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“Point in Time” Act Content

INSURANCE ACT

[RSBC 1996] CHAPTER 226

NOTE: Links below go to act content as it was prior to the changes made on the effective date. (PIT covers changes made from September 6, 2000 to "current to" date of the act.)
SECTIONEFFECTIVE DATE
ActJuly 1, 2012
Part 1, hdgJuly 1, 2012
1June 1, 2007
 June 1, 2007
 December 1, 2007
 July 1, 2012
 July 1, 2012
2July 1, 2012
2.1 to 2.2July 1, 2012
2.3June 17, 2011
2.4July 1, 2012
2.5July 1, 2012
Part 2, hdgJuly 1, 2012
3June 1, 2007
 June 1, 2007
 July 1, 2012
4July 1, 2012
7July 1, 2012
8 to 11July 1, 2012
11.1July 1, 2012
12July 1, 2012
15July 1, 2012
17July 1, 2012
19July 1, 2012
21July 1, 2012
22July 1, 2012
24June 1, 2007
25July 1, 2012
25.1July 1, 2012
26July 1, 2012
26.1July 1, 2012
27July 1, 2012
27.1July 1, 2012
28June 17, 2011
28.1 to 28.5July 1, 2012
28.6June 17, 2011
28.7July 1, 2012
29July 1, 2012
29.1July 1, 2012
30July 1, 2012
31July 1, 2012
32July 1, 2012
33July 1, 2012
 July 1, 2012
34July 1, 2012
35July 1, 2012
37July 1, 2012
37.1July 1, 2012
38July 1, 2012
39July 1, 2012
40July 1, 2012
41July 1, 2012
42July 1, 2012
44July 1, 2012
47July 1, 2012
47.1July 1, 2012
48July 1, 2012
49July 1, 2012
50July 1, 2012
52July 1, 2012
 July 1, 2012
53July 1, 2012
54July 1, 2012
55July 1, 2012
56July 1, 2012
57July 1, 2012
58July 1, 2012
59.1July 1, 2012
60July 1, 2012
61July 1, 2012
63July 1, 2012
64July 1, 2012
65July 1, 2012
66July 1, 2012
68July 1, 2012
70July 1, 2012
71July 1, 2012
 July 1, 2012
72July 1, 2012
73July 1, 2012
75July 1, 2012
76July 1, 2012
77July 1, 2012
78July 1, 2012
79July 1, 2012
81July 1, 2012
81.1July 1, 2012
82June 1, 2007
 July 1, 2012
84July 1, 2012
85July 1, 2012
86July 1, 2012
87July 1, 2012
88July 1, 2012
89July 1, 2012
90July 1, 2012
91July 1, 2012
91.1 to 91.2July 1, 2012
92July 1, 2012
93July 1, 2012
94July 1, 2012
95.1July 1, 2012
95.2July 1, 2012
119June 1, 2007
96July 1, 2012
97July 1, 2012
98July 1, 2012
100July 1, 2012
101July 1, 2012
101.1July 1, 2012
102July 1, 2012
102.1 and 102.2July 1, 2012
103July 1, 2012
104July 1, 2012
104.1July 1, 2012
105July 1, 2012
106July 1, 2012
107July 1, 2012
107.1 to 107.3July 1, 2012
108July 1, 2012
108.1July 1, 2012
109July 1, 2012
110July 1, 2012
111July 1, 2012
112July 1, 2012
113July 1, 2012
114July 1, 2012
115July 1, 2012
118July 1, 2012
120June 1, 2007
Part 5, ss. 119 to 131July 1, 2012
Part 6, ss. 132 to 188June 1, 2007
Part 7, hdgJanuary 1, 2005
189July 1, 2012
189.01July 1, 2012
189.2 to 189.6January 1, 2005
191December 1, 2007
192January 1, 2005
 July 1, 2012
192.1June 17, 2011
193June 1, 2007
194.1July 1, 2012
196December 1, 2007
ScheduleJune 1, 2007

  Act as amended by 2009-16 BEFORE revised under RS1996-440, effective July 1, 2012 (BC Reg 191/2012 as amended by BC Reg 194/2012).

Insurance Act

[RSBC 1996] CHAPTER 226

Contents
Section
Part 1 — Interpretation, Application of Act and Introductory Provisions
 Definitions and interpretation
 Application to contracts
 2.1 Contract must be consistent with Act
 2.2 Liability of continuing insurer
 2.3 Effect on contracts of violation of law
 2.4 Application of Limitation Act
 2.5 Electronic communications
Part 2 — General Insurance Provisions
 Application of Part
 Repealed
 Contracts deemed to be made in British Columbia
 Gaming or wagering contracts avoided
 Repealed
 Contents of policy
 Dispute resolution
 10 Court may relieve against forfeiture and termination
 11 Waiver and estoppel
 11.1 Policy in accordance with terms of application
 12 Effect of terms of contract not set out in policy
 13 Misrepresentation and nondisclosure
 14 Effect of delivery of policy or premium receipt
 15 Repealed
 16 Payment of refund to assignee
 17 Effect of unpaid cheque or note for premium
 18 Unpaid premium deductible from indemnity
 19 Repealed
 20 Claims payable in Canadian money and in British Columbia
 21 Repealed
 22 Limitation of actions
 23 Payment by insurer into court
 24 When third person has right of action against insurer
 25 Insurer to furnish copy of application and policy
 25.1 Insurer to furnish forms
 26 Repealed
 26.1 Cancellation by insurer
 27 Repealed
 27.1 Statutory conditions
 28 Repealed
 28.1 Proportionate contributions
 28.2 Limitation of liability clause
 28.3 Unjust contract provisions
 28.4 Exclusions from coverage
 28.5 Fire perils insured against
 28.6 Recovery by innocent persons
 28.7 Subrogation
Part 3 — Life Insurance
 29 Definitions
 29.1 Application of Part 2
 30 Application of Part
 31 Group insurance
 32 Issuance and furnishing of policy
 33 Particulars in policy
 34 Contents of group policy
 35 Particulars of group certificate
 36 Lack of insurable interest
 37 Persons insurable
 37.1 Termination of contract by court
 38 Contract taking effect
 39 Payment
 40 Payment of premiums and grace periods
 41 Duty to disclose
 42 Failure to disclose
 43 Nondisclosure by insurer
 44 Misstatement of age
 45 Misstatement of age in group insurance
 46 Effect of suicide on contract
 47 Reinstatement of contract
 47.1 Termination and replacement of group policies
 48 Designation of beneficiary
 49 Irrevocable designation of beneficiary
 50 Designation in invalid will
 51 Trustee for beneficiary
 52 Beneficiary predeceasing life insured
 53 Enforcement of payment by beneficiary or trustee
 54 Insurance money exempt from seizure
 55 Insured dealing with contract
 56 Entitlement to dividends
 57 Transfer of insured's rights
 58 Interest of assignee and effect on beneficiary's rights
 59 Group life insured enforcing rights
 59.1 Debtor insured's enforcement of rights
 60 Capacity of minors
 61 Repealed
 62 Proof of claim
 63 Payment of insurance money
 64 Action in British Columbia
 65 Limitation of actions
 66 Documents affecting title
 67 Declaration as to sufficiency of proof
 68 Court may make order
 69 Stay of proceedings
 70 Power of court
 71 Payment into court
 72 Simultaneous deaths
 73 Insurance money payable in installments
 74 Insurer holding insurance money
 75 Court may order payment
 76 Costs
 77 Minors
 78 Payment to representative of a beneficiary
 79 Presumption against agency
 80 Insurer giving information
Part 4 — Accident and Sickness Insurance
 81 Definitions
 81.1 Application of Part 2
 82 Application of Part
 83 Group insurance
 84 Issuance and furnishing of policy
 85 Particulars in policy
 86 Contents of group policy
 87 Contents of group certificate
 88 Exceptions or reductions
 89 Statutory conditions
 90 Omission or variation of conditions
 91 Notice of statutory conditions
 91.1 Limitation of actions
 91.2 Sufficiency of proof and role of court
 92 Termination for non-payment
 93 Repealed
 94 Repealed
 95 Lack of insurable interest
 95.1 Persons insurable
 95.2 Termination of contract by court
 96 Capacity of minors
 97 Duty to disclose
 98 Failure to disclose
 99 Application of incontestability to reinstatement
 100 Pre-existing conditions
 101 Misstatement of age
 101.1 Termination and replacement of group policies
 102 Designation of beneficiary
 102.1 Irrevocable designations
 102.2 Designation in will
 102.3 Trustee for beneficiary
 102.4 Death of beneficiary
 103 Repealed
 104 Renumbered
 104.1 Enforcement of payment by beneficiary or trustee
 105 Renumbered
 106 Documents affecting title and assignment
 107 Insurance money exempt from seizure
 107.1 Assignment of insurance
 107.2 Entitlement to dividends
 107.3 Third party policies
 108 Group person insured enforcing rights
 108.1 Debtor insured's enforcement of rights
 109 Simultaneous deaths
 110 Payment into court
 111 Minors
 112 Payment to representative of a beneficiary
 113 Payments not exceeding $10 000
 114 Place of payment
 115 Action in British Columbia
 116 Insurer giving information
 117 Undue prominence
 118 Presumption against agency
Part 5
 119-131 Repealed
Part 6
 132-188 Repealed
Part 7 — Miscellaneous Classes and Subclasses of Insurance
 189 Repealed
 189.01 Application of Part 2
 189.1 Home warranty insurance
 189.2 Interpretation for purposes of deposit protection contracts
 189.3 Deposit protection contracts
 189.4 How deposit protection contract affected by parties
 189.5 Insurer to furnish copy of deposit protection contract and form for claim
 189.6 Contents of deposit protection contract
Part 8 — Administration
 190 Appeal to superintendent by insured on adjustment charges
 191 Immunities
 192 Power to make regulations
 192.1 Transitional regulations
 193 Repealed
 194 Violation of Act an offence
 194.1 Trafficking
 195 Limitation period
 196 Court order to comply
Schedule

Part 1 — Interpretation, Application of Act and Introductory Provisions

 Definitions and interpretation

1  (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" means a corporation formed under 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.

(2[Repealed 2009-16-2.]

 Application to contracts

2  (1This Act, except as provided under an enactment, applies to every contract of insurance made or deemed made in British Columbia.

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

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

(bvehicle insurance as defined in the Insurance (Vehicle) Act.

 Contract must be consistent with Act

2.1  (1An insurer must not make a contract that is inconsistent with this Act.

(2A 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

2.2  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

2.3  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

2.4  (1Section 7 of the Limitation Act applies 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.

(2A 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

2.5  (1If 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 192 (2) (e.2) provide otherwise, the record may be provided to the person in electronic form in accordance with the Electronic Transactions Act.

(2Despite 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.

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

(athe record is deemed to have been provided by registered mail, and

(ba 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.

(4The 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.

Part 2 — General Insurance Provisions

 Application of Part

3  This Part applies to every contract except

(asubject to section 29.1, a contract of life insurance,

(bsubject to section 81.1, a contract of accident and sickness insurance,

(ca contract of reinsurance, and

(dsubject to regulations under section 189.01, a contract to which Part 7 applies.

 Repealed

4  [Repealed 2009-16-7.]

 Contracts deemed to be made in British Columbia

5  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 avoided

6  (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.

 Repealed

7  [Repealed 2009-16-7.]

 Contents of policy

8  (1A policy must contain all of the following:

(athe name of the insurer;

(bthe name of the insured;

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

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

(ethe subject matter of the insurance;

(fthe indemnity for which the insurer may become liable;

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

(hthe date the insurance takes effect;

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

(jthe 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.

(2This section does not apply to a contract of fidelity insurance or surety insurance.

 Dispute resolution

9  (1In this section, "representative" means a dispute resolution representative appointed under subsection (4).

(2This section applies to disputes between an insurer and an insured about a matter that under Statutory Condition 11 set out in section 27.1, or another condition of the contract, must be determined using this dispute resolution process.

(3Either 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.

(4Within 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.

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

(athe insured or the insurer, or

(ban employee of the insured or the insurer.

(6The representatives must

(adetermine the matters in dispute by agreement, and

(bif they fail to agree, submit their differences to the umpire,

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

(7Each 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.

(8If

(aa party to a dispute resolution process fails to appoint a representative in accordance with subsection (4), or

(ba 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.

(9On 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.

(10If

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

(bthe 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

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

(dthe credentials of the 3 persons.

(11Before 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).

(12An application under subsection (10) must be accompanied by a copy of the notice, and the date it was given, under subsection (11).

(13Within 15 days after receiving a notice under subsection (11), the other representative may provide to the superintendent and the applicant

(athe names of 3 persons the representative believes are capable of performing the functions of the umpire, and

(bthe credentials of the 3 persons.

(14The 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:

(athe superintendent receives names and credentials under subsection (13);

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

 Court may relieve against forfeiture and termination

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

(athere has been

(iimperfect 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

(iia consequent forfeiture or avoidance of the insurance in whole or in part, or

(bthere 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

(crelieve against the forfeiture or avoidance, or

(dif 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

11  (1The obligation of an insured to comply with a requirement under a contract is excused to the extent that

(athe 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

(bthe 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.

(2Neither the insurer nor the insured is deemed to have waived any term or condition of a contract by reason only of

(athe insurer's or insured's participation in a dispute resolution process under section 9,

(bthe delivery and completion of a proof of loss, or

(cthe investigation or adjustment of any claim under the contract.

 Policy in accordance with terms of application

11.1  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

12  (1Each 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.

(3If 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

13  (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

14  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.

 Repealed

15  [Repealed 2009-16-9.]

 Payment of refund to assignee

16  (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

17  (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

(ain accordance with a statutory condition or other condition of the contract, or

(bif 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.

 Unpaid premium deductible from indemnity

18  (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.

 Repealed

19  [Repealed 2009-16-11.]

 Claims payable in Canadian money and in British Columbia

20  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.

 Repealed

21  [Repealed 2009-16-11.]

 Limitation of actions

22  (1An action or proceeding against an insurer in relation to a contract must be commenced,

(ain 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

(bin 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

23  (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.

 When third person has right of action against insurer

24  (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.

(3)  [Repealed 2003-94-52.]

 Insurer to furnish copy of application and policy

25  (1On request, the insurer must furnish to the insured a copy of

(athe insured's application or proposal for insurance, and

(bthe insured's policy.

(2An 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

25.1  (1Immediately 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.

(2If an insurer does not comply with subsection (1), section 22 (2) is not available to the insurer as a defence to an action brought for the recovery of insurance money payable under the contract.

(3If, 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).

(4An 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.

 Repealed

26  [Repealed 2009-16-13.]

 Cancellation by insurer

26.1  (1If 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.

(2The 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.

 Repealed

27  [Repealed 2009-16-13.]

 Statutory conditions

27.1  (1Subject 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.

(2This section does not apply to contracts of surety insurance or a class of insurance prescribed by regulation.

(3Statutory 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.

(4In this section, "policy" does not include an interim receipt or binder.

STATUTORY CONDITIONS

 Misrepresentation

1.  If a person applying for insurance falsely describes the property to the prejudice of the insurer, or misrepresents or fraudulently omits to communicate any circumstance that is material to be made known to the insurer in order to enable it to judge the risk to be undertaken, the contract is void as to any property in relation to which the misrepresentation or omission is material.

 Property of others

2.  The insurer is not liable for loss or damage to property owned by a person other than the insured unless

(aotherwise specifically stated in the contract, or

(bthe interest of the insured in that property is stated in the contract.

 Change of interest

3.  The insurer is liable for loss or damage occurring after an authorized assignment under the Bankruptcy and Insolvency Act (Canada) or a change of title by succession, by operation of law or by death.

 Material change in risk

4.  (1The insured must promptly give notice in writing to the insurer or its agent of a change that is

(amaterial to the risk, and

(bwithin the control and knowledge of the insured.

(2If an insurer or its agent is not promptly notified of a change under subparagraph (1) of this condition, the contract is void as to the part affected by the change.

(3If an insurer or its agent is notified of a change under subparagraph (1) of this condition, the insurer may

(aterminate the contract in accordance with Statutory Condition 5, or

(bnotify the insured in writing that, if the insured desires the contract to continue in force, the insured must, within 15 days after receipt of the notice, pay to the insurer an additional premium specified in the notice.

(4If the insured fails to pay an additional premium when required to do so under subparagraph (3) (b) of this condition, the contract is terminated at that time and Statutory Condition 5 (2) (a) applies in respect of the unearned portion of the premium.

 Termination of insurance

5.  (1The contract may be terminated

(aby the insurer giving to the insured 15 days' notice of termination by registered mail or 5 days' written notice of termination personally delivered, or

(bby the insured at any time on request.

(2If the contract is terminated by the insurer,

(athe insurer must refund the excess of premium actually paid by the insured over the prorated premium for the expired time, but in no event may the prorated premium for the expired time be less than any minimum retained premium specified in the contract, and

(bthe refund must accompany the notice unless the premium is subject to adjustment or determination as to amount, in which case the refund must be made as soon as practicable.

(3If the contract is terminated by the insured, the insurer must refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium for the expired time specified in the contract, but in no event may the short rate premium for the expired time be less than any minimum retained premium specified in the contract.

(4The 15 day period referred to in subparagraph (1) (a) of this condition starts to run on the day the registered letter or notification of it is delivered to the insured's postal address.

 Requirements after loss

6.  (1On the happening of any loss of or damage to insured property, the insured must, if the loss or damage is covered by the contract, in addition to observing the requirements of Statutory Condition 9,

(aimmediately give notice in writing to the insurer,

(bdeliver as soon as practicable to the insurer a proof of loss in respect of the loss or damage to the insured property verified by statutory declaration,

(igiving a complete inventory of that property and showing in detail quantities and cost of that property and particulars of the amount of loss claimed,

(iistating when and how the loss occurred, and if caused by fire or explosion due to ignition, how the fire or explosion originated, so far as the insured knows or believes,

(iiistating that the loss did not occur through any wilful act or neglect or the procurement, means or connivance of the insured,

(ivstating the amount of other insurances and the names of other insurers,

(vstating the interest of the insured and of all others in that property with particulars of all liens, encumbrances and other charges on that property,

(vistating any changes in title, use, occupation, location, possession or exposure of the property since the contract was issued, and

(viistating the place where the insured property was at the time of loss,

(cif required by the insurer, give a complete inventory of undamaged property showing in detail quantities and cost of that property, and

(dif required by the insurer and if practicable,

(iproduce books of account and inventory lists,

(iifurnish invoices and other vouchers verified by statutory declaration, and

(iiifurnish a copy of the written portion of any other relevant contract.

(2The evidence given, produced or furnished under subparagraph (1) (c) and (d) of this condition must not be considered proofs of loss within the meaning of Statutory Conditions 12 and 13.

 Fraud

7.  Any fraud or wilfully false statement in a statutory declaration in relation to the particulars required under Statutory Condition 6 invalidates the claim of the person who made the declaration.

 Who may give notice and proof

8.  Notice of loss under Statutory Condition 6 (1) (a) may be given and the proof of loss under Statutory Condition 6 (1) (b) may be made

(aby the agent of the insured, if

(ithe insured is absent or unable to give the notice or make the proof, and

(iithe absence or inability is satisfactorily accounted for, or

(bby a person to whom any part of the insurance money is payable, if the insured refuses to do so or in the circumstances described in clause (a) of this condition.

 Salvage

9.  (1In the event of loss or damage to insured property, the insured must take all reasonable steps to prevent further loss or damage to that property and to prevent loss or damage to other property insured under the contract, including, if necessary, removing the property to prevent loss or damage or further loss or damage to the property.

(2The insurer must contribute on a prorated basis towards any reasonable and proper expenses in connection with steps taken by the insured under subparagraph (1) of this condition.

 Entry, control, abandonment

10.  After loss or damage to insured property, the insurer has

(aan immediate right of access and entry by accredited representatives sufficient to enable them to survey and examine the property, and to make an estimate of the loss or damage, and

(bafter the insured has secured the property, a further right of access and entry by accredited representatives sufficient to enable them to appraise or estimate the loss or damage, but

(iwithout the insured's consent, the insurer is not entitled to the control or possession of the insured property, and

(iiwithout the insurer's consent, there can be no abandonment to it of the insured property.

 In case of disagreement

11.  (1In the event of disagreement as to the value of the insured property, the value of the property saved, the nature and extent of the repairs or replacements required or, if made, their adequacy, or the amount of the loss or damage, those questions must be determined using the applicable dispute resolution process set out in the Insurance Act, whether or not the insured's right to recover under the contract is disputed, and independently of all other questions.

(2There is no right to a dispute resolution process under this condition until

(aa specific demand is made for it in writing, and

(bthe proof of loss has been delivered to the insurer.

 When loss payable

12.  Unless the contract provides for a shorter period, the loss is payable within 60 days after the proof of loss is completed in accordance with Statutory Condition 6 and delivered to the insurer.

 Repair or replacement

13.  (1Unless a dispute resolution process has been initiated, the insurer, instead of making payment, may repair, rebuild or replace the insured property lost or damaged, on giving written notice of its intention to do so within 30 days after receiving the proof of loss.

(2If the insurer gives notice under subparagraph (1) of this condition, the insurer must begin to repair, rebuild or replace the property within 45 days after receiving the proof of loss, and must proceed with all due diligence to complete the work within a reasonable time.

 Notice

14.  (1Written notice to the insurer may be delivered at, or sent by registered mail to, the chief agency or head office of the insurer in the province.

(2Written notice to the insured may be personally delivered at, or sent by registered mail addressed to, the insured's last known address as provided to the insurer by the insured.

 Repealed

28  [Repealed 2009-16-13.]

 Proportionate contributions

28.1  (1If, 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.

(2For 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.

(3Nothing in subsection (1) affects

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

(bthe limits of insurance on specified property,

(ca clause referred to in section 28.2, or

(da contract condition limiting or prohibiting the having or placing of other insurance.

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

(aif 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

(bif 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.

(5Nothing 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.

(6Despite subsection (1), insurance on identified articles is a first loss insurance as against all other insurance.

 Limitation of liability clause

28.2  A contract containing

(aa deductible clause,

(ba co-insurance, average or similar clause, or

(ca 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

28.3  If a contract contains any term or condition, other than an exclusion prescribed by regulation for the purposes of section 28.4 (1) or established by section 28.5 (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

28.4  (1An 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 28.5 (2) or (3).

(2An 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.

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

(4For 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

28.5  (1A contract that includes coverage for loss or damage by fire is deemed to cover the insured property against loss or damage caused by

(alightning, or

(ban explosion of natural gas or manufactured gas

(iin a building that does not form part of a gasworks,

(iifrom a cause, other than a cause excluded under section 28.4 (1), and

(iiiwhether or not fire ensues.

(2The 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

(aoriginates outside the device or appliance, and

(bcauses the loss or damage.

(3Unless 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).

