Bill 6 — 2009: Insurance Amendment Act, 2009

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

SECTION 1: [Insurance Act, Part 1 heading] changes the name of the Part to reflect the amended content.

1 The heading to Part 1 of the Insurance Act, R.S.B.C. 1996, c. 226, is repealed and the following substituted:

SECTION 2: [Insurance Act, section 1]

repeals the definition of "prescribed" so that it carries its Interpretation Act meaning,
repeals the definition of "vehicle" because it is no longer needed in the Act, and
repeals the authority to define classes of insurance for the Insurance Act and the Financial Institutions Act.

(a) in subsection (1) by repealing the definitions of "prescribed" and "vehicle", and

SECTION 3: [Insurance Act, section 2]

clarifies the meaning of "except as provided", and
excludes the Act's application from contracts of marine insurance and vehicle insurance.

Application to contracts

2 (1) This Act, except as provided under an enactment, applies to every contract of insurance made or deemed made in British Columbia.

(a) a contract of marine insurance within the meaning of the Marine Insurance Act (Canada), or

SECTION 4: [Insurance Act, sections 2.1 to 2.5]

moves the existing content of sections 4, 27 and 28 into the introductory provisions as sections 2.2, 2.3 and 2.4, respectively,
applies section 7 of the Limitation Act to limitation periods under the Act, which has the effect of extending those limitation periods for persons under a legal disability,
authorizes the extension by contract of limitation periods established by the Act, and
authorizes documents that under the Insurance Act must or may be provided to another person to be provided electronically in accordance with the Electronic Transactions Act.

Contract must be consistent with Act

(2) A contract is not rendered void or voidable as against an insured, or a beneficiary or other person to whom insurance money is payable under the contract, by reason of a failure of the insurer to comply with a provision of this Act.

Liability of continuing insurer

2.2 If an insurer, in this section called the "continuing insurer", and another insurer, in this section called the "retiring insurer", enter into an agreement in anticipation of the retiring insurer ceasing to do business in British Columbia and the continuing insurer assuming liability under contracts of insurance issued by the retiring insurer and specified in the agreement, and the retiring insurer ceases to carry on business in British Columbia, an insured or other person entitled to rights under those contracts may enforce the rights against the continuing insurer as though those contracts had been issued by the continuing insurer.

Effect on contracts of violation of law

2.3 Unless a contract otherwise provides, a violation of a criminal or other law in force in British Columbia or elsewhere does not render unenforceable a claim for indemnity under the contract unless the violation is committed by the insured, or by another person with the consent of the insured, with intent to bring about loss or damage, except that in the case of a contract of life insurance this section applies only to insurance payable under the contract in the event the person whose life is insured becomes disabled as a result of bodily injury or disease.

Application of Limitation Act

2.4 (1) Section 7 of the Limitation Act applies to a limitation period established under this Act in respect of an action or proceeding on a contract as if the limitation period were established under the Limitation Act.

(2) A limitation period established under this Act in respect of an action or proceeding on a contract may be varied by a contract to provide a longer period.

Electronic communications

2.5 (1) If under this Act a record is required or permitted to be provided to a person personally, by mail or by any other means, unless regulations referred to in subsection (4) of this section or under section 192 (2) (e.2) provide otherwise, the record may be provided to the person in electronic form in accordance with the Electronic Transactions Act.

(2) Despite section 2 (4) (a) and (b) of the Electronic Transactions Act, in this section, "record" includes a contract or declaration that designates the insured, the insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable.

(b) a period of time that, under this Act, starts to run when that record, or notification of it, is delivered to the addressee's postal address starts to run when the record is deemed received in accordance with the Electronic Transactions Act.

(4) The Electronic Transactions Act and subsection (1) of this section do not apply to a record, or in relation to a provision, under this Act that is excluded from their application by regulation.

SECTION 5: [Insurance Act, Part 2 heading] changes the name of the Part to reflect its amended content.

SECTION 6: [Insurance Act, section 3] specifies the types of contracts to which Part 2 [General Insurance Provisions] applies.

Application of Part

(d) subject to regulations under section 189.01, a contract to which Part 7 applies.

SECTION 7: [Insurance Act, sections 4, 7 to 11 and 11.1] repeals and replaces sections 4 and 7 to 11 with sections 8 to 11.1 as follows:

revises section 8, respecting the contents of a policy, for readability;
re-enacts the appraisal process in section 9 as a dispute resolution process for broader application;
revises section 10 for readability and clarifies that section 24 of the Law and Equity Act, which authorizes the court to relieve against forfeitures and penalties, applies in addition to the existing relief provision;
re-enacts section 11 to recognize waiver by conduct;
adds section 11.1, deeming a policy issued or coverage provided after an application to be consistent with the application unless the insurer gives notice otherwise.

Contents of policy

(d) the amount, or the method of determining the amount, of the premium for the insurance;

(i) the date the insurance terminates or the method by which that date is established;

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act.

(2) This section does not apply to a contract of fidelity insurance or surety insurance.

Dispute resolution

9 (1) In this section, "representative" means a dispute resolution representative appointed under subsection (4).

(2) This section applies to disputes between an insurer and an insured about a matter that under Statutory Condition 11 set out in section 27.1, or another condition of the contract, must be determined using this dispute resolution process.

(3) Either the insured or the insurer may demand in writing the other's participation in a dispute resolution process after proof of loss has been delivered to the insurer.

(4) Within 7 days after receiving or giving a demand under subsection (3), the insured and the insurer must each appoint a dispute resolution representative and, within 15 days after their appointment, the 2 representatives must appoint an umpire.

(7) Each party to the dispute resolution process must pay the representative whom the party appointed, and each party must bear equally the expense of the dispute resolution process and the umpire.

(a) a party to a dispute resolution process fails to appoint a representative in accordance with subsection (4), or

(b) a representative fails or refuses to act or is incapable of acting and the party that appointed that representative has not appointed another representative within 7 days after the failure, refusal or incapacity,

on application of the insurer or insured, on 2 days' notice to the other, the Supreme Court may appoint a representative.

(9) On an application under subsection (8), the court may award special costs against the person whose representative is appointed by the court, whether or not that person appeared on the application.

(a) the representatives fail to appoint an umpire in accordance with subsection (4), or

either representative may make an application to the superintendent for the appointment of an umpire, containing

(11) Before making an application under subsection (10), the applicant must give notice in writing to the other representative of the intention to make the application, which notice must contain the names and credentials the applicant is submitting to the superintendent under subsection (10).

(12) An application under subsection (10) must be accompanied by a copy of the notice, and the date it was given, under subsection (11).

(13) Within 15 days after receiving a notice under subsection (11), the other representative may provide to the superintendent and the applicant

(a) the names of 3 persons the representative believes are capable of performing the functions of the umpire, and

(14) The superintendent must appoint an umpire from the names provided under subsection (10) or (13) as soon as practicable after the earlier of the following occurs:

(b) the period for providing names and credentials under subsection (13) expires.

Court may relieve against forfeiture and termination

(i) imperfect compliance with a statutory condition as to the proof of loss to be given by the insured or another matter or thing required to be done or omitted by the insured with respect to the loss, and

(ii) a consequent forfeiture or avoidance of the insurance in whole or in part, or

(b) there has been a termination of the policy by a notice that was not received by the insured because of the insured's absence from the address to which the notice was addressed,

and the court considers it inequitable that the insurance should be forfeited or avoided on that ground or terminated, the court, on terms it considers just, may

(d) if the application for relief is made within 90 days of the date of the mailing of the notice of termination, relieve against the termination.

Waiver and estoppel

11 (1) The obligation of an insured to comply with a requirement under a contract is excused to the extent that

(a) the insurer has given notice in writing that the insured's compliance with the requirement is excused in whole or in part, subject to the terms specified in the notice, if any, or

(b) the insurer's conduct reasonably causes the insured to believe that the insured's compliance with the requirement is excused in whole or in part, and the insured acts on that belief to the insured's detriment.

(2) Neither the insurer nor the insured is deemed to have waived any term or condition of a contract by reason only of

(a) the insurer's or insured's participation in a dispute resolution process under section 9,

Policy in accordance with terms of application

11.1 After an application or proposal for insurance is made by an insured, any policy issued or coverage provided by the insurer is deemed, for the benefit of the insured, to be in accordance with the terms of the application or proposal, unless the insurer immediately gives notice to the insured in writing of the particulars in which the policy or coverage differs from the application or proposal, in which case the insured, within 2 weeks after receiving the notice, may reject the policy.

SECTION 8: [Insurance Act, section 12]

revises section 12 (1) for readability, and
adds section 12 (3) to clarify that renewal by renewal receipt of a contract that complied with subsection (1) is sufficient compliance with that subsection if the renewal receipt identifies the contract by number or date.

(1) Each term and condition of a contract must be set out in full in the policy or in writing securely attached to it when it is issued and, unless so set out, is not valid or admissible in evidence to the prejudice of the insured or a person to whom insurance money is payable under the contract. , and

(3) If a contract, whether or not it provides for its renewal, is renewed by renewal receipt, it is sufficient compliance with subsection (1) if the terms and conditions of the contract were set out as required by that subsection and the renewal receipt identifies the contract by its number or date.

SECTION 9: [Insurance Act, section 15] repeals an unnecessary section that provides for how insurance premiums can be paid.

SECTION 10: [Insurance Act, section 17] adds the requirement that the termination of a contract for non-payment of premiums be done in accordance with the statutory condition, if any.

10 Section 17 (1) is amended by striking out everything after "the insurer may terminate the contract" and substituting the following:

(a) in accordance with a statutory condition or other condition of the contract, or

(b) if there is no relevant statutory condition or other condition of the contract, by giving notice by registered mail.

SECTION 11: [Insurance Act, sections 19 and 21] repeals 2 sections, the content of which is covered by statutory conditions.

SECTION 12: [Insurance Act, section 22] extends the limitation period for commencing an action on a contract from one year after providing sufficient proof of loss

to 2 years after the loss occurred or 2 years after the insured ought to have known the loss occurred, whichever is later, in the case of loss or damage to property, and
to 2 years after the cause of action arose in any other case.

(1) An action or proceeding against an insurer in relation to a contract must be commenced,

(a) in the case of loss or damage to insured property, not later than 2 years after the date the insured knew or ought to have known the loss or damage occurred, and

(b) in any other case, not later than 2 years after the date the cause of action against the insurer arose.

SECTION 13: [Insurance Act, sections 25, 25.1, 26, 26.1, 27, 27.1 and 28]

repeals and replaces section 25 to require that, on the request of the insured, the insurer furnish a copy of the policy to the insured and to authorize an insurer to charge a reasonable fee for additional copies of the policy requested by the insured,
adds section 25.1 to
- deal with the insurer's obligation to provide forms for purposes of providing proof of loss separately from the obligation to provide copies of the policy, and for that purpose re-enacts section 25 (1) (b) and (2), and
- relieve the insurer from that obligation if the dispute is otherwise settled and insurance money paid out within 30 days after a notice of loss is given,
repeals section 26, which is re-enacted in Part 8,
repeals section 27, which is re-enacted as section 2.2, and
enacts the statutory conditions for fire insurance from section 126 of Part 5, which is repealed by this Act, as section 27.1 and modifies the statutory conditions to improve readability.

Insurer to furnish copy of application and policy

(2) An insurer may charge a reasonable fee to cover its expenses in furnishing copies of a policy other than the first copy.

Insurer to furnish forms

25.1 (1) Immediately on receipt of a request, and in any event no later than 60 days after receiving a notice of loss, an insurer must furnish to the insured or person to whom insurance money is payable forms on which the proof of loss required under the contract may be made.

(2) If an insurer does not comply with subsection (1), section 22 (2) is not available to the insurer as a defence to an action brought for the recovery of insurance money payable under the contract.

(3) If, within 30 days after a notice of loss is given, the insurer has adjusted the loss acceptably to the person to whom the insurance money is payable, the insurer need not comply with subsection (1).

(4) An insurer, by reason only that the insurer furnishes forms on which to make the proof of loss, must not be taken to have admitted that a valid contract is in force or that the loss in question falls within the insurance provided by the contract.

Cancellation by insurer

26.1 (1) If a loss under a contract has, with the consent of the insurer, been made payable to a person other than the insured, the insurer must not cancel or alter the contract to the prejudice of that person without notice to that person.

(2) The length of notice and manner of giving the notice under subsection (1) must be the same as for a notice of cancellation given to the insured under the contract.

Statutory conditions

27.1 (1) Subject to subsections (2) and (3), the conditions set out in this section are deemed to be part of every contract, and must be printed on every policy under the heading "Statutory Conditions", and no variation or omission of or addition to a statutory condition is binding on the insured.

(2) This section does not apply to contracts of surety insurance or a class of insurance prescribed by regulation.

(3) Statutory Conditions 1 and 6 to 13 apply only to, and need only be printed on, contracts that include insurance against loss or damage to property.

