Definitions and interpretation

1   In this Act:

"business authorization" means a business authorization under the Financial Institutions Act;

"contract" means a contract of insurance and includes a policy, certificate, interim receipt, renewal receipt or writing evidencing the contract, whether sealed or not, and a binding oral agreement;

"corporation" includes any incorporated company, association or society, wherever incorporated;

"insurance" means the undertaking by one person to indemnify another person against loss or liability for loss in respect of a certain risk or peril to which the object of the insurance may be exposed, or to pay a sum of money or other thing of value on the happening of a certain event;

"insurance money" means the amount payable by an insurer under a contract, and includes all benefits, surplus, profits, dividends, bonuses and annuities payable under the contract;

"insurer" means the person who undertakes, agrees or offers to undertake, a contract;

"licence" means a licence under Division 2 of Part 6 of the Financial Institutions Act;

"mutual company" has the same meaning as "mutual fire insurance company" in the Mutual Fire Insurance Companies Act;

"officer" includes any director, manager, treasurer or secretary of an insurer, and any other member of the managing body of an insurer by whatever name called;

"person" includes corporation, unincorporated society or association, partnership, any group of underwriters and a Lloyd's association;

"policy" means the instrument evidencing a contract;

"premium" means the single or periodical payment under a contract for the insurance, and includes dues, assessments and other consideration;

"property" includes profits, earnings and other pecuniary interests, and expenditure for rents, interest, taxes and other outgoings and charges, and in respect of inability to occupy the insured premises, but only to the extent of express provision in the contract;

"superintendent" means the Superintendent of Financial Institutions under the Financial Institutions Act.

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.

(2) This Act does not apply to or in respect of

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

(b) vehicle insurance as defined in the Insurance (Vehicle) Act.

Contract must be consistent with Act

3   (1) An insurer must not make a contract that is inconsistent with this 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

4   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

5   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

6   (1) Sections 18 to 20, 25 and 26 of the Limitation Act apply 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

7   (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 149 (2) (f) 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.

(3) If a record is provided in electronic form under this section,

(a) the record is deemed to have been provided by registered mail, and

(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.

Application of this Part

8   This Part applies to every contract except

(a) subject to section 38, a contract of life insurance,

(b) subject to section 93, a contract of accident and sickness insurance,

(c) a contract of reinsurance, and

(d) subject to regulations under section 140, a contract to which Part 5 applies.

Contracts deemed to be made in British Columbia

9   A contract is deemed to have been made in British Columbia and must be construed accordingly if it

(a) insures a person domiciled or resident in British Columbia at the date of it, or

(b) has as its subject matter property or an interest in property located in British Columbia.

Gaming or wagering contracts voided

10   (1) A contract by way of gaming or wagering is void.

(2) A contract is deemed to be a gaming or wagering contract if the insured has no interest in the subject matter of the contract.

Contents of policy

11   (1) A policy must contain all of the following:

(a) the name of the insurer;

(b) the name of the insured;

(c) the name of the person to whom the insurance money is payable;

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

(e) the subject matter of the insurance;

(f) the indemnity for which the insurer may become liable;

(g) the event on the happening of which the liability is to accrue;

(h) the date the insurance takes effect;

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

(j) the following statement:

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

12   (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 29, 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.

(5) A person may not be appointed as a representative if the person is

(a) the insured or the insurer, or

(b) an employee of the insured or the insurer.

(6) The representatives must

(a) determine the matters in dispute by agreement, and

(b) if they fail to agree, submit their differences to the umpire,

and the written determination of any 2 of them determines the matters.

(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.

(8) If

(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.

(10) If

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

(b) the umpire fails or refuses to act or is incapable of acting,

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

(c) the names of 3 persons the applicant believes are capable of performing the functions of the umpire, and

(d) the credentials of the 3 persons.

(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

(b) the credentials of the 3 persons.

(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:

(a) the superintendent receives names and credentials under subsection (13);

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

Court may relieve against forfeiture and termination

13   Without limiting section 24 of the Law and Equity Act, if

(a) there has been

(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

(c) relieve against the forfeiture or avoidance, or

(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

14   (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 12,

(b) the delivery and completion of a proof of loss, or

(c) the investigation or adjustment of any claim under the contract.

Policy in accordance with terms of application

15   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.

Effect of terms of contract not set out in policy

16   (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.

(2) This section does not apply to an alteration of the contract agreed on in writing between the insurer and the insured after the issue of the policy.

(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.

Misrepresentation and nondisclosure

17   (1) A contract is not rendered void or voidable by reason of any misrepresentation, or any failure to disclose on the part of the insured in the application or proposal for the insurance or otherwise, unless the misrepresentation or failure to disclose is material to the contract.

(2) The question of materiality is one of fact.

Effect of delivery of policy or premium receipt

18   If a policy or a receipt for the premium under a contract is delivered to the insured by the insurer or its agent, the insurer is bound by the contract, even though

(a) the delivery may have been made by the agent without authority, or

(b) the premium may not in fact have been paid.

Payment of refund to assignee

19   (1) If an insured assigns the right to refund of premium that may accrue by reason of the cancellation or termination of a contract of insurance under the terms of it and notice of the assignment is given by the assignee to the insurer, the insurer must pay any refund to the assignee, despite any condition in the contract, whether prescribed under this Act or not, requiring the refund to be paid to the insured or to accompany any notice of cancellation or termination to the insured.

(2) If the condition in the contract dealing with cancellation or termination by the insurer provides that the refund must accompany the notice of cancellation or termination, the insurer must include in the notice a statement that in place of payment of the refund in accordance with the condition the refund is being paid to the assignee under this section.

Effect of unpaid cheque or note for premium

20   (1) If a cheque, bill of exchange or promissory note is given, whether originally or by way of renewal, for the whole or part of any premium, and the cheque, bill of exchange or promissory note is not honoured according to its tenor, the insurer may terminate the contract

(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.

(2) This section does not apply to a mutual company.

Collecting unpaid premiums

21   (1) An insurer may sue for the unpaid premium, and may deduct the amount of it from the amount for which the insurer is liable under the contract of insurance.

(2) This section does not apply to a mutual company.

Claims payable in Canadian money and in British Columbia

22   All money payable under a contract by an insurer must be paid in lawful money of Canada and, if the person entitled to it requires, in British Columbia.

Limitation of actions

23   (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.

(2) An action must not be brought for the recovery of money payable under a contract of insurance until the expiration of 60 days after proof, in accordance with the contract

(a) of the loss, or

(b) of the happening of the event on which the insurance money is to become payable,

or of such shorter period as may be set by the contract of insurance.

Payment by insurer into court

24   (1) If an insurer cannot obtain a sufficient discharge for insurance money for which it admits liability, the insurer may apply to the court without notice to any person for an order for the payment of it into court, and the court may order the payment into court to be made on terms as to costs and otherwise the court directs, and may provide to what fund or name the amount must be credited.

(2) The receipt of the registrar or other proper officer of the court is a sufficient discharge to the insurer for the insurance money paid into court, and the insurance money must be dealt with according to the orders of the court.