(4If property

(ais insured at a specified location, and

(bis 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

28.6  (1)  Despite section 2.3, 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

28.7  (1The 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.

(2If 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.

Part 3 — Life Insurance

 Definitions

29  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

(aarising from specific hazards incidental to or defined by reference to a particular activity or activities, and

(boccurring 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 65 to 68, means an instrument signed by the insured

(awith respect to which an endorsement is made on the policy,

(bthat identifies the contract, or

(cthat describes the insurance or insurance fund or a part of the insurance or insurance fund,

in which the insured

(ddesignates, 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

(emakes, alters or revokes an appointment under section 51 (1) or a nomination referred to in section 57;

"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, including a marriage-like relationship between persons of the same gender, 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

(ain 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

(bin all other cases, the person who makes a contract with an insurer;

"spouse" means a person who

(ais married to another person, or

(bis living and cohabiting with another person in a marriage-like relationship, including a marriage-like relationship between persons of the same gender;

"will" includes a codicil.

 Application of Part 2

29.1  Section 11 applies to contracts of life insurance.

 Application of Part

30  (1)  Despite any agreement, condition or stipulation to the contrary, but subject to regulations under section 192.1 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.

 Group insurance

31  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 he or she became insured, and

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

 Issuance and furnishing of policy

32  (1An insurer entering into a contract must

(aissue a policy, and

(bfurnish 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.

(4Except 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

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

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

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

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

(ithe group life insured's application, and

(iiany 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

(bon 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.

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

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

(ithe debtor insured's application, and

(iiany 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

(bon 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.

(7An 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.

(8Access to the documents described in subsections (5) (b) and (6) (b) does not extend to

(ainformation 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

(ithe group life insured or debtor insured in respect of whom the claim is made, or

(iithe person who requests the information, or

(binformation prescribed by regulation.

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

(aa claim under the contract, or

(ba denial of such a claim.

 Particulars in policy

33  (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;

(gthe 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.

(3If 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.

 Contents of group policy

34  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;

(fin 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;

(gin 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;

(hthe 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 of group certificate

35  (1In 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:

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

(bthe amount, or the method of determining the amount, of insurance on

(ithe 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

(iithe debtor insured;

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

(ithe 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

(iithe debtor insured;

(din 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,

(ithe method of determining the persons to whom or for whose benefit the insurance money is or may be payable, and

(iithe 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;

(ein 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;

(fthe rights of the group life insured, the debtor insured or a claimant under the contract to obtain copies of documents under section 32 (5) or (6);

(gthe 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.

(2This section does not apply to a contract of blanket insurance.

 Lack of insurable interest

36  (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 his or her life.

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

 Persons insurable

37  Without restricting the meaning of "insurable interest", a person, in this section called the "primary person", has an insurable interest,

(ain the case of a primary person who is a natural person, in his or her own life and in the lives of the following:

(ithe primary person's child or grandchild;

(iithe primary person's spouse;

(iiia person on whom the primary person is wholly or partly dependent for, or from whom the primary person is receiving, support or education;

(ivthe primary person's employee;

(va person in the duration of whose life the primary person has a pecuniary interest, and

(bin the case of a primary person that is not a natural person, in the lives of the following:

(ithe primary person's director, officer or employee;

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

 Termination of contract by court

37.1  (1If

(aa person whose life is insured under a contract is someone other than the insured, and

(bthe 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.

(2Without limiting subsection (1), the orders that the court may make under subsection (1) include

(aan 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

(ban order that the amount of insurance under the contract on that person's life be reduced.

(3An 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.

(4Despite 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

(athe insurer, or

(bif the contract is a contract of group insurance or creditor's group insurance, the insured.

(5An order made under subsection (1) binds any person having an interest in the contract.

 Contract taking effect

38  (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,

(bpayment 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

39  (1If 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

40  (1Except 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.

(3If 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

41  (1An 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.

(2Subject to section 42 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.

(3A 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

(aadditional coverage under a contract,

(ban increase in insurance under a contract, or

(cany 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

42  (1This section does not apply to

(aa misstatement to an insurer of the age of a person whose life is insured, or

(binsurance 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 41 (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 41 does not, in the absence of fraud, render the contract voidable.

(3In 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 41 to be disclosed in respect of a person whose life is insured under the contract does not render the contract voidable, but

(aif 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

(bif 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 41 (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

43  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

44  (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.

(3If 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

(athat person is alive, and

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

 Misstatement of age in group insurance

45  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

46  (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

47  (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.

(1.1If 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.

(2If a contract lapses and is not reinstated under subsection (1.1), the insurer must reinstate it if, within 2 years after the date the contract lapsed, the insured

(aapplies for the reinstatement,

(bpays 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

(cproduces evidence satisfactory to the insurer of the good health and insurability of the person whose life was insured.

(3)  Subsections (1.1) and (2) do not apply if the cash surrender value has been paid or an option of taking paid up or extended insurance has been exercised.

(4)  Sections 41 and 42 apply, so far as applicable and with the necessary changes, to reinstatement of a contract.

 Termination and replacement of group policies

47.1  (1If 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.

(2Despite 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:

(athe termination of the contract or benefit provision;

(ba continuous period of 6 months, or any longer period provided in the contract, during which the group life insured was not disabled.

(3An 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.

(4If a contract of group insurance, in this section called the "replacement contract", is entered into within 31 days after the termination of another contract of group insurance, in this section called the "other contract", and that replacement contract insures some or all of the same group life insureds as the other contract,

(athe 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

(ithe insurance on that person under the other contract terminated by reason only of the termination of the other contract, and

(iithe person is a member of a class eligible for insurance under the replacement contract, and

(bno 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

48  (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 49, the insured may alter or revoke the designation by a declaration.

(3A 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.

(4Subject 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.

(5A 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.

(6If 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,

(aeach 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

(bas 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.

(7If 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

49  (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 invalid will

50  (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 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.

(4If 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

51  (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.

 Beneficiary predeceasing life insured

52  (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.

(3A 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.

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

(5Subsection (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

53  A beneficiary may enforce in the beneficiary's own name and for the beneficiary's own benefit, and a trustee appointed under section 51 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

54  (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.

(2While 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.

 Insured dealing with contract

55  (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.

(2Despite section 49 (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.

(3Subject 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.

(4When 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.

(5The court may grant an order under subsection (4) on any notice and terms it considers just.

 Entitlement to dividends

56  (1Despite the irrevocable designation of a beneficiary, the insured is entitled before his or her 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

57  (1)  Despite the Wills 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.

(3Despite a nomination made under this section, the insured may, before his or her death,

(aassign, exercise rights under or in respect of, surrender or otherwise deal with the contract as if the nomination had not been made, and

(bsubject to the terms of the contract, alter or revoke the nomination by declaration.

 Interest of assignee and effect on beneficiary's rights

58  (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, he or she has priority of interest as against

(aan assignee other than one who gave notice earlier to the insurer of an assignment in the manner provided for in this subsection, and

(ba beneficiary other than one designated irrevocably as provided for in section 49 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.

(3.1Unless 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

(aa designation of a beneficiary made before or after that date and not made irrevocably, and

(ba nomination referred to in section 57 (1) made before or after that date.

(4A 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 enforcing rights

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

 Debtor insured's enforcement of rights

59.1  (1A debtor insured, or a debtor who is jointly liable for the debt with the debtor insured, may enforce in his or her 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.

(2Subject 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.

(3If 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

60  Except in respect of his or her 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.

 Repealed

61  [Repealed 2009-16-44.]

 Proof of claim

62  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

63  (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 he or she became insured.

(5If 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

64  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

65  (1Subject 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

(a2 years after the date evidence is furnished under section 62, and

(b6 years after the date of the death.

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

(3Subject 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.

(4If 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.

(5An 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

(athe last day of the applicable period under subsection (1), (2), (3) or (4) for commencing an action or proceeding, and

(bif 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 title

66  (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

67  If an insurer admits the validity of the insurance but does not admit the sufficiency of the evidence required by section 62 and there is no other question in issue except a question under section 3 of the Survivorship and 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

68  (1)  On making a declaration under section 67 or an order under the Survivorship and 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.

 Stay of proceedings

69  Unless the court otherwise orders, an application made under section 67 or section 3 of the Survivorship and Presumption of Death Act operates as a stay of any pending action with respect to the insurance money.

 Power of court

70  If the court finds that the evidence furnished under section 62 is not sufficient or that a presumption of death is not established under the Survivorship and 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

71  (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,

(bthere 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,

(dthere is no person entitled to the insurance money, or

(ethe 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

72  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 installments

73  (1)  In this section, "installments" includes insurance money held by the insurer under section 74.

(2)  Subject to subsections (3) and (4), if insurance money is payable in installments 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 installments or to alienate or assign the beneficiary's interest in the installments, the insurer must not, unless the insured subsequently directs otherwise in writing, commute the installments or pay them to any person other than the beneficiary, and the installments 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 installments of insurance money, or

(b) the beneficiary may alienate or assign his or her interest in the insurance money.

(4)  After the death of the beneficiary, his or her personal representative may, with the consent of the insurer, commute any installments of insurance money payable to the beneficiary.

 Insurer holding insurance money

74  (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

75  If an insurer does not, within 30 days after receipt of the evidence required by section 62, 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

76  The court may fix without taxation the costs incurred in connection with an application or order made under section 71 or 75, 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.

 Minors

77  (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 62,

(ain 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

(ia 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

(iiif no trustee is appointed for the minor in relation to that money, the Public Guardian and Trustee,

(bin 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).

(4A 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 a beneficiary

78  Despite section 77, 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

79  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

80  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.

Part 4 — Accident and Sickness Insurance

 Definitions

81  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

(aarising from specific hazards incidental to or defined by reference to a particular activity or activities, and

(boccurring 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 91.1 and 106, means an instrument signed by the insured

(awith respect to which an endorsement is made on the policy,

(bthat identifies the contract, or

(cthat describes the insurance or insurance fund or a part of the insurance or insurance fund,

in which the insured

(ddesignates, 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

(emakes, alters or revokes an appointment under section 102.3 (1) or a nomination referred to in section 107.3;

"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, including a marriage-like relationship between persons of the same gender, 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

(ain 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

(bin 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

(ais married to another person, or

(bis living and cohabiting with another person in a marriage-like relationship, including a marriage-like relationship between persons of the same gender;

"will" includes a codicil.

 Application of Part 2

81.1  Sections 10 and 11 apply to contracts of accident and sickness insurance.

 Application of Part

82  (1)  Despite any agreement, condition or stipulation to the contrary, but subject to regulations under section 192.1 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 81 to 84, 91, 94 to 96, 100 and 102 to 118 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.

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

(aexcept 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;

(binsurance 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.

 Group insurance

83  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 he or she became insured, and

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

 Issuance and furnishing of policy

84  (1An insurer entering into a contract must

(aissue a policy, and

(bfurnish to the insured the policy and a copy of the insured's application.

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

(athe application,

(bthe policy,

(cany document attached to the policy when issued, and

(dany amendment to the contract agreed on in writing after the policy is issued

constitute the entire contract.

(3In 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.

(4Except 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

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

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

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

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

(ithe group person insured's application, and

(iiany 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

(bon 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.

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

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

(ithe debtor insured's application, and

(iiany 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

(bon 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.

(7An 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.

(8Access to the documents described in subsections (5) (b) and (6) (b) does not extend to

(ainformation 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

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

(iithe person who requests the information, or

(binformation prescribed by regulation.

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

(aa claim under the contract, or

(ba denial of such a claim.

 Particulars in policy

85  (1This section does not apply to a contract

(aof group insurance,

(bof creditor's group insurance, or

(cmade 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;

(fthe 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.

(3If 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.

 Contents of group policy

86  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;

(fin 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;

(gin 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;

(hthe 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.

 Contents of group certificate

87  (1In 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;

(bthe 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;

(din 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,

(ithe method of determining the persons to whom or for whose benefit the insurance money is or may be payable, and

(iithe 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;

(ein 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;

(fthe rights of the group person insured, the debtor insured or a claimant under the contract to obtain copies of documents under section 84 (5) or (6);

(gthe 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.

(2This section does not apply to a contract

(aof blanket insurance, or

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

 Exceptions or reductions

88  (1)  Subject to section 89 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 101 need not be set out in the policy.

(5This section does not apply to a contract

(aof group insurance,

(bof creditor's group insurance, or

(cmade by a fraternal society.

 Statutory conditions

89  Subject to section 90, 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 90 is binding on the insured.

STATUTORY CONDITIONS
The contract
1. The application, this policy, any document attached to this policy when issued and any amendment to the contract agreed on in writing after this policy is issued constitute the entire contract and no agent has authority to change the contract or waive any of its provisions.
Material facts
2. No statement made by the insured or a person insured at the time of application for the contract may be used in defence of a claim under or to avoid the contract unless it is contained in the application or any other written statements or answers furnished as evidence of insurability.
Changes in occupation
3. (1) If after this policy is issued the person insured engages for compensation in an occupation that is classified by the insurer as more hazardous than that stated in the contract, the liability under the contract is limited to the amount that the premium paid would have purchased for the more hazardous occupation according to the limits, classification of risks, and premium rates in use by the insurer at the time the person insured engaged in the more hazardous occupation.
(2) If the person insured changes occupation from that stated in the contract to an occupation classified by the insurer as less hazardous and the insurer is so advised in writing, the insurer must either
(a)reduce the premium rate, or
(b)issue a policy for the unexpired term of the contract at the lower rate of premium applicable to the less hazardous occupation,
according to the limits, classification of risks, and premium rates used by the insurer at the date of receipt of advice of the change in occupation, and must refund to the insured the amount by which the unearned premium on the contract exceeds the premium at the lower rate for the unexpired term.
Termination of insurance
4. (1) The contract may be terminated
(a)by the insurer giving to the insured 15 days' notice of termination by registered mail or 5 days' written notice of termination personally delivered, or
(b)by the insured at any time on request.
(2) If the contract is terminated by the insurer,
(a)the insurer must refund the excess of premium actually paid by the insured over the prorated premium for the expired time, but in no event may the prorated premium for the expired time be less than any minimum retained premium specified in the contract, and
(b)the refund must accompany the notice.
(3) If the contract is terminated by the insured, the insurer must refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium calculated to the date of receipt of the notice according to the table in use by the insurer at the time of termination.
(4) The 15 day period referred to in subparagraph (1) (a) of this condition starts to run on the day the registered letter or notification of it is delivered to the insured's postal address.
Notice and proof of claim
5. (1) The insured or a person insured, or a beneficiary entitled to make a claim, or the agent of any of them, must
(a)give written notice of claim to the insurer
 (i)by delivery of the notice, or by sending it by registered mail to the head office or chief agency of the insurer in the province, or
 (ii)by delivery of the notice to an authorized agent of the insurer in the province,
not later than 30 days after the date a claim arises under the contract on account of an accident, sickness or disability,
(b)within 90 days after the date a claim arises under the contract on account of an accident, sickness or disability, furnish to the insurer such proof, as is reasonably possible in the circumstances, of
 (i)the happening of the accident or the start of the sickness or disability,
 (ii)the loss caused by the accident, sickness or disability,
 (iii)the right of the claimant to receive payment,
 (iv)the claimant's age, and
 (v)if relevant, the beneficiary's age, and
(c) if so required by the insurer, furnish a satisfactory certificate as to the cause or nature of the accident, sickness or disability for which claim is made under the contract and, in the case of sickness or disability, its duration.
(2) Failure to give notice of claim or furnish proof of claim within the time required by this condition does not invalidate the claim if
(a)the notice or proof is given or furnished as soon as reasonably possible, and in no event later than one year after the date of the accident or the date a claim arises under the contract on account of sickness or disability, and it is shown that it was not reasonably possible to give the notice or furnish the proof in the time required by this condition, or
(b)in the case of the death of the person insured, if a declaration of presumption of death is necessary, the notice or proof is given or furnished no later than one year after the date a court makes the declaration.
Insurer to furnish forms for proof of claim
6. The insurer must furnish forms for proof of claim within 15 days after receiving notice of claim, but if the claimant has not received the forms within that time the claimant may submit his or her proof of claim in the form of a written statement of the cause or nature of the accident, sickness or disability giving rise to the claim and of the extent of the loss.
Rights of examination
7. As a condition precedent to recovery of insurance money under the contract,
(a)the claimant must give the insurer an opportunity to examine the person of the person insured when and as often as it reasonably requires while a claim is pending, and
(b)in the case of death of the person insured, the insurer may require an autopsy, subject to any law of the applicable jurisdiction relating to autopsies.
When money payable other than for loss of time
8. All money payable under the contract, other than benefits for loss of time, must be paid by the insurer within 60 days after it has received proof of claim.
When loss of time benefits payable
9. The initial benefits for loss of time must be paid by the insurer within 30 days after it has received proof of claim, and payment must be made after that date in accordance with the terms of the contract but not less frequently than once in each succeeding 60 days while the insurer remains liable for the payments if the person insured, when required to do so, furnishes proof of continuing sickness or disability before payment.

 Omission or variation of conditions

90  (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 89.

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

(6Statutory 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:

The contract
1. This policy, the Act or instrument of incorporation of the society, its constitution, bylaws, and rules, and the amendments made from time to time to any of them, the application for the contract and the medical statement of the applicant, constitute the entire contract, and no agent has authority to change the contract or waive any of its provisions.

and

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

 Notice of statutory conditions

91  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

91.1  (1Subject 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

(a2 years after the proof of claim is furnished, and

(b6 years after the date of the death.

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

(3Subject 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.

(4If 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.

(5An 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

(athe last day of the applicable period under subsection (1), (2), (3) or (4) for commencing an action or proceeding, and

(bif 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

91.2  Sections 67 to 70 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 62 must be read as a reference to Statutory Condition 5 (1) set out in section 89.

 Termination for non-payment

92  (1If 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,

(athe 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

(bthe contract may be terminated for non-payment of the premium by the insurer giving

(i15 days' notice of termination by registered mail, or

(ii5 days' written notice of termination personally delivered.

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

(asue for any unpaid premium;

(bif 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.

(3If 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

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

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

whichever is the longer period.

(4If 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.

(5Except 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.

(6The 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.

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

 Repealed

93  [Repealed 2009-16-69.]

 Repealed

94  [Repealed 2009-16-70.]

 Lack of insurable interest

95  (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 his or her parents or by a person standing in the place of a parent.

 Persons insurable

95.1  Without restricting the meaning of "insurable interest", a person, in this section called the "primary person", has an insurable interest,

(ain the case of a primary person who is a natural person, in his or her own life and well being and in the lives and well being of the following:

(ithe primary person's child or grandchild;

(iithe primary person's spouse;

(iiia person on whom the primary person is wholly or partly dependent for, or from whom the primary person is receiving, support or education;

(ivthe primary person's employee;

(va person in the duration of whose life or in whose well being the primary person has a pecuniary interest, and

(bin the case of a primary person that is not a natural person, in the lives and well being of the following:

(ithe primary person's director, officer or employee;

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

 Termination of contract by court

95.2  (1If

(aa person whose life or well being or both are insured under a contract is someone other than the insured, and

(bthe 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.

(2Without limiting subsection (1), the orders that the court may make under subsection (1) include

(aan 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

(ban order that the amount of insurance under the contract be reduced.

(3An 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.

(4Despite 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

(athe insurer, or

(bif the contract is a contract of group insurance or creditor's group insurance, the insured.

(5An order made under subsection (1) binds any person having an interest in the contract.

 Capacity of minors

96  Except in respect of his or her 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

(ato make an enforceable contract, and

(bin respect of a contract.

 Duty to disclose

97  (1An 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.

(2Subject to sections 98 and 101 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.

(3A failure to disclose or misrepresentation referred to in subsection (1) relating to evidence of insurability with respect to an application for

(aadditional coverage under a contract,

(ban increase in insurance under a contract, or

(cany 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

98  (1Subject to section 101 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 97 (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 97 to be disclosed in respect of that person insured does not, in the absence of fraud, render the contract voidable.

(2In 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 97 to be disclosed in respect of a group person insured, a person insured or a debtor insured does not render the contract voidable, but

(aif 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

(bif 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 97 (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.

(3If 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.

(4If 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.

 Application of incontestability to reinstatement

99  Sections 97 and 98 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 98 begins to run in respect of a reinstatement from the date of reinstatement.

 Pre-existing conditions

100  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

101  (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

101.1  (1If 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

(aloss of income because of disability,

(bdeath,

(cdismemberment, or

(daccidental 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.

(2Despite 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:

(athe termination of the contract or benefit provision;

(ba continuous period of 6 months, or any longer period provided in the contract, during which the group person insured was not disabled.

(3An 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.

(4If 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,

(athe 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

(ithe insurance on that person under the other contract terminated by reason only of the termination of the other contract, and

(iithe person is a member of a class eligible for insurance under the replacement contract,

(bevery 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

(cno 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

102  (1Subject 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.

(2Subject to section 102.1, an insured may by declaration alter or revoke a designation referred to in subsection (1).

(3A 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.

(4Subject 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.

(5A 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.

(6If 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,

(aeach 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

(bas 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.

(7If 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 designations

102.1  (1An 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.

(2If 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

102.2  (1A 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.

(2Despite the Wills Act, a designation in a will is of no effect against a designation made later than the making of the will.

(3If a designation is contained in a will and subsequently the will is revoked by operation of law or otherwise, the designation is revoked.

(4If 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

102.3  (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.

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

 Death of beneficiary

102.4  (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 his or her personal representative.

(2If 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.

(3A 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.

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

(5Subsection (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.

 Repealed

103  [Repealed 2009-16-80.]

 Renumbered

104  [Renumbered as 102.4 by 2009-16-81.]

 Enforcement of payment by beneficiary or trustee

104.1  A beneficiary may enforce in the beneficiary's own name and for the beneficiary's own benefit, and a trustee appointed under section 102.3 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.

 Renumbered

105  [Renumbered as 102.3 by 2009-16-83.]

 Documents affecting title and assignment

106  (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, he or she has priority of interest as against

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

(ba beneficiary, other than one designated irrevocably as provided for in section 102.1 before the assignee gave notice to the insurer of the assignment in the manner provided for in this subsection.

(3.1If 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.

(4)  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.

(4.1Unless the document by which a contract is assigned specifies otherwise, an assignment described in subsection (4) made on or after the date this section comes into force revokes

(aa designation of a beneficiary made before or after that date and not made irrevocably, and

(ba nomination referred to in section 107.3 made before or after that date.

(5A 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

107  (1)  If a beneficiary is designated, any insurance money payable to him or her 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.

(2While 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

107.1  (1If a beneficiary

(ais not designated irrevocably, or

(bis 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.

(2Despite section 102.1 (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.

(3Subject 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.

(4When 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.

(5The court may grant an order under subsection (4) on any notice and terms it considers just.