(4) In this section, "policy" does not include an interim receipt or binder.

Misrepresentation

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

Property of others

2. The insurer is not liable for loss or damage to property owned by a person other than the insured unless

Change of interest

3. The insurer is liable for loss or damage occurring after an authorized assignment under the Bankruptcy and Insolvency Act (Canada) or a change of title by succession, by operation of law or by death.

Material change in risk

4. (1) The insured must promptly give notice in writing to the insurer or its agent of a change that is

(2) If an insurer or its agent is not promptly notified of a change under subparagraph (1) of this condition, the contract is void as to the part affected by the change.

(3) If an insurer or its agent is notified of a change under subparagraph (1) of this condition, the insurer may

(b) notify the insured in writing that, if the insured desires the contract to continue in force, the insured must, within 15 days after receipt of the notice, pay to the insurer an additional premium specified in the notice.

(4) If the insured fails to pay an additional premium when required to do so under subparagraph (3) (b) of this condition, the contract is terminated at that time and Statutory Condition 5 (2) (a) applies in respect of the unearned portion of the premium.

Termination of insurance

(a) by the insurer giving to the insured 15 days' notice of termination by registered mail or 5 days' written notice of termination personally delivered, or

(a) the insurer must refund the excess of premium actually paid by the insured over the prorated premium for the expired time, but in no event may the prorated premium for the expired time be less than any minimum retained premium specified in the contract, and

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

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

(4) The 15 day period referred to in subparagraph (1) (a) of this condition starts to run on the day the registered letter or notification of it is delivered to the insured's postal address.

Requirements after loss

6. (1) On the happening of any loss of or damage to insured property, the insured must, if the loss or damage is covered by the contract, in addition to observing the requirements of Statutory Condition 9,

(b) deliver as soon as practicable to the insurer a proof of loss in respect of the loss or damage to the insured property verified by statutory declaration,

(i) giving a complete inventory of that property and showing in detail quantities and cost of that property and particulars of the amount of loss claimed,

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

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

(v) stating the interest of the insured and of all others in that property with particulars of all liens, encumbrances and other charges on that property,

(vi) stating any changes in title, use, occupation, location, possession or exposure of the property since the contract was issued, and

(c) if required by the insurer, give a complete inventory of undamaged property showing in detail quantities and cost of that property, and

(2) The evidence given, produced or furnished under subparagraph (1) (c) and (d) of this condition must not be considered proofs of loss within the meaning of Statutory Conditions 12 and 13.

Fraud

7. Any fraud or wilfully false statement in a statutory declaration in relation to the particulars required under Statutory Condition 6 invalidates the claim of the person who made the declaration.

Who may give notice and proof

8. Notice of loss under Statutory Condition 6 (1) (a) may be given and the proof of loss under Statutory Condition 6 (1) (b) may be made

(b) by a person to whom any part of the insurance money is payable, if the insured refuses to do so or in the circumstances described in clause (a) of this condition.

Salvage

9. (1) In the event of loss or damage to insured property, the insured must take all reasonable steps to prevent further loss or damage to that property and to prevent loss or damage to other property insured under the contract, including, if necessary, removing the property to prevent loss or damage or further loss or damage to the property.

(2) The insurer must contribute on a prorated basis towards any reasonable and proper expenses in connection with steps taken by the insured under subparagraph (1) of this condition.

Entry, control, abandonment

(a) an immediate right of access and entry by accredited representatives sufficient to enable them to survey and examine the property, and to make an estimate of the loss or damage, and

(b) after the insured has secured the property, a further right of access and entry by accredited representatives sufficient to enable them to appraise or estimate the loss or damage, but

(i) without the insured's consent, the insurer is not entitled to the control or possession of the insured property, and

(ii) without the insurer's consent, there can be no abandonment to it of the insured property.

In case of disagreement

11. (1) In the event of disagreement as to the value of the insured property, the value of the property saved, the nature and extent of the repairs or replacements required or, if made, their adequacy, or the amount of the loss or damage, those questions must be determined using the applicable dispute resolution process set out in the Insurance Act, whether or not the insured's right to recover under the contract is disputed, and independently of all other questions.

(2) There is no right to a dispute resolution process under this condition until

When loss payable

12. Unless the contract provides for a shorter period, the loss is payable within 60 days after the proof of loss is completed in accordance with Statutory Condition 6 and delivered to the insurer.

Repair or replacement

13. (1) Unless a dispute resolution process has been initiated, the insurer, instead of making payment, may repair, rebuild or replace the insured property lost or damaged, on giving written notice of its intention to do so within 30 days after receiving the proof of loss.

(2) If the insurer gives notice under subparagraph (1) of this condition, the insurer must begin to repair, rebuild or replace the property within 45 days after receiving the proof of loss, and must proceed with all due diligence to complete the work within a reasonable time.

Notice

14. (1) Written notice to the insurer may be delivered at, or sent by registered mail to, the chief agency or head office of the insurer in the province.

(2) Written notice to the insured may be personally delivered at, or sent by registered mail addressed to, the insured's last known address as provided to the insurer by the insured.

SECTION 14: [Insurance Act, sections 28.1 to 28.7]

re-enacts section 127 from Part 5 as section 28.1 with minor revisions,
re-enacts section 128 from Part 5 as section 28.2,
re-enacts section 129 from Part 5 as section 28.3,
enacts a new section, section 28.4, prohibiting insurance coverage exclusions related to the cause of a fire or other prescribed peril, unless the exclusion is prescribed by regulation, or related to circumstances of the fire or prescribed peril that are prescribed,
re-enacts portions of section 122 from Part 5 as section 28.5,
enacts a new section, section 28.6, providing that a term or condition of a contract excluding coverage for loss or damage caused by a criminal or intentional act or omission only applies to the coverage of the person whose act or omission caused the loss or damage, a person who colluded in or abetted the act or omission, a person who consented to that act or omission knowing it would cause the loss or damage or a person in a prescribed class, and
re-enacts section 130 from Part 5 as section 28.7.

Proportionate contributions

28.1 (1) If, on the happening of loss or damage, there is in force more than one contract covering the loss or damage, the insurers under the respective contracts are each liable to the insured for their rateable proportion of the loss, unless it is otherwise expressly agreed in writing between the insurers.

(2) For the purpose of subsection (1), a contract is deemed to be in force despite any term or condition of it that the contract does not cover the loss or damage or attach, come into force or become insurance with respect to the loss or damage until after full or partial payment of any loss under any other contract.

(a) the validity of any divisions of the amount of insurance into separate items,

(d) a contract condition limiting or prohibiting the having or placing of other insurance.

(a) if one contract contains a deductible clause, the prorated proportion of the insurer under that contract must be first ascertained without regard to the clause, and then the clause must be applied only to affect the amount of recovery under that contract, and

(b) if more than one contract contains a deductible clause, the prorated proportions of the insurers under those contracts must be first ascertained without regard to the deductible clauses, and then the highest deductible must be prorated among the insurers with deductibles, and these prorated amounts affect the amount of recovery under those contracts.

(5) Nothing in subsection (4) is to be construed to have the effect of increasing the prorated contribution of an insurer under a contract that is not subject to a deductible clause.

(6) Despite subsection (1), insurance on identified articles is a first loss insurance as against all other insurance.

Limitation of liability clause

(c) a conditional or unconditional clause limiting recovery by the insured to a specified percentage of the value of any property insured at the time of loss,

must have printed or stamped on its first page in conspicuous bold type the words "This policy contains a clause which may limit the amount payable" and, unless these words are so printed or stamped, the clause is not binding on the insured.

Unjust contract provisions

28.3 If a contract contains any term or condition, other than an exclusion prescribed by regulation for the purposes of section 28.4 (1) or established by section 28.5 (2) or (3), that is or may be material to the risk, including, but not restricted to, a provision in respect of the use, condition, location or maintenance of the insured property, the term or condition is not binding on the insured if it is held to be unjust or unreasonable by the court before which a question relating to it is tried.

Exclusions from coverage

28.4 (1) An insurer must not provide in a contract that includes coverage for loss or damage by fire, or another peril prescribed by regulation, an exclusion relating to the cause of the fire or peril other than an exclusion prescribed by regulation or established by section 28.5 (2) or (3).

(2) An insurer must not provide in a contract that includes coverage for loss or damage by fire, or another peril prescribed by regulation, an exclusion relating to the circumstances of the fire or peril if those circumstances are prescribed by regulation.

(4) For greater certainty, subsections (1) and (2) apply in relation to loss or damage by fire, however the fire is caused and in whatever circumstances and whether the coverage is under a part of the contract specifically covering loss or damage by fire or under another part.

Fire perils insured against

28.5 (1) A contract that includes coverage for loss or damage by fire is deemed to cover the insured property against loss or damage caused by

(2) The coverage described in subsection (1) (a) does not include coverage against loss of or damage to electrical devices or appliances caused by lightning or other electrical currents, unless a fire

(3) Unless a contract that includes coverage for loss or damage by fire specifically provides otherwise, the contract does not cover insured property against loss or damage caused by contamination by radioactive material, resulting directly or indirectly from fire, lightning or an explosion described in subsection (1) (b).

(b) is necessarily removed from the specified location to prevent loss or damage, or further loss or damage, to the property,

that part of the insurance that exceeds the amount of the insurer's liability for any loss or damage incurred before the date of removal must cover, for 7 days or for the unexpired term of the contract, whichever is the shorter period, the property removed from, and any property remaining at, the specified location on a prorated basis in accordance with the value of the property at each location.

Recovery by innocent persons

28.6 (1) Despite section 2.3, if a contract contains a term or condition excluding coverage for loss or damage to property caused by a criminal or intentional act or omission of an insured or any other person, the exclusion applies only to the claim of a person

(ii) knew or ought to have known that the act or omission would cause the loss or damage, or

(2) Nothing in subsection (1) allows a person whose property is insured under the contract to recover more than their proportionate interest in the lost or damaged property.

(3) A person whose coverage under a contract would be excluded but for subsection (1) must comply with any requirements prescribed by regulation.

Subrogation

28.7 (1) The insurer, on making a payment or assuming liability under a contract, is subrogated to all rights of recovery of the insured against any person, and may bring an action in the name of the insured to enforce those rights.

(2) If the net amount recovered after deducting the costs of recovery is not sufficient to provide a complete indemnity for the loss or damage suffered, that amount must be divided between the insurer and the insured in the proportions in which the loss or damage has been borne by them respectively.

SECTION 15: [Insurance Act, section 29]

adds definitions of "blanket insurance", "debtor insured" and "spouse", and
amends the definitions of "creditor's group insurance", "declaration", "family insurance", "fraternal society", "group insurance", "group life insured" and "insured" to update the language for clarity or for consistency with the current classes of insurance products.

(a) arising from specific hazards incidental to or defined by reference to a particular activity or activities, and

(b) occurring during a limited or specified period not exceeding 30 days in duration; ,

(b) by repealing the definitions of "creditor's group insurance" and "declaration" and substituting the following:

"creditor's group insurance" means insurance effected by a creditor under which the lives of a number of the creditor's debtors are insured severally under a single contract;

"debtor insured" means a debtor whose life is insured under a contract of creditor's group insurance;

"declaration", except in sections 65 to 68, means an instrument signed by the insured

(d) designates, or alters or revokes the designation of, the insured, the insured's personal representative or a beneficiary as one to whom or for whose benefit insurance money is to be payable, or

(e) makes, alters or revokes an appointment under section 51 (1) or a nomination referred to in section 57; ,

(c) in the definition of "family insurance" by striking out "by which" and substituting "under which" and by striking out "by blood or marriage or adoption" and substituting "by blood, marriage or adoption or because of a marriage-like relationship, including a marriage-like relationship between persons of the same gender,",

(d) in the definition of "fraternal society" by striking out "life, personal accident and sickness insurance" and substituting "life insurance and accident and sickness insurance",

(e) in the definition of "group insurance" by striking out "by which" and substituting "under which",

(f) by repealing the definition of "group life insured" and substituting the following:

"group life insured" means a person, called the "primary person", whose life is insured under a contract of group insurance, but does not include a person whose life is insured under the contract as a person dependent on or related to the primary person; ,

(g) by repealing the definition of "insured" and substituting the following:

(a) in the case of group insurance, in the provisions of this Part relating to the designation of beneficiaries or personal representatives as recipients of insurance money and their rights and status, the group life insured, and

(b) in all other cases, the person who makes a contract with an insurer; , and

(b) is living and cohabiting with another person in a marriage-like relationship, including a marriage-like relationship between persons of the same gender; .

SECTION 16: [Insurance Act, section 29.1] specifies the provision of Part 2 [General Insurance Provisions] that applies in relation to life insurance contracts.

Application of Part 2

SECTION 17: [Insurance Act, section 30] corrects a revision error and makes the section, which sets out the life insurance contracts to which the Part applies, subject to transitional regulations.