Third person right of action against insurer

25   (1) If a judgment has been granted against a person in respect of a liability against which the person is insured and the judgment has not been satisfied, the judgment creditor may recover by action against the insurer the lesser of

(a) the unpaid amount of the judgment, and

(b) the amount that the insurer would have been liable under the policy to pay to the insured had the insured satisfied the judgment.

(2) The claim of a judgment creditor against an insurer under subsection (1) is subject to the same equities as would apply in favour of the insurer had the judgment been satisfied by the insured.

Insurer to furnish copy of application and policy

26   (1) On request, the insurer must furnish to the insured a copy of

(a) the insured's application or proposal for insurance, and

(b) the insured's 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

27   (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 23 (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

28   (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

29   (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.

Proportionate contributions

30   (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.

(3) Nothing in subsection (1) affects

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

(b) the limits of insurance on specified property,

(c) a clause referred to in section 31, or

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

(4) Nothing in subsection (1) affects the operation of a deductible clause, and

(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

31   A contract containing

(a) a deductible clause,

(b) a co-insurance, average or similar clause, or

(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

32   If a contract contains any term or condition, other than an exclusion prescribed by regulation for the purposes of section 33 (1) or established by section 34 (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

33   (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 34 (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.

(3) An exclusion contrary to subsection (1) or (2) is invalid.

(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

34   (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

(a) lightning, or

(b) an explosion of natural gas or manufactured gas

(i) in a building that does not form part of a gasworks,

(ii) from a cause, other than a cause excluded under section 33 (1), and

(iii) whether or not fire ensues.

(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

(a) originates outside the device or appliance, and

(b) causes the loss or damage.

(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).

(4) If property

(a) is insured at a specified location, and

(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

35   (1) Despite section 5, 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

(a) whose act or omission caused the loss or damage,

(b) who abetted or colluded in the act or omission,

(c) who

(i) consented to the act or omission, and

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

(d) who is in a class prescribed by regulation.

(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

36   (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.

Definitions

37   In this Part:

"application" means an application for insurance or for the reinstatement of insurance;

"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;

"blanket insurance" means group insurance that covers loss

(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;

"contract" means a contract of life insurance;

"court" means the Supreme Court;

"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 76 to 79, means an instrument signed by the insured

(a) with respect to which an endorsement is made on the policy,

(b) that identifies the contract, or

(c) that describes the insurance or insurance fund or a part of the insurance or insurance fund,

in which 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 62 (1) or a nomination referred to in section 68;

"family insurance" means insurance under which the lives of the insured and one or more persons related to the insured by blood, marriage or adoption or because of a marriage-like relationship are insured under a single contract between an insurer and the insured;

"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;

"group insurance" means insurance, other than creditor's group insurance and family insurance, under which the lives of a number of persons are insured severally under a single contract between an insurer and an employer or other person;

"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;

"instrument" includes a will;

"insurance" means life insurance;

"insured" means

(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;

"spouse" means a person who

(a) is married to another person, or

(b) is living with another person in a marriage-like relationship;

"will" includes a codicil.

Application of Part 2

38   Section 14 applies to contracts of life insurance.

Application of this Part

39   (1) Despite any agreement, condition or stipulation to the contrary, but subject to regulations under section 150 of this Act and section 103 of the Insurance Amendment Act, 2009, this Part applies to a contract made in British Columbia on or after July 1, 1962, and, subject to subsections (2) and (3), applies to a contract made in British Columbia before that day.

(2) The rights and interests of a beneficiary for value under a contract that was in force immediately before July 1, 1962 are those provided in Part IV of the Insurance Act then in force.

(3) If the person who would have been entitled to the payment of insurance money if the money had become payable immediately before July 1, 1962 was a preferred beneficiary within the meaning of Part IV of the Insurance Act then in force, the insured may not, except in accordance with that Part,

(a) alter or revoke the designation of a beneficiary, or

(b) assign, exercise rights under or in respect of, surrender or otherwise deal with the contract,

but this subsection does not apply after a time at which the insurance money, if it were then payable, would be payable wholly to a person other than a preferred beneficiary within the meaning of that Part.

Application of this Part to group insurance

40   In the case of a contract of group insurance made with an insurer authorized to transact insurance in British Columbia at the time the contract was made, this Part applies in determining

(a) the rights and status of beneficiaries and personal representatives as recipients of insurance money if the group life insured was resident in British Columbia at the time the group life insured became insured, and

(b) the rights and obligations of the group life insured if the group life insured was resident in British Columbia at the time the group life insured became insured.

Issuance and furnishing of policy

41   (1) An insurer entering into a contract must

(a) issue a policy, and

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

(2) Subject to subsection (3), the provisions in

(a) the application,

(b) the policy,

(c) any document attached to the policy when issued, and

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

constitute the entire contract.

(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

(a) the entire contract as set out in subsection (2) or (3), as applicable, and

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

(5) In the case of a contract of group insurance, an insurer,

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

(i) the group life insured's application, and

(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.

(6) In the case of a contract of creditor's group insurance, an insurer,

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

(i) the debtor insured's application, and

(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

(ii) the person who requests the information, or

(b) information prescribed by regulation.

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

(a) a claim under the contract, or

(b) a denial of such a claim.

Particulars in policy

42   (1) This section does not apply to a contract

(a) of group insurance,

(b) of creditor's group insurance, or

(c) made by a fraternal society.

(2) An insurer must set out in the policy the following:

(a) the name or a sufficient description of the insured and of the person whose life is insured;

(b) the amount, or the method of determining the amount, of the insurance money payable, and the conditions under which it becomes payable;

(c) the amount, or the method of determining the amount, of the premium and the period of grace, if any, within which it may be paid;

(d) whether the contract provides for participation in a distribution of surplus or profits that may be declared by the insurer;

(e) the conditions on which the contract may be reinstated if it lapses;

(f) the options, if any,

(i) of surrendering the contract for cash,

(ii) of obtaining a loan or an advance payment of the insurance money, and

(iii) of obtaining paid up or extended insurance.

(g) the following statement:

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.

(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.

Particulars in group policy

43   In the case of a contract of group insurance or of creditor's group insurance, an insurer must set out in the policy the following:

(a) the name or a sufficient description of the insured;

(b) the method of determining the persons whose lives are insured;

(c) the amount, or the method of determining the amount, of the insurance money payable, and the conditions under which it becomes payable;

(d) the period of grace, if any, within which the premium may be paid;

(e) whether the contract provides for participation in a distribution of surplus or profits that may be declared by the insurer;

(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;

(h) the following statement:

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.

Particulars in group certificate

44   (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:

(a) the name of the insurer and a sufficient identification of the contract;

(b) the amount, or the method of determining the amount, of insurance on

(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

(ii) the debtor insured;

(c) the circumstances in which the insurance terminates and the rights, if any, on termination of the insurance of

(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

(ii) the debtor insured;

(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

(ii) the following statement in conspicuous bold type:

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 41 (5) or (6);

(g) the following statement:

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 blanket insurance.

Lack of insurable interest

45   (1) Subject to subsection (2), if at the time a contract would otherwise take effect the insured has no insurable interest, the contract is void.