 Entitlement to dividends

107.2  (1Despite the irrevocable designation of a beneficiary, the insured is entitled before his or her death to the dividends or bonuses declared on a contract, unless the contract provides otherwise.

(2Unless 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.

 Third party policies

107.3  (1Despite the Wills 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,

(athe 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

(bon 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.

(2If 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.

(3Despite a nomination made under this section, the insured may, before his or her death,

(aassign, exercise rights under or in respect of, surrender or otherwise deal with the contract as if the nomination had not been made, and

(bsubject to the terms of the contract, alter or revoke the nomination by declaration.

 Group person insured enforcing rights

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

 Debtor insured's enforcement of rights

108.1  (1A debtor insured, or a debtor who is jointly liable for the debt with the debtor insured, may enforce in his or her 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.

(2Subject 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.

(3If 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

109  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

110  (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,

(bthere 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,

(dthere is no person entitled to the insurance money, or

(ethe 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.

(1.1)  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.

(1.2)  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.

(2)  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.

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

 Minors

111  (1If 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

(ain 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

(ito 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

(iiif no trustee is appointed for the minor in relation to that money, to the Public Guardian and Trustee,

(bin the case of money payable to a minor referred to in subsection (5), pay the money to the minor, and

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

(2[Repealed 2009-16-91.]

(3)  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.

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

(5A 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 a beneficiary

112  Despite section 111, 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

113  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.

 Place of payment

114  (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.

(4If 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.

(5If 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

115  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

116  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

117  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

118  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.

Part 5

 Repealed

119-131  [Repealed 2009-16-97.]

Part 6

 Repealed

132-188  [Repealed 2003-94-56.]

Part 7 — Miscellaneous Classes and Subclasses of Insurance

 Repealed

189  [Repealed 2009-16-98.]

 Application of Part 2

189.01  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

189.1  (1)  In this section:

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

"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;

"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

189.2  (1)  In this section, sections 189.3 to 189.6 and section 192 (5):

"deposit protection contract" means a contract indemnifying an insured against the losses described in section 189.3 (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

189.3  (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

189.4  (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

189.5  (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

189.6  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 189.5 (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.

Part 8 — Administration

 Appeal to superintendent by insured on adjustment charges

190  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.

 Immunities

191  (1)  An action for damages because of anything done or omitted to be done in good faith

(a) in the performance or intended performance of any duty, or

(b) in the exercise or intended exercise of any power

under this Act must not be brought against the superintendent or a person who is subject to the superintendent's direction.

(2)  Subsection (1) does not absolve the government from vicarious liability for an act or omission of the superintendent or a person who is subject to the superintendent's direction for which act or omission the government would be vicariously liable if this section were not in force.

 Power to make regulations

192  (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;

(bdefining 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[Repealed 2009-16-100.]

(e.1respecting an insured's right to rescind a contract of life insurance or accident and sickness insurance, including, without limitation, prescribing

(icircumstances in which an insured has the right,

(iitime limits on the exercise of the right,

(iiiexceptions of specified classes of insurance from the right, and

(ivthe obligations of an insurer to refund premiums;

(e.2respecting 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,

(irequiring that such communications be concurrently recorded,

(iirequiring that copies, including transcripts, of such records be provided to the insured or a claimant under a contract, and

(iiiexcluding the use of such communications in relation to specified records under this Act;

(e.3requiring an insurer to give a claimant notice prior to the expiry of a limitation period under this Act, including, without limitation, prescribing

(ithe content of, and the time and manner of giving, the notice, and

(iithe 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;

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

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

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

(irespecting dispute resolution under section 9, including, without limitation, regulations

(iprescribing procedures that an umpire must follow in exercising the umpire's powers and performing the umpire's functions and duties under that section,

(iirequiring an insurer to provide notice to an insured of the availability of the dispute resolution process in prescribed circumstances, and

(iiiprescribing the manner of giving notice for the purposes of subparagraph (ii);

(jdetermining 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

192.1  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.

 Repealed

193  [Repealed 2003-94-57.]

 Violation of Act an offence

194  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

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

 Limitation period

195  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

196  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.

Schedule

[Schedule repealed 2003-94-58.]

  Part 1, heading BEFORE amended by 2009-16-1, effective July 1, 2012 (BC Reg 213/2011)

Part 1 — Definitions, Interpretation and Application of Act

  Section 1 definitions of "automobile", "motor vehicle liability policy", "non-owner's policy" and "owner's policy" BEFORE repealed by 2003-94-50(a), effective June 1, 2007 (BC Reg 166/2006).

"automobile" means

(a) a motor vehicle as defined in the Insurance (Motor Vehicle) Act, and

(b) a trailer as defined in the Insurance (Motor Vehicle) Act,

and includes the machinery, equipment or apparatus mounted on or attached to it; but does not include a motor vehicle or trailer or class of them that is excluded or exempted from the operation of the Insurance (Motor Vehicle) Act or regulations made under it;

"motor vehicle liability policy" means a policy or part of a policy of automobile insurance evidencing a contract insuring

(a) the owner or driver of an automobile, or

(b) a person who is not the owner or driver if the automobile is being used or operated by the person's employee or agent or any other person on the person's behalf

against liability arising out of bodily injury to or the death of a person or loss or damage to property caused by an automobile or the use or operation of it;

"non-owner's policy" means a motor vehicle liability policy insuring a person solely in respect of the use or operation by the person or on the person's behalf of an automobile that is not owned by the person;

"owner's policy" means a motor vehicle liability policy insuring a person in respect of the ownership, use or operation of an automobile owned by him or her and within the description or definition of it in the policy and, if the contract so provides, in respect of the use or operation of any other automobile;

  Section 1 definition of "vehicle" was added by 2003-94-50(b), effective June 1, 2007 (BC Reg 166/2006).

  Section 1 definition of "prescribed" BEFORE amended by 2007-14-204,Sch, effective December 1, 2007 (BC Reg 354/2007).

"prescribed" means prescribed by this Act or the regulations;

  Section 1 (1) definitions of "prescribed" and "vehicle" BEFORE repealed by 2009-16-2, effective July 1, 2012 (BC Reg 213/2011)

"prescribed" means prescribed under this Act;

"vehicle" has the same meaning as in the Insurance (Vehicle) Act.

  Section 1 (2) BEFORE repealed by 2009-16-2, effective July 1, 2012 (BC Reg 213/2011)

(2)  The Lieutenant Governor in Council may, on the recommendation of the minister, make regulations determining and defining, for the purpose of this Act, and the Financial Institutions Act, what is deemed to be a distinct class of insurance and the nature of each class of insurance.

  Section 2 BEFORE re-enacted by 2009-16-3, effective July 1, 2012 (BC Reg 213/2011)

 Application to insurers and contracts

2  This Act, except as provided, applies to every insurer that carries on any business of insurance in British Columbia and to every contract of insurance made or deemed made in British Columbia.

  Sections 2.1 to 2.2 were enacted by 2009-16-4, effective July 1, 2012 (BC Reg 213/2011).

  Section 2.3 was enacted by 2009-16-4, effective June 17, 2011 (BC Reg 115/2011).

  Section 2.4 was enacted by 2009-16-4, effective July 1, 2012 (BC Reg 213/2011)

2009-16-4 was further amended by 2012-13-42 effective May 14, 2012.

  Section 2.5 was enacted by 2009-16-4, effective July 1, 2012 (BC Reg 213/2011)

(1Section 7 of the Limitation Act applies 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.

  Part 2, heading BEFORE amended by 2009-16-5, effective July 1, 2012 (BC Reg 213/2011).

Part 2 — General Provisions

  Section 3 (a) and (b) BEFORE amended by 2003-94-51(a) and (b), effective June 1, 2007 (BC Reg 166/2006).

(a) if any section or statutory condition contained in Part 3, 4, 5, 6 or 7 is applicable and deals with a subject matter that is the same as or similar to any subject matter dealt with by this Part, this Part does not apply, and

(b) sections 6 to 14, 17 and 25 do not apply in the case of a contract to which the Insurance (Marine) Act applies.

  Section 3 (c) was added by 2003-94-51(c), effective June 1, 2007 (BC Reg 166/2006).

  Section 3 BEFORE re-enacted by 2009-16-6, effective July 1, 2012 (BC Reg 213/2011).

 Application of Part

3  This Part has effect, despite any law or contract to the contrary, except that

(a) if any section or statutory condition contained in Part 3, 4, 5 or 7 is applicable and deals with a subject matter that is the same as or similar to any subject matter dealt with by this Part, this Part does not apply,

(b) sections 6 to 14, 17 and 25 do not apply in the case of a contract to which the Insurance (Marine) Act applies, and

(c) it does not apply to vehicle insurance under the Insurance (Vehicle) Act.

  Section 4 BEFORE repealed by 2009-16-7 effective July 1, 2012 (BC Reg 213/2011).

 Contract not avoided by default of insurer under Act

4  A contract is not rendered void or voidable as against the insured or a beneficiary by reason of any failure on the part of the insurer to comply with any of this Act.

  Section 7 BEFORE repealed by 2009-16-7, effective July 1, 2012 (BC Reg 213/2011).

 Indemnity recoverable

7  (1)  A greater sum must not be recovered or received from the insurer under a contract than the amount or value of the interest of the insured in the subject matter of the contract.

(2)  In the case of a contract of life insurance, the measure of the interest insured is the sum set by the contract.

  Sections 8 to 11 BEFORE re-enacted by 2009-16-7 effective July 1, 2012 (BC Reg 213/2011).

 Contents of policy

8  (1)  A policy must contain the name of the insurer, the name of the insured, the name of the person or persons to whom the insurance money is payable, the amount, or the method of determining the amount, of the premium for the insurance, the subject matter of the insurance, the indemnity for which the insurer may become liable, the event of the happening of which the liability is to accrue, the date on which the insurance takes effect and the date it terminates, or the method by which the latter is set or to be set.

(2)  This section does not apply to contracts of guarantee insurance.

 Appraisals

9  (1)  This section applies to a contract that

(a) provides insurance against loss or damage

(i)  by fire, lightning or explosion, or

(ii)  from any of the other perils referred to in section 120,

(b) provides insurance against loss of rents or profits or loss from business interruption, resulting from a peril referred to in paragraph (a), or

(c) contains a condition, statutory or otherwise, that requires that a disagreement in respect of specified matters be determined by appraisal.

(2)  An insurer must give notice to an insured of the availability of the appraisal process established by this Act within 21 days after the insurer becomes aware that,

(a) in respect of a contract referred to in subsection (1) (a) or (b), there is a disagreement between the insurer and the insured as to the value of the property insured, the value of the property saved or the amount of the loss, or

(b) in respect of a contract referred to in subsection (1) (c), there is a disagreement between the insurer and the insured as to a matter for which an appraisal is required in the contract.

(3)  The value or amount in dispute in a disagreement referred to in subsection (2) (a) or the matter in respect of which there is a disagreement referred to in subsection (2) (b) must, unless the insurer and the insured are able to resolve their disagreement, be determined by an appraisal under this section.

(4)  An appraisal under this section must not be conducted until

(a) the insured has delivered to the insurer a proof of loss, and

(b) one of the parties to the disagreement has delivered to the other a written demand for an appraisal.

(5)  An appraisal must be conducted under this section

(a) before any recovery is made under the contract,

(b) independently of any other question, and

(c) whether or not the right to recover on the contract is disputed.

(6)  For an appraisal under this section, the insured and the insurer must each appoint an appraiser, and the 2 appraisers appointed must appoint an umpire.

(7)  The appraisers must determine the matters in disagreement and, if they fail to agree, they must submit their differences to the umpire, and the finding in writing of any 2 determines the matters.

(8)  Each party to the appraisal must pay the appraiser appointed by that party and must bear equally the expense of the appraisal and the umpire.

(9)  If

(a) a party fails to appoint an appraiser within 7 clear days after being served with written notice to do so,

(b) the appraisers fail to agree on an umpire within 15 days after their appointment, or

(c) an appraiser or umpire refuses to act or is incapable of acting or dies,

the Supreme Court may appoint an appraiser or umpire, as the case may be, on the application of the insured or of the insurer.

 Court may relieve against forfeiture

10  If there has been imperfect compliance with a statutory condition as to the proof of loss to be given by the insured or other matter or thing required to be done or omitted by the insured with respect to the loss, and a consequent forfeiture or avoidance of the insurance in whole or in part, or if there has been a termination of the policy by a notice that was not received by the insured owing to the insured's absence from the address to which the notice was addressed, and the court deems it inequitable that the insurance should be forfeited or avoided on that ground or terminated, the court may, on terms it deems just, relieve against the forfeiture or avoidance or, if the application for relief is made within 90 days of the date of the mailing of the notice of termination, against the termination.

 Waiver of term or condition

11  (1)  A term or condition of a contract is not deemed to be waived by the insurer in whole or in part unless the waiver is stated in writing and signed by a person authorized for that purpose by the insurer.

(2)  Neither the insurer nor the insured are deemed to have waived any term or condition of a contract by any act relating to the appraisal of the amount of loss or to the delivery and completion of proofs or to the investigation or adjustment of any claim under the contract.

  Section 11.1 was enacted by 2009-16-7, effective July 1, 2012 (BC Reg 213/2011).

  Section 12 BEFORE amended by 2009-16-8, effective July 1, 2012 (BC Reg 213/2011).

 Effect of terms of contract not set out in policy

12  (1)  A term or condition of a contract which is not set out in full in the policy or in a document in writing attached to it, when issued, is not valid or admissible in evidence to the prejudice of the insured or a beneficiary.

(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.

  Section 15 BEFORE repealed by 2009-16-9, effective July 1, 2012 (BC Reg 213/2011).

 How premiums may be paid or refunded

15  (1)  A premium may be paid by post office order or postal note, or cheque payable at par and certified by a bank, or draft of a bank, or money order of an express company doing business in British Columbia, delivered to, or mailed in a registered letter addressed to, the insurer at its head office in British Columbia or to an agent of the insurer authorized to receive the premium, and payment, delivery or tender of the premium is deemed to have been made at the time of delivery or, in the case of a registered letter, of the registration of the letter at any post office.

(2)  When a contract is terminated by an insurer in accordance with its terms and any part of the premium is repayable to the insured, the insurer may repay the sum due in any mode permitted by subsection (1) for the payment of a premium.

  Section 17 (1) BEFORE amended by 2009-16-10, effective July 1, 2012 (BC Reg 213/2011).

(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 at once by giving written notice by registered mail.

  Section 19 BEFORE repealed by 2009-16-11, effective July 1, 2012 (BC Reg 213/2011).

 Time for payment of claims

19  If a claim is made against an insurer under a contract, the amount for which the insurer is liable must be paid by the insurer to the person entitled to it within 60 days after reasonably sufficient proof of the claim and of the right to receive payment has been furnished to it.

  Section 21 BEFORE repealed by 2009-16-11, effective July 1, 2012 (BC Reg 213/2011).

 Right of entry after loss

21  After any loss or damage to property insured under a contract, the insurer or an accredited agent of the insurer has an immediate right of entry and access sufficient to enable the insurer or agent to survey and examine the property and to make an estimate of the loss or damage.

  Section 22 (1) BEFORE amended by 2009-16-12, effective July 1, 2012 (BC Reg 213/2011).

(1)  Every action on a contract must be commenced within one year after the furnishing of reasonably sufficient proof of a loss or claim under the contract and not after.

  Section 24 (3) BEFORE repealed by 2003-94-52, effective June 1, 2007 (BC Reg 166/2006).

(3)  This section does not apply in the case of a contract of automobile insurance.

  Section 25 BEFORE re-enacted by 2009-16-13, effective July 1, 2012 (BC Reg 213/2011).

 Insurer to furnish copy of application and form for claim

25  (1)  It is the duty of an insurer to furnish the insured or the beneficiary on request

(a) with a true copy of the application or proposal for insurance and the policy, and,

(b) immediately on receipt of the request and in any event not later than 60 days after receipt by it of notice of a loss or claim under the contract, with printed forms on which proof of the loss or claim may be made.

(2)  The insurer, by furnishing forms to make 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.

(3)  An insurer who neglects or refuses to comply with subsection (1) commits an offence.

  Section 25.1 was enacted by 2009-16-13, effective July 1, 2012 (BC Reg 213/2011).

  Section 26 BEFORE repealed by 2009-16-13, effective July 1, 2012 (BC Reg 213/2011).

 Trafficking

26  Any person other than an insurer or its authorized agent who advertises, or holds himself or herself out, as a purchaser of life insurance policies or of benefits under it, 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 himself or herself or any person, commits an offence against this Act.

  Section 26.1 was enacted by 2009-16-13, effective July 1, 2012 (BC Reg 213/2011).

  Section 27 BEFORE repealed by 2009-16-13, effective July 1, 2012 (BC Reg 213/2011).

 Liability of continuing insurer

27  If under an agreement between an insurer, in this section called the "continuing insurer", and another insurer, in this section called the "retiring insurer", providing for a retiring insurer ceasing to do business in British Columbia and the continuing insurer assuming liability under contracts of insurance issued by the retiring insurer 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.

  Section 27.1 was enacted by 2009-16-13, effective July 1, 2012 (BC Reg 213/2011).

  Section 28 BEFORE repealed by 2009-16-13, effective June 17, 2011 (BC Reg 115/2011).

 Effect on contracts of violation of law

28  Unless the 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 a contract of insurance 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 disability insurance undertaken as part of the contract.

  Sections 28.1 to 28.5 were enacted by 2009-16-14, effective July 1, 2012 (BC Reg 213/2011).

  Section 28.6 was enacted by 2009-16-14, effective June 17, 2011 (BC Reg 115/2011).

  Sections 28.7 was enacted by 2009-16-14, effective July 1, 2012 (BC Reg 213/2011).

  Section 29 BEFORE amended by 2009-16-15, effective July 1, 2012 (BC Reg 213/2011).

 Definitions

29  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;

"contract" means a contract of life insurance;

"court" means the Supreme Court;

"creditor's group insurance" means insurance effected by a creditor in respect of the lives of the creditor's debtors by which the lives of the debtors are insured severally under a single contract;

"declaration" 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 it,

in which the insured designates, or alters or revokes the designation of, the insured's personal representative or a beneficiary as one to whom or for whose benefit insurance money is to be payable;

"family insurance" means insurance by which the lives of the insured and one or more persons related to the insured by blood or marriage or adoption 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, personal 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, by 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 whose life is insured by 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, him or her;

"instrument" includes a will;

"insurance" means life insurance;

"insured" 

(a) in the case of group insurance means, in the provisions of this Part relating to the designation of beneficiaries and the rights and status of beneficiaries, the group life insured, and

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

"will" includes a codicil.

  Section 29.1 was enacted by 2009-16-16, effective July 1, 2012 (BC Reg 213/2011).

  Section 30 BEFORE amended by 2009-16-17, effective July 1, 2012 (BC Reg 213/2011).

 Application of Part

30  (1)  Despite any agreement, condition or stipulation to the contrary, 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 to 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 to 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.

  Section 31 (a) BEFORE amended by 2009-16-18, effective July 1, 2012 (BC Reg 213/2011).

(a) the rights and status of beneficiaries if the group life insured was resident in British Columbia at the time he or she became insured, and

  Section 32 BEFORE amended by 2009-16-19, effective July 1, 2012 (BC Reg 213/2011).

 Documents required for contract

32  (1)  An insurer entering into a contract must issue a policy.

(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)  An insurer must, on request, furnish to the insured or to a claimant under the contract a copy of the application.

  Section 33 (2) (e) BEFORE amended by 2009-16-20, effective July 1, 2012 (BC Reg 213/2011).

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

  Section 33 (2) (g) and (3) were added by 2009-16-20, effective July 1, 2012 (BC Reg 213/2011).

  Section 34 (f), (g) and (h) was added by 2009-16-21, effective July 1, 2012 (BC Reg 213/2011).

  Section 35 BEFORE re-enacted by 2009-16-22, effective July 1, 2012 (BC Reg 213/2011).

 Contents of group certificate

35  In the case of a contract of group insurance, an insurer must issue, for delivery by the insured to each group life insured, a certificate or other document in which are set out the following:

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

(b) the amount, or the method of determining the amount, of insurance on the group life insured and on any person whose life is insured under the contract as a person dependent on or related to him or her;

(c) the circumstances in which the insurance terminates and the rights, if any, on termination, of the group life insured and of any person whose life is insured under the contract as a person dependent on or related to him or her.

  Section 37 BEFORE re-enacted by 2009-16-23, effective July 1, 2012 (BC Reg 213/2011).

 Insurable interest defined

37  Without restricting the meaning of the expression "insurable interest", a person has an insurable interest in his or her own life and in the life of the following:

(a) his or her child or grandchild;

(b) his or her spouse;

(c) any person on whom he or she is wholly or in part dependent for, or from whom he or she is receiving, support or education;

(d) his or her employee;

(e) any person in the duration of whose life he or she has a pecuniary interest.

  Section 37.1 was enacted by 2009-16-23, effective July 1, 2012 (BC Reg 213/2011).

  Section 38 (1) (b) BEFORE amended by 2009-16-24, effective July 1, 2012 (BC Reg 213/2011).

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

  Section 39 (1) BEFORE amended by 2009-16-25, effective July 1, 2012 (BC Reg 213/2011).

(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 part of a premium and payment is not made according to its tenor, the premium or part of it is deemed not to have been paid.

  Section 40 (1) and (3) BEFORE amended by 2009-16-26, effective July 1, 2012 (BC Reg 213/2011).

(1)  Except in the case of 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.

(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, but the amount of the premium, together with interest at the rate specified in the contract, but not exceeding 6% per year, and the balance, if any, of the premium for the current policy year, may be deducted from the insurance money.

  Section 41 BEFORE re-enacted by 2009-16-27, effective July 1, 2012 (BC Reg 213/2011).

 Duty to disclose

41  (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 in his or her knowledge that is material to the insurance and is not so disclosed by the other.

(2)  Subject to section 42, a failure to disclose, or a misrepresentation of, such a fact renders the contract voidable by the insurer.

  Section 42 BEFORE amended by 2009-16-28, effective July 1, 2012 (BC Reg 213/2011).

 Exceptions

42  (1)  This section does not apply to a misstatement of age or to disability insurance.

(2)  Subject to subsection (3), if a contract 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 41 does not, in the absence of fraud, render the contract voidable.

(3)  In the case of a contract of group insurance, a failure to disclose, or a misrepresentation of, such a fact in respect of a person whose life is insured under the contract does not render the contract voidable, but if evidence of insurability is specifically requested by the insurer, the insurance in respect of that person is voidable by the insurer unless it has been in effect for 2 years during the lifetime of that person, in which event it is not, in the absence of fraud, voidable.

  Section 44 (3) BEFORE amended by 2009-16-29, effective July 1, 2012 (BC Reg 213/2011).