(a) in subsection (1) by striking out "to the contrary," and substituting "to the contrary, but subject to regulations under section 192.1 of this Act and section 103 of the Insurance Amendment Act, 2009,", and

(b) in subsections (2) and (3) by striking out "immediately before to July 1, 1962" and substituting "immediately before July 1, 1962".

SECTION 18: [Insurance Act, section 31] applies Part 3 for the purpose of determining the rights and status of personal representatives as recipients of insurance money under group life insurance contracts, if the insurer was authorized to sell insurance in British Columbia when the contract was made and the group life insured resided in British Columbia when they became insured under the contract.

18 Section 31 (a) is amended by striking out "rights and status of beneficiaries" and substituting "rights and status of beneficiaries and personal representatives as recipients of insurance money".

SECTION 19: [Insurance Act, section 32]

requires insurers to provide a copy of the policy and the insured's application to the insured on entering into insurance contracts,
requires insurers, on request, to provide a copy of the contract and other documents submitted as evidence of insurability to the insured or a claimant under the contract except in cases of group insurance or creditor's group insurance,
requires insurers, on request, to provide a copy of a group life insured's application or a debtor insured's application, and other documents provided as evidence of the group life insured's or debtor insured's insurability, to the group life insured, the debtor insured or a claimant under the contract,
authorizes group life insureds, debtor insureds and claimants to examine and take copies of the applicable policies and authorizes insurers to charge a fee for copies other than the first copy provided to a person, and
limits the access to documents under the section to exclude personal information about any person other than the group life insured or debtor insured in respect of whom a claim is made or the claimant requesting the information.

(b) furnish to the insured the policy and a copy of the insured's application. , and

(4) Except in the case of a contract of group insurance or creditor's group insurance, an insurer, on request, must furnish to the insured or a claimant under the contract a copy of

(b) any written statement or other record provided to the insurer as evidence of insurability under the contract.

(a) on request, must furnish to a group life insured or claimant under the contract a copy of

(ii) any written statement or other record, not otherwise part of the application, provided to the insurer as evidence of the insurability of the group life insured under the contract, and

(b) on request and reasonable notice, must permit a group life insured or claimant under the contract to examine, and must furnish to that person, a copy of the policy of group insurance.

(a) on request, must furnish to a debtor insured or claimant under the contract a copy of

(ii) any written statement or other record, not otherwise part of the application, provided to the insurer as evidence of the insurability of the debtor insured under the contract, and

(b) on request and reasonable notice, must permit a debtor insured or claimant under the contract to examine, and must furnish to that person, a copy of the policy of creditor's group insurance.

(7) An insurer may charge a reasonable fee to cover its expenses in furnishing copies of documents under subsection (4), (5) or (6), other than the first copy furnished to each person.

(8) Access to the documents described in subsections (5) (b) and (6) (b) does not extend to

(a) information contained in those documents that would reveal personal information, as defined in the Personal Information Protection Act, about a person without that person's consent, other than information about

(i) the group life insured or debtor insured in respect of whom the claim is made, or

(9) A claimant's access to documents under subsections (4) to (6) extends only to information that is relevant to

SECTION 20: [Insurance Act, section 33] regarding contracts of life insurance, other than contracts of group insurance, of creditor's group insurance or made by a fraternal society,

deletes the requirement that a policy set out the circumstances in which it lapses,
requires that a policy set out specified language cautioning that actions against insurers are barred unless commenced within the limitation period established by the Act, and
requires that a policy set out specified language informing an insured if it removes or restricts the right of the insured to designate a person to whom or for whose benefit insurance money is to be payable.

(a) in subsection (2) (e) by striking out "the circumstances in which the contract lapses and",

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act. , and

(3) If a policy contains a provision removing or restricting the right of the insured to designate persons to whom or for whose benefit insurance money is to be payable, the front page of the policy must include the following statement in conspicuous bold type:

This policy contains a provision removing or restricting the right of the insured to designate persons to whom or for whose benefit insurance money is to be payable.

SECTION 21: [Insurance Act, section 34] requires that group insurance contracts set out

provisions that remove or restrict the right of a group life insured to designate persons to whom or for whose benefit insurance money is to be paid,
for a contract replacing another group insurance contract, whether designations in the replaced contract of persons to whom or for whose benefit insurance money is to be paid apply in relation to the replacement contract, and
specified language cautioning that actions against insurers are barred unless commenced within the limitation period established by the Act.

(f) in the case of a contract of group insurance, any provision removing or restricting the right of a group life insured to designate persons to whom or for whose benefit insurance money is to be payable;

(g) in the case of a contract of group insurance that replaces another contract of group insurance on some or all of the group life insureds under the replaced contract, whether a designation of a group life insured, a group life insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable under the replaced contract applies to the replacing contract;

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act.

SECTION 22: [Insurance Act, section 35] requires that group insurance certificates and creditor's group insurance certificates set out the rights of the group life insured, the debtor insured or a claimant to information under section 32, and that certificates in relation to group insurance set out

specified language cautioning that actions against insurers are barred unless commenced within the limitation period established by the Act, and
if the policy removes or restricts the right of an insured to designate a person to whom or for whose benefit insurance money is to be payable, specified language informing the insured of this.

Particulars of group certificate

35 (1) In the case of a contract of group insurance or creditor's group insurance, an insurer must issue, for delivery by the insured to each group life insured or debtor insured, a certificate or other document in which are set out the following:

(i) the group life insured and any person whose life is insured under the contract as a person dependent on or related to the group life insured, or

(d) in the case of a contract of group insurance that contains a provision removing or restricting the right of the group life insured to designate persons to whom or for whose benefit insurance money is to be payable,

(i) the method of determining the persons to whom or for whose benefit the insurance money is or may be payable, and

This policy contains a provision removing or restricting the right of the group life insured to designate persons to whom or for whose benefit insurance money is to be payable;

(e) in the case of a contract of group insurance that replaces another contract of group insurance on some or all of the group life insureds under the replaced contract, whether a designation of a group life insured, a group life insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable under the replaced contract applies to the replacing contract;

(f) the rights of the group life insured, the debtor insured or a claimant under the contract to obtain copies of documents under section 32 (5) or (6);

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act.

SECTION 23: [Insurance Act, sections 37 and 37.1]

updates and clarifies the language of section 37, and
provides for an application to the court for termination or reduction of life insurance on the applicant's life if the applicant believes that their life or health is at risk by the life insurance remaining in place.

Persons insurable

37 Without restricting the meaning of "insurable interest", a person, in this section called the "primary person", has an insurable interest,

(a) in the case of a primary person who is a natural person, in his or her own life and in the lives of the following:

(iii) a person on whom the primary person is wholly or partly dependent for, or from whom the primary person is receiving, support or education;

(v) a person in the duration of whose life the primary person has a pecuniary interest, and

(b) in the case of a primary person that is not a natural person, in the lives of the following:

(ii) a person in the duration of whose life the primary person has a pecuniary interest.

Termination of contract by court

(a) a person whose life is insured under a contract is someone other than the insured, and

(b) the person reasonably believes that their life or health might be endangered by the insurance on their life continuing under that contract,

on application of that person, the court may make the orders the court considers just in the circumstances.

(2) Without limiting subsection (1), the orders that the court may make under subsection (1) include

(a) an order that the insurance on that person's life under the contract be terminated in accordance with the terms of the contract, other than any terms respecting notice of termination, and

(b) an order that the amount of insurance under the contract on that person's life be reduced.

(3) An application under subsection (1) must be made on at least 30 days' notice to the insured, the beneficiary, the insurer and any other person the court considers to have an interest in the contract.

(4) Despite subsection (3), if the court considers it just to do so, the court may dispense with the notice in the case of a person other than

(b) if the contract is a contract of group insurance or creditor's group insurance, the insured.

(5) An order made under subsection (1) binds any person having an interest in the contract.

SECTION 24: [Insurance Act, section 38] amends for consistency with other references to the "initial premium".

SECTION 25: [Insurance Act, section 39] updates and clarifies the language of the section.

(1) If a cheque or other bill of exchange, or a promissory note or other written promise to pay, is given for the whole or a part of a premium and the cheque, bill of exchange, promissory note or other promise to pay is not honoured according to its tenor, the premium or the part of the premium has not been paid.

SECTION 26: [Insurance Act, section 40]

authorizes an assignee of a contract of creditor's group insurance to pay premiums the insured could pay, and
updates the language of the section.

(a) in subsection (1) by striking out "Except in the case of group insurance," and substituting "Except in the case of group insurance or creditor's group insurance,", and

(b) in subsection (3) by striking out everything after "as if the premium had been paid at the time it was due," and substituting "and, except in the case of group insurance or creditor's group insurance, the amount of the premium may be deducted from the insurance money."

SECTION 27: [Insurance Act, section 41] provides that a failure to disclose necessary information in relation to increasing or changing coverage under a policy only makes the addition or change voidable by the insurer rather than the whole policy.

Duty to disclose

41 (1) An applicant for insurance and a person whose life is to be insured must each disclose to the insurer in the application, on a medical examination, if any, and in any written statements or answers furnished as evidence of insurability, every fact within the applicant's or person's knowledge that is material to the insurance and is not so disclosed by the other.

(2) Subject to section 42 and subsection (3) of this section, a failure to disclose, or a misrepresentation of, a fact referred to in subsection (1) renders the contract voidable by the insurer.

(3) A failure to disclose, or a misrepresentation of, a fact referred to in subsection (1) relating to evidence of insurability with respect to an application for

renders the contract voidable by the insurer, but only in relation to the addition, increase or change.

SECTION 28: [Insurance Act, section 42]

makes an amendment consequential to changing classes of insurance,
extends the application of the section to increases and changes in insurance coverage, and
applies the section to contracts of creditor's group insurance.

(a) a misstatement to an insurer of the age of a person whose life is insured, or

(b) insurance under which an insurer, as part of a contract, undertakes to pay insurance money or to provide other benefits in the event the person whose life is insured becomes disabled as a result of bodily injury or disease. ,

(b) in subsection (2) by striking out "if a contract has been in effect" and substituting "if a contract, or an addition, increase or change referred to in section 41 (3), has been in effect", and

(3) In the case of a contract of group insurance or creditor's group insurance, a failure to disclose, or a misrepresentation of, a fact required by section 41 to be disclosed in respect of a person whose life is insured under the contract does not render the contract voidable, but

(a) if the failure to disclose or misrepresentation relates to evidence of insurability specifically requested by the insurer at the time of application for the insurance in respect of the person, the insurance in respect of that person is voidable by the insurer, and

(b) if the failure to disclose or misrepresentation relates to evidence of insurability specifically requested by the insurer at the time of application for an addition, increase or change referred to in section 41 (3) in respect of the person, the addition, increase or change in respect of that person is voidable by the insurer,

unless the insurance, addition, increase or change has been in effect for 2 years during the lifetime of that person, in which case the insurance, addition, increase or change is not, in the absence of fraud, voidable.

SECTION 29: [Insurance Act, section 44] revises and updates the language for readability.

(3) If a contract limits insurable age and the correct age of the person whose life is insured exceeds that limit at the date of the application, the contract is voidable by the insurer for 5 years after the date the contract takes effect, but not afterwards, and only if

(b) the insurer voids the contract within 60 days after it discovers the misstatement of age.

SECTION 30: [Insurance Act, section 47]

excludes the section's application from contracts of creditor's group insurance,
authorizes automatic reinstatement of a contract that lapses for non-payment of a premium if paid within 30 days after a period of grace, and
applies section 7 of the Court Order Interest Act to the calculation of interest owing on unpaid premiums.

(a) in subsection (1) by striking out "a contract of group insurance or" and substituting "a contract of group insurance or creditor's group insurance or",

(1.1) If a contract lapses at the end of a period of grace because a premium due at the beginning of the period of grace was not paid, the contract may be reinstated by payment of the overdue premium within a further period of 30 days after the end of the period of grace, but only if the person whose life was insured under the contract is alive at the time payment is made. ,

(2) If a contract lapses and is not reinstated under subsection (1.1), the insurer must reinstate it if, within 2 years after the date the contract lapsed, the insured

(b) pays to the insurer all overdue premiums and other indebtedness under the contract, together with interest not exceeding the rate determined under section 7 of the Court Order Interest Act, and

(c) produces evidence satisfactory to the insurer of the good health and insurability of the person whose life was insured. , and

(d) in subsection (3) by striking out "Subsection (2) does not apply" and substituting "Subsections (1.1) and (2) do not apply".

SECTION 31: [Insurance Act, section 47.1] requires that a contract of group insurance replacing another contract of group insurance apply to persons who were insured under the replaced contract, unless the coverage was terminated for another reason, and prohibits exclusions based on non-attendance at work on the date the replacing contract comes into effect.