(2) A contract is not void for lack of insurable interest

(a) if it is a contract of group insurance, or

(b) if the person whose life is insured has consented in writing to the insurance being placed on the person's life.

(3) If the person whose life is insured is under the age of 16 years, consent to insurance being placed on the person's life may be given by one of the person's parents or by a person standing in the place of a parent.

Persons insurable

46   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 the primary person's own life and in the lives of the following:

(i) the primary person's child or grandchild;

(ii) the primary person's spouse;

(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;

(iv) the primary person's employee;

(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:

(i) the primary person's director, officer or employee;

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

Termination of contract by court

47   (1) If

(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

(a) the insurer, or

(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.

When contract takes effect

48   (1) Subject to a provision to the contrary in the application or the policy, a contract does not take effect unless

(a) the policy is delivered to an insured, the insured's assign or agent, or to a beneficiary,

(b) payment of the initial premium is made to the insurer or its agent, and

(c) no change has taken place in the insurability of the life to be insured between the time the application was completed and the time the policy was delivered.

(2) If a policy is issued on the terms applied for and is delivered to an agent of the insurer for unconditional delivery to a person referred to in subsection (1) (a), it is deemed, but not to the prejudice of the insured, to have been delivered to the insured.

Payment of premiums

49   (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.

(2) If a remittance for or on account of a premium is sent in a registered letter to an insurer and is received by it, the remittance is deemed to have been received at the time of the registration of the letter.

Payment of premiums and grace periods

50   (1) Except in the case of group insurance or creditor's group insurance, an assignee of a contract, a beneficiary or a person acting on behalf of one of them or of the insured may pay any premium that the insured is entitled to pay.

(2) If a premium, other than the initial premium, is not paid at the time it is due, the premium may be paid within a period of grace of

(a) 30 days, or in the case of an industrial contract 28 days, from and excluding the day on which the premium is due, or

(b) the number of days, if any, specified in the contract for payment of an overdue premium,

whichever is the longer period.

(3) If the happening of 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, 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.

Duty to disclose

51   (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 52 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

(a) additional coverage under a contract,

(b) an increase in insurance under a contract, or

(c) any other change to insurance after the policy is issued

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

Failure to disclose

52   (1) This section does not apply to

(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.

(2) Subject to subsection (3), if a contract, or an addition, increase or change referred to in section 51 (3), has been in effect for 2 years during the lifetime of the person whose life is insured, a failure to disclose, or a misrepresentation of, a fact required to be disclosed by section 51 does not, in the absence of fraud, render the contract voidable.

(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 51 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 51 (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.

Nondisclosure by insurer

53   If an insurer fails to disclose or misrepresents a fact material to the insurance, the contract is voidable by the insured, but in the absence of fraud the contract is not by reason of such failure or misrepresentation voidable after the contract has been in effect for 2 years.

Misstatement of age

54   (1) This section does not apply to a contract of group insurance or of creditor's group insurance.

(2) Subject to subsection (3), if the age of a person whose life is insured is misstated to the insurer, the insurance money provided by the contract must be increased or decreased to the amount that would have been provided for the same premium at the correct age.

(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

(a) that person is alive, and

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

Misstatement of age in group insurance

55   In the case of a contract of group insurance or of creditor's group insurance, a misstatement to the insurer of the age of a person whose life is insured does not of itself render the contract voidable, and the provisions, if any, of the contract with respect to age or misstatement of age apply.

Effect of suicide on contract

56   (1) If a contract contains an undertaking, express or implied, that insurance money will be paid if a person whose life is insured commits suicide, the undertaking is lawful and enforceable.

(2) If a contract provides that in case a person whose life is insured commits suicide within a certain period of time the contract is void or the amount payable under it is reduced, if the contract lapses and is subsequently reinstated on one or more occasions, the period of time begins to run from the date of the latest reinstatement.

Reinstatement of contract

57   (1) This section does not apply to a contract of group insurance or creditor's group insurance or to a contract made by a fraternal society.

(2) 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.

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

(a) applies for the reinstatement,

(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.

(4) Subsections (2) and (3) do not apply if the cash surrender value has been paid or an option of taking paid up or extended insurance has been exercised.

(5) Sections 51 and 52 apply, so far as applicable and with the necessary changes, to reinstatement of a contract.

Termination and replacement of group policies

58   (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:

(a) the termination of the contract or benefit provision;

(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 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 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.

Designation of beneficiary

59   (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 60, the insured may alter or revoke the designation by a declaration.

(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.

Irrevocable designation of beneficiary

60   (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 is 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 the insured purports to designate a beneficiary irrevocably in a will or in a declaration that is not filed as provided in subsection (1), the designation has the same effect as if the insured had not purported to make it irrevocable.

Designation in will

61   (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 that the designation is invalid as a bequest under the will.

(2) Despite the Wills, Estates and Succession 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.

(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.

Trustee for beneficiary

62   (1) An insured may in a contract or by a declaration appoint a trustee for a beneficiary and may alter or revoke the appointment by a declaration.

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

Predeceased or disclaiming beneficiary

63   (1) If a beneficiary predeceases the person whose life is insured, and no disposition of the share of the deceased beneficiary in the insurance money is provided for in the contract or by a declaration, the share is payable

(a) to the surviving beneficiary,

(b) if there is more than one surviving beneficiary, to the surviving beneficiaries in equal shares, or

(c) if there is no surviving beneficiary, to the insured or the insured's personal representative.

(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.

(4) A notice of disclaimer filed under subsection (3) is irrevocable.

(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.

Enforcement of payment by beneficiary or trustee

64   A beneficiary may enforce in the beneficiary's own name and for the beneficiary's own benefit, and a trustee appointed under section 62 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.

Insurance money exempt from seizure

65   (1) If a beneficiary is designated, the insurance money, from the time of the happening of the event on which the insurance money becomes payable, is not part of the estate of the insured and is not subject to the claims of the creditors of the insured.

(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.

Assignment of insurance

66   (1) If a beneficiary

(a) is not designated irrevocably, or

(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 it or in this Part, or as may be agreed on with the insurer.

(2) Despite section 60 (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.

Entitlement to dividends

67   (1) Despite the irrevocable designation of a beneficiary, the insured is entitled before the insured's 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.

Transfer of insured's rights

68   (1) Despite the Wills, Estates and Succession 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 that 2 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 the insured's 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.

Effect of assignment

69   (1) If an assignee of a contract gives notice in writing of the assignment to the insurer at its head or principal office in Canada, the assignee has priority of interest as against

(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 60 before the assignee gave notice to the insurer of the assignment in the manner provided for in this subsection.

(2) 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.

(3) If a contract is assigned unconditionally and otherwise than as security, the assignee has all the rights and interests given to the insured by the contract and by this Part and is deemed to be the insured.

(4) 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 68 (1) made before or after that date.

(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 life insured or debtor insured, as applicable, are not assignable.

Group life insured may enforce rights

70   A group life insured may in their own name enforce a right given to the group life insured under a contract, subject to any defence available to the insurer against the group life insured or against the insured.