(3)  If a contract limits the insurable age, and the correct age of the person whose life is insured at the date of the application exceeds the age so limited, the contract is, during the lifetime of that person but not later than 5 years from the date the contract takes effect, voidable by the insurer within 60 days after it discovers the error.

  Section 47 BEFORE amended by 2009-16-30, effective July 1, 2012 (BC Reg 213/2011).

 Exceptions

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

(2)  If a contract lapses and the insured within 2 years applies for reinstatement of the contract, if in that time the insured

(a) pays the overdue premiums and other indebtedness under the contract to the insurer, together with interest at the rate specified in the contract, but not exceeding 6% per year, compounded annually, and

(b) produces

(i)  evidence satisfactory to the insurer of the good health, and

(ii)  other evidence satisfactory to the insurer of the insurability

of the person whose life was insured,

the insurer must reinstate the contract.

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

(4)  Sections 41 and 42 apply, so far as applicable and with the necessary changes, to reinstatement of a contract.

  Section 47.1 was enacted by 2009-16-31, effective July 1, 2012 (BC Reg 213/2012).

  Section 48 BEFORE amended by 2009-16-32, effective July 1, 2012 (BC Reg 213/2012).

 Designation of beneficiary

48  (1)  An insured may in a contract or by a declaration designate the insured, the insured's personal representative or a beneficiary to receive insurance money.

(2)  Subject to section 49, 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 a person, or the use of words of like import in a designation, is deemed to be a designation of the personal representative of the person.

  Section 49 (1) BEFORE amended by 2009-16-33, effective July 1, 2012 (BC Reg 213/2012).

(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 of the insured's creditors and does not form part of the insured's estate.

  Section 50 (4) BEFORE amended by 2009-16-34, effective July 1, 2012 (BC Reg 213/2012).

(4)  If a designation is contained in an instrument that purports to be a will and subsequently the instrument if valid as a will would be revoked by operation of law or otherwise, the designation is revoked.

  Section 52 (1) BEFORE amended by 2009-16-35, effective July 1, 2012 (BC Reg 213/2012).

(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 in the contract or by a declaration, the share is payable

(a) to the surviving beneficiary, or

(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.

  Section 52 (3) to (5) was added by 2009-16-35, effective July 1, 2012 (BC Reg 213/2012).

  Section 53 BEFORE amended by 2009-16-36, effective July 1, 2012 (BC Reg 213/2012).

 Right to sue

53  A beneficiary may enforce in his or her own name, and a trustee appointed under section 51 may enforce as trustee, the payment of insurance money made payable to the 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.

  Section 54 (2) BEFORE amended by 2009-16-37, effective July 1, 2012 (BC Reg 213/2012).

(2)  While a designation in favour of a spouse, child, grandchild or parent of a person whose life is insured, or any of them, is in effect, the insurance money and the rights and interests of the insured in it and in the contract are exempt from execution or seizure.

  Section 55 BEFORE amended by 2009-16-38, effective July 1, 2012 (BC Reg 213/2012).

 Insured dealing with contract

55  If a beneficiary

(a) is not designated irrevocably, or

(b) is designated irrevocably but has attained the age of 21 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.

  Section 56 BEFORE amended by 2009-16-39, effective July 1, 2012 (BC Reg 213/2012).

 Insured entitled to dividends

56  (1)  Despite the designation of a beneficiary irrevocably, the insured is entitled while living to the dividends or bonuses declared on a contract, unless the contract otherwise provides.

(2)  Unless the insured otherwise directs, the insurer may apply the dividends or bonuses declared on the contract for the purpose of keeping the contract in force.

  Section 57 BEFORE amended by 2009-16-40, effective July 1, 2012 (BC Reg 213/2012).

 Transfer of ownership

57  (1)  Despite the Wills Act, if, in a contract or in an agreement in writing between an insurer and an insured, it is provided that a person named in the contract or in the agreement 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 in the agreement 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 agreement provides that 2 or more persons named in the contract or in the agreement, 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 to his or her rights and interests in the contract.

(3)  Despite any nomination made under this section, the insured may, before his or her death, assign, exercise rights under or in respect of, surrender, or otherwise deal with the contract as if the nomination had not been made, and may alter or revoke the nomination by agreement in writing with the insurer.

  Section 58 BEFORE amended by 2009-16-41, effective July 1, 2012 (BC Reg 213/2012).

 Interest of assignee and effect on beneficiary's rights

58  (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, he or she 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 in section 49 before the assignee gave notice to the insurer of the assignment in the manner prescribed 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)  A provision in a contract to the effect that the rights or interests of the insured, or in the case of group insurance the group life insured, are not assignable is valid.

  Section 59.1 was enacted by 2009-16-42, effective July 1, 2012 (BC Reg 213/2012).

  Section 60 BEFORE amended by 2009-16-43, effective July 1, 2012 (BC Reg 213/2012).

 Capacity of infants

60  Except in respect of his or her rights as beneficiary, an infant 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.

  Section 61 BEFORE repealed by 2009-16-44, effective July 1, 2012 (BC Reg 213/2012).

 Capacity of infant beneficiary

61  A beneficiary who has attained the age of 18 years has the capacity of a person of the age of 21 years to receive insurance money payable to him or her and to give a discharge for it.

  Section 63 BEFORE amended by 2009-16-45, effective July 1, 2012 (BC Reg 213/2012).

 Payment

63  (1)  Subject to subsections (3) and (4), insurance money is payable in British Columbia.

(2)  Unless a contract otherwise provides, a reference in it to dollars means Canadian dollars.

(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 domicile of the payee.

(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 he or she became insured.

  Section 64 BEFORE re-enacted by 2009-16-46, effective July 1, 2012 (BC Reg 213/2012).

 Action in British Columbia

64  Regardless of the place where a contract was made, an action on it may be brought in a court by a resident of British Columbia if the insurer was authorized to transact insurance in British Columbia at the time the contract was made or at the time the action is brought.

  Section 65 BEFORE re-enacted by 2009-16-47, effective July 1, 2012 (BC Reg 213/2012).

 Limitation of action

65  (1)  Subject to subsection (2), proceedings against an insurer for the recovery of insurance money must not be commenced more than one year after the furnishing of the evidence required by section 62 or more than 6 years after the happening of the event on which the insurance money becomes payable, whichever period first expires.

(2)  If a declaration has been made under the Survivorship and Presumption of Death Act, an action or proceeding to which reference is made in subsection (1) must not be commenced more than one year after the date of the declaration.

  Section 66 (1) BEFORE amended by 2009-16-48, effective July 1, 2012 (BC Reg 213/2012).

(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 as fully discharged to the extent of the amount paid as if there were no instrument or order.

  Section 68 (1) BEFORE amended by 2009-16-49, effective July 1, 2012 (BC Reg 213/2012).

(1)  On making a declaration under section 67 or an order under the Survivorship and Presumption of Death Act, the court may make an order respecting the payment of the insurance money and respecting costs it deems 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.

  Section 70 BEFORE amended by 2009-16-49, effective July 1, 2012 (BC Reg 213/2012).

 Power of court

70  If the court finds that the evidence furnished under section 62 is not sufficient or that a presumption of death is not established under the Survivorship and 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 deems just respecting further evidence to be furnished by the claimant, publication of advertisements, further inquiry or any other matter or respecting costs.

  Section 71 (1) BEFORE amended by 2009-16-50, effective July 1, 2012 (BC Reg 213/2012).

(1)  If an insurer admits liability for insurance money and it appears to the insurer that

(a) there are adverse claimants,

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

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

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.

  Section 71 (2) (a) BEFORE amended by 2009-16-50, effective July 1, 2012 (BC Reg 213/2012).

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

  Section 72 BEFORE re-enacted by 2009-16-51, effective July 1, 2012 (BC Reg 213/2012).

 Simultaneous deaths

72  Unless a contract or a declaration otherwise provides, if the person whose life is insured and a beneficiary die at the same time or in circumstances rendering it uncertain which of them survive the other, the insurance money is payable in accordance with section 52 (1) as if the beneficiary had predeceased the person whose life is insured.

  Section 73 (2) and (3) BEFORE amended by 2009-16-52, effective July 1, 2012 (BC Reg 213/2012).

(2)  Subject to subsections (3) and (4), if insurance money is payable in installments 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 installments or to alienate or assign his or her interests in them, the insurer must not, unless the insured subsequently directs otherwise in writing, commute the installments or pay them to any person other than the beneficiary, and the installments 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 infant children.

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

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

(b) the beneficiary may alienate or assign his or her interest in the insurance money.

  Section 75 BEFORE amended by 2009-16-49, effective July 1, 2012 (BC Reg 213/2012).

 Court may order payment

75  If an insurer does not, within 30 days after receipt of the evidence required by section 62, 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 deems just, and payment made in accordance with the order discharges the insurer to the extent of the amount paid.

  Section 76 BEFORE amended by 2009-16-49, effective July 1, 2012 (BC Reg 213/2012).

 Costs

76  The court may fix without taxation the costs incurred in connection with an application or order made under section 71 or 75, and may order them to be paid out of the insurance money or by the insurer or the applicant, or otherwise as it deems just.

  Section 77 BEFORE amended by 2009-16-53, effective July 1, 2012 (BC Reg 213/2012).

 Minors

77  (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 62,

(a) in the case of money payable to a minor other than a minor referred to in paragraph (b), pay the money to the Public Guardian and Trustee in trust for the minor,

(b) in the case of money payable to a minor who has attained the age of 18 years and who is capable and willing to give a discharge for the money, pay the money to the minor, or

(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) (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).

  Section 78 BEFORE re-enacted by 2009-16-54, effective July 1, 2012 (BC Reg 213/2012).

 Beneficiary under disability

78  If it appears that a representative of a beneficiary who is under disability may under the law of the domicile of the beneficiary accept payments on behalf of the beneficiary, the insurer may make payment to the representative, and any such payment discharges the insurer to the extent of the amount paid.

  Section 79 BEFORE re-enacted by 2009-16-55, effective July 1, 2012 (BC Reg 213/2012).

 Presumption against agency

79  An officer, agent or employee of an insurer and a person soliciting insurance, whether or not he or she is an agent of the insurer, must not, to the prejudice of the insured, be deemed to be the agent of the insured in respect of any question arising out of a contract.

  Section 81 BEFORE amended by 2009-16-56, effective July 1, 2012 (BC Reg 213/2012).

 Definitions

81  In this Part:

"application" means a written application for insurance or for the reinstatement of insurance;

"beneficiary" means a person designated or appointed in a contract or by a declaration, other than the insured or the insured's personal representative, to whom or for whose benefit insurance money payable in the event of death by accident is to be paid;

"blanket insurance" means that class of group insurance which covers loss arising from specific hazards incident to or defined by reference to a particular activity or activities;

"contract" means a contract of insurance;

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

"declaration" 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 it,

in which the insured designates or alters or revokes the designation of his or her personal representative or a beneficiary as one to whom or for whose benefit must be paid the insurance money which is payable in the event of death by accident;

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

"group insurance" means insurance other than creditor's group insurance and family insurance by which the lives or well being, or the lives and well being, 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 who is insured under a contract of group insurance and on whom a right is conferred by the contract, but does not include a person who is insured under the contract as a person dependent on or related to him or her;

"instrument" includes a will;

"insurance" means personal accident insurance, sickness insurance, or personal accident insurance and sickness insurance;

"insured",

(a) in the case of group insurance means, in the provisions of this Part relating to the designation of beneficiaries or of personal representatives as recipients of insurance money and their rights and status, the group person insured, and

(b) in all other cases means 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;

"will" includes a codicil.

  Section 81.1 was enacted by 2009-16-57, effective July 1, 2012 (BC Reg 213/2012).

  Section 82 (3) (d) BEFORE amended by 2003-94-53, effective June 1, 2007 (BC Reg 166/2006).

(d) insurance provided by a contract of automobile insurance under section 167, 168 or 169.

  Section 82 (1) and (3) BEFORE amended by 2009-16-58, effective July 1, 2012 (BC Reg 213/2012).

(1)  Despite any agreement, condition or stipulation to the contrary, this Part applies to a contract made in British Columbia on and after October 1, 1970 and sections 81 to 84, 91, 94 to 96, 100 and 102 to 118 apply also to a contract made in British Columbia before that day.

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

(a) accidental death insurance;

(b) creditor's group insurance;

(c) disability insurance;

(d) vehicle insurance within the meaning of the Insurance (Vehicle) Act.

  Section 84 BEFORE re-enacted by 2009-16-59, effective July 1, 2012 (BC Reg 213/2012).

 Issue of policy

84  An insurer entering into a contract must issue a policy.

  Section 85 BEFORE amended by 2009-16-60, effective July 1, 2012 (BC Reg 213/2012).

 Exceptions

85  (1)  This section does not apply to

(a) a contract of group insurance, or

(b) a contract 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 day on which the insurance commences and terminates.

  Section 86 BEFORE amended by 2009-16-61, effective July 1, 2012 (BC Reg 213/2011).

 Contents of group policy

86  In the case of a contract of 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 group persons insured and persons 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 day on which the insurance commences and terminates.

  Section 87 BEFORE amended by 2009-16-62, effective July 1, 2012 (BC Reg 213/2011).

 Contents of group certificate

87  (1)  Except as provided in subsection (2), in the case of a contract of group insurance an insurer must issue for delivery by the insured to each group person 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 and on any person insured;

(c) the circumstances under which the insurance terminates, and the rights, if any, on such termination of the group person insured and of any person insured.

(2)  This section does not apply to a contract of blanket insurance or to a contract of group insurance of a nonrenewable type issued for a term of 6 months or less.

  Section 88 (5) BEFORE amended by 2009-16-63, effective July 1, 2012 (BC Reg 213/2011).

(5)  This section does not apply to a contract made by a fraternal society.

  Section 89 BEFORE amended by 2009-16-64, effective July 1, 2012 (BC Reg 213/2011).

 Statutory conditions

89  Subject to section 90 the conditions set out in this section are deemed to be part of every contract other than a contract of group insurance, and must be printed on or attached to the policy forming part of the contract with the heading "Statutory Conditions".

STATUTORY CONDITIONS
The contract
1. (1) The application, this policy, any document attached to this policy when issued, and any amendment to the contract agreed on in writing after the policy is issued constitute the entire contract, and no agent has authority to change the contract or waive any of its provisions.
Waiver
(2) The insurer is deemed not to have waived any condition of this contract, either in whole or in part, unless the waiver is clearly expressed in writing signed by the insurer.
Copy of application
(3) The insurer must, upon request, furnish to the insured or to a claimant under the contract a copy of the application.
Material facts
2. A statement made by the insured or person insured at the time of application for this contract must not be used in defence of a claim under or to avoid this contract unless it is contained in the application or any other written statements or answers furnished as evidence of insurability.
Changes in occupation
3. (1) If after the contract is issued the person insured engages for compensation in an occupation that is classified by the insurer as more hazardous than that stated in this contract, the liability under this contract is limited to the amount that the premium paid would have purchased for the more hazardous occupation according to the limits, classification of risks, and premium rates in use by the insurer at the time the person insured engaged in the more hazardous occupation.
(2) If the person insured changes his or her occupation from that stated in this contract to an occupation classified by the insurer as less hazardous and the insurer is so advised in writing, the insurer must either
(a)reduce the premium rate, or
(b)issue a policy for the unexpired term of this contract at the lower rate of premium applicable to the less hazardous occupation,
according to the limits, classification of risks, and premium rates used by the insurer at the date of receipt of advice of the change in occupation, and must refund to the insured the amount by which the unearned premium on this contract exceeds the premium at the lower rate for the unexpired term.
Relation of earnings to insurance
4. If the benefits for loss of time payable under this contract, either alone or together with benefits for loss of time under another contract, including a contract of group accident insurance or group sickness insurance, or of both, and a life insurance contract providing disability insurance, exceed the money value of the time of the person insured, the insurer is liable only for that proportion of the benefits for loss of time stated in this policy that the money value of the time of the person insured bears to the aggregate of the benefits for loss of time payable under all such contracts, and the excess premium, if any, paid by the insured must be returned to the insured by the insurer.
Termination by insured
5. The insured may terminate this contract at any time by giving written notice of termination to the insurer by registered mail to its head office or chief agency in British Columbia, or by delivery of it to an authorized agent of the insurer in British Columbia, and the insurer must on surrender of this policy refund the amount of premium paid in excess of the short rate premium calculated to the date of receipt of such notice according to the table in use by the insurer at the time of termination.
Termination by insurer
6. (1) The insurer may terminate this contract at any time by giving written notice of termination to the insured and by refunding concurrently with the giving of notice the amount of premium paid in excess of the proportional premium for the expired time.
(2) The notice of termination may be delivered to the insured, or it may be sent by registered mail to the latest address of the insured on the records of the insurer.
(3) If the notice of termination is delivered to the insured, 5 days' notice of termination must be given; if it is mailed to the insured, 10 days' notice of termination must be given, and the 10 days begin on the day following the date of mailing of notice.
Notice and proof of claim
7. (1) The insured or a person insured, or a beneficiary entitled to make a claim, or the agent of any of them, must
(a)give written notice of claim to the insurer
 (i)by delivery of it, or by sending it by registered mail to the head office or chief agency of the insurer in British Columbia, or
 (ii)by delivery of it to an authorized agent of the insurer in British Columbia,
not later than 30 days from the date a claim arises under the contract on account of an accident, sickness or disability,
(b) within 90 days from the date a claim arises under the contract on account of an accident, sickness or disability, furnish to the insurer such proof as is reasonably possible in the circumstances of the happening of the accident or the commencement of the sickness or disability, and the loss occasioned by it, the right of the claimant to receive payment, his or her age, and the age of the beneficiary if relevant, and
(c) if so required by the insurer, furnish a satisfactory certificate as to the cause or nature of the accident, sickness or disability for which claim may be made under the contract and as to duration of such disability.
Failure to give notice or proof
(2) Failure to give notice of claim or furnish proof of claim within the time prescribed by this statutory condition does not invalidate the claim if the notice or proof is given or furnished as soon as reasonably possible, and in no event later than one year from the date of the accident or the date a claim arises under the contract on account of sickness or disability if it is shown that it was not reasonably possible to give notice or furnish proof within the time so prescribed.
Insurer to furnish forms for proof of claim
8. The insurer must furnish forms for proof of claim within 15 days after receiving notice of claim, but if the claimant has not received the forms within that time the claimant may submit his or her proof of claim in the form of a written statement of the cause or nature of the accident, sickness or disability giving rise to the claim and of the extent of the loss.
Rights of examination
9. As a condition precedent to recovery of insurance moneys under this contract,
(a) the claimant must afford to the insurer an opportunity to examine the person of the person insured when and so often as it reasonably requires while the claim under this contract is pending, and
(b) in the case of death of the person insured, the insurer may require an autopsy subject to any law of the applicable jurisdiction relating to autopsies.
When moneys payable other than for loss of time
10. All moneys payable under this contract, other than benefits for loss of time, must be paid by the insurer within 60 days after it has received proof of claim.
When loss of time benefits payable
11. The initial benefits for loss of time must be paid by the insurer within 30 days after it has received proof of claim, and payment must be made after that in accordance with the terms of the contract but not less frequently than once in each succeeding 60 days while the insurer remains liable for the payments if the person insured when required to do so furnishes before payment proof of continuing disability.
Limitation of actions
12. An action or proceeding against the insurer for the recovery of a claim under this contract must not be commenced more than one year after the date the insurance money became payable or would have become payable if it had been a valid claim.

  Section 90 BEFORE amended by 2009-16-65, effective July 1, 2012 (BC Reg 213/2011).

 Omission or variation of conditions

90  (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, 4 and 9 may be omitted from the policy if the contract does not contain any provisions respecting the matters dealt with in them.

(3)  Statutory conditions 5 and 6 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, 5, 6 and 9, and, subject to the restriction in subsection (5), statutory condition 7 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 89.

(5)  Statutory condition 7 (1) (a) and (b) may not be varied in policies providing benefits for loss of time.

(6)  Statutory conditions 10 and 11 may be varied by shortening the periods of time prescribed in them, and statutory condition 12 may be varied by lengthening the period of time prescribed in it.

(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 (1):

The contract
1. (1) This policy, the Act or instrument of incorporation of the society, its constitution, bylaws, and rules, and the amendments made from time to time to any of them, the application for the contract and the medical statement of the applicant, constitute the entire contract, and no agent has authority to change the contract or waive any of its provisions.

and

(b) statutory condition 5 must not be printed on the policy.

  Section 91 BEFORE amended by 2009-16-66, effective July 1, 2012 (BC Reg 213/2011).

 Notice of statutory conditions

91  In the case of a policy of accident 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 type: "Notwithstanding any other provision herein contained, this contract is subject to the statutory conditions in the Insurance Act respecting contracts of accident insurance".

  Sections 91.1 to 91.2 were enacted by 2009-16-67, effective July 1, 2012 (BC Reg 213/2011).

  Section 92 BEFORE re-enacted by 2009-16-68, effective July 1, 2012 (BC Reg 213/2011).

 Unpaid renewal premium

92  (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 or, in the case of a renewal certificate, the renewal premium therefor has not been fully paid,

(a) the contract or the renewal of it evidenced by the certificate is as binding on the insurer as if such premium had been paid although 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 the nonpayment of the premium by the insurer on 10 days' notice of termination given in writing to the insured and mailed postage prepaid and registered to the latest address of the insured on the records of the insurer, and the 10 days begin on the day following the date of mailing the notice.

(2)  This section does not apply to a contract of group insurance or to a contract made by a fraternal society.

  Section 93 BEFORE repealed by 2009-16-69, effective July 1, 2012 (BC Reg 213/2011).

 Unpaid premium

93  (1)  An insurer may

(a) deduct unpaid premiums from an amount which it is liable to pay under a contract, or

(b) sue the insured for unpaid premiums.

(2)  If a cheque or other bill of exchange or a promissory note or other written promise to pay is given for the whole or part of a premium and payment is not made according to its tenor, the premium or part is deemed never to have been paid.

(3)  Subsection (1) (a) does not apply to a contract of group insurance.

(4)  This section does not apply to a contract made by a fraternal society.

  Section 94 BEFORE repealed by 2009-16-70, effective July 1, 2012 (BC Reg 213/2011).

 Insurable interest

94  Without restricting the meaning of the expression "insurable interest", a person has an insurable interest in his or her own life and well being and in the life and well being of the following:

(a) his or her child or grandchild;

(b) his or her spouse;

(c) any person on whom he or she is wholly or in part dependent for, or from whom he or she is receiving, support or education;

(d) his or her officer or employee;

(e) any person in whom he or she has a pecuniary interest.

  Section 95.1 was enacted by 2009-16-70, effective July 1, 2012 (BC Reg 213/2011).

  Section 95.2 was enacted by 2009-16-71, effective July 1, 2012 (BC Reg 213/2011).

