BILL NO. 45

(as introduced)

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

Government Bill

Insurance Act
(amended)

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

First Reading: May 5, 2003

(Explanatory Notes)

Second Reading: May 9, 2003

Third Reading: May 22, 2003 (WITH COMMITTEE AMENDMENTS) (LINK TO BILL AS PASSED)

An automobile insurance company must give ten days notice to the Utility and Review Board of any change in its schedule of rates or rules applicable to its rates. Clause 1 changes the notice period to 45 days, exempts decreases in monetary rates from the notice period and provides that no change in the rates or rules may be effective until January 1, 2004.

Clause 2 authorizes the Governor in Council to make regulations prescribing grounds for which an automobile insurer cannot refuse to issue, refuse to renew or terminate insurance or refuse to provide or continue any coverage or endorsement.

Clause 4 gives the Bill retroactive effect.

Be it enacted by the Governor and Assembly as follows:

1 Section 154 of Chapter 231 of the Revised Statutes, 1989, the Insurance Act, is amended by

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

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

(c) adding thereto the following subsections:

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

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

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

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

(2) The Governor in Council may make regulations prescribing grounds for which an insurer cannot, in circumstances specified by the regulations, refuse to issue, refuse to renew or terminate a contract of automobile insurance or refuse to provide or continue any coverage or endorsement in respect of a contract of automobile insurance.

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

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

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

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