Debtor insured may enforce rights

71   (1) A debtor insured, or a debtor who is jointly liable for the debt with the debtor insured, may enforce

(a) in the case of the debtor insured, in the debtor insured's own name, or

(b) in the case of the jointly liable debtor, in the jointly liable debtor's 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.

Capacity of minors

72   Except in respect of the minor's rights as beneficiary, a minor who has reached the age of 16 years has the capacity of a person of the age of 19 years

(a) to make an enforceable contract, and

(b) in respect of a contract.

Proof of claim

73   If an insurer receives sufficient evidence of

(a) the happening of the event on which insurance money becomes payable,

(b) the age of the person whose life is insured,

(c) the right of the claimant to receive payment, and

(d) the name and age of the beneficiary, if there is a beneficiary,

it must, within 30 days after receiving the evidence, pay the insurance money to the person entitled to it.

Payment of insurance money

74   (1) Subject to subsections (3) to (5), insurance money is payable in British Columbia.

(2) Unless a contract otherwise provides, a reference in it to dollars means Canadian dollars, whether the contract by its terms provides for payment in Canada or elsewhere.

(3) 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.

(4) In the case of a contract of group insurance, insurance money is payable in the province or territory of Canada in which the group life insured was resident at the time the group life insured became insured.

(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.

Action in British Columbia

75   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.

Limitation of actions

76   (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

(a) 2 years after the date evidence is furnished under section 73, and

(b) 6 years after the date of the death.

(2) Subject to subsection (5), if a declaration has been made under the 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.

Documents affecting right to insurance money

77   (1) Until an insurer receives at its head or principal office in Canada an instrument or an order of a court affecting the right to receive insurance money, or a notarial copy, or a copy verified by statutory declaration, of the instrument or order, it may make payment of the insurance money and is discharged to the extent of the amount paid as if there were no instrument or order.

(2) Subsection (1) does not affect the rights or interests of any person other than the insurer.

Declaration as to sufficiency of proof

78   If an insurer admits the validity of the insurance but does not admit the sufficiency of the evidence required by section 73 and there is no other question in issue except a question under section 3 of the Presumption of Death Act, the insurer or the claimant may, before or after action is brought and on at least 30 days' notice, apply to the court for a declaration as to the sufficiency of the evidence furnished, and the court may make the declaration or may direct what further evidence must be furnished, and on it being furnished may make the declaration or, in special circumstances, may dispense with further evidence.

Court may make order for payment

79   (1) On making a declaration under section 78 or an order under the Presumption of Death Act, the court may make an order respecting the payment of the insurance money and respecting costs it considers just, and a declaration or direction or order made under this subsection is binding on the applicant and on all persons to whom notice of the application has been given.

(2) A payment made under an order under subsection (1) discharges the insurer to the extent of the amount paid.

Application to court operates as stay of proceedings

80   Unless the court otherwise orders, an application made under section 78 or section 3 of the Presumption of Death Act operates as a stay of any pending action with respect to the insurance money.

Powers of court

81   If the court finds that the evidence furnished under section 73 is not sufficient or that a presumption of death is not established under the Presumption of Death Act, it may order that the matters in issue be decided in an action brought or to be brought, or may make such other order as it considers just respecting further evidence to be furnished by the claimant, publication of advertisements, further inquiry or any other matter or respecting costs.

Payment into court

82   (1) If an insurer admits liability for insurance money or any part of it and it appears to the insurer that

(a) there are adverse claimants,

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

(c) the insurance money has become unclaimed property under the Unclaimed Property Act,

(d) there is no person entitled to the insurance money, or

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

the insurer may, without notice to any person but subject to subsection (2), apply to the court for an order for payment of the money into court.

(2) An application to the court under this section may not be made until

(a) in a case to which subsection (1) (a), (b) (d) or (e) applies, 30 days from the date of the happening of the event on which the insurance money became payable, or

(b) in a case to which subsection (1) (c) applies, 30 days after the insurance money became unclaimed property under the Unclaimed Property Act.

(3) On application under this section, the court may, on notice, if any, as it thinks necessary, make an order for payment of the insurance money into court.

(4) On payment into court of insurance money referred to in subsection (1) (c), Part 3 of the Unclaimed Property Act ceases to apply to that money.

(5) A payment made under an order under this section discharges the insurer to the extent of the payment.

Simultaneous deaths

83   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.

Insurance money payable in instalments

84   (1) In this section, "instalments" includes insurance money held by the insurer under section 85.

(2) Subject to subsections (3) and (4), if insurance money is payable in instalments and a contract, or an instrument signed by the insured and delivered to the insurer, provides that a beneficiary does not have the right to commute the instalments or to alienate or assign the beneficiary's interest in the instalments, the insurer must not, unless the insured subsequently directs otherwise in writing, commute the instalments or pay them to any person other than the beneficiary, and the instalments are not, in the hands of the insurer, subject to any legal process, except an action to recover the value of necessaries supplied to the beneficiary or the beneficiary's minor children.

(3) A court may, on the application of a beneficiary on at least 10 days' notice, declare that in view of special circumstances

(a) the insurer may, with the consent of the beneficiary, commute instalments of insurance money, or

(b) the beneficiary may alienate or assign the beneficiary's interest in the insurance money.

(4) After the death of the beneficiary, the beneficiary's personal representative may, with the consent of the insurer, commute any instalments of insurance money payable to the beneficiary.

Insurer holding insurance money

85   (1) An insurer may hold insurance money

(a) subject to the order of an insured or a beneficiary, or

(b) on trusts or other agreements for the benefit of the insured or the beneficiary,

as provided in the contract, by an agreement in writing to which it is a party, or by a declaration, with interest at a rate agreed on in it or, if no rate is agreed on, at the rate declared by the insurer in respect of insurance money held by it.

(2) The insurer is not bound to hold insurance money as provided in subsection (1) under the terms of a declaration to which it has not agreed in writing.

Court may order payment

86   If an insurer does not, within 30 days after receipt of the evidence required by section 73, pay the insurance money to some person competent to receive it or into court, the court may, on application of any person, order that the insurance money or any part of it be paid into court, or may make such other order as to the distribution of the money as it considers just, and payment made in accordance with the order discharges the insurer to the extent of the amount paid.

Costs

87   The court may fix without taxation the costs incurred in connection with an application or order made under section 82 or 86, and may order them to be paid out of the insurance money or by the insurer or the applicant, or otherwise as it considers just.

Payment of insurance money for minors

88   (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 must, within 30 days after receiving the evidence referred to in section 73,

(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

(c) in the case of money payable to a trustee for a beneficiary who is a minor, pay the money to the trustee.

(2) An insurer who makes a payment under subsection (1) (a) (i) or (c) must, within 30 days after the date of payment, give written notice to the Public Guardian and Trustee stating the name and address of the minor, the name and address of the trustee and the amount of the payment.

(3) Payment of the insurance money referred to in subsection (1) discharges the insurer if the payment is made in accordance with subsection (1).

(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.

Payment to representative of beneficiary

89   Despite section 88, 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.

Presumption against agency

90   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.

Insurer giving information

91   An insurer does not incur any liability for any default, error or omission in giving or withholding information as to any notice or instrument that it has received and that affects the insurance money.

