1994 Legislative Session: 3rd Session, 35th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


MR. NORMAN LORTIE

BILL M 205 -- 1994

RETAILING OF INSURANCE ACT

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 The shared Premises Regulation, B.C. Reg. 335/90, is repealed.

2 The Financial Institutions Act, SBC 1989, c. 47, is amended by repealing s. 95 and substituting therefore:

Confidentiality

95 (1) Where, for the purpose of a transaction, a financial institute receives information pertaining to the customer's general insurance coverage or proposed general insurance coverage, then, if the financial institution is expressly authorized by the customer, it

(a) may communicate any of the information to another person only if that information is necessary in the performance of the financial institution's duty to the customer arising out of that transaction or a similar subsequent transaction between the financial institution and the same customer, and

(b) shall not use the information for a purpose other than of that transaction or of a similar subsequent transaction between the financial insitution and the same customer unless the communication or use of the information is authorized or required by an enactment or in a court proceeding.

(2) Where, for the purpose of a transaction, a financial institution receives information other than information pertaining to the customer's general insurance coverage or proposed general insurance coverage, then the financial institution shall not

(a) communicate the information to another person except as necessary in the course of the financial institution's duty to the customer arising out of that transaction or a similar subsequent transaction between the financial institution and the same customer, or

(b) use the information for a purpose other than of that transaction or of a similar subsequent transaction between the financial institution and the same customer unless the communication or use of the information is

(c) authorized or required by an enactment or in a court proceeding, or

(d) authorized in writing by the customer.

 
Explanatory Notes

SECTION 1: This section removes the regulation barring insurance agencies and credit unions or trust companies from sharing the same premises if established after Sep tember 15, 1990, or from sharing the same area if established before September 15, 1990.

SECTION 2: This section permits financial institutions to communicate information regarding general insurance coverage or proposed general insurance coverage of a customer, with that customer's express authoriza tion, and only regarding that particular transaction or a similar subsequent transaction. Information received other than information pertaining to gen eral insurance coverage or proposed general insurance coverage cannot be communicated unless it is necessary in the course of the financial institu tion's duty to the customer, required by enactment or court proceeding, or authorized by the customer in writing.


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