annual visit to head
office or chief
least annually, the head office or chief agency in the province of every agency of each
licensed insurer, other than a mutual benefit society having less than licensed insurer &
three hundred members, or any insurer as to which he adopts the report thereon to
Minister
inspection of some other government, and he shall verify the statement of
the condition and affairs of each such 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 thereon to the Minister as to all
matters requiring his attention and decisions.
(2) Where the head office of any such insurer is not in the province the Visit head office
located outside
Minister may, in his discretion, instruct the Superintendent to visit the province
head office to inspect and examine its affairs and to make such inquiries
as the Minister requires.
(3) The officers or agents of the insurer shall produce its books and Assist
Superintendent in
records for the inspection of the Superintendent or other person making investigation
the inspection, and shall otherwise facilitate the examination so far as is
in their power.
(4) In order to facilitate such inspection the Superintendent, with the Production of books
and records at head
approval of the Minister, may require the insurer to produce the books office or chief
and records at the head office or chief agency of the insurer in the agency of insurer
province or at such other place as the Superintendent directs; any officer
of the insurer who has custody of the books and records so attending is
entitled to be paid by the insurer the actual expenses of the attendance.
(5) The Superintendent, with the approval of the Minister, may cause Abstracts of books
& vouchers,
abstracts to be prepared of the books and vouchers and a valuation to be valuation of assets
made of the assets and liabilities of any such insurer and the cost thereof & liabilities of
upon the certificate of the Superintendent, approved by the Minister, insurer
shall be paid by the insurer.
(6) Where the office of an insurer at which an examination is made is Payment of account
by insurer if out of
out of the province, the insurer shall pay the account of the province
Superintendent in connection with such examination upon the certificate
of the Superintendent approved by the Minister.
(7) With the consent of the Minister, the Superintendent may, with Inspection report by
another
respect to any insurer, accept the inspection and report, in whole or in government,
part, of, or made under the authority of, any other government in Canada. adoption by P.E.I.
R.S.P.E.I. 1974, Cap. I-5, s.16.
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12 Cap. I-4 Insurance Act
SERVICE OF PROCESS
17. (1) Where the head office of a licensed insurer is outside the
Head office of
insurer outside province, notice or process in any action or proceeding in the province
province, service
may be effectually served upon the insurer by leaving three copies of
such notice or process with the Superintendent, or in his office with the
person there in charge, or by forwarding such copies to the
Superintendent by registered mail.
(2) Every licensed insurer shall file in the office of the Superintendent
Notice of post
office address, filed, notice of a post office address to which any such notice or process may
to be
be forwarded by the Superintendent and shall notify the Superintendent
of any change in the address.
(3) The Superintendent shall forthwith after the receipt of such notice
Copy of notice
returned by post to or process in triplicate, forward one copy thereof to the insurer by
insurer
registered mail, postage prepaid, addressed in the manner last notified, to
him for this purpose by the insurer.
(4) The Superintendent shall keep a record of all such proceedings,
Record of all
service of process showing the day and hour of such service of process.
(5) No judgment against the insurer shall be entered for default of
Judgment not to be
entered against appearance or defence in such action or proceeding unless and until an
insurer until
affidavit is filed in the court, out of or by which such process is issued,
showing that the Superintendent has duly forwarded a copy thereof to the
insurer. R.S.P.E.I. 1974, Cap. I-5, s.17.
ANNUAL REPORT
18. (1) The Superintendent shall prepare for the Minister, from the
Annual report to
Minister, contents statements filed by the insurers and from any inspection or inquiries
& publication
made, an annual report showing particulars of the business of each
insurer as ascertained from such statements, inspection and inquiries; and
such report may at the discretion of the Minister be printed and
published.
(2) In his report the Superintendent shall allow as assets only such of
Assets permitted to
be shown for the investments of any insurer as are authorized by this Act, its charter or
insurers
any other Act applicable to such investments.
(3) In his report the Superintendent shall make the necessary
Corrections in
annual statements 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.
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Insurance Act Cap. I-4 13
(4) If it appears to the Superintendent, or if he has any reason to
Value of real estate,
suppose, from the annual statement that the value placed by an insurer, appraisal
incorporated and licensed under the laws of the province, upon any of its
real estate is too great, he may either require the insurer to secure an
appraisement of the real estate by one or more competent valuators, or
may himself procure the 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.
(5) In like manner the Superintendent may procure an appraisement of Land used as
security for loans,
any parcel of land which constitutes the security for any loan, and if from appraisal,
the appraisal it appears that the parcel is not adequate security for the amending, reporting
loan and accrued interest, he may reduce the value to such an amount as
is fairly realizable from such security, in no case to exceed the appraised
value, and may insert the reduced value in his report.
(6) In like manner the Superintendent may make or cause to be made Appraisal of
securities of an
an appraisal of the security taken for any investment of the insurer, and if insurer
it appears that the value of the securities as shown on the books of the
insurer is greater than its 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
the reduced amount in his annual report.
(7) The Superintendent may require any insurer incorporated and Disposal &
realization of
licensed under the law of the province to dispose of and realize any of its investments by
investments acquired after October 1, 1933, and not allowed in his insurer upon order
report, and the insurer shall, within sixty days after receiving such of Superintendent
request, absolutely dispose thereof and, if the amount realized therefrom
falls below the amount paid by the insurer therefor, the directors of the
insurer are jointly and severally liable for the payment to the insurer of
the amount of the deficiency.
(8) Notwithstanding subsection (7) if any director present when such Protest by director
to exonerate himself
an investment was authorized did forthwith, or if any director then from liability
absent, did, within eight days after he becomes aware of such investment,
protest and give notice thereof by registered letter to the Superintendent,
such director may thereby, and not otherwise, exonerate himself from
such liability.
(9) An insurer affected thereby may appeal to the Lieutenant Governor Appeal to
Lieutenant
in Council from the ruling of the Superintendent as to the allowance in Governor in
his report of any asset not allowed by him, or as to any item or amount Council
added to liabilities, or as to any correction or alteration made in its
statement. R.S.P.E.I. 1974, Cap. I-5, s.18.
