MCD.Intro

Question 1

identify federal areas of exclusive authority that is not specific to insurance

Answer 1

RBC-BAT
- Regulation of trade and commerce
- Banking
- Criminal law
- Bankruptcy and insolvency
- Taxation

Question 2

identify provincial areas of exclusive authority that is not specific to insurance

Answer 2

PET-J
- Property rights
- Employees: hiring and supervising provincial employees
- provincial Taxes
- Jails and hospitals operation

Question 3

define intra vires, ultra vires

Answer 3

intra: within the powers of a particular government
ultra: beyond the powers of a particular government

Question 4

areas and matters under provincial insurance legislation and regulation

Answer 4

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

Question 5

evaluate feasibility of replacing provincial regulation of auto with federal regulation

Answer 5

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

Question 6

what is the difference between provincial and federal insuerer?

Answer 6

• 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

Question 7

Facts/ Issues of Citizens Ins v. Parsons

Answer 7

• 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

Question 8

Rulings of Citizens Ins v. Parsons (on issue 1&2)

Answer 8

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

Question 9

Facts/ Issues of AG(Can) v. AG(AB)

Answer 9

• 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”?

Question 10

Ruling of AG(Can) v. AG(AB)

Answer 10

• 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

Question 11

AG(Can) v. AG(AB) implication Canada and foreign

Answer 11

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

Question 12

Facts/ Issues of CIC v. AG(BC)

Answer 12

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

Question 13

Rulings of CIC v.AG(BC)

Answer 13

BC legislature acted within its powers
legislation is intra vires

Question 14

identify examples of federal regulation and legislation regarding insurer solvency

Answer 14

• condition of entering business
• investments
• regular reporting
• calculation of assets and reserves
• protect policy holders

Question 15

OSFI licensing requirements for domestic insurers for Minister of Finance to approve letters patent

Answer 15

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

Question 16

identify reasons for insurance regulations in Canada

Answer 16

• prevent solvencies
• prevent undesirable business practices
• consider economic impact on Canada

Question 17

identify 5 areas under federal insurance regulation

Answer 17

CAR-PRICE
- Calc of Assets & Reserves
- Protection of phs
- Reporting financial requirements regularly
- Investment restrictions
- Condition for entering business