  Section 119 (a) BEFORE amended by 2003-94-54, effective June 1, 2007 (BC Reg 166/2006).

(a) contracts of insurance falling within the classes of aircraft, automobile, boiler and machinery, inland transportation, marine, plate glass, sprinkler leakage and theft insurance,

  Section 96 BEFORE re-enacted by 2009-16-72, effective July 1, 2012 (BC Reg 213/2011).

 Capacity of minors

96  (1)  Except in respect of his or her rights as beneficiary, a minor who has attained the age of 16 years has the capacity of a person of the age of 21 years

(a) to make an enforceable contract, and

(b) in respect of a contract.

(2)  A beneficiary who has attained the age of 18 years has the capacity of a person of the age of 21 years to receive insurance money payable to him or her and to give a valid discharge.

  Section 97 BEFORE re-enacted by 2009-16-73, effective July 1, 2012 (BC Reg 213/2011).

 Duty to disclose

97  (1)  An applicant for insurance on his or her own behalf and on behalf of each person to be insured, and each person to be insured, must disclose to the insurer in any application, on a medical examination, if any, and in any written statements or answers furnished as evidence of insurability, every fact within his or her knowledge that is material to the insurance and is not so disclosed by the other.

(2)  Subject to sections 98 and 101, a failure to disclose, or a misrepresentation of, such a fact renders a contract voidable by the insurer.

(3)  In the case of a contract of group insurance, a failure to disclose or a misrepresentation of such a fact with respect to a group person insured or a person insured under the contract does not render the contract voidable; but if evidence of insurability is specifically requested by the insurer, the insurance in respect of such a person is, subject to section 98, voidable by the insurer.

  Section 98 BEFORE re-enacted by 2009-16-74, effective July 1, 2012 (BC Reg 213/2011).

 Incontestability

98  (1)  Subject to section 101 and except as provided in subsection (2),

(a) if a contract, including renewals of it, except a contract of group insurance, has been in effect continuously for 2 years with respect to a person insured, a failure to disclose or a misrepresentation of a fact with respect to that person required by section 97 to be disclosed does not, except in the case of fraud, render the contract voidable, and

(b) if a contract of group insurance, including renewals of it, has been in effect continuously for 2 years with respect to a group person insured or a person insured, a failure to disclose or a misrepresentation of a fact with respect to that group person insured or person insured required by section 97 to be disclosed does not, except in the case of fraud, render the contract voidable with respect to that group person insured or person insured.

(2)  If a claim arises from a loss incurred or a disability beginning before a contract, including renewals of it, has been in force for 2 years with respect to the person in respect of whom the claim is made, subsection (1) does not apply to that claim.

  Section 100 BEFORE amended by 2009-16-75, effective July 1, 2012 (BC Reg 213/2011).

 Pre-existing conditions

100  If a contract contains a general exception or reduction with respect to pre-existing disease or physical conditions and the person insured or group person 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 force continuously for 2 years immediately before the date of loss incurred or commencement of disability with respect to that person, and

(b) the 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.

  Section 101 BEFORE amended by 2009-16-76, effective July 1, 2012 (BC Reg 213/2011).

 Misstatement of age

101  (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 must 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, if there is a misstatement to the insurer of the age of a group person insured or person 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 true age governs.

  Section 101.1 was enacted by 2009-16-77, effective July 1, 2012 (BC Reg 213/2011).

  Section 102 BEFORE re-enacted by 2009-16-78, effective July 1, 2012 (BC Reg 213/2011).

 Designation of beneficiary

102  (1)  Unless otherwise provided in the policy, an insured may in a contract or by a declaration designate his or her personal representative or a beneficiary to receive insurance money payable in the event of death by accident, and may alter or revoke the designation by declaration.

(2)  A designation in an instrument purporting to be a will is not ineffective merely because the instrument is invalid as a will or the designation is invalid as a bequest under the will.

(3)  A designation in a will is of no effect against a designation made later than the making of the will.

(4)  If a designation is contained in a will and subsequently the will is revoked by operation of law or otherwise, the designation is revoked.

(5)  If a designation is contained in an instrument that purports to be a will and subsequently the instrument, if it had been valid as a will, would have been revoked by operation of law or otherwise, the designation is revoked.

  Sections 102.1 and 102.2 were enacted by 2009-16-79, effective July 1, 2012 (BC Reg 213/2011).

  Section 103 BEFORE repealed by 2009-16-80, effective July 1, 2012 (BC Reg 213/2011).

 Personal representative

103  A designation in favour of the "heirs", "next of kin" or "estate", or the use of words of like import in a designation, is deemed to be a designation of the personal representative.

  Section 104 BEFORE renumbered and amended by 2009-16-81, effective July 1, 2012 (BC Reg 213/2011).

 Death of beneficiary

104  (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 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 his or her personal representative.

(2)  A beneficiary designated under section 102 may, on the death by accident of the person insured or group person insured, enforce for his or her own benefit, and a trustee appointed under section 105 may enforce as trustee, the payment of insurance money payable to him or her, and the payment to the beneficiary or trustee discharges the insurer to the extent of the amount paid, but the insurer may set up any defence that it could have set up against the insured or his or her personal representative.

  Section 104.1 was enacted by 2009-16-82, effective July 1, 2012 (BC Reg 213/2011).

  Section 105 BEFORE renumbered and amended by 2009-16-83, effective July 1, 2012 (BC Reg 213/2011).

 Trustee for beneficiary

105  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.

  Section 106 BEFORE amended by 2009-16-84, effective July 1, 2012 (BC Reg 213/2011).

 Documents affecting title and assignment

106  (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, he or she has priority of interest as against

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

(b) a beneficiary.

(4)  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.

(5)  A provision in a contract to the effect that the rights or interests of the insured, or in the case of a contract of group insurance the group person insured, are not assignable is valid.

  Section 107 (2) BEFORE amended by 2009-16-85, effective July 1, 2012 (BC Reg 213/2011).

(2)  While there is in effect a designation of beneficiary in favour of any one or more of a spouse, child, grandchild or parent of the person insured or group person insured, 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.

  Sections 107.1 to 107.3 were enacted by 2009-16-86, effective July 1, 2012 (BC Reg 213/2011).

  Section 108 BEFORE amended by 2009-16-87, effective July 1, 2012 (BC Reg 213/2011).

 Group person insured enforcing rights

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

  Section 108.1 was enacted by 2009-16-88, effective July 1, 2012 (BC Reg 213/2011).

  Section 109 BEFORE amended by 2009-16-89, effective July 1, 2012 (BC Reg 213/2011).

 Simultaneous deaths

109  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 in accordance with section 104 (1) as if the beneficiary had predeceased the person insured or group person insured.

  Section 110 (1) BEFORE amended by 2009-16-90, effective July 1, 2012 (BC Reg 213/2011).

(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 who is capable of giving and authorized to give a valid discharge for the insurance money and who is willing to do so, or

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

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

  Section 111 BEFORE amended by 2009-16-91, effective July 1, 2012 (BC Reg 213/2011).

 Minors

111  (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, in accordance with subsection (2),

(a) in the case of money payable to a minor other than a minor referred to in paragraph (b), pay the money to the Public Guardian and Trustee in trust for the minor,

(b) in the case of money payable to a minor who has attained the age of 18 years and who is capable and willing to give a discharge for the money, pay the money to the minor, or

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

(2)  Money payable under subsection (1) must be paid within 60 days after the contract conditions respecting payment are substantially fulfilled or, if an earlier payment is required under the contract, by the date by which, under the contract, payment is to be made.

(3)  An insurer who makes a payment under subsection (1) (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.

(4)  Payment of the insurance money referred to in subsection (1) discharges the insurer if the payment is made in accordance with subsections (1) and (2).

  Section 112 BEFORE re-enacted by 2009-16-92, effective July 1, 2012 (BC Reg 213/2011).

 Beneficiary under disability

112  If it appears that a representative of a beneficiary who is under disability may, under the law of the domicile of the beneficiary, accept payments on behalf of the beneficiary, the insurer may make payment to the representative, and any such payment discharges the insurer to the extent of the amount paid.

  Section 113 BEFORE amended by 2009-16-93, effective July 1, 2012 (BC Reg 213/2011).

 Payments not exceeding $2 000

113  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 $2 000 to

(a) a relative by blood or connection by marriage of a person insured or the group person insured, or

(b) a person appearing to the insurer to be equitably entitled 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.

  Section 114 (1), (4) and (5) BEFORE amended by 2009-16-94, effective July 1, 2012 (BC Reg 213/2011).

(1)  Subject to subsection (2), insurance money is payable in British Columbia.

(4)  If a person entitled to receive insurance money is not domiciled in British Columbia, the insurer may pay the insurance money to that person or to any person who is entitled to receive it on his or her behalf by the law of the domicile of the payee, and any payment discharges the insurer to the extent of the amount paid.

(5)  If insurance money is by the contract or a declaration payable to a person who has died or to his or her personal representative and that deceased person was not at the date of the death domiciled in British Columbia, the insurer may pay the insurance money to the personal representative of the person appointed under the law of his or her domicile, and any such payment discharges the insurer to the extent of the amount paid.

  Section 115 BEFORE amended by 2009-16-95, effective July 1, 2012 (BC Reg 213/2011).

 Action in British Columbia

115  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 at the time the action is brought.

  Section 118 BEFORE re-enacted by 2009-16-96, effective July 1, 2012 (BC Reg 213/2011).

 Presumption against agency

118  An officer, agent, employee or servant of the insurer, and a person soliciting insurance, whether or not he or she is an agent of the insurer, must not, to the prejudice of the insured, person insured or group person insured, be deemed to be the agent of the insured or of the person insured or group person insured in respect of any question arising out of the contract.

  Section 120 (2) BEFORE amended by 2003-94-55, effective June 1, 2007 (BC Reg 166/2006).

(2)  An insurer that has a business authorization for fire insurance may insure an automobile against loss or damage under a policy falling within this Part.

  Part 5, sections 119 to 131 BEFORE repealed by 2009-16-97, effective July 1, 2012 (BC Reg 213/2011).

Part 5 — Fire Insurance

 Application of Part

119  This Part applies to insurers carrying on the business of fire insurance and to contracts of fire insurance, whether or not a contract includes insurance against other risks as well as the risks included in the expression "fire insurance" as defined by this Act, except

(a) contracts of insurance falling within the classes of aircraft, vehicle, boiler and machinery, inland transportation, marine, plate glass, sprinkler leakage and theft insurance,

(b) if the subject matter of the contract of insurance is rents, charges or loss of profits,

(c) if the peril of fire is an incidental peril to the coverage provided, or

(d) if the subject matter of the insurance is property that is insured by an insurer or a group of insurers primarily as a nuclear risk under a policy covering against loss of or damage to the property resulting from nuclear reaction or nuclear radiation and from other perils.

 Coverage by fire insurer

120  (1)  Every insurer that has a business authorization for fire insurance may, subject to its Act of incorporation and subject to the restrictions specified in the licence, insure or reinsure any property in which the insured has an insurable interest against loss or damage by fire, lightning or explosion, and may insure or reinsure the same property against loss or damage from falling aircraft, earthquake, wind storm, tornado, limited hail, sprinkler leakage, riot, malicious damage, weather, water damage, smoke damage, civil commotion and impact by vehicles, and any one or more perils falling within those other classes of insurance prescribed by the regulations.

(2)  An insurer that has a business authorization for fire insurance may insure a vehicle against loss or damage under a policy falling within this Part.

 Renewal of contract

121  A contract may be renewed by the delivery of a renewal receipt, identifying the policy by number, date or otherwise or by a new premium note.

 Perils insured against

122  (1)  Subject to subsection (4) of this section and to section 129 (a), in any contract to which this Part applies, the contract is deemed to cover the insured property

(a) against fire, whether resulting from explosion or otherwise, not occasioned by or happening through

(i)  in the case of goods, their undergoing any process involving the application of heat,

(ii)  riot, civil commotion, war, invasion, act of foreign enemy, hostilities, whether war be declared or not, civil war, rebellion, revolution, insurrection or military power,

(b) against lightning, but excluding destruction or loss to electrical devices or appliances caused by lightning or other electrical currents unless fire originates outside the article itself, and only for destruction or damage occurring from the fire, and

(c) against explosion, not occasioned by or happening through any of the perils specified in paragraph (a) (ii), of natural, coal or manufactured gas in a building not forming part of a gasworks, whether fire ensues from it or not.

(2)  Unless a contract to which this Part applies otherwise specifically provides, it does not cover the insured property against loss or damage caused by contamination by radioactive material, directly or indirectly, resulting from fire, lightning or explosion within the meaning of subsection (1).

(3)  If property insured under a contract covering that property at a specified location is necessarily removed to prevent loss or damage or further loss or damage to it, that part of the insurance under the contract that exceeds the amount of the insurer's liability for any loss incurred must, for 7 days only or for the unexpired term of the contract if less than 7 days, cover the property removed and any property remaining in the original location in the proportions which the value of the property in each of the respective locations bears to the value of the property in them all.

(4)  Nothing in subsection (1) precludes an insurer giving more extended insurance against the perils mentioned, but in that case this Part does not apply to the extended insurance.

(5)  An insurer that has a business authorization for fire insurance may include in its insurance contracts a clause or endorsement providing that, in the case of livestock insured against death or injury caused by fire or lightning, the word "lightning" is deemed to include other electrical currents.

 Contents of policy

123  Every policy must set out the following:

(a) the name and address of the insurer;

(b) the name of the insured;

(c) the name of the person or persons 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 date on which the insurance takes effect;

(h) the date it terminates or the method by which the latter is set or to be set.

 Effect of making application

124  After an application for insurance is made, if it is in writing, any policy sent to the insured is deemed to be intended to be in accordance with the terms of the application, unless the insurer points out in writing the particulars in which it differs from the application, in which case the insured may, within 2 weeks from the receipt of the notification, reject the policy.

 Cancellation by insurer

125  (1)  If the loss, if any, 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 policy to the prejudice of that person without notice to that person.

(2)  The length of and manner of giving the notice under subsection (1) must be the same as notice of cancellation to the insured under the statutory conditions in the contract.

 Effect of statutory conditions

126  (1)  The conditions set out in this section are deemed to be part of every contract in force in British Columbia, and must be printed on every policy with the heading "Statutory Conditions", and no variation or omission of or addition to any statutory condition is binding on the insured.

(2)  In this section "policy" does not include interim receipts or binders.

STATUTORY CONDITIONS
Misrepresentation
1. If any person applying for insurance falsely describes the property to the prejudice of the insurer, or misrepresents or fraudulently omits to communicate any circumstance which is material to be made known to the insurer in order to enable it to judge of the risk to be undertaken, the contract is void as to any property in relation to which the misrepresentation or omission is material.
Property of others
2. Unless otherwise specifically stated in the contract, the insurer is not liable for loss or damage to property owned by any person other than the insured, unless the interest of the insured in it is stated in the contract.
Change of interest
3. The insurer is liable for loss or damage occurring after an authorized assignment under the Bankruptcy Act or change of title by succession, by operation of law, or by death.
Material change
4. Any change material to the risk and within the control and knowledge of the insured avoids the contract as to the part affected by the change, unless the change is promptly notified in writing to the insurer or its local agent; and the insurer when so notified may return the unearned portion, if any, of the premium paid and cancel the contract, or may notify the insured in writing that, if the insured desires the contract to continue in force, the insured must, within 15 days of the receipt of the notice, pay to the insurer an additional premium; and in default of such payment the contract is no longer in force and the insurer must return the unearned portion, if any, of the premium paid.
Termination of insurance
5. (1) This contract may be terminated
(a) by the insurer giving to the insured 15 days' notice of termination by registered mail, or 5 days' written notice of termination personally delivered, or
(b) by the insured at any time on request.
(2) If this contract is terminated by the insurer,
(a) the insurer must refund the excess of premium actually paid by the insured over the proportionate premium for the expired time, but, in no event, is the proportionate premium for the expired time to be less than any minimum retained premium specified, and
(b) the refund must accompany the notice unless the premium is subject to adjustment or determination as to amount, in which case the refund must be made as soon as practicable.
(3) If this contract is terminated by the insured, the insurer must refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium for the expired time, but, in no event, must the short rate premium for the expired time be deemed to be less than any minimum retained premium specified.
(4) The refund may be made by money, postal or express company money order, or by cheque payable at par.
(5) The 15 days mentioned in clause (a) of subcondition (1) commences to run on the day following the receipt of the registered letter at the post office to which it is addressed.
Requirements after loss
6. (1) On the occurrence of any loss of or damage to the insured property, the insured must, if such loss or damage is covered by the contract, in addition to observing the requirements of conditions 9, 10 and 11,
(a) forthwith give notice of it in writing to the insurer,
(b) deliver as soon as practicable to the insurer a proof of loss verified by a statutory declaration,
 (i) giving a complete inventory of the destroyed and damaged property and showing in detail quantities, costs, actual cash value and particulars of amount of loss claimed,
 (ii) stating when and how the loss occurred, and if caused by fire or explosion due to ignition, how the fire or explosion originated, so far as the insured knows or believes,
 (iii) stating that the loss did not occur through any wilful act or neglect or the procurement, means or connivance of the insured,
 (iv) showing the amount of other insurances and the names of other insurers,
 (v) showing the interest of the insured and of all others in the property with particulars of all liens, encumbrances and other charges upon the property,
 (vi) showing any changes in title, use, occupation, location, possession or exposures of the property since the issue of the contract, and
 (vii) showing the place where the property insured was at the time of loss,
(c) if required give a complete inventory of undamaged property and showing in detail quantities, cost, actual cash value, and
(d) if required and if practicable, produce books of account, warehouse receipts and stock lists, and furnish invoices and other vouchers verified by statutory declaration, and furnish a copy of the written portion of any other contract.
(2) The evidence furnished under clauses (c) and (d) of subparagraph (1) of this condition must not be considered proofs of loss within the meaning of conditions 12 and 13.
Fraud
7. Any fraud or wilfully false statement in a statutory declaration in relation to any of the above particulars vitiates the claim of the person making the declaration.
Who may give notice and proof
8. Notice of loss may be given, and proof of loss may be made, by the agent of the insured named in the contract in case of absence or inability of the insured to give the notice or make the proof, and absence or inability being satisfactorily accounted for, or in the like case, or if the insured refuses to do so, by a person to whom any part of the insurance money is payable.
Salvage
9. (1) The insured, in the event of any loss or damage to any property insured under the contract, must take all reasonable steps to prevent further damage to any such property so damaged and to prevent damage to other property insured under this contract including, if necessary, its removal to prevent damage or further damage to it.
(2) The insurer must contribute proportionately towards any reasonable and proper expenses in connection with steps taken by the insured and required under subparagraph (1) of this condition according to the respective interests of the parties.
Entry, control, abandonment
10. After any loss or damage to insured property, the insurer has an immediate right of access and entry by accredited agents sufficient to enable them to survey and examine the property, and to make an estimate of the loss or damage, and, after the insured has secured the property, a further right of access and entry sufficient to enable them to make appraisement or particular estimate of the loss or damage, but the insurer is not entitled to the control or possession of the insured property, and without the consent of the insurer there can be no abandonment to it of insured property.
Appraisal
11. In the event of disagreement as to the value of the property insured, the property saved, or the amount of the loss, those questions must be determined by appraisal as provided under the Insurance Act before there can be any recovery under this contract, whether the right to recover on the contract is disputed or not, and independently of all other questions; but there is no right to an appraisal until a specific demand for it is made in writing and until after proof of loss has been delivered.
When loss payable
12. The loss is payable within 60 days after completion of the proof of loss, unless the contract provides for a shorter period.
Replacement
13. (1) The insurer, instead of making payment, may repair, rebuild, or replace the property damaged or lost, giving written notice of its intention so to do within 30 days after receipt of the proofs of loss.
(2) In that event the insurer must commence to so repair, rebuild, or replace the property within 45 days after receipt of the proofs of loss, and after that must proceed with all due diligence to the completion of the repair, rebuilding or replacement.
Action
14. Every action or proceeding against the insurer for the recovery of any claim under or by virtue of this contract is absolutely barred unless commenced within one year next after the loss or damage occurs.
Notice
15. (1) Any written notice to the insurer may be delivered at, or sent by registered mail to, the chief agency or head office of the insurer in British Columbia.
(2) Written notice may be given to the insured named in this contract by letter personally delivered to the insured or by registered mail addressed to the insured at the insured's latest post office address as notified to the insurer, and in this condition the expression "registered" means registered in or outside Canada.

 Several policies

127  (1)  If, on the happening of any loss or damage to property insured, there is in force more than one contract covering the same interest, the insurers under the respective contracts are each liable to the insured for its 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 of it that the policy must not cover, come into force, attach, or become insurance with respect to the property until after full or partial payment of any loss under any other policy.

(3)  Nothing in subsection (1) affects the validity of any divisions of the sum insured into separate items, or any limits of insurance on specified property, or any paragraph referred to in section 128, or any contract condition limiting or prohibiting the having or placing of other insurance.

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

(a) if one contract contains a deductible, 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, the prorated proportion of the insurers under those contracts must be first ascertained without regard to the deductible clauses, and then the highest deductible must be pro rated among the insurers with deductibles, and these pro rated amounts must 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.

 Stamped words on contract

128  A contract containing

(a) a deductible clause;

(b) a coinsurance, average or similar clause, or

(c) a clause limiting recovery by the insured to a specified percentage of the value of any property insured at the time of loss, whether or not that clause is conditional or unconditional,

must have printed or stamped on its face in bold type lettering at least 12 points in size 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 exclusions

129  If a contract

(a) excludes any loss that would otherwise fall within the coverage prescribed by section 122, or

(b) contains any stipulation, condition or warranty that is or may be material to the risk, including, but not restricted to, a provision in respect to the use, condition, location or maintenance of the insured property,

the exclusion, stipulation, condition or warranty 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.

 Subrogation

130  (1)  The insurer, on making any payment or assuming liability therefor under a contract of fire insurance is subrogated to all rights of recovery of the insured against any person, and may bring 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.

 Provisions for protection of insurance agents in respect of their commissions

131  (1)  In this section the expression "agent" means an insurance agent licensed under Division 2 of Part 6 of the Financial Institutions Act and authorized by a licensed insurer on its behalf to solicit and receive applications for insurance and to collect premiums, and whose compensation or profit from them consists wholly of a commission on premiums derived from such business.

(2)  The commission on any policy issued at the head office of an insurer in British Columbia must be paid to an agent, and there must be written on the policy the words "Issued on behalf of ________________, resident authorized agent at ________________", with the name of the agent and of the place where the agent carries on business.

(3)  The person in charge of the head office of an insurer in British Columbia must at once, on the issue of a policy at the head office, notify the agent of the date of the policy, the name of the insured and the property insured.