13
14 Cap. I-4 Insurance Act
APPEAL FROM SUPERINTENDENT'S DECISION
19. (1) Where by this Act an appeal to the Lieutenant Governor in
Request for
Superintendent's Council is given to any person, the Superintendent shall, at the request of
decision in writing
such person, give a certificate in writing, setting forth the ruling
& time for filing
complained of and his reasons therefor, and the ruling shall be binding
appeal
upon such person, unless within ten days after giving thereof such person
serves upon the Superintendent notice of his intention to appeal
therefrom, setting forth the grounds of appeal, and within ten days
thereafter files his appeal with the Lieutenant Governor in Council and
with due diligence prosecutes the same, in which case action on such
ruling shall be suspended until the Lieutenant Governor in Council
renders judgment thereon.
(2) The Superintendent shall certify and file with the Clerk of the
Decision to be
certified and filed Executive Council the decision appealed from and his reasons therefor,
with Clerk of
and the documents, statements, inspection reports, certificates,
Executive Council
declarations, and other papers relating to the matter and any evidence
taken and such other information as he had before him in making his
decision. R.S.P.E.I. 1974, Cap. I-5, s.19.
PART II
GENERAL PROVISIONS APPLICABLE TO INSURERS
IN PRINCE EDWARD ISLAND
20. (1) Any insurer undertaking a contract of insurance which, under this
Undertaking
insurance in Act, is deemed to be made in the province, whether the contract is
province, when
original or a renewal, except the renewal of life insurance policies, is
deemed
deemed to be undertaking insurance in the province within the meaning
of this Part.
(2) Any insurer that within the province,
Insurer carrying on
business in (a) undertakes or offers to undertake insurance;
province, who is
(b) sets up or causes to be set up any sign containing the name of the
deemed to be
insurer;
(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 outside the province;
(d) distributes or publishes or causes to be distributed or published
any proposal, circular, card, advertisement, printed form, or a like
document;
(e) makes or causes to be made any written or oral solicitation for
insurance;
(f) issues or delivers any policy of insurance of 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
14
Insurance Act Cap. I-4 15
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,
is deemed to be an insurer carrying on business in the province within
the meaning of this Act.
Subscribership and
(3) Every insurance company licensed to issue a motor vehicle liability membership, certain
required
policy shall:
(a) subscribe to the facility or any automobile insurance pool as
approved by the Superintendent and shall be bound by any and all
provisions governing such subscribers and members;
(b) provide automobile insurance as required under Part XI of the
Highway Traffic Act R.S.P.E.I. 1988, Cap. H-5. R.S.P.E.I. 1974,
Cap. I-5, s.20; 1975,c.49,s.1; 1994,c.27,s.2.
21. (1) Without prejudice to subsection 20(3), every insurer carrying on Plan for automobile
insurance coverage,
the business of automobile insurance in the province shall be a including uninsured
participant in, and subject to the terms and conditions of, a government motorists
approved plan to ensure a market for automobile insurance to all owners
and licensed operators of motor vehicles and to provide, in accordance
with section 245.1 to 245.993, payment with respect to claims for
damages made by persons who are not insured under a contract within
the meaning of section 245 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
bylaws and this Act, establish and implement the Plan of Operation and
carry out its obligations in the province with respect to that Plan.
(2) A plan under subsection (1) may be administered by an association Association
of insurers.
(3) A copy of the constitution and bylaws of an association and the Approval
rules of a proposed plan shall be submitted to the Superintendent for
approval and no association or plan shall become effective until such
documents are filed with the Superintendent and he gives approval
thereto.
(4) No change shall be made in the documents referred to in subsection Changes
(3) and no termination of a plan shall be effective unless notice thereof is
given to the Superintendent at least thirty days before the proposed
effective date and the change or termination is approved by the
Superintendent.
(5) Repealed by 2003,c.1,s.1. Rates
(6) Repealed by 2003,c.1,s.1. Order
15
16 Cap. I-4 Insurance Act
(7) Where an agent submits an application under a plan to an insurer,
Agents
the agent is bound by the constitution and bylaws of the association and
the rules of the plan. 1982,c.12,s.1; 1994,c.27,s.3; 2003,c.1,s.1.
LICENSES
22. (1) Every insurer carrying on business in the province shall obtain
Insurers must be
licensed from the Superintendent and hold a license under this Act.
(2) Every insurer carrying on business in the province without having
Offence for not
being licensed obtained a license as required by this section is guilty of an offence.
(3) Any person who, within the province, does or causes to be done
Idem
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.
(4) The following shall not be deemed insurers within the meaning of
Exception to
requirement for this Act or required or entitled to be licensed as such:
license
(a) employees mutual benefit societies;
(b) a trade union which, under the authority of its charter, has an
assurance or benefit fund for the benefit of its own members
exclusively;
(c) such other organizations as the Lieutenant Governor in Council
determines.
(5) An insurer incorporated and licensed by the province and which
Insurer carrying on
business outside carries on or solicits business in any foreign jurisdiction without being
province
first authorized so to do under the laws of the foreign jurisdiction, is
guilty of an offence. R.S.P.E.I. 1974, Cap. I-5, s.21.
23. Nothing in this Act prevents a licensed insurer who has lawfully
Reinsuring risk
outside province 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. R.S.P.E.I. 1974, Cap. I-5, s.22.
24. (1) Upon due application and upon proof of compliance with this
Licenses, issuance
of to certain classes Act, the Superintendent may issue a license 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 companies;
(c) fraternal societies;
(d) mutual benefit societies;
(e) companies duly incorporated to undertake insurance contracts
and not within any of the foregoing classes;
16
Insurance Act Cap. I-4 17
(f) underwriters or syndicates of underwriters operating on the plan
known as Lloyd's;
(g) underwriting members of the Canadian Insurance Exchange.
License, authority
(2) A license issued pursuant to this Act authorizes the insurer named for certain powers
therein to exercise within the province all rights and powers reasonably
incidental to the carrying on of the business of insurance named therein,
which are not inconsistent with this Act or its charter. R.S.P.E.I. 1974,
Cap. I-5, s.23; 1987, c.35, s.1.
25. (1) Subject to Parts of this Act particularly relating to classes of License for one or
more classes of
insurers mentioned in section 24, a license may be granted to an insurer insurance
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.