Termination and replacement of group policies

47.1 (1) If a contract of group insurance, or a benefit provision in a contract of group insurance, under which the insurer undertakes to pay insurance money or provide other benefits if a group life insured becomes disabled as a result of bodily injury or disease is terminated, the insurer continues, as though the contract or benefit provision had remained in full force and effect, to be liable to pay insurance money or provide benefits in respect of a group life insured for liability arising from an accident or disease that occurred before the termination of the contract or benefit provision if the disability is reported to the insurer within the 6 month period following the termination or a longer continuous period specified in the contract.

(2) Despite subsection (1), an insurer does not remain liable under a contract or benefit provision described in that subsection to pay insurance money or provide a benefit for the recurrence of a disability after both of the following occur:

(b) a continuous period of 6 months, or any longer period provided in the contract, during which the group life insured was not disabled.

(3) An insurer that is liable under subsection (1) to pay insurance money or provide a benefit as a result of the disability of a group life insured is not liable to pay the insurance money or provide the benefit for any period longer than the portion remaining, at the date the disability began, of the maximum period provided under the contract for the payment of insurance money or the provision of a benefit in respect of a disability of the group life insured.

(4) If a contract of group insurance, in this section called the "replacement contract", is entered into within 31 days after the termination of another contract of group insurance, in this section called the "other contract", and that replacement contract insures some or all of the same group life insureds as the other contract,

(a) the replacement contract is deemed to provide that any person who was insured under the other contract at the time of its termination is insured under the replacement contract from and after the termination of the other contract if

(i) the insurance on that person under the other contract terminated by reason only of the termination of the other contract, and

(ii) the person is a member of a class eligible for insurance under the replacement contract, and

(b) no person who was insured under the other contract at the time of its termination may be excluded from eligibility under the replacement contract by reason only of not being actively at work on the effective date of the replacement contract,

and, despite subsection (1), if the replacement contract provides that insurance money or other benefits to be paid or provided under subsection (1) by the insurer of the other contract are to be paid instead under the replacement contract, the insurer of the other contract is not liable to pay that insurance money or provide those benefits.

SECTION 32: [Insurance Act, section 48]

authorizes an insurer to restrict or exclude the right of the insured to designate beneficiaries unless the regulations provide otherwise,
authorizes a group insurance contract replacing another group insurance contract to specify that designations under the replaced contract apply under the replacement contract,
requires an insurer to advise group life insureds if their designations under a replaced contract apply under the replacement contract, and
provides that a beneficiary entitled to insurance money remaining with an insurer under a settlement has the same rights and interests in relation to the insurance money as an insured would have.

(a) in subsection (1) by striking out "An insured may" and substituting "Subject to subsection (4), an insured may" and by striking out "to receive insurance money." and substituting "as a person to whom or for whose benefit insurance money is to be payable.", and

(3) A designation in favour of the "heirs", "next of kin" or "estate" of an insured, or the use of words having similar meaning in a designation, is deemed to be a designation of the personal representative of the insured.

(4) Subject to the regulations, an insurer may restrict or exclude in a contract the right of an insured to designate persons to whom or for whose benefit insurance money is to be payable.

(5) A contract of group insurance replacing another contract of group insurance on some or all of the group life insureds under the replaced contract may provide that a designation applicable to the replaced contract of a group life insured, a group life insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable is deemed to apply to the replacing contract.

(6) If a contract of group insurance replacing another contract of group insurance provides that a designation referred to in subsection (5) is deemed to apply to the replacing contract,

(a) each certificate in respect of the replacing contract must indicate that the designation under the replaced contract has been carried forward and that the group life insured should review the existing designation to ensure it reflects the group life insured's current intentions, and

(b) as between the insurer under the replacing contract and a claimant under that contract, that insurer is liable to the claimant for any errors or omissions by the previous insurer in respect of the recording of the designation carried forward under the replacing contract.

(7) If a beneficiary becomes entitled to insurance money and all or part of the insurance money remains with the insurer under a settlement option provided for in the contract or permitted by the insurer, that portion of the insurance money remaining with the insurer is deemed to be insurance money held under a contract on the life of the beneficiary, and, subject to the provisions of the settlement option, the beneficiary has the rights and interests of an insured with respect to the insurance money.

SECTION 33: [Insurance Act, section 49] clarifies the language of the section.

33 Section 49 (1) is amended by striking out "or of the insured's creditors" and substituting "or the claims of the insured's creditors".

SECTION 34: [Insurance Act, section 50] updates and clarifies the language of the section.

(4) If a designation is contained in an instrument that purports to be a will and the instrument, if it were valid as a will, would be revoked by operation of law or otherwise, the designation is revoked.

SECTION 35: [Insurance Act, section 52]

clarifies the language,
deletes a misplaced conjunction,
authorizes a beneficiary to give up his or her rights under a contract by filing a notice with the insurer, and
applies the rule respecting predeceasing beneficiaries to disclaiming or disentitled beneficiaries.

(a) in subsection (1) by striking out "is provided in the contract" and substituting "is provided for in the contract",

(b) in subsection (1) (a) by striking out "beneficiary, or" and substituting "beneficiary,", and

(3) A beneficiary may disclaim the beneficiary's right to insurance money by filing notice in writing with the insurer at its head or principal office in Canada.

(5) Subsection (1) applies in the case of a disclaiming beneficiary or in the case of a beneficiary determined by a court to be disentitled to insurance money as if the disclaiming or disentitled beneficiary predeceased the person whose life is insured.

SECTION 36: [Insurance Act, section 53] updates and clarifies the language of the section.

36 Section 53 is amended by striking out "in his or her own name," and substituting "in the beneficiary's own name and for the beneficiary's own benefit," and by striking out "made payable to the trustee" and substituting "made payable to the beneficiary or trustee".

SECTION 37: [Insurance Act, section 54] updates and clarifies the language of the section.

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

SECTION 38: [Insurance Act, section 55]

enables a beneficiary designated irrevocably to consent to a change of beneficiary at age 19, the current age of majority in British Columbia, rather than 21,
authorizes an insured to exercise prescribed rights in respect of the contract,
provides that without consent or an order of the court, a person taking an interest in the contract takes the interest subject to the rights of an irrevocably designated beneficiary, and
authorizes an application to the court by an insured for an order permitting the insured to deal with a contract despite the irrevocable designation of a beneficiary if that beneficiary is legally incapable of giving consent.

(b) in subsection (1) (b) by striking out "age of 21 years" and substituting "age of 19 years", and

(2) Despite section 49 (1), if a beneficiary is designated irrevocably and has not consented as described in subsection (l) (b) of this section, the insured may exercise any rights in respect of the contract that are prescribed by regulation.

(3) Subject to the terms of a consent under subsection (l) (b) or a court order under subsection (4), if there is an irrevocable designation of a beneficiary under a contract, a person acquiring an interest in the contract takes that interest subject to the rights of that beneficiary.

(4) When a beneficiary who is designated irrevocably is unable to provide consent under subsection (1) (b) because of legal incapacity, an insured may apply to the court for an order permitting the insured to deal with the contract without that consent.

(5) The court may grant an order under subsection (4) on any notice and terms it considers just.

SECTION 39: [Insurance Act, section 56] updates and clarifies the language of the section.

(1) Despite the irrevocable designation of a beneficiary, the insured is entitled before his or her death to the dividends or bonuses declared on a contract, unless the contract provides otherwise. , and

(b) in subsection (2) by striking out "Unless the insured otherwise directs," and substituting "Unless the insured directs otherwise,".

SECTION 40: [Insurance Act, section 57] updates and clarifies the language of the section.

(a) in subsection (1) by striking out "if, in a contract or in an agreement in writing between an insurer and an insured," and substituting "if, in a contract or declaration," and by striking out "or in the agreement has" and substituting "or declaration has",

(b) in subsection (1) (b) by striking out "in the contract or in the agreement" and substituting "in the contract or declaration", and

(c) in subsecton (2) by striking out "or agreement" and substituting "or declaration", by striking out "in the agreement" and substituting "in the declaration" and by striking out "to his or her" and substituting "their".

(3) Despite a nomination made under this section, the insured may, before his or her death,

(a) assign, exercise rights under or in respect of, surrender or otherwise deal with the contract as if the nomination had not been made, and

(b) subject to the terms of the contract, alter or revoke the nomination by declaration.

SECTION 41: [Insurance Act, section 58]

updates and clarifies the language of the section, and
provides that the assignment of a contract the beneficiary of which is not designated irrevocably revokes the designation.

(a) by repealing subsection (1) (a) and (b) and substituting the following:

(a) an assignee other than one who gave notice earlier to the insurer of an assignment in the manner provided for in this subsection, and

(b) a beneficiary other than one designated irrevocably as provided for in section 49 before the assignee gave notice to the insurer of the assignment in the manner provided for in this subsection. ,

(3.1) Unless the document by which a contract is assigned specifies otherwise, an assignment described in subsection (3) made on or after the date this section comes into force revokes

(a) a designation of a beneficiary made before or after that date and not made irrevocably, and

(b) a nomination referred to in section 57 (1) made before or after that date. , and

(4) A contract may provide that the rights or interests of the insured or, in the case of a contract of group insurance or creditor's group insurance, of the group life insured or debtor insured, as applicable, are not assignable.

SECTION 42: [Insurance Act, section 59.1] authorizes a debtor insured under a contract of creditor's group insurance to enforce the creditor's rights under the contract in relation to a claim arising in respect of the debtor.

Debtor insured's enforcement of rights

59.1 (1) A debtor insured, or a debtor who is jointly liable for the debt with the debtor insured, may enforce in his or her own name the creditor's rights in respect of a claim arising in relation to that debtor insured, subject to any defence available to the insurer against the creditor or that debtor insured.

(2) Subject to subsection (3), if an insurer pays insurance money in respect of a claim under subsection (1), the insurer must pay the insurance money to the creditor.

(3) If the debtor insured provides evidence satisfactory to the insurer that the insurance money exceeds the debt then owing to the creditor, the insurer may pay the excess directly to that debtor insured.

SECTION 43: [Insurance Act, section 60] updates the language.

43 Section 60 is amended by striking out "an infant" and substituting "a minor".

SECTION 44: [Insurance Act, section 61] repeals a provision that is re-enacted in section 77.

SECTION 45: [Insurance Act, section 63]

updates and clarifies the language of the section, and
authorizes the payment of insurance money to a personal representative appointed under the law of the jurisdiction in which a deceased person resided at the time of their death.

(a) in subsection (1) by striking out "Subject to subsections (3) and (4)," and substituting "Subject to subsections (3) to (5),",

(b) in subsection (2) by striking out "dollars means Canadian dollars." and substituting "dollars means Canadian dollars, whether the contract by its terms provides for payment in Canada or elsewhere.",

(c) in subsection (3) by striking out "domicile of the payee." and substituting "jurisdiction in which the payee resides, and the payment discharges the insurer to the extent of the amount paid.", and

(5) If insurance money is payable under a contract to a deceased person who was not resident in British Columbia at the date of their death or to that person's personal representative, the insurer may pay the insurance money to the deceased person's personal representative as appointed under the law of the jurisdiction in which the person was resident at the date of their death, and the payment discharges the insurer to the extent of the amount paid.

SECTION 46: [Insurance Act, section 64] updates and clarifies the language of the section.

Action in British Columbia

64 Regardless of the place where a contract was made, a claimant who is resident in British Columbia may bring an action in British Columbia if the insurer was authorized to transact insurance in British Columbia at the time the contract was made or is so authorized at the time the action is brought.

SECTION 47: [Insurance Act, section 65]

increases the limitation period in the case of actions arising from a death from the earlier of one year after proof of loss is provided or 6 years from the date of death to 2 years after proof of loss is provided or 6 years from the date of death,
increases the limitation period in the case of actions arising from a declaration under the Survivorship and Presumption of Death Act from one year after the declaration to 2 years after the declaration, and
establishes new limitation periods for actions arising other than from a death or declaration of death to the later of
- the date the event that caused the loss occurred,
- the date the claimant should have known that event occurred, or
- in the case of insurance money payable on a periodic basis, the date the insurer fails to make a periodic payment.

Limitation of actions

65 (1) Subject to subsections (2) and (5), an action or proceeding against an insurer for the recovery of insurance money payable in the event of a person's death must be commenced not later than the earlier of

(2) Subject to subsection (5), if a declaration has been made under the Survivorship and Presumption of Death Act, an action or proceeding referred to in subsection (1) must be commenced not later than 2 years after the date of the declaration.

(3) Subject to subsection (5), an action or proceeding against an insurer for the recovery of insurance money not referred to in subsection (1) must be commenced not later than 2 years after the date the claimant knew or ought to have known of the first instance of the loss or occurrence giving rise to the claim for insurance money.

(4) If insurance money is not payable unless a loss or occurrence continues for a period of time specified in the contract, the date of the first instance of the loss or occurrence for the purposes of subsection (3) is deemed to be the first day after the end of that period.

(5) An action or proceeding against an insurer for the recovery of insurance money payable on a periodic basis must be commenced not later than the later of

(a) the last day of the applicable period under subsection (1), (2), (3) or (4) for commencing an action or proceeding, and

(b) if insurance money was paid, 2 years after the date the next payment would have been payable had the insurer continued to make periodic payments.