Definitions

92   In this Part:

"application" means an application for insurance or for the reinstatement of insurance;

"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;

"blanket insurance" means group insurance that covers loss

(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;

"contract" means a contract of insurance;

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

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

"declaration", except in sections 104 and 123, means an instrument signed by the insured

(a) with respect to which an endorsement is made on the policy,

(b) that identifies the contract, or

(c) that describes the insurance or insurance fund or a part of the insurance or insurance fund,

in which 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 120 (1) or a nomination referred to in section 127;

"family insurance" means insurance under which the lives or well-being or both of the insured and one or more persons related to the insured by blood, marriage or adoption or because of a marriage-like relationship are insured under a single contract between an insurer and the insured;

"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;

"group insurance" means insurance other than creditor's group insurance and family insurance under which the lives or well being or both of a number of persons are insured severally under a single contract between an insurer and an employer or other person;

"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;

"instrument" includes a will;

"insurance" means accident and sickness insurance;

"insured" means

(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 person insured, and

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

"person insured" means a person in respect of an accident to whom, or in respect of whose sickness, insurance money is payable under a contract, but does not include a group person insured or debtor insured;

"spouse" means a person who

(a) is married to another person, or

(b) is living with another person in a marriage-like relationship;

"will" includes a codicil.

Application of Part 2

93   Sections 13 and 14 apply to contracts of accident and sickness insurance.

Application of this Part

94   (1) Despite any agreement, condition or stipulation to the contrary, but subject to regulations under section 150 of this Act and section 103 of the Insurance Amendment Act, 2009, this Part applies to a contract made in British Columbia on and after October 1, 1970 and sections 92 to 96, 103, 107 to 110, 114 and 117 to 139 apply also to a contract made in British Columbia before that day.

(2) Sections 178 to 181, 183, 190 and 193 of Part V of the Insurance Act, R.S.B.C. 1979, c. 200, in force immediately before October 1, 1970 apply to a contract made in British Columbia before that day.

(3) This Part does not apply to either of the following:

(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.

Application of this Part to group insurance

95   In the case of a contract of group insurance made with an insurer authorized to transact insurance in British Columbia at the time the contract was made, this Part applies in determining

(a) the rights and status of beneficiaries and personal representatives as recipients of insurance money, if the group person insured was resident in British Columbia at the time the group person insured became insured, and

(b) the rights and obligations of the group person insured if the group person insured was resident in British Columbia at the time the group person insured became insured.

Issuance and furnishing of policy

96   (1) An insurer entering into a contract must

(a) issue a policy, and

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

(2) Subject to subsection (3), the provisions in

(a) the application,

(b) the policy,

(c) any document attached to the policy when issued, and

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

constitute the entire contract.

(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

(a) the entire contract as set out in subsection (2) or (3), as applicable, and

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

(5) In the case of a contract of group insurance, an insurer,

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

(i) the group person insured's application, and

(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.

(6) In the case of a contract of creditor's group insurance, an insurer,

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

(i) the debtor insured's application, and

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

(ii) the person who requests the information, or

(b) information prescribed by regulation.

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

(a) a claim under the contract, or

(b) a denial of such a claim.

Particulars in policy

97   (1) This section does not apply to a contract

(a) of group insurance,

(b) of creditor's group insurance, or

(c) made by a fraternal society.

(2) An insurer must set out in the policy the following:

(a) the name or a sufficient description of the insured and of the person insured;

(b) the amount, or the method of determining the amount, of the insurance money payable and the conditions under which it becomes payable;

(c) the amount, or the method of determining the amount, of the premium and the period of grace, if any, within which it may be paid;

(d) the conditions on which the contract may be reinstated if it lapses;

(e) the term of the insurance or the method of determining the dates on which the insurance starts and terminates;

(f) the following statement:

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.

(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.

Particulars in group policy

98   In the case of a contract of group insurance or creditor's group insurance, an insurer must set out in the policy the following:

(a) the name or a sufficient description of the insured;

(b) the method of determining the persons whose lives or well being or both are insured;

(c) the amount, or the method of determining the amount, of the insurance money payable and the conditions under which it becomes payable;

(d) the period of grace, if any, within which the premium may be paid;

(e) the term of the insurance or the method of determining the dates on which the insurance starts and terminates;

(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;

(h) the following statement:

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.

Particulars in group certificate

99   (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 person insured or debtor insured, a certificate or other document in which are set out the following:

(a) the name of the insurer and a sufficient identification of the contract;

(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) the circumstances under which the insurance terminates, and the rights, if any, on termination of the insurance of the group person insured or debtor insured and of any person insured;

(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

(ii) the following statement in conspicuous bold type:

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 96 (5) or (6);

(g) the following statement:

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

(a) of blanket insurance, or

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

Exceptions and reductions must be set out in policy

100   (1) Subject to section 101 and except as otherwise provided in this section, the insurer must set out in the policy every exception or reduction affecting the amount payable under the contract, either in the provision affected by the exception or reduction, or under a heading such as "Exceptions" or "Reductions".

(2) If the exception or reduction affects only one provision in the policy, it must be set out in that provision.

(3) If the exception or reduction is contained in an endorsement, insertion or rider, the endorsement, insertion or rider must, unless it affects all amounts payable under the contract, make reference to the provisions in the policy affected by the exception or reduction.

(4) The exception or reduction mentioned in section 115 need not be set out in the policy.

(5) This section does not apply to a contract

(a) of group insurance,

(b) of creditor's group insurance, or

(c) made by a fraternal society.

Statutory conditions

101   Subject to section 102, 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 102 is binding on the insured.

Omission or variation of statutory conditions

102   (1) If a statutory condition is not applicable to the benefits provided by the contract, it may be omitted from the policy or varied so that it will be applicable.

(2) Statutory Conditions 3 and 7 may be omitted from the policy if the contract does not contain any provisions respecting the matters dealt with in them.

(3) Statutory Condition 4 must be omitted from the policy if the contract does not provide that it may be terminated by the insurer prior to the expiry of any period for which a premium has been accepted.

(4) Statutory Conditions 3, 4 and 7, and, subject to the restriction in subsection (5), Statutory Condition 5 may be varied; but if by reason of the variation the contract is less favourable to the insured, a person insured, or a beneficiary than it would be if the condition had not been varied, the condition is deemed to be included in the policy in the form in which it appears in section 101.

(5) Statutory Condition 5 (1) (a) and (b) may not be varied in policies providing benefits for loss of time.

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

(7) The title of a statutory condition must be reproduced in the policy along with the statutory condition, but the number of a statutory condition may be omitted.

(8) In the case of a contract made by a fraternal society,

(a) the following provision must be printed on every policy in substitution for Statutory Condition 1:

and

(b) Statutory Condition 4 (1) (b) and (3) must not be printed on the policy.

Notice of statutory conditions

103   In the case of a policy of accident and sickness insurance of a nonrenewable type issued for a term of 6 months or less or in relation to a ticket of travel, the statutory conditions need not be printed on or attached to the policy if the policy contains the following notice 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.

Limitation of actions

104   (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

(a) 2 years after the proof of claim is furnished, and

(b) 6 years after the date of the death.