(2) A license may be issued subject to such limitation and conditions Limitation, imposed
on license
as the Minister may prescribe.
(3) A license to carry on automobile insurance in the province is Conditions imposed
on licenses to carry
subject to the following conditions: on automobile
(a) in any action in the province against the licensed insurer, or its insurance
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
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 or territory
that might not be set up if the contract were evidenced by a motor
vehicle liability policy in the other province or territory.
(4) The license to an insurer who commits a breach of either of the Cancellation of
license if breach of
conditions of license set out in subsection (3) may be cancelled. conditions
(5) Every insurer licensed for the transaction of life insurance may, Life insurance,
license authorizes
under the authority of its license, unless the license expressly provides issue of annuities
otherwise, issue annuities and endowments of all kinds and also include and endowments
in any policy of life insurance, in respect of the same life or lives insured
thereby, disability insurance and accidental death insurance.
(6) Every insurer licensed to carry on fire insurance may, subject to its Fire insurance
license, authorizes
act of incorporation, and subject to the restrictions prescribed by the insurance or
license, insure or reinsure any property in which the insured has an reinsurance
17
18 Cap. I-4 Insurance Act
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.
(7) An insurer licensed to carry on fire insurance may insure an
Fire insurance,
license, authorizes automobile against loss or damage under a policy falling within Part IV
insurance against
of this Act, but in the case of a purely mutual fire insurance corporation,
loss or damage
incorporated or licensed in Prince Edward Island and carrying on
under Part IV policy
business on the premium note plan, the automobile shall be specifically
insured under a policy separate from that insuring other property.
(8) Where a question arises as to the class of insurance into which any
Determination of
class of insurance specific contract of insurance or form of policy falls, the Superintendent
into which a
may determine the question, and his determination shall be effective and
contract falls
final for the purposes of this Act. R.S.P.E.I. 1974, Cap. I-5, s.24;
1991,c.17,s.1.
26. (1) A license shall not be granted to a joint stock insurance company
Capital
requirements not licensed before January 1, 1989, unless the company furnishes to the
Superintendent satisfactory evidence that
(a) if the company is applying for a license to transact the business
of life insurance, the company has paid up capital and surplus of not
less than $5,000,000 of which at least $2,500,000 is paid up capital
and at least $1,250,000 is unimpaired surplus;
(b) if the company is applying for a license to transact any class of
business other than life insurance, the company has paid up capital
and surplus of not less than $3,000,000 of which at least $1,500,000
is paid up capital and at least $750,000 is unimpaired surplus.
(2) A license shall not be granted an insurance company mentioned in
License for
underwriters clause 24(1)(e), or to an underwriter or syndicate of underwriters
operating on the plan known as Lloyd's or to an underwriting member of
the Canadian Insurance Exchange except upon proof that
(a) its, or his, net surplus of assets over all liabilities exceeds the
paid up capital stock required in the case of a joint stock company
under the preceding subsection, carrying on the same class of
insurance; and
(b) its net surplus together with the contingent liability of members,
if any, exceeds the subscribed and allotted capital stock required in
the case of such a joint stock insurance company.
18
Insurance Act Cap. I-4 19
(3) A license shall not be granted to a mutual insurance company,
License for mutual
except upon proof that insurance company
(a) the total amount insured under the contracts of the company in
force at the expiration of one year from the date of the issue of the
initial license amounts to at least $100,000;
(b) thereafter the total amount insured under contracts at all times
equals at least $100,000.
(4) A license shall not be granted to any insurer except upon proof that Proof of compliance
with Act
the insurer has complied with the Part of this Act and regulations
applicable thereto.
(5) Where the head office of an applicant for a license under this Act is Head office of
insurer outside
outside the province, a license shall not be granted except upon proof of province, license
the applicant's ability to provide for the payment at maturity of all its issued upon proof
contracts, but the Superintendent may accept as sufficient the fact that of certain facts
such insurer is licensed by any government in Canada, Federal or
Provincial. R.S.P.E.I. 1974, Cap. I-5, s.25; 1984, c.24, s.1; 1987, c.35,
s.2; 1990, c.24, s.1.
27. The Superintendent may require notice of the application for a Publication of
notice of
license to be given by publication in the Gazette and elsewhere. application for
R.S.P.E.I. 1974, Cap. I-5, s.26. license
28. (1) Before the issue of a license to an insurer, the insurer shall file in Insurer must file
certain documents
the office of the Superintendent and information
(a) a certified copy of its Act or charter of incorporation, which shall before issuance of
include its regulations verified in manner satisfactory to the license
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
situated, if outside the province;
(e) notice of the place where the chief agency or head office of the
insurer in the province is to be situated;
(f) a statement showing the amount of the capital of the insurer and
the number of shares into which it is divided, the number of shares
subscribed and the amount paid up thereon;
(g) a certified copy of the power of attorney to the Canadian chief
agent, if any;
(h) notice of appointment of chief agent or resident manager for the
province;
19
20 Cap. I-4 Insurance Act
(i) a statement in such form as is required by the Superintendent of
the condition and affairs of the insurer on December 31 then last
preceding or up to usual balancing day of the insurer or as the
Superintendent requires; and
(j) such other evidence as the Superintendent requires.
(2) In the event of a change being made in the charter of the insurer or
Change in charter
or head office, its head office or chief agency or in its chief agent, the insurer shall
notification of
forthwith notify the Superintendent thereof and file with him such further
Superintendent
certified copies, notices or powers of attorneys as are necessary to
evidence the change. R.S.P.E.I. 1974, Cap. I-5, s.27.
29. (1) Upon application being made for a license by an insurer
Costs of
incorporation & list incorporated under the laws of the province after October 1, 1933, there
of unpaid liabilities,
shall be submitted to the Superintendent a sworn statement setting forth
statement to
the several sums of money paid in connection with its incorporation and
accompany
application for
organization, and therein a list of all unpaid liabilities, if any, arising out
license
of such incorporation and organization.
(2) Until the license is granted, no payment on account of such
Limitation on
payment of expenses, shall be made out of the moneys paid in by shareholders
expenses before
except reasonable sums for the payment of clerical assistance, legal
license issued
services, office rental, advertising, stationery, postage and expense of
travel, if any.