SECTION 48: [Insurance Act, section 66] updates the language.

48 Section 66 (1) is amended by striking out "and is as fully discharged" and substituting "and is discharged".

SECTION 49: [Insurance Act, sections 68, 70, 75 and 76] updates the language.

49 Sections 68 (1), 70, 75 and 76 are amended by striking out "it deems just" and substituting "it considers just".

SECTION 50: [Insurance Act, section 71]

updates the language, and
authorizes an insurer to apply to a court to pay insurance money into court if the insurer is of the view that there is no person entitled to the insurance money or the person otherwise entitled would be disentitled on public policy or other grounds.

(a) in subsection (1) by striking out "for insurance money" and substituting "for insurance money or any part of it",

(b) there is no person capable of giving and authorized to give a valid discharge who is willing to do so, ,

(e) the person to whom the insurance money is payable would be disentitled on public policy or other grounds, , and

(d) in subsection (2) (a) by striking out "subsection (1) (a) or (b) applies," and substituting "subsection (1) (a), (b), (d) or (e) applies,".

SECTION 51: [Insurance Act, section 72] updates and clarifies the language of the section.

Simultaneous deaths

72 Unless a contract or a declaration provides otherwise, if the person whose life is insured and a beneficiary die at the same time or in circumstances rendering it uncertain which of them survived the other, the insurance money is payable as if the beneficiary had predeceased the person whose life is insured.

SECTION 52: [Insurance Act, section 73] updates and clarifies the language of the section.

(a) in subsection (2) by striking out "assign his or her interests in them," and substituting "assign the beneficiary's interest in the installments," and by striking out "beneficiary's infant children." and substituting "beneficiary's minor children.", and

(b) in subsection (3) by striking out "and on at least 10 days' notice," and substituting "on at least 10 days' notice,".

SECTION 53: [Insurance Act, section 77] authorizes an insurer to pay insurance money payable to a minor to a trustee appointed for the minor in relation to the insurance money by the insured or group life insured, or to the Public Guardian and Trustee if no trustee is appointed, unless the minor has reached 18 years of age, in which case the insurance money must be paid to the minor.

(a) by repealing subsection (1) (a) and (b) and substituting the following:

(a) in the case of money payable to a minor, other than a minor referred to in paragraph (b), pay the money in trust for the minor to

(i) a trustee for the minor appointed in relation to that money by the insured or group life insured in a contract or by a declaration, or

(ii) if no trustee is appointed for the minor in relation to that money, the Public Guardian and Trustee,

(b) in the case of money payable to a minor referred to in subsection (4), pay the money to the minor, and ,

(b) in subsection (2) by striking out "under subsection (1) (c) must," and substituting "under subsection (1) (a) (i) or (c) must,", and

(4) A beneficiary who has reached the age of 18 years has the capacity of a person who has reached the age of 19 years for the purposes of receiving insurance money payable to the minor and giving a discharge for it.

SECTION 54: [Insurance Act, section 78] updates and clarifies the language of the section.

Payment to representative of a beneficiary

78 Despite section 77, if it appears to an insurer that a representative of a beneficiary who is a minor or otherwise under a legal disability may accept payments on behalf of the beneficiary under the law of the jurisdiction in which the beneficiary resides, the insurer may make payment to the representative, and the payment discharges the insurer to the extent of the amount paid.

SECTION 55: [Insurance Act, section 79] updates and clarifies the language of the section.

Presumption against agency

79 An officer, agent or employee of an insurer, or a person soliciting insurance whether or not an agent of the insurer, must not be considered to be the agent of the insured, person whose life is insured, group life insured or debtor insured, to that person's prejudice, in respect of any question arising out of a contract.

SECTION 56: [Insurance Act, section 81]

adds definitions of "debtor insured" and "spouse", and
amends the definitions of "application", "beneficiary", "blanket insurance", "creditor's group insurance", "declaration", "family insurance", "fraternal society", "group insurance", "group person insured", "insurance", "insured" and "person insured" to update the language for clarity or for consistency with the current classes of insurance products.

(a) in the definition of "application" by striking out "a written application" and substituting "an application",

(b) by repealing the definitions of "beneficiary", "blanket insurance" and "declaration" and substituting the following:

"beneficiary" means a person, other than the insured or the insured's personal representative, to whom or for whose benefit insurance money is made payable in a contract or by a declaration;

(a) arising from specific hazards incidental to or defined by reference to a particular activity or activities, and

(b) occurring during a limited or specified period not exceeding 6 months in duration;

"declaration", except in sections 91.1 and 106, means an instrument signed by the insured

(d) designates, or alters or revokes the designation of, the insured, the insured's personal representative or a beneficiary as one to whom or for whose benefit insurance money is to be payable, or

(e) makes, alters or revokes an appointment under section 102.3 (1) or a nomination referred to in section 107.3; ,

(c) in the definition of "creditor's group insurance" by striking out "by which the lives or well being, or the lives and well being," and substituting "under which the lives or well being or both",

"debtor insured" means a debtor whose life or well being or both are insured under a contract of creditor's group insurance; ,

(e) in the definition of "family insurance" by striking out "by which the lives or well being, or the lives and well being," and substituting "under which the lives or well being or both" and by striking out "by blood, marriage or adoption" and substituting "by blood, marriage or adoption or because of a marriage-like relationship, including a marriage-like relationship between persons of the same gender,",

"fraternal society" means a society, order or association incorporated for the purpose of making with its members only, and not for profit, contracts of life insurance and accident and sickness insurance in accordance with its constitution, bylaws and rules and this Act; ,

(g) in the definition of "group insurance" by striking out "by which the lives or well being, or the lives and well being," and substituting "under which the lives or well being or both",

(h) by repealing the definition of "group person insured" and substituting the following:

"group person insured" means a person, called the "primary person", whose life or well being or both are insured under a contract of group insurance, but does not include a person whose life or well being or both are insured under the contract as a person dependent on or related to the primary person; ,

(i) in the definition of "insurance" by striking out "personal accident insurance, sickness insurance, or personal accident insurance" and substituting "accident",

(j) by repealing the definition of "insured" and substituting the following:

(k) in the definition of "person insured" by striking out "but does not include a group person insured;" and substituting "but does not include a group person insured or debtor insured;", and

(b) is living and cohabiting with another person in a marriage-like relationship, including a marriage-like relationship between persons of the same gender; .

SECTION 57: [Insurance Act, section 81.1] specifies the provisions of Part 2 [General Insurance Provisions] that apply in relation to accident and sickness insurance contracts.

Application of Part 2

SECTION 58: [Insurance Act, section 82]

makes the section, which sets out the types of accident and sickness insurance contracts to which Part 4 applies, subject to transitional regulations, and
excludes Part 4's application from contracts of life insurance that provide insurance money or other benefits if the person whose life is insured becomes disabled or that provide for additional insurance money in the event of death by accident.

(a) except as otherwise provided by regulation, insurance that is part of a contract of life insurance under which the insurer undertakes to pay insurance money, or to provide other benefits, in the event the person whose life is insured becomes disabled as a result of bodily injury or disease;

(b) insurance that is part of a contract of life insurance under which the insurer undertakes to pay an additional amount of insurance money in the event of death by accident of the person whose life is insured.

SECTION 59: [Insurance Act, section 84]

imposes requirements on insurers to provide a copy of the policy and the insured's application to the insured on entering into insurance contracts,
establishes what comprises a complete contract of accident and sickness insurance with different content for contracts made by a fraternal society,
for contracts other than contracts of group insurance or creditor's group insurance, imposes requirements on insurers to provide a copy of the contract and other documents submitted as evidence of insurability to the insured or a claimant under the contract on the person's request,
imposes requirements on insurers to provide a copy of a group person insured's application or a debtor insured's application, and other documents provided as evidence of the group person insured's or debtor insured's insurability, to the group person insured, the debtor insured or a claimant under the contract on the person's request,
authorizes group person insureds, debtor insureds and claimants to examine and take copies of the applicable policies, and authorizes insurers to charge a fee for copies other than the first copy provided to a person, and
limits the access to documents under the section to exclude personal information about any person other than the group person insured or debtor insured in respect of whom a claim is made or the claimant requesting the information.

Issuance and furnishing of policy

(d) any amendment to the contract agreed on in writing after the policy is issued

(3) In the case of a contract made by a fraternal society, the policy, the Act or instrument of incorporation of the society, its constitution, bylaws and rules, and the amendments made to any of them, the application for the contract and the medical statement of the applicant constitute the entire contract.

(4) Except in the case of a contract of group insurance or creditor's group insurance, an insurer, on request, must furnish to the insured or a claimant under the contract a copy of

(b) any written statement or other record provided to the insurer as evidence of insurability under the contract.

(a) on request, must furnish to a group person insured or claimant under the contract, a copy of

(ii) any written statement or other record, not otherwise part of the application, provided to the insurer as evidence of the insurability of the group person insured under the contract, and

(b) on request and reasonable notice, must permit a group person insured or claimant under the contract to examine, and must furnish to that person, a copy of the policy of group insurance.

(a) on request, must furnish to a debtor insured or claimant under the contract a copy of

(ii) any written statement or other record, not otherwise part of the application, provided to the insurer as evidence of the insurability of the debtor insured under the contract, and

(b) on request and reasonable notice, must permit a debtor insured or claimant under the contract to examine, and must furnish to that person, a copy of the policy of creditor's group insurance.

(7) An insurer may charge a reasonable fee to cover its expenses in furnishing copies of documents under subsection (4), (5) or (6), other than the first copy furnished to each person.

(8) Access to the documents described in subsections (5) (b) and (6) (b) does not extend to

(i) the group person insured or debtor insured in respect of whom the claim is made, or

(9) A claimant's access to documents under subsections (4) to (6) extends only to information that is relevant to

SECTION 60: [Insurance Act, section 85] amends the section to exclude its application to contracts of creditor's insurance and to

require that a policy set out specified language cautioning that actions against insurers are barred unless commenced within the limitation period established by the Act,
require that a policy that removes or restricts the right of an insured to designate a person to whom or for whose benefit insurance money is to be payable must set out the specified language informing the insured of this, and
update and clarify language.

(b) in subsection (2) (b) and (c) by striking out "the amount or the method of determining the amount" and substituting "the amount, or the method of determining the amount,",

(c) in subsection (2) (e) by striking out "the day on which the insurance commences and terminates." and substituting "the dates on which the insurance starts and terminates;",

This policy contains a provision removing or restricting the right of the insured to designate persons to whom or for whose benefit insurance money is to be payable.

SECTION 61: [Insurance Act, section 86] applies the existing provisions of the section to contracts of creditor's group insurance, updates language and requires that group insurance contracts set out

provisions that remove or restrict the right of a group person insured to designate persons to whom or for whose benefit insurance money is to be paid,
for a contract replacing another group insurance contract, whether designations in the replaced contract of persons to whom or for whose benefit insurance money is to be paid apply in relation to the replacement contract, and
specified language cautioning that actions against insurers are barred unless commenced within the limitation period established by the Act.

(a) by striking out "In the case of a contract of group insurance," and substituting "In the case of a contract of group insurance or creditor's group insurance,",

(b) in paragraph (b) by striking out "the group persons insured and persons insured;" and substituting "the persons whose lives or well being or both are insured;",

(c) in paragraph (c) by striking out "the amount or the method of determining the amount" and substituting "the amount, or the method of determining the amount,",

(d) in paragraph (e) by striking out "the day on which the insurance commences and terminates." and substituting "the dates on which the insurance starts and terminates;", and

(f) in the case of a contract of group insurance, any provision removing or restricting the right of a group person insured to designate persons to whom or for whose benefit insurance money is to be payable;

(g) in the case of a contract of group insurance that replaces another contract of group insurance on some or all of the group person insureds under the replaced contract, whether a designation of a group person insured, a group person insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable under the replaced contract applies to the replacing contract;

Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act.

SECTION 62: [Insurance Act, section 87] updates and clarifies the language and requires that group insurance certificates and creditor's group insurance certificates set out the rights of the group life insured, the debtor insured or a claimant to information under section 84 and that certificates in relation to group insurance set out

specified language cautioning that actions against insurers are barred unless commenced within the limitation period established by the Act, and
if the policy removes or restricts the right of an insured to designate a person to whom or for whose benefit insurance money is to be payable, specified language informing the insured of this.