(2) Subject to subsection (5), if a declaration has been made under the 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.

Sufficiency of proof and role of court

105   Sections 78 to 81 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 73 must be read as a reference to Statutory Condition 5 (1) set out in section 101.

Termination for non-payment

106   (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

(i) 15 days' notice of termination by registered mail, or

(ii) 5 days' written notice of termination personally delivered.

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

(a) sue for any unpaid premium;

(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

(a) a period of grace of 30 days after the date the premium is due, or

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

whichever is the longer period.

(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.

(7) Subsection (1) does not apply to a contract made by a fraternal society.

Lack of insurable interest

107   (1) Subject to subsection (2), if at the time a contract would otherwise take effect, the insured has no insurable interest, the contract is void.

(2) A contract is not void for lack of insurable interest

(a) if it is a contract of group insurance, or

(b) if the person insured has consented in writing to the insurance.

(3) If the person insured is under the age of 16 years, consent to the insurance may be given by one of the person insured's parents or by a person standing in the place of a parent.

Persons insurable

108   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 the primary person's own life and well being and in the lives and well being of the following:

(i) the primary person's child or grandchild;

(ii) the primary person's spouse;

(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;

(iv) the primary person's employee;

(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:

(i) the primary person's director, officer or employee;

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

Termination of contract by court

109   (1) If

(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

(b) an order that the amount of insurance under the contract 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

(a) the insurer, or

(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.

Capacity of minors

110   Except in respect of the minor's 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

(a) to make an enforceable contract, and

(b) in respect of a contract.

Duty to disclose

111   (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 112 and 115 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

(a) additional coverage under a contract,

(b) an increase in insurance under a contract, or

(c) any other change to insurance after the policy is issued

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

Failure to disclose

112   (1) Subject to section 115 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 111 (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 111 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 111 to be disclosed in respect of a group person insured, a person insured or a debtor insured 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 111 (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.

(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.

Failure to disclose on reinstatement

113   Sections 111 and 112 apply, as far as applicable and with the necessary changes, to a failure at the time of reinstatement of a contract to disclose or a misrepresentation at that time, and the period of 2 years to which reference is made in section 112 begins to run in respect of a reinstatement from the date of reinstatement.

Pre-existing conditions

114   If a contract contains a general exception or reduction with respect to pre-existing disease or physical conditions and the person insured, group person insured or debtor insured suffers or has suffered from a disease or physical condition that existed before the date the contract came into force with respect to that person and the disease or physical condition is not by name or specific description excluded from the insurance respecting that person,

(a) the prior existence of the disease or physical condition is not, except in the case of fraud, available as a defence against liability in whole or in part for a loss incurred or a disability beginning after the contract, including renewals of it, has been in effect continuously for 2 years immediately before the date of loss incurred or commencement of disability with respect to that person, and

(b) the prior existence of the disease or physical condition is not, except in the case of fraud, available as a defence against liability in whole or in part if the disease or physical condition was disclosed in the application for the contract.

Misstatement of age

115   (1) Subject to subsections (2) and (3), if the age of the person insured has been misstated to the insurer, then, at the option of the insurer, either

(a) the benefits payable under the contract may be increased or decreased to the amount that would have been provided for the same premium at the correct age, or

(b) the premium may be adjusted in accordance with the correct age as of the date the person insured became insured.

(2) In the case of a contract of group insurance or creditor's group insurance, if there is a misstatement to the insurer of the age of a group person insured, person insured or debtor insured, the provisions, if any, of the contract with respect to age or misstatement of age apply.

(3) If the age of a person affects the commencement or termination of the insurance, the correct age governs.

Termination and replacement of group policies

116   (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

(a) loss of income because of disability,

(b) death,

(c) dismemberment, or

(d) accidental damage to natural teeth,

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:

(a) the termination of the contract or benefit provision;

(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,

(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,

(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.

Designation of beneficiary

117   (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 118, 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

(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 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.

Irrevocable designation of beneficiary

118   (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

119   (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, Estates and Succession 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.

(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.

Trustee for beneficiary

120   (1) An insured may in a contract or by a declaration appoint a trustee for a beneficiary, and may alter or revoke the appointment by a declaration.

(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.

Predeceased or disclaiming beneficiary

121   (1) If a beneficiary predeceases the person insured or group person insured, as the case may be, and no disposition of the share of the deceased beneficiary in the insurance money is provided for in the contract or by declaration, the share is payable

(a) to the surviving beneficiary,

(b) if there is more than one surviving beneficiary, to the surviving beneficiaries in equal shares, or

(c) if there is no surviving beneficiary, to the insured or group person insured, as the case may be, or the insured's or the group person insured's personal representative.

(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.

(4) A notice of disclaimer filed under subsection (3) is irrevocable.

(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.

Enforcement of payment by beneficiary or trustee

122   A beneficiary may enforce in the beneficiary's own name and for the beneficiary's own benefit, and a trustee appointed under section 120 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.

Documents affecting right to insurance money
and effect of assignment

123   (1) Until an insurer receives at its head or principal office in Canada an instrument or an order of a court affecting the right to receive insurance money, or a notarial copy or a copy verified by statutory declaration of any such instrument or order, it may make payment of the insurance money and is as fully discharged to the extent of the amount paid as if there were no such instrument or order.

(2) Subsection (1) does not affect the rights or interests of any person other than the insurer.

(3) If an assignee of a contract gives notice in writing of the assignment to the insurer at its head or principal office in Canada, the assignee has priority of interest as against

(a) any assignee other than one who gave notice earlier in like manner, and

(b) a beneficiary, other than one designated irrevocably as provided for in section 118 before the assignee gave notice to the insurer of the assignment in the manner provided for in this subsection.

(4) 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.

(5) If a contract is assigned unconditionally and otherwise than as security, the assignee has all the rights and interests given by the contract and by this Part to the insured, and is deemed to be the insured.

(6) Unless the document by which a contract is assigned specifies otherwise, an assignment described in subsection (5) 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 127 made before or after that date.

(7) 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.

Insurance money exempt from seizure

124   (1) If a beneficiary is designated, any insurance money payable to the beneficiary is not, from the time of the happening of the event on which it becomes payable, part of the estate of the insured, and is not subject to the claims of the creditors of the insured.

(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.

Assignment of insurance

125   (1) If a beneficiary

(a) is not designated irrevocably, or

(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 118 (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.

Entitlement to dividends

126   (1) Despite the irrevocable designation of a beneficiary, the insured is entitled before the insured's 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.

Transfer of insured's rights

127   (1) Despite the Wills, Estates and Succession 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 that 2 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 the insured's 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.

Group person insured may enforce rights

128   A group person insured may, in the group person insured's own name, enforce a right given by a contract to the group person insured, or to a person insured under the contract as a person dependent on or related to the group person insured, subject to any defence available to the insurer against the group person insured, such person insured or the insured.

Debtor insured may enforce rights

129   (1) A debtor insured, or a debtor who is jointly liable for the debt with the debtor insured, may enforce

(a) in the case of the debtor insured, in the debtor insured's own name, or

(b) in the case of the jointly liable debtor, in the jointly liable debtor's 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.

(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.