(3) The Superintendent shall not issue the license until he is satisfied
License not to be
issued if certain that all requirements of this Act and of any other Act as to subscriptions
procedures not
of stock, payment of money by shareholders on account thereof, election
followed
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. R.S.P.E.I.
1974, Cap. I-5, s.28.
30. (1) When an insurer has deposited the security required by this Act
License issued if
security deposited and has otherwise complied with the requirements thereof and of any
other Act of the province, the Superintendent may issue a license to it.
(2) The license shall be in such form as the Superintendent may
Form of license
determine and shall
(a) specify the business to be carried on by the insurer;
(b) remain in force for a period not exceeding two years;
(c) expire on such date as may be specified therein,
and may be renewed on application to the Superintendent and payment
of the prescribed fee. R.S.P.E.I. 1974, Cap.I-5.s.29; 1997(2nd),c.66,s.1.
20
Insurance Act Cap. I-4 21
CANCELLATION OF LICENSE
31. (1) Upon written notice to the Superintendent and upon proof of an Where
Superintendent to
undisputed claim arising from loss insured against in the province cancel license
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 license 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 license should
not be cancelled.
(2) The Superintendent may revive the license and the insurer may Reviving license
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 the final judgment, the undisputed claim or final
judgment is paid and satisfied. R.S.P.E.I. 1974, Cap. I-5, s.30.
32. When the insurer fails to keep unimpaired the deposit required by Deposit not
maintained, where
this Act, the Minister may suspend or cancel the license of the insurer.
R.S.P.E.I. 1974, Cap.I-5, s.31.
33. (1) If the Superintendent, upon examination, or from annual Assets of insurer
insufficient or
statements, or upon other evidence, finds that the assets of any insurer insurer failed to
are insufficient to justify the continuance of the insurer in business or to comply with law,
provide proper security to persons effecting insurance with the insurer in Superintendent to
report to Minister
the province or that the insurer has failed to comply with any provision
of law, or its charter, he shall so report to the Minister.
(2) In the case of an insurer undertaking contracts of life insurance, if When assets
deemed to be
its policy reserves, and, in the case of any other insurer, if its unearned insufficient
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 Provincial Treasurer, the assets of the insurer shall be
deemed insufficient to justify its continuance in business within the
meaning of subsection (1).
(3) If the Minister, after consideration of the report and after hearing or Suspension or
cancellation of
giving notice of a hearing to the insurer, and upon any further license by Lt. Gov.
investigation he thinks proper, reports to the Lieutenant Governor in in C.
Council that he concurs in the report of the Superintendent, the
Lieutenant Governor in Council may suspend or cancel the license of the
insurer.
21
22 Cap. I-4 Insurance Act
(4) Upon the publication of notice of the suspension or cancellation of
Transacting
license in the Gazette, any person transacting business on behalf of the
business after
insurer, except for winding-up purposes, is guilty of an offence.
suspension etc., an
offence or
Limited
(5) Where the Superintendent has so reported, the Minister or the
conditional license,
issuance to protect Lieutenant Governor in Council may direct the issue of such modified,
insureds
limited or conditional license as is considered necessary for the
protection of persons in the province who have effected or effect
contracts of insurance with the insurer. R.S.P.E.I. 1974, Cap. I-5, s.32;
1983, c.1, s.6; 1986, c.5, s.2; 1993, c.29, s.4.
34. Upon the suspension or cancellation of the license of an insurer by
Suspension etc. in
another province or any government in Canada, the Superintendent may suspend or cancel
by Canada
the license of such insurer under this Act. R.S.P.E.I. 1974, Cap. I-5, s.33.
35. Where the license of an insurer is suspended or cancelled, it may be
Reviving a
suspended or revived if the insurer makes good the deposit, or the deficiency, or
cancelled license
remedies its default, as the case may be, to the satisfaction of the
Minister. R.S.P.E.I. 1974, Cap. I-5, s.34.
36. The Superintendent shall report to the Minister any violation of any
Violation of Act by
insurer, report to of the provisions of this Act by a licensed insurer and thereupon the
Minister, powers of
Minister may, in his discretion, suspend or cancel or refuse to renew the
Minister
insurer's license. R.S.P.E.I. 1974, Cap. I-5, s.35.
DEPOSITS
Sections 37 to 60 are repealed by 1994,c.27,s.4.
INVESTMENTS
61. (1) An insurer, incorporated and licensed under the laws of the
Permitted
investments for province, may invest its surplus funds and reserve in the following
surplus funds &
securities and no others:
reserve
(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 twenty per cent of the total amount of the insurer's
investment;
(b) the stock, funds or government securities issued or guaranteed by
the United States;
(c) the bonds or debentures of any municipality or school district in
Canada, or bonds or debentures secured by rates of 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;
22
Insurance Act Cap. I-4 23
(d) terminating debentures of incorporated companies which 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 clause shall not in the
aggregate exceed one-fifth of the paid up capital of the insurer;
(e) in the case of a life insurer, life or endowment contracts issued
by the insurer, but not in excess of the loan value of such contract.
(2) Uninvested funds of the insurer shall be kept on deposit in the Uninvested funds,
on deposit
name of the insurer in a savings institution. R.S.P.E.I. 1974, Cap. I-5,
s.60; 1994,c.27,s.5.
BOOKS OF INSURERS
62. Each insurer shall keep such a classification of its contracts and such Classification of
contracts, registers
registers and books of account, as are directed or authorized by the & books to be kept
Superintendent; and if it appears to the Superintendent that such books by insurer, & audit
are not kept in such business-like way as to make a proper showing of by Superintendent
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 expense of the accountant shall not exceed $10 per day and
necessary travelling expenses, and shall be paid forthwith by the insurer
upon being certified and approved by the Superintendent. R.S.P.E.I.
1974, Cap. I-5, s.61.
63. Where the insurer has a share or stock capital, the stock register or Stock register open
to examination
register of members shall at all reasonable times be open to the
examination of the Minister or Superintendent. R.S.P.E.I. 1974, Cap. I-5,
s.62.