(4)  This section does not apply to a mutual company, or to a contract of reinsurance, or to a contract insuring property in transit which is in the possession or custody of a railway company or common carrier, or insuring movable property owned by a railway company or other common carrier and used in the course of its business as such.

  Part 6, sections 132 to 188, BEFORE repealed by 2003-94-56, effective June 1, 2007 (BC Reg 166/2006).

Part 6 — Automobile Insurance

 Definitions

132  In this Part:

"assigned risk plan" means the British Columbia Assigned Risk Plan as presently constituted and operated by insurers authorized under a business authorization to issue motor vehicle liability policies;

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

"insured" means a person insured by a contract, whether named or not.

 Application of Part

133  (1)  This Part applies to contracts providing automobile insurance made or renewed in British Columbia on or after January 1, 1970, or an earlier date if set by the Lieutenant Governor in Council.

(2)  This Part does not apply to contracts insuring only against

(a) loss of or damage to an automobile while in or on described premises,

(b) loss of or damage to property carried in or on an automobile, or

(c) liability for loss of or damage to property carried in or on an automobile.

(3)  This Part does not apply to a contract providing insurance in respect of an automobile chiefly used or operated off highways unless it is insured under a contract evidenced by a form of policy approved under this Part.

(4)  This Part does not apply to a contract insuring solely the interest of a person who has a lien on, or has as security legal title to, an automobile and who does not have possession of the automobile.

(5)  Every insurer authorized under a business authorization to issue motor vehicle liability policies must subscribe to the assigned risk plan and is bound by any and all provisions governing subscribers.

(6)  The assigned risk plan must file with the superintendent a copy of its constitution, bylaws and rules, and any amendments, not later than 10 days after they are made.

 Approval of forms

134  (1)  An insurer must not use a form of application, policy, endorsement or renewal or continuation certificate in respect of automobile insurance other than a form approved by the superintendent.

(2)  An insurer may require additional information in an approved application form, but the additional information does not constitute part of the application for the purposes of section 137.

(3)  If, in the opinion of the superintendent, any of this Part, including any statutory condition, is wholly or partly inappropriate to the requirements of a contract or is inapplicable by reason of the requirements of any Act, the superintendent may approve a form of policy, or part of it, or endorsement evidencing a contract sufficient or appropriate to insure the risks required or proposed to be insured, and the contract evidenced by the policy or endorsement in the form so approved is effective and binding according to its terms even if those terms are inconsistent with, vary, omit or add to any provision or condition of this Part.

(4)  Except as to matters referred to in section 146, the superintendent may, if he or she considers it to be in the public interest, approve a form of motor vehicle liability policy or endorsement that extends the insurance beyond that prescribed in this Part.

(5)  The superintendent, in granting an approval under subsection (4), may require the insurer to charge an additional premium for the extension and to state that fact in the policy or in any endorsement.

(6)  The superintendent may revoke an approval given under this section, and, on notification of the revocation in writing, an insurer must not use or deliver a form that contravenes the notification.

(7)  The superintendent must, on request of any interested insurer, specify in writing his or her reasons for granting, refusing or revoking an approval of a form.

(8)  An insurer that issues or delivers a motor vehicle liability policy in British Columbia, or any renewal of it, or any evidence of the continuation of the contract, must issue to the insured a card evidencing the insurance, and the card must be in a form approved by the superintendent.

(9)  An insurer that issues a motor vehicle liability policy outside British Columbia must file with the superintendent, in a form prescribed by the superintendent,

(a) a power of attorney authorizing the superintendent to accept service of notice or process for itself in any action or proceeding against it arising out of a motor vehicle accident in British Columbia, and

(b) an undertaking

(i)  to appear in any action or proceeding against it or its insured arising out of a motor vehicle accident in British Columbia, and of which it has knowledge,

(ii)  that on receipt from the superintendent of any notice or process served on him or her in respect of its insured, or in respect of its insured and another or others, and sent by the superintendent to it as provided, it will immediately have the notice or process personally served on its insured, and

(iii)  not to set up any defence to any claim, action or proceeding, under a motor vehicle liability policy issued by it, that might not be set up if the policy has been issued in British Columbia in accordance with the law of British Columbia relating to motor vehicle liability policies, and to satisfy up to the limits of liability stated in the policy, and in any event to an amount not less than the limits of liability set by this Part any judgment rendered against it or its insured by a court in British Columbia in that action or proceeding.

(10)  The superintendent may prescribe the minimum limits of accident insurance benefits that must be provided in every contract evidenced by a motor vehicle liability policy.

 Persons forbidden to act as agent

135  A person carrying on the business of financing the sale or purchase of automobiles and an automobile dealer, insurance agent or broker, and an officer or employee of such a person, dealer, agent or broker, must not act as the agent of an applicant for the purpose of signing an application for automobile insurance.

 Copy of application in policy

136  (1)  A copy of the written application, signed by the insured or the insured's agent, or, if no signed application is made, a copy of the purported application, or a copy of that part of the application or purported application material to the contract, must be embodied in, endorsed on or attached to the policy when issued by the insurer.

(2)  If no signed written application is received by the insurer prior to the issue of the policy, the insurer must deliver or mail to the insured named in the policy, or to the agent for delivery or mailing to the insured, a form of application to be completed and signed by the insured and returned to the insurer.

(3)  The insurer must deliver or mail to the insured named in the policy, or to the agent for delivery or mailing to the insured, the policy or a true copy of it and every endorsement or other amendment to the contract.

(4)  If a written application signed by the insured or the insured's agent is made for a contract, the policy evidencing the contract is deemed to be in accordance with the application unless the insurer points out in writing to the insured named in the policy in what respect the policy differs from the application, and in that event the insured is deemed to have accepted the policy unless within one week from the receipt of the notification the insured informs the insurer in writing that the insured rejects the policy.

(5)  On every application form and policy there must be printed or stamped in conspicuous type a copy of section 137 (1).

 Misrepresentation or violation of conditions renders certain claims invalid

137  (1)  If

(a) an applicant for a contract

(i)  gives false particulars of the described automobile to be insured to the prejudice of the insurer, or

(ii)  knowingly misrepresents or fails to disclose in the application any fact required to be stated in it,

(b) the insured contravenes a term of the contract or commits a fraud, or

(c) the insured wilfully makes a false statement in respect of a claim under the contract,

a claim by the insured is invalid and the right of the insured to recover indemnity is forfeited.

(2)  A statement of the applicant must not be used in defence of a claim under the contract unless it is contained in the signed written application or, if no signed written application is made in the purported application, or part of it, that is embodied in, endorsed on or attached to the policy.

(3)  A statement contained in the purported copy of the application, or part of it, other than a statement describing the risk and the extent of the insurance, must not be used in defence of a claim under the contract unless the insurer proves that the applicant made the statement attributed to the applicant in the purported application, or part of it.

 Statutory conditions

138  (1)  Subject to section 134 (3), and sections 139, 164 and 165,

(a) the conditions set out in this section are statutory conditions and are deemed to be part of every contract and must be printed in every policy with the heading "Statutory Conditions", and

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

(2)  In this section, "policy" does not include an interim receipt or binder.

STATUTORY CONDITIONS
In these statutory conditions, unless the context otherwise requires, the word "insured" means a person insured by this contract whether named or not.
Material change in risk
1. (1) The insured named in this contract must promptly notify the insurer or its local agent in writing of any change in the risk material to the contract and within the insured's knowledge.
(2) Without restricting the generality of the foregoing, the words "change in the risk material to the contract" include
(a) any change in the insurable interest of the insured named in this contract in the automobile by sale, assignment, or otherwise, except through change of title by succession, death, or proceedings under the Bankruptcy Act (Canada),
and in respect of insurance against loss of or damage to the automobile,
(b) any mortgage, lien, or encumbrance affecting the automobile after the application for this contract,
(c) any other insurance of the same interest, whether valid or not, covering loss or damage insured by this contract or any portion of it.
Prohibited use by insured
2. (1) The insured must not drive or operate the automobile
(a) while under the influence of intoxicating liquor or drugs to such an extent as to be for the time being incapable of the proper control of the automobile,
(b) unless he or she is for the time being either authorized by law or qualified to drive or operate the automobile,
(c) while he or she is under the age of 16 years or under such other age as is prescribed by the law of the province in which he or she resides at the time this contract is made as being the minimum age at which a licence or permit to drive an automobile may be issued to him or her,
(d) for any illicit or prohibited trade or transportation, or
(e) in any race or speed test.
Prohibited use by others
(2) The insured must not permit, suffer, allow, or connive at the use of the automobile
(a) by any person under the influence of intoxicating liquor or drugs to such an extent as to be for the time being incapable of the proper control of the automobile,
(b) by any person,
 (i) unless that person is for the time being either authorized by law or qualified to drive or operate the automobile, or
 (ii) while that person is under the age of 16 years or under such other age as is prescribed by the law of the province in which he or she resides at the time this contract is made as being the minimum age at which a licence or permit to drive an automobile may be issued to him or her,
(c) for any illicit or prohibited trade or transportation, or
(d) in any race or speed test.
Requirements if loss or damage to persons or property
3. (1) The insured must
(a) promptly give to the insurer written notice, with all available particulars, of any accident involving loss or damage to persons or property and of any claim made on account of the accident,
(b) verify by statutory declaration, if required by the insurer, that the claim arose out of the use or operation of the automobile and that the person operating or responsible for the operation of the automobile at the time of the accident is a person insured under this contract, and
(c) forward immediately to the insurer every letter, document, advice, or writ received by the insured from or on behalf of the claimant.
(2) The insured must not
(a) voluntarily assume any liability or settle any claim except at the insured's own cost, or
(b) interfere in any negotiations for settlement or in any legal proceeding.
(3) The insured must, whenever requested by the insurer, aid in securing information and evidence and the attendance of any witness and must co-operate with the insurer, except in a pecuniary way, in the defence of any action or proceeding or in the prosecution of any appeal.
Requirements if loss or damage to automobile
4. (1) If loss of or damage to the automobile occurs, the insured must, if the loss or damage is covered by this contract,
(a) promptly give notice of it in writing to the insurer with the fullest information obtainable at the time,
(b) at the expense of the insurer, and as far as reasonably possible, protect the automobile from further loss or damage, and
(c) deliver to the insurer within 90 days after the date of the loss or damage a statutory declaration stating, to the best of the insured's knowledge and belief, the place, time, cause, and amount of the loss or damage, the interest of the insured and of all others in it, the encumbrances on it, all other insurance, whether valid or not, covering the automobile and that the loss or damage did not occur through any wilful act or neglect, procurement, means, or connivance of the insured.
(2) Any further loss or damage accruing to the automobile directly or indirectly from a failure to protect it as required under subcondition (1) of this condition is not recoverable under this contract.
(3) Repairs, other than those that are immediately necessary for the protection of the automobile from further loss or damage, must not be undertaken and physical evidence of the loss or damage must not be removed
(a) without the written consent of the insurer, or
(b) until the insurer has had a reasonable time to make the examination for which provision is made in statutory condition 5.
Examination of insured
(4) The insured must submit to examination under oath, and must produce for examination at such reasonable place and time as is designated by the insurer or its representative, all documents in the insured's possession or control that relate to the matters in question, and the insured must permit extracts and copies of them to be made.
Insurer liable for cash value of automobile
(5) The insurer is not liable for more than the actual cash value of the automobile at the time any loss or damage occurs, and the loss or damage must be ascertained or estimated according to that actual cash value with proper deduction for depreciation, however caused, and must not exceed the amount that it would cost to repair or replace the automobile, or any part of it, with material of like kind and quality, but, if any part of the automobile is obsolete and out of stock, the liability of the insurer in respect of it is limited to the value of that part at the time of loss or damage, not exceeding the maker's latest list price.
Repair or replacement
(6) Unless an appraisal has been made, the insurer, instead of making payment, may, within a reasonable time, repair, rebuild, or replace the property damaged or lost with other of like kind and quality if, within 7 days after the receipt of the proof of loss, it gives written notice of its intention to do so.
No abandonment; salvage
(7) There must be no abandonment of the automobile to the insurer without the insurer's consent. If the insurer exercises the option to replace the automobile or pays the actual cash value of the automobile, the salvage, if any, vests in the insurer.
In case of disagreement
(8) In the event of disagreement as to the nature and extent of the repairs and replacements required, or as to their adequacy, if effected, or as to the amount payable in respect of any loss or damage, those questions must be determined by appraisal as provided under the Insurance Act before there can be recovery under this contract, whether the right to recover on the contract is disputed or not, and independently of all other questions. There is no right to an appraisal until a specific demand for it is made in writing and until after proof of loss has been delivered.
Inspection of automobile
5. The insured must permit the insurer at all reasonable times to inspect the automobile and its equipment.
Time and manner of payment of insurance money
6. (1) The insurer must pay the insurance money for which it is liable under this contract within 60 days after the proof of loss has been received by it or, if an appraisal is made under subcondition (8) of statutory condition 4, within 15 days after the award is rendered by the appraisers.
When action may be brought
(2) The insured must not bring an action to recover the amount of a claim under this contract unless the requirements of statutory conditions 3 and 4 are complied with or until the amount of the loss has been ascertained as provided under those conditions or by a judgment against the insured after trial of the issue or by agreement between the parties with the written consent of the insurer.
Limitation of actions
(3) Every action or proceeding against the insurer under this contract in respect of loss or damage to the automobile must be commenced within one year next after the happening of the loss and not afterwards, and in respect of loss or damage to persons or property must be commenced within one year next after the cause of action arose and not afterwards.
Who may give notice and proofs of claim
7. Notice of claim may be given and proofs of claim may be made by the agent of the insured named in this contract in case of absence or inability of the insured to give the notice or make the proof, such absence or inability being satisfactorily accounted for or, in the like case or if the insured refuses to do so, by a person to whom any part of the insurance money is payable.
Termination
8. (1) This contract may be terminated
(a) by the insurer giving to the insured 15 days' notice of termination by registered mail or 5 days' written notice of termination personally delivered, or
(b) by the insured at any time on request.
(2) If this contract is terminated by the insurer,
(a) the insurer must refund the excess of premium actually paid by the insured over the proportionate premium for the expired time, but in no event must the proportionate premium for the expired time be deemed to be less than any minimum retained premium specified, and
(b) the refund must accompany the notice unless the premium is subject to adjustment or determination as to the amount, in which case the refund must be made as soon as practicable.
(3) If this contract is terminated by the insured, the insurer must refund as soon as practicable the excess of premium actually paid by the insured over the short rate premium for the expired time, but in no event must the short rate premium for the expired time be deemed to be less than any minimum retained premium specified.
(4) The refund may be made by money, postal or express company money order, or cheque payable at par.
(5) The 15 days mentioned in clause (a) of subcondition (1) of this condition commences to run on the day following the receipt of the registered letter at the post office to which it is addressed.
Notice
9. Any written notice to the insurer may be delivered at, or sent by registered mail to, the chief agency or head office of the insurer in British Columbia. Written notice may be given to the insured named in this contract by letter personally delivered to the insured or by registered mail addressed to the insured at the insured's latest post office address as notified to the insurer. In this condition, the expression "registered" means registered in or outside Canada.

 Exceptions respecting statutory conditions

139  (1)  Except as otherwise provided in the contract, the statutory conditions set out in section 138 do not apply to insurance coming within section 167, 168 or 169.

(2)  If a contract does not insure against liability for loss or damage to persons and property, statutory condition 3 in section 138 is not a part of the policy and may be omitted from the printing of the conditions in the policy.

(3)  If a contract does not insure against loss of or damage to the automobile, statutory condition 4 in section 138 is not a part of the policy and may be omitted from the printing of the conditions in the policy.

 Coverage of owner's policy, specific automobile

140  (1)  Every contract evidenced by an owner's policy insures the person named in it and every other person who with his or her consent personally drives an automobile owned by the insured named in the contract and within the description or definition of it in the contract against liability imposed by law on the insured named in the contract or that other person for loss or damage

(a) arising from the ownership, use or operation of the automobile, and

(b) resulting from bodily injury to or the death of any person, and damage to property.

(2)  If the contract evidenced by an owner's policy also provides insurance against liability in respect of an automobile not owned by the insured named in the contract, an insurer may stipulate in the contract that the insurance is restricted to those persons specified in the contract.

(3)  If the insured named in an owner's policy dies, the following persons are deemed to be the insured under the policy:

(a) the spouse of the deceased insured if residing in the same dwelling premises at the time of his or her death;

(b) in respect of the described automobile, a newly acquired automobile that was acquired by the deceased insured prior to his or her death and a temporary substitute automobile, all as defined by the policy,

(i)  any person having proper temporary custody until grant of probate or administration to the personal representative of the deceased insured,

(ii)  the personal representative of the deceased insured.

 Coverage of non-owner's policy

141  Every contract evidenced by a non-owner's policy insures the person named in it and any other person, if any, as is specified in the policy against liability imposed by law on the insured named in the contract or that other person for loss or damage

(a) arising from the use or operation of an automobile within the definition of it in the policy, other than an automobile owned by him or her or registered in his or her name, and

(b) resulting from bodily injury to or the death of any person, and damage to property.

 Persons deemed not owners

142  For the purposes of this Part, a person is not deemed to be the owner of an automobile only because the person has a lien on the automobile or has legal title to the automobile as security.

 Territorial limits

143  Insurance under sections 140 and 141 applies to the ownership, use or operation of the insured automobile in Canada and the United States of America and on a vessel plying between ports of those countries.

 Rights of unnamed insured

144  A person insured by but not named in a contract to which section 140 or 141 applies may recover indemnity in the same manner and to the same extent as if named in it as the insured, and for that purpose is deemed to be a party to the contract and to have given consideration for it.

 Additional agreements

145  Every contract evidenced by a motor vehicle liability policy must provide that if a person insured by the contract is involved in an accident resulting from the ownership, use or operation of an automobile in respect of which insurance is provided under the contract and resulting in loss or damage to persons or property, the insurer must do the following:

(a) on receipt of notice of loss or damage caused to persons or property, make such investigations, conduct such negotiations with the claimant, and effect such settlement of any resulting claims as are deemed expedient by the insurer;

(b) defend in the name and on behalf of the insured and at the cost of the insurer any civil action that is at any time brought against the insured on account of loss or damage to persons or property;

(c) pay all costs taxed against the insured in any civil action defended by the insurer and any interest accruing after entry of judgment on that part of the judgment that is within the limits of the insurer's liability;

(d) if the injury is to a person, reimburse the insured for outlay for the medical aid that is immediately necessary at the time.

 Exceptions from liability

146  (1)  The insurer is not liable under a contract evidenced by a motor vehicle liability policy for any liability

(a) imposed by worker compensation law on any person insured by the contract,

(b) resulting from bodily injury to or the death of

(i)  the daughter, son, wife or husband of any person insured by the contract while being carried in or on or entering or getting on to or alighting from the automobile, or

(ii)  any person insured by the contract, or

(c) resulting from bodily injury to or the death of any employee of any person insured by the contract while engaged in the operation or repair of the automobile.

(2)  Subsection (1) (b) applies only if the injury or death occurred before April 17, 1985.

 Family exclusion clauses

147  A provision in a contract evidenced by a motor vehicle liability policy that the insurer is not liable to indemnify a person insured by the contract for any liability resulting from bodily injury to or the death of the daughter, son, husband or wife of that person has no effect after April 16, 1985, whether the contract was made before or after that date.

 Other exceptions from liability

148  The insurer may provide under a contract evidenced by a motor vehicle liability policy, in either or both of the following cases, that it is not liable

(a) to indemnify any person engaged in the business of selling, repairing, maintaining, servicing, storing or parking automobiles for any loss or damage sustained while engaged in the use or operation of or while working on the automobile in the course of that business unless the person is the owner of the automobile or is the owner's employee, or

(b) for loss of or damage to property carried in or on the automobile or to any property owned or rented by or in the care, custody or control of the insured.

 Idem

149  Subject to the limitations and exclusions of the endorsement, the insurer may provide by endorsement to a contract evidenced by a motor vehicle liability policy, in either or both of the following cases, that it is not liable for loss or damage

(a) resulting from bodily injury to or the death of any person being carried in or on or entering or getting on to or alighting from the automobile, or

(b) resulting from the ownership, use or operation of any machinery or apparatus, including its equipment, mounted on or attached to the automobile while the automobile is at the site of the use or operation of that machinery or apparatus.

 Idem

150  (1)  The insurer may provide under a contract evidenced by a motor vehicle liability policy, in one or more of the following cases, that it is not liable while

(a) the automobile is rented or leased to another person,

(b) the automobile is used to carry explosives or to carry radioactive material for research, education, development or industrial purposes or for purposes incidental to them,

(c) the automobile is used as a taxicab, public bus, livery, jitney or sightseeing conveyance or for carrying passengers for compensation or hire,

(d) if the insured vehicle is an automobile, other than a trailer, it is used for towing a trailer owned by the insured unless like indemnity is also provided by the insurer in respect of the trailer, or

(e) if the insured vehicle is a trailer, it is towed by an automobile owned by the insured unless like indemnity is also provided by the insurer in respect of the automobile.

(2)  In subsection, (1) (b) "radioactive material" means

(a) spent nuclear fuel rods that have been exposed to radiation in a nuclear reactor,

(b) radioactive waste material,

(c) unused enriched nuclear fuel rods, or

(d) any other radioactive material of such quantity and quality as to be harmful to persons or property if its container is destroyed or damaged.

(3)  Subsection (1) (a) does not include the use by an employee of his or her automobile on the business of his or her employer and for which he or she is paid.

(4)  Subsection (1) (c) does not include

(a) the use by a person of his or her automobile for the carriage of another person in return for the former's carriage in the automobile of the latter,

(b) the occasional and infrequent use by a person of his or her automobile for the carriage of another person who shares the cost of the trip,

(c) the use by a person of his or her automobile for the carriage of a temporary or permanent domestic servant of the insured or his or her spouse, or

(d) the use by a person of his or her automobile for the carriage of a client or customer or a prospective client or customer.

 Contents of policy and limits

151  (1)  Every contract evidenced by a motor vehicle liability policy insures, in respect of any one accident, to the limit prescribed by regulation, exclusive of interest and costs, against liability resulting from bodily injury to or the death of one or more persons.

(2)  Every contract evidenced by a motor vehicle liability policy insures, in respect of any one accident to the limit prescribed by regulation, exclusive of interest and costs, against liability resulting from loss or damage to property of nonresidents occurring inside or outside British Columbia.

(3)  The contract must be interpreted to mean that if, by reason of any one accident, liability results from bodily injury or death and from loss of or damage to property,

(a) claims against the insured arising out of bodily injury or death have priority to the extent prescribed by regulation over claims arising out of loss of or damage to property, and

(b) claims against the insured arising out of loss of or damage to property have priority to the extent prescribed by regulation over claims arising out of bodily injury or death.

