BILL NO. 45

(as passed, with amendments)

3rd Session, 58th General Assembly
Nova Scotia
52 Elizabeth II, 2003

Government Bill

Insurance Act
(amended)

CHAPTER 11 OF THE ACTS OF 2003

The Honourable Ronald S. Russell, C.D.
Minister of Environment and Labour

First Reading: May 5, 2003 (LINK TO BILL AS INTRODUCED)

Second Reading: May 9, 2003

Third Reading: May 22, 2003 (WITH COMMITTEE AMENDMENTS)

Royal Assent: May 22, 2003

Be it enacted by the Governor and Assembly as follows:

1 Section 106 of Chapter 231 of the Revised Statutes, 1989, the Insurance Act, as amended by Chapter 20 of the Acts of 1995-96, is further amended by adding immediately after subsection (3) the following subsection:

(3A) No change, made before or after the coming into force of this subsection, in rates, surcharges, premiums or other amounts, other than a monetary decrease, that is, but for this subsection, effective on or after the first day of May, 2003, is effective before the first day of January, 2004.

2 Section 154 of Chapter 231 is amended by

(a) adding "(1)" immediately after the Section number;

(b) striking out "ten" in the third line and substituting "forty-five"; and

(c) adding thereto the following subsections:

(2) A decrease in a monetary rate is not subject to the notice period in subsection (1) if the amended schedule has been filed in accordance with that subsection.

(3) Notwithstanding subsection (1) but subject to subsection (2), no change, made before or after the coming into force of this subsection, in the schedule of rates or rules applicable thereto that is, but for this subsection, effective on or after the first day of May, 2003, is effective before the first day of January, 2004.

3 Chapter 231 is further amended by adding immediately after Section 159 the following Section:

159A (1) An insurer shall not refuse to issue, refuse to renew or terminate a contract of automobile insurance or refuse to provide or continue any coverage or endorsement in respect of a contract of automobile insurance on any ground set out in the regulations made pursuant to subsection (2).

(2) The Governor in Council may make regulations

(a) requiring an insurer or broker to supply to applicants for automobile insurance, named insureds under contracts for automobile insurance or any other person prescribed by the regulations such information, including but not restricted to underwriting rules, as the regulations specify;

(b) prescribing grounds for which an insurer cannot, in circumstances specified by the regulations, refuse to issue, refuse to renew or terminate a contract of automobile insurance or refuse to provide or continue any coverage or endorsement in respect of a contract of automobile insurance;

(c) requiring insurers to provide to applicants for automobile insurance, named insureds under contracts for automobile insurance or any other person prescribed by the regulations reasons in any case of refusal to issue, refusal to renew or termination of a contract of automobile insurance or in any case of change to classification of risk;

(d) respecting any matter the Governor in Council considers necessary or advisable to carry out effectively the purpose of this Section.

(3) The exercise by the Governor in Council of the authority contained in subsection (2) is regulations within the meaning of the Regulations Act.

4 Section 317 of Chapter 231 is amended by adding immediately after subsection (2) the following subsection:

(2A) Any person who is guilty of an offence under Section 155 is liable to a fine not exceeding fifty thousand dollars for each deviation, with respect to each insured, from the schedule of rates.

5 This Act has effect on and after May 1, 2003.