RECORDS AND RETURNS
64. (1) Every licensed insurer that carries on the business of fire Fire insurance
insurers, record of
insurance shall keep a record of its premium income derived from risks premium income
located in the province and of claims paid in respect of such risks so as to
show its experience according to the classification of occupancy hazards
of the National Board of Fire Underwriters, with such modifications as
the Superintendent prescribes.
(2) If it appears to the Minister on the report of the Superintendent that Records of insurer
not accurate,
such records are not kept in such a manner as to show correctly the accountant may be
experience of the insurer, the Minister may nominate an accountant to named to audit
23
24 Cap. I-4 Insurance Act
proceed under his direction to audit the books and records of the insurer
and to give such instructions as will enable the insurer to keep the
records correctly thereafter.
Expense of audit
(3) The expense of such an audit shall not exceed $15 per day and
necessary travelling expenses and the account shall, when certified and
approved by the Superintendent, be paid forthwith by the insurer.
(4) Every licensed insurer undertaking the business of fire insurance
Fire insurance
insurer, statement shall, if required by the Superintendent, prepare and file annually with
of premium income
the Superintendent on or before May 1 in each year, on a printed form to
& loss
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.
(5) Any insurer and the principal officer within the province of any
Offence for
contravening insurer who contravenes this section is guilty of an offence. R.S.P.E.I.
section
1974, Cap. I-5, s.63.
65. (1) Every licensed insurer that carries automobile insurance shall
Automobile
insurance prepare and file with the Superintendent, or with such statistical agency
as he may designate,
(a) a record of its automobile insurance claims, including
information on identifiable individuals respecting specific
automobile insurance claims; and
(b) a record of its automobile insurance premiums, and of its loss
and expense costs in the province, in such form and manner and
according to such system of classification, as he approves.
(1.1) The Superintendent may make available to automobile insurers
Disclosure of
claims information information collected pursuant to subsection (1) either directly or
to insurers
through an agency.
(2) The Superintendent may require any agency so designated to
Compilation of data
at expense of compile the data so filed, and the expense of making such compilation
insurers
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 shall be payable by the
insurer to the agency forthwith.
(3) Subsections (2), (3) and (5) of section 64 apply, with appropriate
Application of
provisions to this changes to this section. R.S.P.E.I. 1974, Cap. I-5, s.64; 1990,c.24,s.2;
section
1991,c.17,s.2.
65.1 (1) In this section
Definitions
24
Insurance Act Cap. I-4 25
(a) "base rate per vehicle" has the meaning prescribed by the
regulations;
(b) "earned vehicle" has the meaning prescribed by the regulations;
(c) "levy year" means a calendar year in which premiums are
receivable in respect of automobile insurance business transacted in
the province.
(2) Every licensed insurer that carries on the business of automobile Levy
insurance shall, in respect of each levy year, pay to the Superintendent a
levy equal to the base rate per vehicle multiplied by the number of
earned vehicles.
(3) Every licensed insurer liable to pay a levy under subsection (2) Quarterly payment
of levy
shall, on or before the last day of the months of March, June, September
and December in each levy year, pay an amount equal to one-quarter of
the levy it estimates will be payable in respect of that levy year,
calculated by reference to the number of earned vehicles for the
preceding levy year and the base rate per vehicle.
(4) Every licensed insurer liable to pay a levy under subsection (2) Return and
adjustment
shall, on or before March 31 of the year following the levy year, file a
return, in such form as the Superintendent may require, showing the
amount of the levy payable by it in respect of the levy year and shall
remit to the Superintendent the amount of the levy, if any, payable by it
after taking into account payments made under subsection (3).
(5) Where the payments made under subsection (3) exceed the amount Refund
of the levy payable, the Superintendent shall refund the excess amount
within thirty days following receipt of the return.
(6) Where any levy is not paid in full on the date on which payment is Interest
due, the licensed insurer shall pay to the Superintendent the amount due,
together with interest on the unpaid portion at the rate of 6% from the
due date to the date of payment.
(7) Where a levy is paid by a licensed insurer under this section, the Subrogation
suspended by
rights of subrogation against that insurer payment of levy
(a) conferred by subsection 22(4) of the Health Services Payment
Act; and
(b) conferred by subsection 14(4) of the Hospital and Diagnostic
Services Insurance Act R.S.P.E.I. 1988, Cap. H-8
are suspended. 1991,c.17,s.3; 1999,c.27,s.7.
66. Every insurer shall deliver to the Superintendent, within one month Bylaws, delivery to
Superintendent
after the passing thereof, a certified copy of its bylaws and of every
repeal, amendment or consolidation thereof or addition thereto.
R.S.P.E.I. 1974, Cap. I-5, s.65.
25
26 Cap. I-4 Insurance Act
67. A copy of every balance sheet or other statement published or
Balance sheet,
financial circulated by an insurer purporting to show its financial condition,
statements, &
together with any auditor's report thereon, shall be mailed or delivered to
auditor's report,
the Superintendent concurrently with its issue to its shareholders or
delivery to
Superintendent
policyholders, or to the general public. R.S.P.E.I. 1974, Cap. I-5, s.66.
68. Each auditor of an insurer in the report to be made to shareholders
Auditor to report to
shareholders certain shall state
matters
(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 this 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 this 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, with his
independent opinion so formed, and according to the best of his
information, and the explanation 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. R.S.P.E.I. 1974, Cap. I-5, s.67.
69. (1) Every licensed insurer shall prepare annually and deliver to the
Insurer's statement
of condition of Superintendent on or before the last day of February of each year, a
affairs for preceding
statement of the condition of affairs of the insurer as at December 31 last
year, contents
preceding, which statement shall be in such form 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 it shall
exhibit particulars of the business done in the province during such year
and such other information as is required by the Minister or
Superintendent.
(2) In the case of a corporation the statement shall be verified by the
Statement of
corporation, president, vice-president or managing director, or other director
verification by
appointed for the purpose by the board of directors, and by the secretary
directors
or manager of the corporation.
(3) Every insurer shall, when required by the Superintendent, make
Explanation of
statement prompt and explicit answer in reply to any inquiry directed to the insurer
26
Insurance Act Cap. I-4 27
by him in relation to the statement or in relation to the transactions of the
insurer in the province.