(a) in subsection (1) by striking out everything before paragraph (a) and substituting "In the case of a contract of group insurance or creditor's group insurance, an insurer must issue, for delivery by the insured to each group person insured or debtor insured, a certificate or other document in which are set out the following:",

(b) the amount, or the method of determining the amount, of insurance on the group person insured or debtor insured and on any person insured; ,

(c) in subsection (1) (c) by striking out "on such termination of the group person insured and of" and substituting "on termination of the insurance of the group person insured or debtor insured and of",

(d) in the case of a contract of group insurance that contains a provision removing or restricting the right of the group person insured to designate persons to whom or for whose benefit insurance money is to be payable,

(i) the method of determining the persons to whom or for whose benefit the insurance money is or may be payable, and

This policy contains a provision removing or restricting the right of the group person insured to designate persons to whom or for whose benefit insurance money is to be payable;

(e) in the case of a contract of group insurance that replaces another contract of group insurance on some or all of the group person insureds under the replaced contract, whether a designation of a group person insured, a group person insured's personal representative or a beneficiary, as a person to whom or for whose benefit insurance money is to be payable under the replaced contract applies to the replacing contract;

(f) the rights of the group person insured, the debtor insured or a claimant under the contract to obtain copies of documents under section 84 (5) or (6);

(b) of group insurance of a nonrenewable type issued for a term not exceeding 6 months.

SECTION 63: [Insurance Act, section 88] excludes the section's application from contracts of group insurance and creditor's group insurance.

SECTION 64: [Insurance Act, section 89] deletes statutory conditions 4 and 12 and updates and clarifies the language of the remaining statutory conditions.

(a) by striking out everything before the heading "STATUTORY CONDITIONS" and substituting "Subject to section 90, the conditions set out in this section are deemed to be part of every contract, other than a contract of group insurance or creditor's group insurance, and must be printed on or attached to the policy forming part of the contract under the heading "Statutory Conditions", and no variation or omission of or addition to any statutory condition not authorized by section 90 is binding on the insured.",

(b) by repealing Statutory Conditions 1 and 2 and substituting the following:

The contract

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

Material facts

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

(c) in Statutory Condition 3 (1) by striking out "If after the contract is issued" and substituting "If after this policy is issued",

(d) in Statutory Condition 3 (1) and (2) by striking out "this contract" wherever it appears and substituting "the contract",

(e) in Statutory Condition 3 (2) by striking out "changes his or her occupation" and substituting "changes occupation",

(f) by repealing Statutory Conditions 4 to 6 and 12 and substituting the following:

Termination of insurance

(a) by the insurer giving to the insured 15 days' notice of termination by registered mail or 5 days' written notice of termination personally delivered, or

(3) If the contract is terminated by the insured, the insurer must refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium calculated to the date of receipt of the notice according to the table in use by the insurer at the time of termination.

(4) The 15 day period referred to in subparagraph (1) (a) of this condition starts to run on the day the registered letter or notification of it is delivered to the insured's postal address. ,

(g) by renumbering Statutory Conditions 7 to 11 as Statutory Conditions 5 to 9 respectively,

(h) in Statutory Condition 5 (1) (a) (i) and (ii) by striking out "by delivery of it" and substituting "by delivery of the notice" and by striking out "in British Columbia," and substituting "in the province,",

(i) in Statutory Condition 5 (1) (a) by striking out "30 days from" and substituting "30 days after",

(j) by repealing Statutory Condition 5 (1) (b) and substituting the following:

(b) within 90 days after the date a claim arises under the contract on account of an accident, sickness or disability, furnish to the insurer such proof, as is reasonably possible in the circumstances, of

(k) in Statutory Condition 5 (1) (c) by striking out "claim may be made under the contract and as to duration of such disability." and substituting "claim is made under the contract and, in the case of sickness or disability, its duration.",

(l) by repealing Statutory Condition 5 (2) and substituting the following:

(2) Failure to give notice of claim or furnish proof of claim within the time required by this condition does not invalidate the claim if

(a) the notice or proof is given or furnished as soon as reasonably possible, and in no event later than one year after the date of the accident or the date a claim arises under the contract on account of sickness or disability, and it is shown that it was not reasonably possible to give the notice or furnish the proof in the time required by this condition, or

(b) in the case of the death of the person insured, if a declaration of presumption of death is necessary, the notice or proof is given or furnished no later than one year after the date a court makes the declaration. ,

(m) by repealing Statutory Conditions 7 and 8 and substituting the following:

Rights of examination

(a) the claimant must give the insurer an opportunity to examine the person of the person insured when and as often as it reasonably requires while a claim is pending, and

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

When money payable other than for loss of time

8. All money payable under the contract, other than benefits for loss of time, must be paid by the insurer within 60 days after it has received proof of claim. , and

(n) in Statutory Condition 9 by striking out "made after that" and substituting "made after that date" and by striking out "person insured when required to do so furnishes before payment proof of continuing disability." and substituting "person insured, when required to do so, furnishes proof of continuing sickness or disability before payment."

SECTION 65: [Insurance Act, section 90] is consequential to renumbering the statutory conditions in section 89.

(a) in subsection (2) by striking out "Statutory conditions 3, 4 and 9" and substituting "Statutory Conditions 3 and 7",

(b) in subsection (3) by striking out "Statutory conditions 5 and 6" and substituting "Statutory Condition 4",

(c) in subsection (4) by striking out "Statutory conditions 3, 4, 5, 6 and 9" and substituting "Statutory Conditions 3, 4 and 7" and by striking out "statutory condition 7" and substituting "Statutory Condition 5",

(d) in subsection (5) by striking out "Statutory condition 7 (1) (a) and (b)" and substituting "Statutory Condition 5 (1) (a) and (b)",

(6) Statutory Conditions 8 and 9 may be varied by shortening the periods set out in them. ,

(f) in subsection (8) (a) by striking out "statutory condition 1 (1):" and substituting "Statutory Condition 1:" and by striking out "1. (1)" and substituting "1.", and

(g) in subsection (8) (b) by striking out "statutory condition 5" and substituting "Statutory Condition 4 (1) (b) and (3)".

SECTION 66: [Insurance Act, section 91] updates and clarifies the language.

(a) by striking out "policy of accident insurance" and substituting "policy of accident and sickness insurance", and

(b) by striking out everything after "contains the following notice" and substituting "printed in conspicuous bold type:

Despite any other provision contained in the contract, the contract is subject to the statutory conditions in the Insurance Act respecting contracts of accident and sickness insurance."

SECTION 67: [Insurance Act, sections 91.1 and 91.2]

re-enacts the limitation period for commencing actions under accident and sickness contracts that was repealed as statutory condition 12, and extends the period in the case of death from one year after the insurance was or would have been payable to a maximum of 6 years and in other cases to 2 years from the date the claimant knew or ought to have known they had a claim, and
applies sections 67 to 70 of Part 3 to contracts under Part 4 in respect of insurance money payable in the case of death.

Limitation of actions

91.1 (1) Subject to subsections (2) and (5), an action or proceeding against an insurer for the recovery of insurance money payable in the event of a person's death must be commenced not later than the earlier of

(5) An action or proceeding against an insurer for the recovery of insurance money payable on a periodic basis must be commenced not later than the later of

(a) the last day of the applicable period under subsection (1), (2), (3) or (4) for commencing an action or proceeding, and

(b) if insurance money was paid, 2 years after the date the next payment would have been payable had the insurer continued to make periodic payments.

Sufficiency of proof and role of court

91.2 Sections 67 to 70 of Part 3 apply with the necessary changes in the case of insurance money payable under this Part in the event of a person's death and, for that purpose, a reference in those sections to section 62 must be read as a reference to Statutory Condition 5 (1) set out in section 89.

SECTION 68: [Insurance Act, section 92]

updates the language,
adds a 30-day grace period for paying premiums, and
enacts the content of section 93 in section 92 to be consistent with the parallel section in Part 3.

Termination for non-payment

92 (1) If a policy evidencing a contract or a certificate evidencing the renewal of a contract is delivered to the insured and the initial premium due under the contract or renewal has not been fully paid,

(a) the contract or the renewal of it evidenced by the policy or certificate is as binding on the insurer as if the premium had been paid even if the policy or certificate was delivered by an officer or an agent of the insurer who did not have authority to deliver it, and

(b) the contract may be terminated for non-payment of the premium by the insurer giving

(2) If a premium referred to in subsection (1) has not been fully paid, the insurer may do one or both of the following:

(b) if there is a claim under the contract, except in the case of a contract of group insurance or creditor's group insurance, deduct the amount of the unpaid premium from the amount for which the insurer is liable under the contract.

(3) If a premium, other than a premium referred to in subsection (1), is not fully paid at the time it is due, the premium may be paid within

(b) the period of grace within which the premium may be paid, if any, specified in the contract,

(4) If the event on which the insurance money becomes payable occurs during the period of grace and before the overdue premium is paid, the contract is deemed to be in effect as if the premium had been paid at the time it was due.

(5) Except in the case of a contract of group insurance or creditor's group insurance, the amount of the unpaid premium under subsection (4) may be deducted from the amount for which the insurer is liable under the contract.

(6) The 15 day period referred to in subsection (1) (b) (i) starts to run on the day the registered letter or notification of it is delivered to the insured's postal address.

SECTION 69: [Insurance Act, section 93] repeals the section.

SECTION 70: [Insurance Act, sections 94 and 95.1] re-enacts section 94 as section 95.1 to parallel the order of the sections in Part 3 and updates the language.

Persons insurable

95.1 Without restricting the meaning of "insurable interest", a person, in this section called the "primary person", has an insurable interest,

(a) in the case of a primary person who is a natural person, in his or her own life and well being and in the lives and well being of the following:

(iii) a person on whom the primary person is wholly or partly dependent for, or from whom the primary person is receiving, support or education;

(v) a person in the duration of whose life or in whose well being the primary person has a pecuniary interest, and

(b) in the case of a primary person that is not a natural person, in the lives and well being of the following:

(ii) a person in the duration of whose life or in whose well being the primary person has a pecuniary interest.

SECTION 71: [Insurance Act, section 95.2] provides for an application to the court for the termination or reduction of accident and sickness insurance on the applicant's life or health if the applicant believes that their life or health is at risk by the insurance remaining in place.

Termination of contract by court

(a) a person whose life or well being or both are insured under a contract is someone other than the insured, and

(b) the person reasonably believes that their life or health might be endangered by the insurance on their life or well being or both continuing under that contract,

on the application of that person, the court may make the orders the court considers just in the circumstances.

(2) Without limiting subsection (1), the orders that the court may make under subsection (1) include

(a) an order that the insurance on that person under the contract be terminated in accordance with the terms of the contract, other than any terms respecting notice of termination, and

(4) Despite subsection (3), if the court considers it just to do so, the court may dispense with the notice in the case of a person other than

(b) if the contract is a contract of group insurance or creditor's group insurance, the insured.

(5) An order made under subsection (1) binds any person having an interest in the contract.

SECTION 72: [Insurance Act, section 96] updates the section and repeals subsection (2), which is re-enacted in section 111 for consistency with parallel sections in Part 3.

Capacity of minors

96 Except in respect of his or her rights as a beneficiary, a minor who has reached the age of 16 years has the capacity of a person of the age of 19 years

SECTION 73: [Insurance Act, section 97] updates the language and provides that a failure to disclose necessary information in relation to increasing or changing coverage under a policy only makes the addition or change voidable by the insurer rather than the whole policy.

Duty to disclose

97 (1) An applicant for insurance and a person to be insured must each disclose to the insurer in the application, on a medical examination, if any, and in any written statements or answers furnished as evidence of insurability, every fact within the applicant's or person's knowledge that is material to the insurance and is not so disclosed by the other.

(2) Subject to sections 98 and 101 and subsection (3) of this section, a failure to disclose, or a misrepresentation of, a fact referred to in subsection (1) renders the contract voidable by the insurer.

(3) A failure to disclose or misrepresentation referred to in subsection (1) relating to evidence of insurability with respect to an application for

renders the contract voidable by the insurer but only in relation to the addition, increase or change.

SECTION 74: [Insurance Act, section 98] updates the language and extends the application of the section to increases and changes in insurance coverage and to contracts of creditor's group insurance.

Failure to disclose

98 (1) Subject to section 101 and subsections (2) to (4) of this section, if a contract, including renewals of it, or an addition, increase or change referred to in section 97 (3), has been in effect for 2 years with respect to a person insured, a failure to disclose, or a misrepresentation of, a fact required by section 97 to be disclosed in respect of that person insured does not, in the absence of fraud, render the contract voidable.

(2) In the case of a contract of group insurance or creditor's group insurance, a failure to disclose, or a misrepresentation of, a fact required by section 97 to be disclosed in respect of a group person insured, a person insured or a debtor insured does not render the contract voidable, but

(b) if the failure to disclose or misrepresentation relates to evidence of insurability specifically requested by the insurer at the time of application for an addition, increase or change referred to in section 97 (3) in respect of the person, the addition, increase or change in respect of that person is voidable by the insurer,

(3) If a claim arises from a loss incurred or a disability beginning before a contract, including renewals of it, has been in effect for 2 years with respect to the person in respect of whom the claim is made, subsection (1) does not apply to that claim.

(4) If a claim arises from a loss incurred or a disability beginning before the addition, increase or change has been in effect for 2 years with respect to the person in respect of whom the claim is made, subsection (1) does not apply to that claim.