(4)  The insurer may, instead of specifying a limit in the policy for an inclusive amount, specify a limit of liability prescribed by regulation, exclusive of interest and costs, against liability resulting from bodily injury to or the death of one or more persons and a limit of liability prescribed by regulation, exclusive of interest and costs, against liability resulting from loss of or damage to property.

(5)  Nothing in this Part precludes an insurer, with respect to a limit or limits in excess of those specified in subsection (1) or (4), from increasing or reducing the limit or limits specified in the contract with respect to the use or operation of the automobile by a named person, but no reduction is effective for a limit less than that required under subsection (1) or (4).

 Minimum benefits

152  Every contract evidenced by a motor vehicle liability policy must provide the accident insurance benefits to at least the limits set out in the Schedule, or as extended by the superintendent under section 134, to those persons referred to in section 169.

 Stipulation in motor vehicle liability policy

153  (1)  Every motor vehicle liability policy issued in British Columbia must provide that, in the case of liability arising out of the ownership, use or operation of the automobile in any province or territory of Canada,

(a) the insurer is liable up to the minimum limits prescribed for that province or territory if those limits are higher than the limits specified in the policy,

(b) the insurer must not set up any defence to a claim that might not be set up if the policy were a motor vehicle liability policy issued in that province or territory, and

(c) the insured, by acceptance of the policy, constitutes and appoints the insurer the insured's irrevocable attorney to appear and defend in any province or territory of Canada in which an action is brought against the insured arising out of the ownership, use or operation of the automobile.

(2)  A provision in a motor vehicle liability policy in accordance with subsection (1) (c) is binding on the insured.

 Excess insurance

154  (1)  Nothing in this Part precludes an insurer from providing insurance under a contract evidenced by a motor vehicle liability policy restricted to a limit in excess of that provided by another designated contract evidenced by a motor vehicle liability policy, whether the designated contract is a first loss insurance or an excess insurance.

(2)  If the contract designated in the excess contract terminates or is terminated, the excess contract is also automatically terminated.

 Agreement for partial payment of claim by insured

155  Nothing in this Part precludes an insurer from entering into an agreement with its insured under a contract evidenced by a motor vehicle liability policy providing that the insured will reimburse the insurer in an agreed amount in respect of any claim by or judgment in favour of a third party against the insured, and the agreement may be enforced against the insured according to its tenor.

 Liability when nuclear energy contract also in force

156  (1)  In this section, "nuclear energy hazard" means the radioactive, toxic, explosive, or other hazardous properties of prescribed substances under the Atomic Energy Control Act (Canada).

(2)  If an insured is covered, whether named in it or not, under a contract evidenced by a motor vehicle liability policy for loss or damage resulting from bodily injury to or the death of any person or damage to property arising, directly or indirectly, out of a nuclear energy hazard and is also covered, whether named in it or not, against such loss or damage under a contract evidenced by a policy of nuclear energy hazard liability insurance issued by a group of insurers and in force at the time of the event giving rise to the loss or damage,

(a) the motor vehicle liability insurance is excess to the nuclear energy hazard liability insurance, and the insurer under the contract of motor vehicle liability insurance is not liable to pay beyond the minimum limits prescribed by section 151, and

(b) the unnamed insured under the contract of nuclear energy liability insurance may, in respect of such loss or damage, recover indemnity under that contract in the same manner and to the same extent as if named in it as the insured, and for that purpose the unnamed insured is deemed to be a party to the contract and to have given consideration for it.

(3)  For the purpose of this section, a contract of nuclear energy hazard liability insurance is deemed to be in force at the time of the event giving rise to the loss or damage, even though the limits of liability under it have been exhausted.

 Effect of payment under policy

157  (1)  If an insurer makes a payment on behalf of a person insured under a contract evidenced by a motor vehicle liability policy to a person who is or alleges himself or herself to be entitled to recover from the person insured by the policy, the payment is not, unless the insurer otherwise agrees, an admission of liability, and does not prejudice the rights of the person insured by the policy or his or her insurer, and constitutes, to the extent of the payment, a release by the person or his or her personal representative of any claim that the person or the personal representative or any person claiming through or under him or her, or by virtue of the Family Compensation Act, may have against the person insured and his or her insurer.

(2)  Nothing in this section precludes an insurer making the payment from demanding, as a condition precedent to the payment, a release from the person, or his or her personal representative, or any other person, to the extent of that payment.

(3)  If a person commences an action, the fact of any payment referred to in subsection (1) must not be disclosed to the court or to the jury, and the court must adjudicate on the matter without reference to any payment referred to in subsection (1); but, after awarding damages and costs, if any, the payment must be disclosed and must be taken into account and the person is only entitled to judgment to be entered for the net amount, if any.

 Defence if more than one contract

158  (1)  If a person is insured under more than one contract, evidenced by a motor vehicle liability policy, whether the insurance is first loss insurance or excess, and a question arises under section 145 (b) between an insurer and the insured or between the insurers as to which insurer must undertake the obligation to defend in the name and on behalf of the insured, whether or not any insurer denies liability under its contract, the insured or any insurer may apply to the court, and the court must give directions as may appear proper with respect to the performance of the obligation.

(2)  On an application under subsection (1), the only parties entitled to notice and to be heard are the insured and his or her insurers, and no material or evidence used or taken on such an application is admissible on the trial of an action brought against the insured for loss or damage to persons or property arising out of the use or operation of the automobile in respect of which the insurance is provided.

(3)  An order under subsection (1) does not affect the rights and obligations of the insurers in respect of payment of any indemnity under their respective policies.

(4)  If indemnity is provided to the insured under 2 or more contracts and one or more of them are excess insurance, the insurers must, as between themselves, contribute to the payment of expenses, costs and reimbursement for which provision is made in section 145 in accordance with their respective liabilities for damages awarded against the insured.

 Application of insurance money under motor vehicle liability policy

159  (1)  A person who has a claim against an insured for which indemnity is provided by a contract evidenced by a motor vehicle liability policy, even though the person is not a party to the contract, may, on recovering a judgment for it in any province or territory of Canada against the insured, have the insurance money payable under the contract applied in or towards satisfaction of the judgment and of any other judgments or claims against the insured covered by the contract and may, on behalf of himself or herself and all persons having those judgments or claims, maintain an action against the insurer to have the insurance money so applied.

(2)  An action must not be brought against an insurer under subsection (1) after the expiration of one year from the final determination of the action against the insured, including appeals, if any.

(3)  A creditor of the insured is not entitled to share in the insurance money payable under any contract unless the creditor's claim is one for which indemnity is provided for by that contract.

(4)  The right of a person who is entitled under subsection (1) to have insurance money applied on his or her judgment or claim is not prejudiced by

(a) an assignment, waiver, surrender, cancellation or discharge of the contract, or of any interest in it or of the proceeds of it, made by the insured after the happening of the event giving rise to a claim under the contract,

(b) any act or default of the insured before or after that event in contravention of this Part or of the terms of the contract, or

(c) any contravention of the Criminal Code (Canada) or a Statute of any province or territory of Canada or of any state or the District of Columbia of the United States of America by the owner or driver of the automobile,

and nothing mentioned in paragraph (a), (b) or (c) is available to the insurer as a defence in an action brought under subsection (1).

(5)  It is not a defence to an action under this section that an instrument issued as a motor vehicle liability policy by a person engaged in the business of an insurer and alleged by a party to the action to be such a policy is not a motor vehicle liability policy, and this section applies, as far as applicable and with the necessary changes, to the instrument.

(6)  The insurer may require any other insurers liable to indemnify the insured in whole or in part in respect of judgments or claims to which reference is made in subsection (1) to be made parties to the action and contribute according to their respective liabilities, whether the contribution is rateably or by way of first loss or excess insurance, as the case may be, and the insured must on demand furnish the insurer with particulars of all other insurance covering the subject matter of the contract.

(7)  If any person has recovered a judgment against the insured and is entitled to bring action under subsection (1), and the insurer admits liability to pay the insurance money under the contract and the insurer considers that

(a) there are or may be other claimants, or

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

the insurer may apply to the court without notice to any person for an order for payment of the money into court, and the court may, on notice, if any, as it thinks necessary, make an order accordingly.

(8)  The receipt of the proper officer of the court is sufficient discharge to the insurer for the insurance money paid into court under subsection (7), and the insurance money must be dealt with as the court may order on application of any interested person.

 Defence to passenger claim and re excess limits relating to certain coverage

160  (1)  Despite anything in it to the contrary, every contract evidenced by a motor vehicle liability policy is, for the purposes of this section, deemed to provide all the types of coverage mentioned in section 150 (1) (a) to (e); but the insurer is not liable to a claimant in respect of coverage in excess of the limits mentioned in section 151.

(2)  If one or more contracts provide for coverage of a type referred to in section 148 or 149, except as provided in subsection (4), the insurer must not

(a) with respect to that type of coverage, and

(b) as against a claimant

avail itself of any defence that it is entitled to set up against the insured.

(3)  If one or more contracts provide for coverage in excess of the limits referred to in section 151, except as provided in subsection (4), the insurer may,

(a) with respect to the coverage in excess of those limits, and

(b) as against a claimant,

avail itself of any defence that it is entitled to set up against the insured, despite section 159 (4).

(4)  If a contract provides coverage of the type referred to in section 149 (a) in respect of an automobile operated in the business of carrying passengers for compensation or hire and insured for that purpose, the insurer may,

(a) with respect to that type of coverage, and

(b) as against a claimant,

only avail itself of a defence that it is entitled to set up against the insured in respect of that part of the coverage, if any, that exceeds

(c) the limits referred to in section 151, or

(d) the minimum limits required for that type of coverage by or under any other Act,

whichever is the greater.

 Rights of insurer

161  (1)  The insured must reimburse the insurer on demand in the amount that the insurer has paid by reason of this section and that it would not otherwise be liable to pay.

(2)  If an insurer denies liability under a contract evidenced by a motor vehicle liability policy, it may issue and serve a third party notice and be made a third party in any action to which the insured is a party and in which a claim is made against the insured by any party to the action in which it is or might be asserted that indemnity is provided by the contract, whether or not the insured enters an appearance or defence in the action.

(3)  On being made a third party, the insurer may

(a) contest the liability of the insured to any party claiming against the insured,

(b) contest the amount of any claim made against the insured,

(c) deliver any pleadings in respect of the claim of any party claiming against the insured,

(d) have production and discovery from any party adverse in interest, and

(e) examine and cross examine witnesses at the trial,

to the same extent as if it were a defendant in the action.

(4)  An insurer may avail itself of subsection (3) even though another insurer is defending in the name and on behalf of the insured an action to which its insured is a party.

 Excess coverage

162  To determine the liability of an insurer under section 160 (1), excess coverage is deemed to be,

(a) in respect of policies issued or renewed before July 1, 1958, coverage in excess of $5 000, exclusive of interest and costs, for loss or damage resulting from bodily injury to or the death of any one person, and, subject to such limit for any one person so injured or killed, of at least $10 000, exclusive of interest and costs, for loss or damage resulting from bodily injury to or the death of 2 or more persons in any one accident, or, in the case of property damage, to the limit of $1 000, exclusive of interest and costs, for damage to property resulting from any one accident,

(b) in respect of policies issued or renewed between July 1, 1958 and May 31, 1961, inclusive, coverage in excess of $10 000, exclusive of interest and costs, against loss or damage resulting from bodily injury to or the death of any one person, and, subject to such limit for any one person so injured or killed, of at least $20 000, exclusive of interest and costs, against loss or damage resulting from bodily injury to or death of 2 or more persons in any one accident, or, in case of property damage, to the limit of at least $2 000, exclusive of interest and costs, for damage to property resulting from any one accident,

(c) in respect of policies issued or renewed between June 1, 1961 and May 31, 1962, inclusive, coverage in excess of $25 000, exclusive of interest and costs, against loss or damage resulting from bodily injury to or the death of one or more persons and loss of or damage to property,

(d) in respect of policies issued or renewed between June 1, 1962 and June 30, 1965, inclusive, coverage in excess of $35 000, exclusive of interest and costs, against loss or damage resulting from bodily injury to or the death of one or more persons and loss of or damage to property, and

(e) in respect of policies issued or renewed after June 30, 1965, coverage in excess of the limits mentioned in section 151.

 Insured to give notice and disclose damage

163  (1)  Every insured against whom an action is commenced for damages occasioned by an automobile must give notice of it in writing to the insurer within 5 days after service of every notice or process in the action.

(2)  Every insured against whom an action is commenced for damages occasioned by an automobile must, on recovery of a judgment against the insured, disclose to a judgment creditor entitled to the benefit of any motor vehicle liability policy particulars of the contract within 10 days after written demand for it.

 Stipulations in physical damage cover

164  Subject to section 134 (1), the insurer may provide in a contract those exclusions and limitations, in respect of loss of or damage to or the loss of use of the automobile, as it considers necessary.

 Partial payment of loss clause

165  (1)  A contract or part of a contract providing insurance against loss of or damage to an automobile and the loss of use of it may contain a clause to the effect that, in the event of loss, the insurer must pay only

(a) an agreed portion of any loss that may be sustained, or

(b) the amount of the loss after deduction of a sum specified in the policy,

and in either case not exceeding the amount of the insurance.

(2)  If a clause is inserted in accordance with subsection (1), there must be printed or stamped on the face of the policy in conspicuous type the words "This policy contains a partial payment of loss clause".

 Claims to be adjusted with insured

166  (1)  If a claim is made under any contract other than a contract evidenced by a motor vehicle liability policy, the insurer must, despite any agreement, adjust the amount of the claim with the insured named in the contract as well as with any person having an interest indicated in the contract.

(2)  If notice is given or proof of loss is made by a person other than the insured, because the insured cannot be located or neglects or refuses or is unable to give notice and make claim under statutory conditions 4 and 7 in section 138, the insurer may, despite subsection (1) but in any event not earlier than 60 days from delivery of the proof required under subcondition (1) (c) of statutory condition 4 adjust and pay the claim to the other person having an interest indicated in the contract.

 Uninsured motorist cover

167  (1)  If an insurer provides in a contract insurance against loss resulting from bodily injury to or the death of a person insured arising out of an accident involving an automobile if

(a) there is legal liability of another person for the injury or death, and

(b) the other person has no insurance against that person's liability therefor or that person cannot be identified,

that insurance applies only in respect of

(c) any person who sustains bodily injury or death while driving, being carried in or on, or entering or getting on to or alighting from the described automobile in respect of which insurance of the class referred to in paragraph (a) of the definition "automobile insurance" in section 1 is provided under the contract, and

(d) the insured named in the contract and his or her spouse and any dependent relative residing in the same dwelling premises as the insured named in the contract who sustains bodily injury or death while driving, being carried in or on, or entering or getting on to or alighting from or as a result of being struck by any other automobile that is defined in the contract for the purposes of that insurance.

(2)  The insurance mentioned in subsection (1) does not apply in respect of a person specified in it who has a right of recovery under legislation of any other province or territory of Canada or of any state or the District of Columbia of the United States of America similar to the Traffic Victims Indemnity Fund Act, 1961.

 Medical expense coverage and release

168  (1)  If in a contract an insurer provides insurance against expenses for medical, surgical, dental, ambulance, hospital, professional nursing or funeral services, the insurance applies only in respect of reasonable expenses

(a) of or incurred for any person who sustains bodily injury or death while driving or being carried in or on or entering or getting on to or alighting from or, if not the occupant of another automobile, as a result of being struck by an automobile owned by the insured named in the contract in respect of which insurance of the class mentioned in paragraph (a) of the definition of "automobile insurance" in section 1 is provided under the contract, and

(b) of the insured named in the contract and his or her spouse and any dependent relative residing in the same dwelling premises as the insured named in the contract who sustains bodily injury or death while driving or being carried in or on or entering or getting on to or alighting from or as a result of being struck by any other automobile that is defined in the contract for the purposes of that insurance.

(2)  If an insurer makes a payment under a contract of insurance referred to in subsection (1), the payment constitutes, to the extent of that payment, a release by the insured person or his or her personal representatives of any claim that the insured person or the personal representatives or any person claiming through or under him or her or by virtue of the Family Compensation Act may have against the insurer and any other person who may be liable to the insured person or the personal representatives if that other person is insured under a contract referred to in subsection (1), but nothing in this subsection precludes an insurer from demanding, as a condition precedent to payment, a release to the extent of the payment from the person insured or the personal representatives or any other person.

(3)  The insurance mentioned in subsection (1) (a) is a first loss insurance, and any other automobile insurance of the same type available to the injured person or in respect of a deceased person is excess insurance only.

(4)  The insurance mentioned in subsection (1) (a) is excess insurance to any other insurance not being automobile insurance of the same type indemnifying the injured person or in respect of a deceased person for the expenses.

(5)  The insurance mentioned in subsection (1) (b) is excess insurance to any other insurance indemnifying the injured person or in respect of a deceased person for the expenses.

 Recipients of benefits; release

169  (1)  In every contract providing accident insurance benefits in respect of the death of or injury to an insured person arising out of an accident involving an automobile, the insurance applies in respect of

(a) any person who sustains bodily injury or death while driving or being carried in or on or entering or getting on to or alighting from or, if not the occupant of another automobile, as a result of being struck by an automobile owned by the insured named in the contract in respect of which insurance of the class mentioned in paragraph (a) of the definition "automobile insurance" in section 1 is provided under the contract, and

(b) the insured named in the contract and his or her spouse and any dependent relative residing in the same dwelling premises as the named insured who sustains bodily injury or death while driving or being carried in or on or entering or getting on to or alighting from or as a result of being struck by any other automobile that is defined in the policy for the purposes of the insurance.

(2)  If an insurer makes a payment under a contract of insurance to which subsection (1) refers, the payment constitutes, to the extent of such payment, a release by the insured person or his or her personal representatives of any claim that the insured person or the personal representatives or any person claiming through or under him or her or by virtue of the Family Compensation Act may have against the insurer and any other person who may be liable to the insured person or the personal representatives if that other person is insured under a contract of the same type as is specified in subsection (1), but nothing in this subsection precludes an insurer from demanding, as a condition precedent to payment, a release to the extent of the payment from the person insured or the personal representatives or any other person.

(3)  Subject to subsection (5), the insurance referred to in subsection (1) (a) is a first loss insurance, and any other automobile insurance of the same type available to the injured person or in respect of a deceased person is excess insurance only.

(4)  Subject to subsection (5), the insurance referred to in subsection (1) (b) is excess insurance over any other automobile insurance of the same type available to the injured person or in respect of a deceased person.

(5)  If a person is entitled to benefits under more than one contract providing insurance of the type referred to in this section, the person or his or her personal representative or any person claiming through or under him or her or by virtue of the Family Compensation Act may recover only an amount equal to

(a) one benefit, if the benefits under the contracts are of the same limit, or

(b) the highest benefit, if the benefits under the contracts are not of the same limit.

 Insurer liable for payment

170  (1)  If a person, entitled to benefits provided by insurance under sections 152, 168 and 169 or either of them,

(a) is an occupant of a motor vehicle involved in an accident, the insurer of the owner of the motor vehicle must, in the first instance, pay the benefits provided by the insurance, or

(b) is not an occupant of a motor vehicle but is struck by a motor vehicle, the insurer of the owner of the motor vehicle must, in the first instance, pay the benefits provided by the insurance,

without prejudice to the rights of the insurer of the owner against any other person or his or her insurer.

(2)  Nothing in this section affects the operation of sections 168 (2) to (5) and 169 (2).

 Demand for particulars of insurance

171  (1)  If a person is injured or killed in an accident in British Columbia involving an automobile, that person or his or her personal representative may serve

(a) a demand by registered mail on the owner of the automobile, or

(b) a demand by registered mail on the insurer of the owner of the automobile,

requiring the owner or insurer, as the case may be, to state in writing to the person making the demand whether or not that owner has insurance of the type referred to in section 168 or 169, or either of them, and, if the demand is made under paragraph (a), requiring the owner, if he or she has that insurance, to state the name of the insurer.

(2)  An owner or insurer who does not, within 10 days after receiving a demand made under subsection (1), comply with the demand commits an offence.

 Rights of unnamed insured

172  Any person insured by but not named in a contract to which section 168 or 169 applies may recover under the contract in the same manner and to the same extent as if named in it as the insured, and for that purpose is deemed to be a party to the contract and to have given consideration therefor.

 Payment into court

173  (1)  If an insurer admits liability for insurance money payable under section 167, 168 or 169, and it appears that

(a) there are adverse claimants,

(b) the whereabouts of an insured person entitled is unknown, or

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

the insurer may, at any time after 30 days after the date on which the insurance money becomes payable, apply to the court without notice to any person for an order for payment of the money into court, and the court may on the notice, if any, that it thinks necessary make an order accordingly.

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

 Limitation of action

174  Every action or proceeding against an insurer under a contract in respect of insurance to which section 167, 168 or 169 applies must be commenced within the limitation period specified in the contract, but in no event must the limitation period be less than one year after the happening of the accident.

 Effect of accident insurance

175  (1)  If a person makes a claim for damages in respect of bodily injury or death sustained by the person or any other person while driving or being carried in or on or entering or getting into or alighting from, or as a result of being struck by, an automobile, he or she must furnish the person against whom the claim is made full particulars of all insurance available to the claimant under a contract referred to in section 152, 168 or 169.

(2)  If a claimant is entitled to the accident insurance benefits set out in the Schedule, payments paid to the claimant, or to which the claimant is entitled, under the Schedule constitute, to the extent of the payments paid to the claimant, or to which the claimant is entitled, a release by the claimant or the claimant's personal representatives of any claim that the claimant or the personal representatives or any person claiming through or under them or by virtue of the Family Compensation Act may have against any person liable to the claimant or the personal representative, or against that person's insurer.

(3)  If a claimant, entitled to the accident insurance benefits set out in the Schedule, receives payment from any person in respect of the same accident, there must be deducted from the amount of payment receivable by that claimant, other than a payment under the Schedule, a sum equal to the amount paid to the claimant, or to which the claimant is entitled under the Schedule.

 Terms of certain insurances

176  Subject to section 134 (1) and to the approval of the superintendent, an insurer may in a policy

(a) provide insurance that is less extensive in scope than the insurance referred to in section 167, 168 or 169, and

(b) provide the terms of the contract that relate to the insurance referred to in section 167, 168 or 169.

 Other insurance

177  (1)  Subject to section 156, insurance under a contract evidenced by a valid owner's policy of the kind referred to in section 1 is, in respect of liability arising from or occurring in connection with the ownership, use, or operation of an automobile owned by the insured named in the contract and within the description or definition of it in the policy, a first loss insurance, and insurance attaching under any other valid motor vehicle liability policy is excess insurance only.

(2)  Subject to sections 156, 168 and 169 and to subsection (1) of this section, if the insured named in a contract has or places any other valid insurance, whether against liability for the ownership, use, or operation of or against loss of or damage to an automobile or otherwise, of his or her interest in the subject matter of the contract or any part of it, the insurer is liable only for its rateable proportion of any liability, expense, loss or damage.