(4) In the case of all classes of insurance other than life insurance, and Certain classes of
insurance to show
insurance on the premium note plan, the statement shall show as a actual portions of
liability of the insurer, eighty per cent of the actual portions of unearned unearned premiums
premiums on all business in force on December 31 then last past, or as liabilities
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 in
proportion on those for longer periods.
(5) In the case of insurers transacting life insurance the statements shall Valuation of
outstanding
show as a liability the valuation of outstanding contracts of insurance contracts of
according to the standard for valuation of policies of life insurance insurance, liability
prescribed by this Act, or such higher standards as the insurer, with the in life insurance
approval of the Superintendent, adopts.
(6) The statement shall not show as assets the unpaid balances owing Unpaid balances on
business written
by agents or other insurers in respect of business written prior to October prior to Oct. 1 not
1 in the preceding year, or bills receivable on account thereof, or unpaid to be shown as
capital or premium on subscribed shares of capital stock, or investment assets
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.
(7) Every licensed insurer may, in its annual statement or in any Valuation of
securities by insurer
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 rules,
(a) if purchased at par, at the par value;
(b) 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 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, and the Superintendent shall
have full discretion in determining the method of calculating values
according to the foregoing rule. R.S.P.E.I. 1974, Cap. I-5, s.68.
70. An insurer shall not publish or circulate a statement purporting to Offence for insurer
to publish financial
show the financial condition of an insurer differing from that shown by statement differing
the statement filed with the Superintendent, or a balance sheet or other from one filed
statement in form differing from that prescribed by the regulations, and if
it does, it is guilty of an offence. R.S.P.E.I. 1974, Cap. I-5, s.69.
27
28 Cap. I-4 Insurance Act
71. Every person, who represents orally or in writing that the issue of a
Offence to represent
license as guarantee license to an insurer or the printing or publication of an annual statement
of financial
in the report or any other publication of the Superintendent or any other
standing etc.
circumstance 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. R.S.P.E.I. 1974, Cap. I-5, s.70.
LIFE INSURANCE RESERVES
72. (1) The valuation of contracts of life insurance issued by insurers
Valuation of
contracts of life incorporated and licensed under the law of the province, except contracts
insurance, method
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 year, 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 year, for the
valuation of contracts issued on and after January 1, 1929.
(2) In computing the valuation a deduction may be allowed from the
Deduction
permitted from value of a policy in the first policy year of an amount ascertained in the
valuation
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 which 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.
(3) After the first policy year the deduction allowed by subsection (1)
Deduction
diminished in shall be diminished each year by an amount not less than one ninth of the
succeeding years
deduction in the first policy year so that in the tenth year from the date of
issue, the value of the policy shall not be less than that ascertained in
accordance with subsection (1).
(4) In case of policies subject to less than ten annual premiums the
Policies subject to
less than ten annual deduction ascertained as provided in subsection (2) shall, in each year
premiums,
after the first policy year, be reduced by an amount not less than the
deductions for
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).
(5) No insurer shall issue any contract of life insurance that does not
Contracts of life
insurance to be self- appear to be self-supporting upon reasonable assumption as to interest,
supporting
mortality and expenses.
28
Insurance Act Cap. I-4 29
(6) Where a contract of life insurance provides for accident or sickness Valuation of
accident or sickness
insurance benefits, the Superintendent may prescribe by regulations the insurance benefits
basis for valuing such benefits, but no deduction shall be allowed from
the basis so fixed under subsection (2), 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 the preceding
subsections is to be based, shall be the net annual premium exclusive of
the premium for such accident or sickness benefits.
(7) In the case of annuity contracts, whether immediate or deferred, the Annuity contracts,
valuation of,
valuation shall be the British Officers' Select Life Annuity Table, 1893, method
(male or female according to the sex of the nominee), with interest at
three and one-half per cent per year. R.S.P.E.I. 1974, Cap. I-5, s.71.
INSURANCE WITH UNLICENSED INSURERS
73. (1) No person in the province shall enter into a contract of insurance Prohibition from
contracting with
with an insurer not licensed under this Act, except through a special unlicensed insurer
broker duly licensed.
(2) No person other than an insurer or its duly authorized agent shall Holding out as
purchaser, seller,
advertise or hold himself out as a purchaser of life insurance policies or tranferor etc. of life
benefits thereunder, nor shall he traffic or trade in life insurance policies insurance policies,
for the purpose of procuring the sale, surrender, transfer, assignment, restricted
pledge or hypothecation thereof, to himself or any other person, and if he
does so, he is guilty of an offence. R.S.P.E.I. 1974, Cap. I-5, s.72.
UNDERWRITERS' AGENCIES
74. (1) An insurer shall not issue a policy of insurance through an Permit required to
issue insurance
underwriters' agency unless th e insurer is licensed to carry on business in through an
the province and has obtained from the Superintendent a permit to issue underwriters'
contracts of insurance through the agency. agency
(2) Every policy of insurance issued through an underwriters' agency Form of policy
issued through
shall be in a form approved by the Superintendent, and shall bear upon underwriters'
its face the name and address of the insurer in a prominent and agency
conspicuous manner, and the name of the underwriters' agency shall not
appear on the face of the policy.
(3) On no other part of the policy shall the name of the underwriters' Underwriters'
agency name,
agency appear, except that for identification purposes the words "issued location on policy
through the ........................Underwriters' Agency" may be inscribed
on the filing back of the policy, following the name of the insurer in a
manner approved by the Superintendent.
29
30 Cap. I-4 Insurance Act
(4) Upon an application for a permit under this section the insurer shall
Proof of form of
policy to be furnish to the Superintendent evidence of its approval and adoption of
provided with
the form of policy to be issued through the underwriters' agency and of
application for
the authority of the agency to bind the insurer.
permit
(5) The permit shall be in a form prescribed by the Superintendent, and
Form of permit &
expiry of shall expire on December 31 of the year of its issue, but shall be
renewable from year to year.
(6) Every insurer issuing a policy of insurance through an
Annual return of
business transacted underwriters' agency shall file an annual return of the business
transacted through such agency in a form prescribed by the
Superintendent. R.S.P.E.I. 1974, Cap. I-5, s.73.