SECTION 75: [Insurance Act, section 100] updates the language and extends the application of the section to debtor insureds.

(a) by striking out "the person insured or group person insured" and substituting "the person insured, group person insured or debtor insured",

(b) in paragraph (a) by striking out "in force continuously" and substituting "in effect continuously", and

(c) in paragraph (b) by striking out "the existence of the disease or physical condition" and substituting "the prior existence of the disease or physical condition".

SECTION 76: [Insurance Act, section 101] updates the language and extends the application of the section to contracts of creditor's group insurance and to debtor insureds.

(a) in subsection (1) (a) by striking out "must be increased" and substituting "may be increased",

(b) in subsection (2) by striking out "contract of group insurance," and substituting "contract of group insurance or creditor's group insurance," and by striking out "group person insured or person insured," and substituting "group person insured, person insured or debtor insured,", and

(c) in subsection (3) by striking out "true age" and substituting "correct age".

SECTION 77: [Insurance Act, section 101.1] requires that a contract of group insurance replacing another contract of group insurance apply to persons who were insured under the replaced contract, unless the coverage was terminated for another reason, and prohibits exclusions based on non-attendance at work on the date the replacing contract comes into effect.

Termination and replacement of group policies

101.1 (1) If a contract of group insurance or a benefit provision in a contract of group insurance is terminated, the insurer continues, as though the contract or benefit provision had remained in full force and effect, to be liable to pay to or in respect of a group person insured under the contract benefits relating to

arising from an accident or sickness that occurred before the termination of the contract or benefit provision, if the disability, death, dismemberment or accidental damage to natural teeth is reported to the insurer within the 6 month period following the termination or a longer continuous period specified in the contract.

(2) Despite subsection (1), an insurer does not remain liable under a contract or benefit provision described in that subsection to pay a benefit for loss of income for the recurrence of a disability after both of the following occur:

(b) a continuous period of 6 months, or any longer period provided in the contract, during which the group person insured was not disabled.

(3) An insurer that is liable under subsection (1) to pay a benefit for loss of income as a result of the disability of a group person insured is not liable to pay the benefit for any period longer than the portion remaining, at the date the disability began, of the maximum period provided under the contract for the payment of a benefit for loss of income in respect of a disability of the group person insured.

(4) If a contract of group insurance, in this subsection called the "replacement contract", is entered into within 31 days after the termination of another contract of group insurance, in this subsection called the "other contract", and that replacement contract insures some or all of the same group person insureds as the other contract,

(i) the insurance on that person under the other contract terminated by reason only of the termination of the other contract, and

(ii) the person is a member of a class eligible for insurance under the replacement contract,

(b) every person who was insured under the other contract and who is insured under the replacement contract is entitled to receive credit for any deductible earned before the effective date of the replacement contract, and

(c) no person who was insured under the other contract at the time of its termination may be excluded from eligibility under the replacement contract by reason only of not being actively at work on the effective date of the replacement contract,

and, despite subsection (1), if the replacement contract provides that all benefits required to be paid under subsection (1) by the insurer of the other contract are to be paid instead under the replacement contract, the insurer of the other contract is not liable to pay those benefits.

SECTION 78: [Insurance Act, section 102] updates and clarifies the language and

authorizes an insurer to restrict or exclude the right of the insured to designate beneficiaries unless the regulations provide otherwise,
authorizes a group insurance contract replacing another group insurance contract to specify that designations under the replaced contract apply under the replacement contract,
requires an insurer to advise group life insureds if their designations under a replaced contract apply under the replacement contract, and
provides that a beneficiary entitled to insurance money remaining with an insurer under a settlement has the same rights and interests in relation to the insurance money as an insured would have.

Designation of beneficiary

102 (1) Subject to subsection (4), an insured may in a contract or by a declaration designate the insured, the insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable.

(2) Subject to section 102.1, an insured may by declaration alter or revoke a designation referred to in subsection (1).

(3) A designation in favour of the "heirs", "next of kin" or "estate" of an insured, or the use of words having a similar meaning in a designation, is deemed to be a designation of the personal representative of the insured.

(4) Subject to the regulations, an insurer may restrict or exclude in a contract the right of an insured to designate persons to whom or for whose benefit insurance money is to be payable.

(5) A contract of group insurance replacing another contract of group insurance on some or all of the group person insureds under the replaced contract may provide that a designation applicable to the replaced contract of a group person insured, a group person insured's personal representative or a beneficiary as a person to whom or for whose benefit insurance money is to be payable is deemed to apply to the replacing contract.

(6) If a contract of group insurance replacing another contract of group insurance provides that a designation referred to in subsection (5) is deemed to apply to the replacing contract,

(a) each certificate in respect of the replacing contract must indicate that the designation under the replaced contract has been carried forward and that the group person insured should review the existing designation to ensure it reflects the group person insured's current intentions, and

(7) If a beneficiary becomes entitled to insurance money and all or part of the insurance money remains with the insurer under a settlement option provided for in the contract or permitted by the insurer, that portion of the insurance money remaining with the insurer is deemed to be insurance money held under a contract of life insurance on the life of the beneficiary, and, subject to the provisions of the settlement option, the beneficiary has the same rights and interests with respect to the insurance money that an insured has under a contract of life insurance.

SECTION 79: [Insurance Act, sections 102.1 and 102.2]

authorizes an insured to designate a beneficiary irrevocably and provides, if a beneficiary is designated irrevocably, that the insurance contract is immune from the insured's creditors and does not form part of the insured's estate, and
enacts provisions of section 102 separately for consistency with parallel sections in Part 3.

Irrevocable designations

102.1 (1) An insured may in a contract or by a declaration, other than a declaration that is part of a will, filed with the insurer at its head or principal office in Canada during the lifetime of the person whose life or well being or both are insured, designate a beneficiary irrevocably, and in that event the insured, while the beneficiary is living, may not alter or revoke the designation without the consent of the beneficiary, and the insurance money is not subject to the control of the insured or the claims of the insured's creditors and does not form part of the insured's estate.

(2) If an insured purports to designate a beneficiary irrevocably in a will, or in a declaration that is not filed with the insurer, the designation has the same effect as if the insured had not purported to make it irrevocable.

Designation in will

102.2 (1) A designation in an instrument purporting to be a will is not ineffective by reason only of the fact that the instrument is invalid as a will or the designation is invalid as a bequest under the will.

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

(3) If a designation is contained in a will and subsequently the will is revoked by operation of law or otherwise, the designation is revoked.

SECTION 80: [Insurance Act, section 103] repeals a section which is re-enacted as a provision of section 102 for consistency with parallel sections in Part 3.

SECTION 81: [Insurance Act, section 104] is renumbered for consistency with ordering in Part 3 and does the following:

clarifies the language;
authorizes a beneficiary to give up his or her rights under a contract by filing a notice with the insurer;
applies the rule respecting predeceasing beneficiaries to disclaiming or disentitled beneficiaries.

(b) in subsection (1) by striking out "is provided in the contract" and substituting "is provided for in the contract", and

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

(3) A beneficiary may disclaim the beneficiary's right to insurance money by filing notice in writing with the insurer at its head or principal office in Canada.

(5) Subsection (1) applies in the case of a disclaiming beneficiary, or in the case of a beneficiary determined by a court to be disentitled to insurance money, as if the disclaiming or disentitled beneficiary predeceased the person whose life or well being or both are insured.

SECTION 82: [Insurance Act, section 104.1] re-enacts part of section 104 as a separate section for consistency with ordering in Part 3.

Enforcement of payment by beneficiary or trustee

104.1 A beneficiary may enforce in the beneficiary's own name and for the beneficiary's own benefit, and a trustee appointed under section 102.3 may enforce as trustee, the payment of insurance money made payable to the beneficiary or trustee in the contract or by a declaration and in accordance with the provisions of it, but the insurer may set up any defence that it could have set up against the insured or the insured's personal representative.

SECTION 83: [Insurance Act, section 105] is renumbered for consistency with ordering in Part 3 and discharges an insurer for amounts paid to a trustee for a beneficiary.

83 Section 105 is amended by renumbering the section as section 102.3 (1) and by adding the following subsection:

(2) A payment made by an insurer to the trustee for a beneficiary discharges the insurer to the extent of the amount of the payment.

SECTION 84: [Insurance Act, section 106] gives an irrevocably designated beneficiary priority over an assignee of the policy, provides that an unconditional assignment of an insurance contract revokes beneficiary designations other than irrevocable designations and limits the effect on beneficiary rights of an assignment for security purposes.

(b) a beneficiary, other than one designated irrevocably as provided for in section 102.1 before the assignee gave notice to the insurer of the assignment in the manner provided for in this subsection. ,

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

(4.1) Unless the document by which a contract is assigned specifies otherwise, an assignment described in subsection (4) made on or after the date this section comes into force revokes

(a) a designation of a beneficiary made before or after that date and not made irrevocably, and

(b) a nomination referred to in section 107.3 made before or after that date. , and

(5) A contract may provide that the rights or interests of the insured or, in the case of a contract of group insurance or creditor's group insurance, of the group person insured or debtor insured, as applicable, are not assignable.

SECTION 85: [Insurance Act, section 107] updates and clarifies the language for consistency with the parallel section in Part 3.

(2) While there is in effect a designation in favour of any one or more of a spouse, child, grandchild or parent of the person insured or group person insured, the insurance money and the rights and interests of the insured in the insurance money and in the contract so far as either relate to accidental death benefits are exempt from execution or seizure.

SECTION 86: [Insurance Act, sections 107.1 to 107.3]

authorizes the assignment of insurance contracts that do not have an irrevocably designated beneficiary and is consistent with section 55 in Part 3,
provides the insured with the right to deal with a contract's dividends and bonuses and is consistent with section 56 in Part 3, and
provides a beneficiary with the rights of the insured on the death of the insured if the contract so provides and is consistent with section 57 in Part 3.

Assignment of insurance

(b) is designated irrevocably but has attained the age of 19 years and consents,

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

(2) Despite section 102.1 (1), if a beneficiary is designated irrevocably and has not consented as described in subsection (l) (b) of this section, the insured may exercise any rights in respect of the contract that are prescribed by regulation.

(5) The court may grant an order under subsection (4) on any notice and terms it considers just.

Entitlement to dividends

107.2 (1) Despite the irrevocable designation of a beneficiary, the insured is entitled before his or her death to the dividends or bonuses declared on a contract, unless the contract provides otherwise.

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

Third party policies

107.3 (1) Despite the Wills Act, if, in a contract or declaration, it is provided that a person named in the contract or declaration has, on the death of the insured, the rights and interests of the insured in the contract,

(a) the rights and interests of the insured in the contract do not, on the death of the insured, form part of the insured's estate, and

(b) on the death of the insured, the person named in the contract or declaration has the rights and interests given to the insured by the contract and by this Part and is deemed to be the insured.

(2) If the contract or declaration provides that2 or more persons named in the contract or in the declaration, on the death of the insured, have successively on the death of each of them the rights and interests of the insured in the contract, this section applies successively, so far as applicable and with the necessary changes, to each of those persons and their rights and interests in the contract.

(3) Despite a nomination made under this section, the insured may, before his or her death,

(a) assign, exercise rights under or in respect of, surrender or otherwise deal with the contract as if the nomination had not been made, and

(b) subject to the terms of the contract, alter or revoke the nomination by declaration.

SECTION 87: [Insurance Act, section 108] updates the language.

87 Section 108 is amended by striking out "against him or her or such person insured or against the insured." and substituting "against the group person insured, such person insured or the insured."

SECTION 88: [Insurance Act, section 108.1] gives a debtor insured the right to enforce the terms of a contract of creditor's group insurance.

Debtor insured's enforcement of rights

108.1 (1) A debtor insured, or a debtor who is jointly liable for the debt with the debtor insured, may enforce in his or her own name the creditor's rights in respect of a claim arising in relation to the debtor insured, subject to any defence available to the insurer against the creditor or debtor insured.

(2) Subject to subsection (3), if an insurer pays insurance money in respect of a claim under subsection (1), the insurer must pay the insurance money to the creditor.

SECTION 89: [Insurance Act, section 109] clarifies the section.

89 Section 109 is amended by striking out "the insurance money is payable in accordance with section 104 (1) as if" and substituting "the insurance money is payable as if".

SECTION 90: [Insurance Act, section 110]

updates the language, and
authorizes an insurer to apply to a court to pay insurance money into court if the insurer is of the view that there is no person entitled to the insurance money or the person otherwise entitled would be disentitled on public policy or other grounds.

(b) there is no person capable of giving and authorized to give a valid discharge who is willing to do so, , and

(e) the person to whom the insurance money is payable would be disentitled on public policy or other grounds, .