Simultaneous deaths

130   Unless a contract or a declaration otherwise provides, if a person insured or group person 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 insured or group person insured.

Payment into court

131   (1) If an insurer admits liability for insurance money or any part of it and it appears to the insurer that

(a) there are adverse claimants,

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

(c) the insurance money has become unclaimed property under the Unclaimed Property Act,

(d) there is no person entitled to the insurance money, or

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

the insurer may, without notice to any person, apply to the court for an order for payment of the money into court.

(2) On application under this section, the court may, on notice, if any, as it thinks necessary, make an order for payment of the insurance money into court.

(3) On payment into court of insurance money referred to in subsection (1) (c), Part 3 of the Unclaimed Property Act ceases to apply to that money.

(4) The court may fix without taxation the costs incurred for an application or order made under this section, and may order the costs to be paid out of the insurance money or by the insurer, or otherwise as it deems just.

(5) A payment made under an order under this section discharges the insurer to the extent of the payment.

Payment of insurance money for minors

132   (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 (4), pay the money to the minor, and

(c) in the case of money payable to a trustee for a beneficiary who is a minor, pay the money to the trustee.

(2) An insurer who makes a payment under subsection (1) (a) (i) or (c) must, within 30 days after the date of payment, give written notice to the Public Guardian and Trustee stating the name and address of the minor, the name and address of the trustee and the amount of the payment.

(3) Payment of the insurance money referred to in subsection (1) discharges the insurer if the payment is made in accordance with subsection (1).

(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.

Payment to representative of beneficiary

133   Despite section 132, 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.

Payments not exceeding $10 000

134   Even though insurance money is payable to a person, the insurer may, if the contract provides, but subject always to the rights of an assignee, pay an amount not exceeding $10 000 to

(a) a relative of a person insured or the group person insured, or

(b) a person appearing to the insurer to be equitably entitled to the insurance money by reason of having incurred expense for the maintenance, medical attendance or burial of a person insured or the group person insured, or to have a claim against the estate of a person insured or the group person insured in relation to such an expense,

and any payment discharges the insurer to the extent of the amount paid.

Payment of insurance money

135   (1) Subject to subsections (2), (4) and (5), insurance money is payable in British Columbia.

(2) In the case of a contract of group insurance, insurance money is payable in the province or territory of Canada in which the group person insured was resident at the time the person became insured.

(3) Unless a contract otherwise provides, a reference to dollars means Canadian dollars whether the contract by its terms provides for payment in Canada or elsewhere.

(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.

(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.

Action in British Columbia

136   Regardless of the place where a contract was made, a claimant who is a resident of 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.

Insurer giving information

137   An insurer does not incur any liability for any default, error or omission in giving or withholding information as to any notice or instrument that it has received and that affects the insurance money.

Undue prominence

138   The insurer must not in the policy give undue prominence to any provision or statutory condition as compared to other provisions or statutory conditions, unless the effect of that provision or statutory condition is to increase the premium or decrease the benefits otherwise provided for in the policy.

Presumption against agency

139   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.

Application of Part 2

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

Home warranty insurance

141   (1) In this section:

"home warranty certificate" means a certificate, issued by an insurer providing home warranty insurance to an owner, that sets out the terms and conditions of the home warranty insurance;

"home warranty insurance" means a contract of insurance covering defects in the construction of a new home or renovation, and consequential losses or costs incurred by the owner;

"new home" has the same meaning as in section 1 of the Homeowner Protection Act;

"owner" has the same meaning as in section 1 of the Homeowner Protection Act;

"renovation" has the same meaning as in section 1 of the Homeowner Protection Act;

(2) If mandatory conditions for home warranty insurance are required by regulations made under this Act

(a) the mandatory conditions are deemed to be part of the home warranty insurance and must be printed in every home warranty certificate under the heading "Mandatory Conditions", and

(b) no variation or omission of or addition to a mandatory condition is binding on the insured.

(3) The home warranty insurance must provide coverage at least equal to the minimum standards set out in the regulations and, if the home warranty insurance does not, in any of its provisions, provide coverage at least equal to the prescribed minimum coverage, the coverage provided in the relevant provisions of the contract is deemed to be replaced by the appropriate prescribed minimum coverage.

(4) The home warranty insurance must not contain

(a) any term which purports to waive, exclude, limit or qualify the home warranty insurance except as may be permitted by regulation, or

(b) any exclusions from coverage except as permitted by regulation,

and any such term or exclusion has no effect.

(5) A person must not waive or invalidate home warranty insurance except as may be permitted by the regulations, and any such waiver or invalidation has no effect.

(6) The home warranty insurance is enforceable even if there is no privity of contract between the owner and the insurer.

Interpretation for purposes of deposit protection contracts

142   (1) In this section, sections 143 to 146 and section 149 (5):

"deposit protection contract" means a contract indemnifying an insured against the losses described in section 143 (1);

"developer" and "development unit" have the same meanings as in the Real Estate Development Marketing Act;

"insured" means the purchaser for whose benefit a deposit protection contract is entered into by the developer of the purchaser's development unit;

"purchase agreement" and "purchaser" have the same meanings as in the Real Estate Development Marketing Act.

(2) For the purposes of applying Part 2 in relation to a deposit protection contract, the definition of "insured" in subsection (1) applies.

Deposit protection contracts

143   (1) A deposit protection contract must indemnify the insured against the loss of

(a) a deposit described in section 18 (1) of the Real Estate Development Marketing Act paid by the insured to the developer, and

(b) if the developer has agreed to pay the insured interest on the deposit, interest

that results because the developer fails to do both the following:

(c) ensure that the events required under section 18 (3) (b) to (d) of the Real Estate Development Marketing Act occur within the time established for that purpose in the purchase agreement;

(d) return the deposit, and interest if applicable, to the insured in accordance with the purchase agreement.

(2) If mandatory conditions for deposit protection contracts are prescribed,

(a) the mandatory conditions are deemed to be part of a deposit protection contract and must be printed in every deposit protection contract under the heading "Mandatory Conditions", and

(b) no variation or omission of, or addition to, a mandatory condition is binding on an insured.

(3) A deposit protection contract must not contain

(a) a term that purports to waive, exclude or qualify the deposit protection contract, or

(b) an exclusion from coverage

except as authorized by regulation.

(4) A term referred to in subsection (3) (a) and an exclusion referred to in subsection (3) (b) have no effect.

(5) A person must not waive or invalidate a deposit protection contract except as authorized by regulation and a waiver or invalidation contrary to the regulations has no effect.

How deposit protection contract affected by parties

144   (1) A deposit protection contract is enforceable by the insured whether or not

(a) there is privity of contract between the insured and the insurer, or

(b) the premium is paid.

(2) A developer who enters into a deposit protection contract is responsible for payment of the premiums in respect of the contract and may not charge the insured for that cost as a separate item.

(3) If a premium in respect of a deposit protection contract remains unpaid on or after its due date, the insurer may sue only the developer for the unpaid premium and may not deduct the amount of the premium from the amount for which the insurer is liable under the deposit protection contract.