FORFEITURE FOR NON-USER OR DISCONTINUANCE
75. (1) If an insurer incorporated under the law of the province does not
Incorporated insurer
does not go into go into actual operation within two years after incorporation, or if, after
business within two
an insurer has undertaken contracts, it discontinues business for one year,
years, discontinues
or if its license remains suspended for one year, or is terminated
business or has
license suspended,
otherwise than by effluxion of time and is not renewed within the period
corporate powers
of sixty days, the insurer's corporate powers shall thereupon cease and
cease
determine, except for the sole purpose of winding-up its affairs; and the
court upon the application of the Attorney General, or of any person
interested, may limit the time within which the insurer shall settle and
close its accounts, and may, for that purpose or for the purpose of
liquidation generally, appoint a receiver.
(2) No such forfeiture affects prejudicially the rights of creditors as
Creditors' rights not
affected they exist at the date of the forfeiture.
prejudicially
(3) In any action or proceeding where such non-user is alleged, proof
Onus of proof of
user on insurer of user shall be upon the insurer. R.S.P.E.I. 1974, Cap. I-5, s.74;
1997,c.20,s.3; 2000,c.5,s.3.
WINDING-UP
76. (1) When an insurer incorporated under or subject to the law of the
Notice of intent to
voluntarily liquidate province proposes to go into voluntary liquidation, at least one month's
notice thereof shall be given to the Superintendent.
(2) The notice shall state the date at which contracts are to cease to be
Contents of notice
taken by the insurer, and the name and address of the liquidator, or the
intention of the insurer to apply on a stated date for the appointment of a
liquidator.
30
Insurance Act Cap. I-4 31
(3) No fraternal society or mutual insurance company, to which this Certain insurance
companies require
Act applies, shall go into voluntary liquidation or otherwise arrange for consent of
the winding up of its affairs without the written consent of the Superintendent
Superintendent. R.S.P.E.I. 1974, Cap. I-5, s.75.
77. Where an insurer is wound up, each person contracted with on the Persons on cash
plan, entitlement to
cash plan is entitled to a refund of the unearned proportion of the cash refund
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 which that person has against the insurer. R.S.P.E.I. 1974, Cap.
I-5, s.76.
78. (1) Upon a winding-up, the liquidator may, without the consent of Reinsurance of
contracts by
the policyholders, arrange for the reinsurance of contracts in some other liquidator without
licensed insurer, and for the purpose of securing the reinsurance, the consent of
entire assets of the insurer in the province are available, except the policyholders
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 of the
payments are a first charge upon the assets of the insurer, and its other
creditors are entitled to a dividend on their claims only if the assets are
more than sufficient to provide for such payments and the reinsurance.
(2) If the assets of the insurer are insufficient to provide for the Reinsurance of
some only of the
payments, and the reinsurance in full, the liquidator may effect contracts
reinsurance of such a percentage of the several contracts as the available
assets provide.
(3) If the liquidator fails to secure reinsurance, the assets shall, subject Liquidation
proceeds applied to
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.
(4) Nothing in this section prejudices or affects the priority of any Certain priorities
not affected
mortgage, lien or charge upon the property of the insurer. R.S.P.E.I.
1974, Cap. I-5, s.77.
79. Where the insurer being a corporation is not constituted exclusively Insurance business
severable from
or chiefly for insurance purposes and the insurance branch and fund are other businesses of
completely severable from every other branch and fund of the a company
corporation, the word "insurer" for the purposes of sections 77 and 78,
mean only the insurance branch of the corporation. R.S.P.E.I. 1974, Cap.
I-5, s.78.
31
32 Cap. I-4 Insurance Act
80. (1) Where a fraternal society transacts endowment or expectancy
Determination that
endowment or insurance and has an endowment fund separate and distinct from its life
expectancy be
insurance fund, the society may, by resolution passed at a general
discontinued by
meeting after at least one months notice of such intended resolution,
resolution of
fraternal society
determine that the endowment or expectancy be discontinued, and that
the endowment or expectancy fund be distributed in proportion among
the members then in good standing who are contributing to the fund, to
each member according to his total contribution.
(2) After the resolution is assented to by the Superintendent and filed
Distribution of
funds among by him, the executive officers may proceed to ascertain the persons
persons entitled,
entitled to rank upon the fund and may distribute the fund among those
discharge of
entitled, and the distribution discharges the society and all executive
liability
officers thereof from all liability in respect of the fund and of the
endowment or expectancy contracts undertaken by the society.
(3) If all the members interested in the endowment or expectancy fund
Where members
interested in are also interested as holders of life insurance contracts, the general
endowment or
meeting, instead of determining that the endowment or expectancy fund
expectancy fund
be distributed, may determine that such fund be converted into or merged
also interested as
holders of life
in a life insurance fund, and after the resolution is so assented to and
insurance contracts
filed, the endowment or expectancy fund shall become and be a life
insurance fund. R.S.P.E.I. 1974, Cap. I-5, s.79; 1980, c.2, s.3.
81. For the purpose of a voluntary winding-up the Superintendent may
Extension of license
winding-up renew or extend the license of the insurer. R.S.P.E.I. 1974, Cap. I-5,
s.80.
PENALTIES
82. (1) Unless a penalty is otherwise p rovided, every person guilty of any
Penalty where no
other provided act or omission prohibited or required by this Act, is guilty of an offence,
and every person guilty of an offence is upon summary conviction liable
to a fine of not more than $2,000 or to imprisonment for a term of not
more than one year, or to both.
(2) In addition, where an insurer violates the prohibitions or fails to
Suspension or
cancellation of comply with the requirements of or is guilty of an offence under this Act,
license where an
the Lieutenant Governor in Council may, upon the report of the
offence committed
Superintendent, suspend or cancel the license of the insurer.
(3) In any prosecution under this Act, whenever it appears that the
Onus of proof of
license on accused accused has done any act or been guilty of any omission in respect of
which he would be liable to some penalty under this Act or the
regulations unless he had been duly licensed, it is incumbent upon the
accused to prove that he is duly licensed.