(3)  "Rateable proportion" referred to in subsection (2) means

(a) if there are 2 insurers liable and each has the same policy limits, each of the insurers is liable to share equally in any liability, expense, loss or damage,

(b) if there are 2 insurers liable with different policy limits, the insurers are liable to share equally up to the limit of the smaller policy limit, or

(c) if there are more than 2 insurers liable, paragraphs (a) and (b) apply with the necessary changes and so far as is applicable.

 Subrogation and pro-rating

178  (1)  An insurer who makes any payment or assumes liability for it under a contract is subrogated to all rights of recovery of the insured against any person and may bring action in the name of the insured to enforce those rights.

(2)  If the net amount recovered whether by action or on settlement is, after deduction of the costs of the recovery, not sufficient to provide complete indemnity for the loss or damage suffered, the amount remaining must be divided between the insurer and the insured in the proportion in which the loss or damage has been borne by them.

(3)  If the interest of an insured in any recovery is limited to the amount provided under a clause in the contract to which sections 164 and 165 apply, the insurer has control of the action.

(4)  If the interest of an insured in any recovery exceeds that referred to in subsection (3), and the insured and the insurer cannot agree as to

(a) the solicitors to be instructed to bring the action in the name of the insured,

(b) the conduct and carriage of the action or any matters pertaining to it,

(c) any offer of settlement or the apportionment of it, whether action has been commenced or not,

(d) the acceptance of any money paid into court or the apportionment of it,

(e) the apportionment of costs, or

(f) the launching or prosecution of an appeal,

either party may apply to the court for the determination of the matters in question, and the court must make an order that it considers reasonable having regard to the interests of the insured and the insurer in any recovery in the action or proposed action or in any offer of settlement.

(5)  On an application under subsection (4), the only parties entitled to notice and to be heard are the insured and the insurer, and no material or evidence used or taken on the application is admissible on the trial of an action brought by or against the insured or the insurer.

(6)  A settlement or release given before or after an action is brought does not bar the rights of the insured or the insurer, as the case may be, unless they have concurred in it.

 Discriminative rates

179  (1)  In this section and in sections 180 to 188: "automobile board" means the British Columbia Automobile Insurance Board referred to in section 185, "rating bureau" means any association or body, whether incorporated or not, which sets or promulgates or assumes to set or promulgate rates of premium to be charged for contracts of insurance made by insurers which are members of the association or body.

(2)  A rating bureau and an insurer or other person must not fix or make for, or offer or charge to, any person by reason of his or her being one of a group engaged in the same trade, calling, profession or occupation, or of his or her membership in any club, society, union, guild or other association, or of common employment, or of common occupancy of the same building or group of buildings, or for any other reason, a lower rate of premium under a contract of automobile insurance than the person would pay under the contract if the reasons previously mentioned did not exist; and every rating bureau, insurer and person who violates this section commits an offence against this Act.

(3)  This Act does not prohibit the setting or charging of a special rate for the insurance of 2 or more vehicles owned by and registered in the name of the same person, except where the owner is engaged in the business of leasing the vehicles and the vehicles are the subject of a leasing agreement for a period in excess of 30 days.

(4)  This section does not prohibit the setting or charging of a special rate for the insurance of 2 or more vehicles of a lessor that are rented to the same lessee.

 Filing of constitution bylaws and rates

180  (1)  A rating bureau must, immediately after adoption, file in the office of the superintendent or the automobile board certified copies of its constitution, articles of association, and bylaws, and a list of its members and their addresses, and after that must file in the office of the superintendent or the automobile board every amendment, revision or consolidation of its constitution, articles of association and bylaws, and notice of the admission of new members and the withdrawal of former members, within 30 days after the passing or adoption of the amendment, revision or consolidation, or after the admission or withdrawal of the members.

(2)  A rating bureau and an insurer that has a business authorization must make a return under oath to the superintendent or the automobile board in a form and at times required, showing every schedule of rates set, made or charged by them, together with further or other information concerning the rates he or she requires.

(3)  A rating bureau and an insurer that has a business authorization must give to the superintendent or the automobile board at least 10 days' notice of any change in the schedules of rates or rules applicable to it filed with the superintendent or the automobile board under subsection (2), and must file with the superintendent or the automobile board amended schedules verified under oath showing particulars of all changes before their effective date.

(4)  A rating bureau or an insurer that has a business authorization that, having filed its schedules of rates under this section, sets, makes or charges a rate or accepts a premium that deviates from the schedules of rates set and filed with the superintendent or the automobile board for, and the rules applicable to, any risk or class of risks is guilty of an offence, unless

(a) the deviation must have been agreed by the insured in writing,

(b) the deviation must be justified to the satisfaction of the superintendent or the automobile board, or

(c) the insured is insuring a fleet of vehicles under common ownership numbering not less than 5.

(5)  An insurer or insurance agent must not deviate from the schedule of rates filed by way of refund of any part of the premium payable in respect of a policy of automobile insurance other than in accordance with the provisions of this Part or any other Act relating to insurance.

 Authority to require information to be filed

181  (1)  The superintendent or the automobile board may, on written complaint by an insurer or an insured that discrimination exists or on information filed with the superintendent or the automobile board deemed sufficient to justify an investigation, give notice in writing to a rating bureau or insurer, requiring that rating bureau or insurer to file with the superintendent or the automobile board any schedules of rates or particulars showing how any specific rate is made up and any other information that is required.

(2)  The rating bureau or insurer must, within 5 days after the receipt of the notice, file with the superintendent or the automobile board the schedules, particulars and other information required.

(3)  The superintendent or the automobile board may, within 30 days after the receipt of the information required, make an order prohibiting any rate that, in his or her or its opinion, is discriminatory and directing that the discrimination be removed.

(4)  The superintendent or the automobile board must immediately deliver to the rating bureau or insurer a copy of the order and reasons for it, and must have notice of it published immediately in the Gazette.

(5)  A rating bureau or insurer must not remove the discrimination by increasing the rates on any risk or class of risks affected by the order unless it be made to appear to the satisfaction of the superintendent or the automobile board that the increase is justifiable.

(6)  A rating bureau, insurer or other person failing to comply with the order commits an offence.

 Superintendent empowered to order rate adjustment

182  (1)  It is the duty of the superintendent or the automobile board, after due notice and a hearing before him or her or it, to order an adjustment of the rates for automobile insurance whenever it is found by the superintendent or the automobile board that any of the rates are excessive, inadequate, unfairly discriminatory or otherwise unreasonable.

(2)  A rating bureau, insurer or other person failing to comply with the order commits an offence.

(3)  A rate charged by an insurer in any area for any classification of risk must not be presumed to be excessive for the sole reason that a lower rate is charged by a competing insurer in the same area and for a similar classification of risk.

(4)  An order made must not take effect for a period of 10 days after its date.

 Superintendent to have access to books

183  The superintendent or any person authorized under his or her hand and seal of office, or any member of the automobile board or any person authorized by it for the purpose, at all times has access to all books, securities or documents of a rating bureau or insurer that are related to the schedules of rates of the rating bureau or insurer, and any officer or person in charge, possession, custody or control of those books, securities or documents who refuses or neglects to afford access commits an offence.

 Inquiry and report

184  (1)  The superintendent or the automobile board may inquire into any question that an insurer, insured or a rating bureau may bring before him or her or it with regard to insurance rates set by a rating bureau or charged by an insurer and also with regard to any other question arising out of the relationship or proposed relationship of the parties with reference to the insurance in question.

(2)  The superintendent or the automobile board must not make an order in an inquiry under this section, but the result of the inquiry must be reported in the superintendent's or the board's annual report.

 Automobile Insurance Board

185  (1)  The Lieutenant Governor in Council may establish a board to be known as the British Columbia Automobile Insurance Board, consisting of a chair and that number of other members as the Lieutenant Governor in Council may appoint.

(2)  The Lieutenant Governor in Council must appoint one of the members of the board as chair of the board and another member as vice chair of the board to act in the absence or incapability of the chair.

(3)  A member of the board holds office for a term that may be set by the Lieutenant Governor in Council or until the appointment is sooner revoked, or the member sooner resigns or dies.

(4)  A member of the board who is not a public service employee within the meaning of the Public Service Act may be paid any remuneration for his or her services as a member of the board as the Lieutenant Governor in Council may determine, and all the members of the board may be reimbursed for any out of pocket expenses incurred by them in the performance of their duties as members of the board in accordance with general directives of the Treasury Board.

 Procedure of board

186  (1)  Subject to the approval of the Lieutenant Governor in Council, the board may make rules governing its own procedure.

(2)  A majority of the members of the board is a quorum.

(3)  The board and each member of the board has the powers of a commissioner under Part 2 of the Inquiry Act.

 Duties and powers

187  (1)  The board has the duties, functions and powers as may be imposed on or granted to it under this Act or under any other Act.

(2)  Without limiting subsection (1), the board may do any of the following:

(a) investigate all matters respecting automobile insurance in British Columbia, including rates, coverage, cost and benefits provided, and make recommendations to the minister;

(b) correlate statistical data to establish in each year the maximum premium chargeable by insurers for insurance required under this Part;

(c) administer money paid to the board under any other Act for the purpose of

(i)  automobile driver education and training, or

(ii)  research respecting automobile and highway safety;

(d) make recommendations to the minister respecting the provision of automobile insurance by the government in the event of failure or refusal by insurers to provide adequately for automobile insurance for the persons entitled to that insurance.

 Protection of insurance agents commissions

188  (1)  In this section, "agent" means an insurance agent licensed under Division 2 of Part 6 of the Financial Institutions Act and authorized by a licensed insurer on its behalf to solicit and receive applications for insurance and to collect premiums, and whose compensation or profit for that consists wholly of a commission on premiums derived from such business.

(2)  The commission on any policy issued at the head office of an insurer in British Columbia must be paid to an agent, and there must be written on the policy the words "Issued on behalf of ________________, resident authorized agent at ________________", with the name of the agent and of the place where the agent carries on business.

(3)  The person in charge of the head office of an insurer in British Columbia must immediately, on the issue of a policy at the head office, notify the agent of the date of the policy, the name of the insured and the property insured.

  Part 7, heading BEFORE amended by 2004-41-53, effective January 1, 2005 (BC Reg 505/2004).

Part 7 — Miscellaneous Classes of Insurance

  Section 189 BEFORE repealed by 2009-16-98, effective July 1, 2012 (BC Reg 213/2011).

 Livestock insurance

189  In the case of a contract of livestock insurance, the following rules apply:

(a) a contract must not be made for a term exceeding 3 years;

(b) a contract made for one year or less may be renewed by the delivery of a renewal receipt, but the contract must not continue in force for a total term of more than 3 years;

(c) sections 129 and 130 and the statutory conditions set out in section 126 apply as far as applicable and with the necessary changes.

  Section 189.01 was enacted by 2009-16-99, effective July 1, 2012 (BC Reg 213/2011).

  Sections 189.2 to 189.6 were enacted by 2004-41-54, effective January 1, 2005 (BC Reg 505/2004).

  Section 191 (1) (part) BEFORE amended by 2007-14-215,Sch, effective December 1, 2007 (BC Reg 354/2007).

under this Act or the regulations must not be brought against the superintendent or a person who is subject to the superintendent's direction.

  Section 192 (5) was added by 2004-41-55, effective January 1, 2005 (BC Reg 505/2004).

  Section 192 (2) BEFORE amended by 2009-16-100, effective July 1, 2012 (BC Reg 213/2011).

(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, for the purpose of the regulations, any words or expressions 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 prescribed in the contract of insurance;

(e) extending the insurance beyond that prescribed in this Act;

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

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

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

  Section 192.1 was enacted by 2009-16-101, effective June 17, 2011 (BC Reg 115/2011).

  Section 193 BEFORE repealed by 2003-94-57, effective June 1, 2007 (BC Reg 166/2006).

 Forms

193  The Lieutenant Governor in Council may, by regulation, alter, add to or remove all or part of the forms in the Schedule to carry out the intent and purpose of this Act and the regulations.

  Section 194.1 was enacted by 2009-16-102, effective July 1, 2012 (BC Reg 213/2011).

  Section 196 BEFORE amended by 2007-14-215,Sch, effective December 1, 2007 (BC Reg 354/2007).

196  If a person is convicted of an offence under this Act or the regulations, 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.

  Schedule BEFORE repealed by 2003-94-58, effective June 1, 2007 (BC Reg 166/2006).

Schedule

SECTION B — ACCIDENT BENEFITS

The Insurer agrees to pay to or with respect to each insured person as defined in this section who sustains bodily injury or death directly and independently of all other causes by an accident arising out of the use or operation of an automobile.

Subsection 1 — Medical and Rehabilitation Benefits

1 All reasonable expenses to the limit(s) stated in section A of item 4 of the application incurred as a result of such injury for necessary medical, surgical, dental, hospital, professional nursing, and ambulance services and in addition for such other services and supplies which are, in the opinion of the insured person's attending physician and that of the Insurer's medical adviser, essential for the treatment or rehabilitation of the said insured person.

2 Funeral services up to the amount of $500 in respect to the death of any one person. THE INSURER IS NOT LIABLE UNDER THIS SUBSECTION for those portions of such expenses payable or recoverable under any medical, surgical, dental or hospitalization plan or law or, except for similar insurance provided under another automobile insurance contract, under any other insurance contract or certificate issued to, or for the benefit of, any insured person.

Subsection 2 — Death and Total Disability

Part I — Death Benefits

A Subject to the provisions of this Part I, for death which ensues within 180 days of the accident, a payment — based on the age and status at the date of the accident of the deceased in a household if spouse or dependants survive — of the following amount:

Age of Deceased at Date of AccidentStatus of Deceased
Head of
Household
Spouse in
Two-parent
Households
Dependent
Children
 $$$
Up to age 4 years. . .. . .500
5 to 9 years. . .. . .1 000
10 to 17 years5 0002 5001 500
18 to 64 years5 0002 5001 000
65 to 69 years3 0001 5001 000
70 years and over2 0001 000500

In addition, with respect to death of head of household,

(a) if there are 2 or more survivors - spouse or dependants - the principal sum payable is increased $1 000 for each survivor other than the first;

(b) if there are one or more survivors, $50 per week plus $10 per dependant other than the first, payable each week for a period of 104 weeks. Any weekly benefit terminates on death of all survivors.

B For the purposes of this Part I,

(1) the spouse of head of household is deemed to be the spouse with the lesser income in the year preceding the date of death,

(2) a deceased person whose only surviving dependents are parents of such a person is deemed a head of household if such parents, at the date of accident, were residing in the same dwelling premises as the deceased person and were principally dependent on him or her for financial support,

(3) the words "dependent child" as used herein mean a child

(a) under the age of 18 years for whose support the head of household is legally liable and who is dependent on the head of household for financial support, or

(b) 18 years of age or over and residing in the same dwelling premises as the head of household who, because of mental or physical infirmity, is wholly dependent on the head of household for financial support,

(4) the total sum payable must be paid with respect to death of head of household or spouse to the surviving spouse. If there is no surviving spouse in the household, no amount is payable unless there are surviving dependent children or dependent parents, as defined in (2) and (3) above, and in that event the total sum payable must be divided equally among the surviving dependants in the household,

(5) the total amount payable with respect to death due to a common disaster of head of household and spouse must be paid equally to surviving dependent children or dependent parents,

(6) the sum payable with respect to the death of a dependent child must be divided equally between the surviving parents; if no parent survives, no amount is payable,

(7) amounts payable under this Part I must be paid only to a person who is alive 60 days after the death of the insured person, and

(8) the amount payable hereunder for the death of any person must be reduced by the amount of any payments made to or for such person with respect to the same accident under Part II, Total Disability.

Part II - Total Disability

A weekly benefit for the period during which the injury must wholly and continuously disable such insured person provided

(a) such person was employed at the date of the accident,

(b) within 20 days from the date of the accident such injury prevents him or her from performing any and every duty pertaining to his or her occupation or employment, and

(c) no benefit is payable for the first 7 days of such disability or for any period in excess of 104 weeks.

If at the end of such 104 weeks it has been established that such injury has permanently and totally disabled such insured person from engaging in any occupation or employment for which he or she is reasonably suited by education, training, or experience, the Insurer agrees to pay such weekly benefit for the duration of the disability or until the insured person reaches the age of 65 years. Thereafter, the indemnity, reduced by the amount of Old Age Pension and benefits under the Canada Pensions Act, continues for the lifetime of the insured person.

Amount of Weekly Benefit — If the average gross weekly earnings exceed $50, the weekly benefit payable is 80 per cent of the said gross weekly earnings, subject to a maximum of $50 per week.

If the gross weekly earnings are $50 or less, the weekly benefit payable is $40, unless the insured is a dependent child as defined in Subsection 2, Part I, B, clause (3), in which event the amount payable must not exceed the average gross weekly earnings.

The above benefits are subject to the terms of clause (3) below.

For the purposes of this Part II,

(1) a wife residing in the same dwelling premises as her husband and not otherwise engaged in occupation or employment for wages or profit, if injured, is deemed disabled only if completely incapacitated and unable to perform any of her household duties, and while so incapacitated must receive $50 per week for not more than 26 weeks,

(2) a person is deemed to be employed

(a) if actively engaged in occupation or employment for wages or profit at the date of the accident, or

(b) if 21 years of age or over and under the age of 65 years, so engaged for any 6 months out of the preceding 12 months,

(3) if the benefits for loss of time payable hereunder, together with benefits for loss of time under another contract, including a contract of group accident insurance and a life insurance contract providing disability insurance, exceed the money value of the time of the insured person, the Insurer is liable only for that proportion of the benefits for loss of time stated in this policy that the money value of the time of the person insured bears to the aggregate of the benefits for loss of time payable under all such contracts, and

(4) the disability of the insured person must be certified by the insured person's attending physician.

Special Provisions, Definitions, and Exclusions of Section B

1 "Insured Person" Defined — In this section, the words "insured person" mean

(a) any person while an occupant of the described automobile or of a newly acquired or temporary substitute automobile as defined in this policy,

(b) the insured and, if residing in the same dwelling premises as the insured, his or her spouse and any dependent relative of either while an occupant of any other automobile provided that

(i)  the insured is an individual or are husband and wife,

(ii)  such person is not engaged in the business of selling, repairing, maintaining, servicing, storing, or parking automobiles at the time of the accident,

(iii)  such other automobile is not owned or regularly or frequently used by the insured or by any person or persons residing in the same dwelling premises as the insured,

(iv)  such other automobile is not owned, hired, or leased by an employer of the insured or by an employer of any person or persons residing in the same dwelling premises as the insured, and

(v)  such other automobile is not used for carrying passengers for compensation or hire or for commercial delivery,

(c) in Subsections 1 and 2 of Section B only, any person, not the occupant of an automobile or of railway rolling stock that runs on rails, who is struck, in Canada, by the described automobile or a newly acquired or temporary substitute automobile as defined in the policy, and

(d) in Subsections 1 and 2 of Section B only, the named insured, if an individual and his or her spouse and any dependent relative residing in the same dwelling premises as the named insured, not the occupant of an automobile or of railway rolling stock that runs on rails, who is struck by any other automobile provided that

(i)  such person is not engaged in the business of selling, repairing, maintaining, servicing, storing, or parking automobiles at the time of the accident,

(ii)  that automobile is not owned or regularly or frequently used by the insured or by any person or persons residing in the same dwelling premises as the named insured,

(iii)  that automobile is not owned, hired, or leased by an employer of the insured or by an employer of any person or persons residing in the same dwelling premises as the named insured, and

(iv)  that automobile is not used for carrying passengers for compensation or hire or for commercial delivery.

2 Exclusions

(a) The Insurer is not liable under this section for bodily injury to or death of any person

(i)  resulting from the suicide of such person or attempt thereat, whether sane or insane,

(ii)  who is entitled to receive the benefits of any workers' compensation law or plan,

(iii)  caused directly or indirectly by radioactive material,

(iv)  occurring while the automobile is being used in any race or speed test,

(v)  caused directly or indirectly by sickness or disease, unless the claimant establishes that such sickness or disease was contracted as a direct result of an accident covered by this policy, or

(vi)  who is an occupant of the automobile while the automobile is being used for any illicit or prohibited trade or transportation.

(b) The Insurer is not liable under Subsection 1 or Part II of Subsection 2 of this Section B for bodily injury or death

(i)  sustained by any person who is convicted of drunken or impaired driving or of driving while under the influence of drugs at the time of the accident,

(ii)  sustained by any person driving the automobile who is under the age prescribed by the law of the jurisdiction in which the accident occurs as being the minimum age at which a licence or permit to drive the automobile may be issued to him or her, or

(iii)  sustained by any person driving the automobile who is not for the time being either authorized by law or qualified to drive the automobile.

3 Notice and Proof of Claim — The insured person or his or her agent, or the person otherwise entitled to make claim or his or her agent, must do the following:

(a) give written notice of claim to the Insurer by delivery of it or by sending it by registered mail to the chief agency or head office of the Insurer in British Columbia, not later than 30 days from the date of the accident;

(b) within 90 days from the date of the accident for which the claim is made, furnish to the Insurer such proof of claim as is reasonably possible in the circumstances of the happening of the accident and the loss occasioned by it;

(c) if so required by the Insurer, furnish a certificate as to the cause and nature of the accident for which the claim is made and as to the duration of the disability caused by it from a medical practitioner legally qualified to practise.

4 Medical Reports — The Insurer has the right and the claimant must afford to the Insurer an opportunity to examine the person of the insured person when and as often as it reasonably requires while the claim is pending, and also, in the case of the death of the insured person, to make an autopsy subject to the law relating to autopsies.

5 "Attending Physician" Defined — "Attending physician" means a person who legally engages in the practice of medicine or surgery, or both.

6 Release — Notwithstanding any release provided for under the relevant sections of the Insurance Act, the Insurer may demand, as a condition precedent to payment of any amount under this section of the policy, a release in favour of the insured and the Insurer from liability to the extent of such payment from the insured person or his or her personal representative or any other person.

7 When Moneys Payable

(a) All amounts payable under this section other than benefits under Part II of Subsection 2 hereof must be paid by the Insurer within 60 days after it has received proof of claim. The initial benefits for loss of time under Part II of Subsection 2 hereof must be paid within 30 days after it has received proof of claim, and payments must be made thereafter within each 30 day period while the Insurer remains liable for payments if the insured person, whenever required to do so, furnishes prior to payment proof of continuing disability.

(b) A person must not bring an action to recover the amount of a claim under this section unless the requirements of provisions 3 and 4 hereof are complied with, nor until the amount of the loss has been ascertained as provided in this section.

(c) Every action or proceeding against the Insurer for the recovery of a claim under this section must be commenced within one year from the date on which the cause of action arose and not afterwards.