McD.Intro

Question 1

identify FEDERAL areas of exclusive authority (this is not specific to insurance) (6)

Answer 1

• regulation of (trade, commerce)
• taxation
• banking
• (bankruptcy, insolvency)
• aliens & naturalization
• criminal law

Question 2

identify PROVINCIAL areas of exclusive authority (this is not specific to insurance) (4)

Answer 2

• provincial taxes
• civil property rights
• hiring & supervising provincial employees
• operating jails & hospitals

Question 3

define intra vires, ultra vires

Answer 3

INTRA VIRES: within the powers of a particular Govt
ULTRA VIRES: beyond the powers of a particular Govt

Question 4

areas & matters under PROVINCIAL insurance legislation/regulation

Answer 4

[1] CONTRACT MATTERS: (ppp-ird)
- (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 feasiability 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

Insurance Reference Case: AG(Can) v AG(AB): Facts (1916)

Answer 6

(1910) The Federal Insurance Act required a Federal license of all insurers..
..EXCEPT IF (incorporated by Province) AND (operating solely in Province)

Question 7

Insurance Reference Case: AG(Can) v AG(AB) - Issues

Answer 7

is this version of the Federal Insurance Act ‘intra vires’?

Question 8

AG(Can) v AG(AB) - Ruling - JCPC (Judicial Committee of the Privy Council)

Answer 8

licensing provisions are ‘ultra vires’:
- regulation of trade/commerce didn’t extend to a licensing system of a particular trade
- trespasses on Provincial authority in civil rights
(not covered by Federal power to legislate for Peace, Order, Good Government)

Question 9

Insurance Reference Case: AG(Can) v AG(AB) - Implication-Canada

Answer 9

• a provincial insurer has the capacity, but not the right to operate in another Province
  (need permission from other province)
• federal insurer has the capacity and the right to operate in another province
  These are the 2 ways an insurer can operate in more than 1 province

Question 10

Insurance Reference Case: AG(Can) v AG(AB) - Implication-Foreign

Answer 10

federal government can require a federal license for a foreign insurer
(even if the foreign insurer is operating in only 1 province)

Question 11

Citizens Ins v Parsons: Facts (1881)

Answer 11

insurer disuptes ON’s Fire Insurance Act
- the Act required certain statutory conditions for fire policies in ON

Question 12

Citizens Ins v Parsons: Issues (Recall: Citizen’s - ultra)

Answer 12

ISSUE 1:
- is ON Fire Act ULTRA VIRES? (relates to regulation of trade, which is federal)
ISSUE 2:
- insurer claims province can’t legislate to deprive federally incorporated insurer of status & capacity

Question 13

Citizens Ins v Parsons: Ruling-JCPC on issue #1 (Judicial Committee of the Privy Concil)

Answer 13

Ruling (Issue 1):
- ON Fire Act is INTRA VIRES
Reason:
- federal government can’t regulate an insurer operating in a single province
- such insurance contracts are INTRA-provincial and are not covered by federal trade regulations
- trade means INTER-provincial (not INTRA-provincial)

Question 14

Citizens Ins v Parsons: Ruling-JCPC on issue #2

Answer 14

Ruling (Issue 2)
- status & capacity UNAFFECTED
- insurers are all treated equally, regardless of where they were incorporated