32
Insurance Act Cap. I-4 33
(4) In case of default in making any return required by this Act to be Default in making
return, additional
made within a limited return, the insurer or the person required by this penalty
Act to make the return shall, in addition to the penalty provided by
subsection (1), incur a further penalty of $100 for every month or part
thereof during which such insurer or person neglects to file the return.
(5) Every insurer undertaking insurance or carrying on business in the Penalty for each day
default continues
province without holding a license to do so may incur a penalty of
twenty dollars for each and every day during which the default
continues.
(6) Any penalty when recovered shall be paid over to the Provincial Penalty payable to
Treasurer for the use of the province. R.S.P.E.I. 1974, Cap. I-5, s.81;
1982, c.12, s.2; 1983, c.1, s.6; 1986, c.5, s.2; 1993, c.29, s.4.
FEES AND REGULATIONS
83. (1) The Lieutenant Governor in Council may prescribe the fees Fees payable by
insurer, prescribed
payable to the department by an insurer or other person for services
performed under this Act.
(2) The insurer shall pay any such fees payable by it before a license or Payment of fees
precondition to
the renewal of a license is issued. license
(3) The insurer shall pay any levy payable pursuant to section 65.1 Payment of levy
before a license or the renewal of a license is issued. R.S.P.E.I. 1974,
Cap. I-5, s.82; 1991,c.17,s.4.
84. (1) The Lieutenant Governor in Council may make regulations Regulations
(a) extending the provisions of this Act or any of them to a system or
class of insurance not particularly mentioned herein;
(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) generally for the better administration of this Act;
(d) prescribing license fees for insurers;
(e) prescribing definitions of `'base rate per vehicle" and `'earned
vehicle" and such other matters as are considered necessary to give
effect to the levy payable under section 65.1.
(2) Every order in council made under this or section 83 shall be laid Regulations to be
laid before
before the Legislative Assembly forthwith, if it is then in session, and if Legislative
not, then within fifteen days of the opening of the next session. Assembly
R.S.P.E.I. 1974, Cap. I-5, s.83; 1991,c.17,s.5.
33
34 Cap. I-4 Insurance Act
PART III
INSURANCE CONTRACTS IN PRINCE EDWARD ISLAND
85. Where not inconsistent with this Act, this Part applies to every
Application of Part
III contract of insurance made in the province other than contracts of life
and accident and sickness insurance. R.S.P.E.I. 1974, Cap. I-5, s.84.
86. Where the subject matter of a contract of insurance is property in the
Contract of
insurance delivered province, or an insurable interest of a person resident within the
or mailed, evidence
province, the contract, if signed, countersigned, issued or delivered in the
thereof, moneys
province or committed to the post office or to any person to be delivered
payable thereunder
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 moneys payable thereunder shall be paid at the head
office or chief agency of the insurer in the province, in lawful money of
Canada. R.S.P.E.I. 1974, Cap. I-5, s.85.
87. (1) All the terms and conditions of the contract of insurance shall be
Terms and
conditions of set out in full in the policy or by writing securely attached to it when
contract to be set
issued, or subsequently attached thereto, and unless so set out no term of
out in full
the contract or condition, stipulation, warranty or proviso modifying or
impairing its effect shall be valid or admissible in evidence to the
prejudice of the insured or beneficiary.
(2) Where the contract, whether or not it provides for its renewal, is
Renewal of
contract, ss (1) renewed by a renewal receipt, it is a sufficient compliance with
satisfied if
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.
(3) The application of the insured shall not, as against him, be deemed
Application for
insurance, not a part of or be considered with the contract of insurance, except in so far
deemed part of
as the court determines that it contains a material misrepresentation by
contract against
which the insurer was induced to enter into the contract.
insured, except
(4) No contract of insurance shall contain or have endorsed upon it, or
Contract not voided
by certain be made subject to, any term, condition, stipulation, warranty or proviso
statements in
to the effect that the contract is to be avoided by reason of any statement
application
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 be material to the contract.
(5) The question of materiality in any contract shall be a question of
Materiality is
question of fact fact; and no admission, term, condition, stipulation, warranty or proviso
to the contrary, contained in the application for insurance, or in the
34
Insurance Act Cap. I-4 35
policy, or in any agreement or document relating thereto, shall have any
force or validity.
(6) This section does not apply to contracts of fire or automobile Application of
section
insurance. R.S.P.E.I. 1974, Cap. I-5, s.86.
88. Every insurer shall upon request furnish to the insured a true copy of True copy of
application
his application or proposal for insurance. R.S.P.E.I. 1974, Cap. I-5, s.87.
89. (1) No insurer shall make a contract of insurance inconsistent with Contracts not to be
inconsistent with
this Act. Act
(2) Any act or omission of the insurer resulting in non-compliance or Non-compliance by
insurer, no effect re
imperfect compliance with this Act does not render a contract invalid as insured's contract
against the insured. R.S.P.E.I. 1974, Cap. I-5, s.88.
90. (1) Every policy shall contain the name of the insurer, the name of Policy to contain
certain information
the insured, the name of the person or persons to whom the insurance
money is payable, 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 and the
term of the insurance.
(2) This section does not apply to contracts of guarantee insurance. Application of
section
R.S.P.E.I. 1974, Cap. I-5, s.89.
91. (1) This section applies to a contract containing a condition, statutory Application of
section
or otherwise, providing, in the event of difference or disagreement
between the insured and the insurer, for appraisal to determine the
matters specified in the condition.
(2) The appraisal shall be made by two disinterested appraisers, the Appraisal of matters
contained in
insured and the insurer each selecting one and the two so chosen then condition, by whom
selecting a competent and disinterested umpire.
(3) The appraisers shall then determine the matters specified in the Determination of
matters, failure to,
condition and, if they fail to agree, they shall submit their differences to reference to umpire
the umpire, and the finding in writing of any two determines the matters.
(4) Each party to the appraisal shall pay the appraiser selected by him Payment of
appraiser
and shall bear equally the expense of the appraisal and umpire.
(5) Where Appointment of
appraiser by judge
(a) a party fails to name an appraiser within seven clear days after
being served with written notice so to do;
(b) the appraisers fail to agree upon an umpire within fifteen days
after their appointment; or