MCD.Intro Flashcards
identify federal areas of exclusive authority that is not specific to insurance
RBC-BAT
- Regulation of trade and commerce
- Banking
- Criminal law
- Bankruptcy and insolvency
- Taxation
identify provincial areas of exclusive authority that is not specific to insurance
PET-J
- Property rights
- Employees: hiring and supervising provincial employees
- provincial Taxes
- Jails and hospitals operation
define intra vires, ultra vires
intra: within the powers of a particular government
ultra: beyond the powers of a particular government
areas and matters under provincial insurance legislation and regulation
1) contract matters (PPP-DIR)
- policy contents
- policy terms
- premium payment
- insurable interest
- reinstatement
- designation of beneficiaries
2) transaction matters (AUC)
- Agent licensing
- Unfair practices
- Claims handling
evaluate feasibility of replacing provincial regulation of auto with federal regulation
not feasible
- this would be ultra vires for the federal government
- insurance reference case says regulation of commerce doesn’t cover licensing a particular trade
what is the difference between provincial and federal insuerer?
- provincial insurer has capacity, not right to operate in another province. Need permission from other provinces
- federal insurer has capacity and right to operate in any provinces
Facts/ Issues of Citizens Ins v. Parsons
- insurer disputes ON’s Fire Insurance Act, the Act required certain statutory conditions for fire policies in ON
- Issue1: is ON fire act ultra vires? related to regulation of trade, which is federa;
- Issue2: insurer claims province can’t legislate to deprive federally incorporated insurer of status and capacity省不能立法剥夺联邦注册保险公司的地位和能力
Rulings of Citizens Ins v. Parsons (on issue 1&2)
1) ON fire act is intra vires
- federal government can’t regulate an insurer operating in a single province
- such insurance contracts are intra provincial(everything happens inside the province) and not covered by federal trade regulations
- trade means inter provincial (not intra provincial)
2)
- status & capacity unaffected
- insurers are all treated equally, regardless of where they were incorporated
Facts/ Issues of AG(Can) v. AG(AB)
- Federal Insurance Act required a Federal license of all insurers except if incorporated by province and operating solely in province
- is this version of the federal insurance act “intra vires”?
Ruling of AG(Can) v. AG(AB)
- licensing provisions are ultra vires
- regulation of trade and commerce didnot extend to a licensing system of a particular trade
- trespasses on provincial authority in civil rights
AG(Can) v. AG(AB) implication Canada and foreign
Canada:
- a provincial insurer has the capacity but not the right to operate in another province
- federal insurer has the capacity and the right to operate in another province
Foreign:
- federal government can require a federal license for a foreign insurer even if the foreign insurer is operating in only 1 province
Facts/ Issues of CIC v. AG(BC)
Facts:
- BC legislature establishes compulsory public auto insurance plan
- legislature refuses license renewal of private insurers
- insurers sue
Issue:
- insurers claimed BC legislation s ultra vivres because
1) it relates to regulation of trade, which is federal
2) province can’t legislate to deprive federally incorporated insurer of status and capacity
Rulings of CIC v.AG(BC)
BC legislature acted within its powers
legislation is intra vires
identify examples of federal regulation and legislation regarding insurer solvency
- condition of entering business
- investments
- regular reporting
- calculation of assets and reserves
- protect policy holders
OSFI licensing requirements for domestic insurers for Minister of Finance to approve letters patent
CAPR (Canadian PR)
- CCE of whom operating (Character, Competence, Experience)
- Add jobs and make other contributions to Canadian Financial system
- Past bankruptcies? business record
- Resources: financial resources must be sufficient
if owned by foreign parent, OSFI must be satisfied that subsidiary will be treated fairly