Insurer to furnish copy of deposit protection contract and form for claim

145   (1) It is the duty of an insurer to provide

(a) a true copy of a deposit protection contract to the developer that entered into the deposit protection contract, and

(b) the original or a true copy of the deposit protection contract to the trustee under section 18 (1) of the Real Estate Development Marketing Act who holds the insured's deposit.

(2) Immediately on receipt of a notice of loss or claim under a deposit protection contract, it is the duty of the insurer to provide the insured with printed forms on which a proof of loss or claim may be made.

Contents of deposit protection contract

146   A deposit protection contract must

(a) contain all the following information:

(i) the name of the insurer;

(ii) the name of the developer who entered into the contract;

(iii) the name of the trustee described in section 145 (1) (b) who holds the insured's deposit;

(iv) the name of the insured;

(v) the name of the person or persons to whom the insurance money is payable;

(vi) the subject matter of the insurance;

(vii) the indemnity for which the insurer may become liable;

(viii) the event the occurrence of which gives rise to the insurer's liability;

(ix) the date on which the insurance takes effect, and

(b) provide that the liability of the insurer under the deposit protection contract does not terminate until one of the following occurs:

(i) all the events described in section 18 (3) or (4) of the Real Estate Development Marketing Act have occurred;

(ii) the developer pays the insured the amount insured by the deposit protection contract;

(iii) the insurer pays the insured the amount of the insured's loss;

(iv) the insured acknowledges in writing that

(A) the insured is not entitled to the return of the deposit insured by the deposit protection contract, and

(B) the insurer is no longer liable under the deposit protection contract;

(v) a court of competent jurisdiction makes a final determination that the insured is not entitled to the return of the money insured by the deposit protection contract.

Definition and interpretation

146.1   (1) In this Part, "insurance society" means an insurer that is a society or an extraprovincial non-share corporation.

(2) Unless a contrary intention appears, words and expressions used in this Part have the same meaning as in the Societies Act.

Court may relieve against forfeiture in relation to insurance provided by insurance societies

146.2   Without limiting section 24 of the Law and Equity Act, if, in respect of insurance provided by an insurance society to its members, there has been

(a) imperfect compliance with a condition in a member's membership certificate or other insurance document as to the proof of loss to be given by the member or another matter or thing required to be done or omitted by the member with respect to the loss, and

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

and the court considers it inequitable that the insurance should be forfeited or avoided on that ground, the court, on terms it considers just, may relieve against the forfeiture or avoidance.

Effect on members of liquidation of insurance society

146.3   (1) Membership dues of a member of an insurance society in liquidation under the Societies Act that are paid in advance in respect of a period extending beyond the date on which the liquidation commenced are a debt due by the insurance society to the member.

(2) Insurance is not payable by an insurance society in liquidation under the Societies Act to a member of the insurance society for an accident, illness or other cause arising after the date on which the liquidation commenced.

Appeal to superintendent by insured on adjustment charges

147   If the charges and expenses of adjusting a loss under a policy are in the opinion of the insured unjust and excessive, the insured may refer the matter to the superintendent, who must investigate it and may reduce or increase the amount of the charges and expenses, and the superintendent's decision is final and binding on all parties concerned.

Personal liability protection

148   (1) In this section, "protected individual" means an individual who is or was any of the following:

(a) the superintendent;

(b) an individual acting on behalf of or under the direction of the superintendent.

(2) Subject to subsection (3), no legal proceeding for damages lies or may be commenced or maintained against a protected individual because of anything done or omitted

(a) in the exercise or intended exercise of any power under this Act, or

(b) in the performance or intended performance of any duty under this Act.

(3) Subsection (2) does not apply to a protected individual in relation to anything done or omitted in bad faith.

(4) Subsection (2) does not absolve the BC Financial Services Authority, established under section 2 of the Financial Services Authority Act, from vicarious liability arising out of anything done or omitted by a protected individual for which the Authority would be vicariously liable if this section were not in force.

Power to make regulations

149   (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) extending the provisions of this Act or any of them to a system or class of insurance not particularly mentioned in this Act;

(b) defining a word or expression used but not defined in this Act;

(c) prescribing increased benefits or additional beneficiaries required to be included in a contract of insurance;

(d) amending, altering, adding to, or removing any special provisions, definitions and exclusions established in the contract;

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

(i) circumstances in which an insured has the right,

(ii) time limits on the exercise of the right,

(iii) exceptions of specified classes of insurance from the right, and

(iv) the obligations of an insurer to refund premiums;

(f) 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,

(i) requiring that such communications be concurrently recorded,

(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;

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

(i) the content of, and the time and manner of giving, the notice, and

(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;

(h) exempting any person or class of persons from any of the provisions of this Act;

(i) prescribing circumstances in which the superintendent may suspend or cancel an exemption otherwise applicable to a person under a regulation made under paragraph (h);

(j) generally to make other regulations as may be necessary or advisable to carry out the intent and purpose of the Act;

(k) respecting dispute resolution under section 12, 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);

(l) determining and defining classes of insurance for the purposes of this Act.

(3) Without limiting subsection (1), the Lieutenant Governor in Council may, on the recommendation of the minister responsible for the Homeowner Protection Act, make regulations as follows:

(a) prescribing mandatory conditions that must be contained in a home warranty insurance;

(b) prescribing minimum standards for the coverage to be provided by home warranty insurance, including periods of coverage, the time at which coverage begins and coverage limits;

(c) prescribing permitted exclusions of coverage, waiver, limitations or qualifications under home warranty insurance;

(d) prescribing terms that must not be included in home warranty insurance;

(e) prescribing terms and conditions that apply to insurers with respect to home warranty insurance;

(f) prescribing classes of new homes, renovations and home warranty insurance, and categories of residential builders and residential renovators.

(4) A regulation made under subsection (3) may be made applicable generally or to specific persons, new homes, renovations or home warranty insurance or to a category of persons or class of new homes, renovations or home warranty insurance, and may provide differently for different persons, new homes, renovations or home warranty insurance or for different categories of persons or classes of new homes, renovations or home warranty insurance.

(5) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing mandatory conditions that must be contained in a deposit protection contract;

(b) prescribing permitted exclusions of coverage, waiver, limitations or qualifications under deposit protection contracts;

(c) prescribing terms that must not be included in deposit protection contracts;

(d) prescribing terms and conditions that apply to insurers with respect to deposit protection contracts.

Transitional regulations

150   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.

Violation of Act an offence

151   An insurer or person who carries on any business contrary to or fails to comply with or violates this Act or a regulation made under it commits an offence against this Act.

Trafficking

152   Any person, other than an insurer or its authorized agent, who advertises, or holds themselves 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 themselves or any person, commits an offence against this Act.

Limitation period

153   Proceedings for an offence under this Act must not be commenced in any court more than 2 years after the facts on which the proceedings are based first come to the knowledge of the superintendent.

Court order to comply

154   If a person is convicted of an offence under this Act, the court in which proceedings in respect of the offence are taken, in addition to any punishment it may impose, may order that person to comply with the provisions of this Act or the regulations for the contravention of which the person has been convicted.

Commencement of revisions to this Act

169   Sections 155 to 157 come into force by regulation of the Lieutenant Governor in Council.