SECTION 91: [Insurance Act, section 111]

updates the language for consistency with the parallel section in Part 3, and
authorizes an insurer to pay insurance money payable to a minor to a trustee appointed for the minor in relation to the insurance money by the insured or group life insured, or to the Public Guardian and Trustee if no trustee is appointed, unless the minor has reached 18 years of age, in which case the insurance money must be paid to the minor.

(1) If an insurer admits liability for insurance money payable to a minor or for insurance money payable to a trustee for a beneficiary who is a minor, the insurer, within 60 days after the contract conditions respecting payment are substantially fulfilled, or within a shorter period required under the contract, must

(a) in the case of money payable to a minor, other than a minor referred to in paragraph (b), pay the money in trust for the minor

(i) to a trustee for the minor appointed in relation to that money by the insured or group person insured in a contract or by a declaration, or

(ii) if no trustee is appointed for the minor in relation to that money, to the Public Guardian and Trustee,

(b) in the case of money payable to a minor referred to in subsection (5), pay the money to the minor, and

(b) in subsection (3) by striking out "under subsection (1) (c) must," and substituting "under subsection (1) (a) (i) or (c) must,",

(c) in subsection (4) by striking out "subsections (1) and (2)." and substituting "subsection (1).", and

(5) A beneficiary who has reached the age of 18 years has the capacity of a person who has reached the age of 19 years for the purposes of receiving insurance money payable to the minor and giving a discharge for it.

SECTION 92: [Insurance Act, section 112] updates the language for consistency with the parallel section in Part 3.

Payment to representative of a beneficiary

112 Despite section 111, if it appears to an insurer that a representative of a beneficiary who is a minor or otherwise under a legal disability may accept payments on behalf of the beneficiary under the law of the jurisdiction in which the beneficiary resides, the insurer may make payment to the representative, and the payment discharges the insurer to the extent of the amount paid.

SECTION 93: [Insurance Act, section 113] updates the language and increases the amount an insurer may pay out under the section.

(b) in paragraph (a) by striking out "a relative by blood or connection by marriage" and substituting "a relative", and

(c) in paragraph (b) by striking out "entitled by reason" and substituting "entitled to the insurance money by reason".

SECTION 94: [Insurance Act, section 114] updates the language for consistency with the parallel section in Part 3.

(a) in subsection (1) by striking out "Subject to subsection (2)," and substituting "Subject to subsections (2), (4) and (5),", and

(4) If a person entitled to receive insurance money is not resident in British Columbia, the insurer may pay the insurance money to that person or to any other person who is entitled to receive it on the person's behalf by the law of the jurisdiction in which the payee resides, and the payment discharges the insurer to the extent of the amount paid.

SECTION 95: [Insurance Act, section 115] clarifies the language.

95 Section 115 is amended by striking out "or at the time the action is brought." and substituting "or is so authorized at the time the action is brought."

SECTION 96: [Insurance Act, section 118] updates and clarifies the language of the section.

Presumption against agency

118 An officer, agent or employee of an insurer, or a person soliciting insurance whether or not an agent of the insurer, must not be considered to be the agent of the insured, person insured, group person insured or debtor insured, to that person's prejudice, in respect of any question arising out of a contract.

SECTION 97: [Insurance Act, Part 5] repeals the Part.

SECTION 98: [Insurance Act, section 189] repeals the section.

SECTION 99: [Insurance Act, section 189.01] authorizes regulations applying provisions of Part 2 to home warranty insurance and deposit protection contracts.

Application of Part 2

189.01 The Lieutenant Governor in Council may make regulations applying specified provisions of Part 2 to home warranty insurance or deposit protection contracts.

SECTION 100: [Insurance Act, section 192] updates the language and adds regulation-making authority respecting

an insured's right to rescind a contract,
electronic communications,
an insurer's duty to give notice to an insured of an expiring limitation period,
dispute resolution under section 9, and
classes of insurance for the purposes of the Act.

(b) in paragraph (d) by striking out "prescribed in the contract of insurance;" and substituting "established in the contract;",

(e.1) respecting an insured's right to rescind a contract of life insurance or accident and sickness insurance, including, without limitation, prescribing

(e.2) respecting the use of telephonic communications or other means of electronic communications that do not automatically generate a verbatim record of the communications, including, without limitation,

(ii) requiring that copies, including transcripts, of such records be provided to the insured or a claimant under a contract, and

(iii) excluding the use of such communications in relation to specified records under this Act;

(e.3) requiring an insurer to give a claimant notice prior to the expiry of a limitation period under this Act, including, without limitation, prescribing

(ii) the consequences of failing to give the notice in accordance with the requirements prescribed under subparagraph (i), which consequences may include, but are not limited to, dispensing with, suspending or extending the limitation period;

(i) respecting dispute resolution under section 9, including, without limitation, regulations

(i) prescribing procedures that an umpire must follow in exercising the umpire's powers and performing the umpire's functions and duties under that section,

(ii) requiring an insurer to provide notice to an insured of the availability of the dispute resolution process in prescribed circumstances, and

(iii) prescribing the manner of giving notice for the purposes of subparagraph (ii);

SECTION 101: [Insurance Act, section 192.1] authorizes regulations exempting contracts from, or postponing, the application of new or amended provisions of the Act or continuing the application of amended or repealed provisions of the Act as they read immediately before the amendment or repeal.

Transitional regulations

192.1 Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations

(a) exempting a contract or a class of contracts, in effect on the date this section comes into force, from the application of any provision of the Insurance Amendment Act, 2009,

(b) postponing, to a specified date after the date a provision of the Insurance Amendment Act, 2009 comes into force, the application of the provision to a contract or a class of contracts, or

(c) applying, for a specified period on and after the date it was amended or repealed by the Insurance Amendment Act, 2009, a provision of this Act, as it read immediately before that date, to a contract or a class of contracts.

SECTION 102: [Insurance Act, section 194.1] re-enacts section 26 in the administration part of the Act.

Trafficking

194.1 Any person, other than an insurer or its authorized agent, who advertises, or holds himself or herself out, as a purchaser of life insurance policies or of benefits under them, or who traffics or trades in life insurance policies for the purpose of procuring the sale, surrender, transfer, assignment, pledge or hypothecation of them to himself or herself or any person, commits an offence against this Act.

SECTION 103: [Transitional regulations] authorizes the Lieutenant Governor in Council to make regulations that are not authorized by section 192.1 and are necessary for the transition from the current Insurance Act to the Insurance Act as amended by this Act.

Transitional regulations

103 (1) The Lieutenant Governor in Council may make regulations it considers necessary or advisable to more effectively bring this Act into operation, to remedy any transitional difficulties encountered in doing so and to provide for cases and circumstances that may arise in the implementation of this Act for which no provision, or no adequate provision, has been made.

(2) For 3 years after the date this section comes into force, a regulation made under this section may be made retroactive to a date not earlier than the date this Act or any provision of this Act comes into force and, if made retroactive, is deemed to come into force on the date specified in the regulation.

(3) This section is repealed 3 years after the date it comes into force and, on its repeal, any regulations made under it, unless earlier repealed, are also repealed.

Consequential Amendments and Repeal

SECTION 104: [Financial Institutions Act, section 1] repeals the definition of "life insurance" consequential to adding a regulation-making authority to establish classes of insurance.

104 Section 1 (1) of the Financial Institutions Act, R.S.B.C. 1996, c. 141, is amended by repealing the definition of "life insurance".

SECTION 105: [Financial Institutions Act, sections 74.1 and 80.1 to 80.3]

adds a definition of "mutual company" for the Division,
authorizes property insurers to insure vehicles,
re-enacts section 131 of the Insurance Act as section 80.2 of the Financial Institutions Act, and
imposes a requirement on insurers to establish a dispute resolution process for dealing with complaints and provides for exceptions from the requirement.

Mutual company definition

74.1 In this Division, "mutual company" has the same meaning as "mutual fire insurance company" in Division 4 of Part 6.

Coverage by property insurer

80.1 An insurer that has a business authorization for property insurance may insure a vehicle against loss or damage under a policy that includes coverage for loss or damage to property.

Obligation of insurer with respect to agent's commission

(b) authorized by an insurer that has a business authorization for property insurance to solicit, obtain or take applications for insurance, and to collect or receive premiums, on its behalf, and

(c) whose compensation or profit for those activities consists wholly of a commission on premiums derived from that business;

(2) The commission, if any, on a policy that includes insurance against loss or damage to property and is issued at the head office of an insurer in British Columbia must be paid to an agent, and there must be written on the policy the words "Issued on behalf of ________________, authorized agent at ________________", with the name of the agent and of the place where the agent carries on business.

(3) The person in charge of the head office of an insurer in British Columbia must immediately, on the issue of a policy referred to in subsection (2), notify the agent of the date of the policy, the name of the insured and the property insured.

(c) a contract insuring property in transit that is in the possession or custody of a railway company or common carrier, or

(d) a contract insuring movable property owned by a railway company or other common carrier and used in the course of its business as such.

Complaint resolution

(a) establish procedures for dealing with complaints made to the insurer by persons who have requested or received in British Columbia products or services from the insurer,

(b) designate an officer or employee who is responsible for implementing those procedures, and

(a) publish the procedures it establishes under subsection (1) on websites through which its products or services are offered in British Columbia, and

SECTION 106: [Financial Institutions Act, section 289] adds regulation-making authority

to establish and define classes of insurance, consequential to the repeal of section 1 (2) of the Insurance Act,
in relation to agent's commissions, consequential to the repeal of section 131 of the Insurance Act and its re-enactment by this Bill as section 80.2 of the Financial Institutions Act, and
in relation to the dispute resolution process established by section 80.3.

(p.1) establishing and defining classes of insurance for any purpose of this Act,

(p.2) respecting the solicitation, sale, provision and administration of, or the process for settling claims in relation to, group insurance or creditor's group insurance, including, without limitation,

(i) respecting the amount and disclosure of compensation payable to a person responsible for arranging, enrolling persons into or administering a contract of group insurance or creditor's group insurance, and

(ii) respecting the duties and conduct of an insurer or a person referred to in subparagraph (i),

(p.3) requiring an insurer to be a member of a prescribed organization to deal with complaints that are not dealt with to the satisfaction of complainants under section 80.3,

(p.4) respecting the mediation of prescribed disputes in relation to contracts of insurance, including, without limitation,

(i) requiring an insurer or another party to a dispute to participate in a mediation procedure, and

(4.1) A regulation under subsection (3) (p.1) for the purpose of business authorizations may establish and define a class of insurance comprising all types of insurance not otherwise included in a class established under that subsection for that purpose and, if such a class is established and defined, the regulation may delegate to the commission the authority to specify in the business authorization of a particular insurer the types of insurance business the insurer may carry on within that class.

SECTION 107: [Insurance (Captive Company) Act, section 3] is consequential to amendments to the Insurance Act.

107 Section 3 (1), (3) and (4) of the Insurance (Captive Company) Act, R.S.B.C. 1996, c. 227, is repealed and the following substituted:

(1) Sections 34 to 37, 39 to 46, 63, 64 (2), 70, 75, 80, 81, 105, 133, 211, 213, 215, 218, 243, 244, 246, 247 and 259 of the Financial Institutions Act and the prescribed provisions of the Insurance Act apply to a captive insurance company.

(3) The prescribed provisions of the Insurance Act apply to an association captive insurance company and a sophisticated insured captive insurance company.

(4) Other than the sections of the Financial Institutions Act referred to in subsection (1) and the provisions of the Insurance Act prescribed for the purposes of subsections (1) and (3), those Acts do not apply to a captive insurance company.

SECTION 108: [Insurance (Captive Company) Act, section 13] is consequential to amendments to the Insurance Act.

(k.1) the application, in respect of a captive insurance company or a class of captive insurance companies, of provisions of the Insurance Act; .

SECTION 109: [Insurance Corporation Act, section 8] is consequential to the repeal of section 1 (2) of the Insurance Act.

109 Section 8 (2) of the Insurance Corporation Act, R.S.B.C. 1996, c. 228, is amended by striking out "any class of insurance as defined in the Insurance Act and its regulations," and substituting "any class of insurance as defined under the Financial Institutions Act,".

SECTION 110: [Insurance (Marine) Act, repeal] repeals the Act.

SECTION 111: [Insurance Premium Tax Act, section 1] is consequential to the repeal of section 1 (2) of the Insurance Act.

111 Section 1 of the Insurance Premium Tax Act, R.S.B.C. 1996, c. 232, is amended

(a) in subsection (1) in paragraph (a) of the definition of "pleasure craft insurance" by striking out "personal property insurance" and substituting "property insurance", and

(2) The Lieutenant Governor in Council may make regulations establishing and defining classes of insurance for the purposes of this Act.

SECTION 112: [Securities Act, section 43] is consequential to the repeal of section 1 (2) of the Insurance Act.

112 Section 43 (2) (c) of the Securities Act, R.S.B.C. 1996, c. 418, is repealed and the following substituted:

Commencement

113 This Act comes into force by regulation of the Lieutenant Governor in Council.

Explanatory Notes