A - McDonald Flashcards
1
Q
McDonald
Discuss Citizens Insurance Co v Parsons (1881)
A
HINT : Citoyen : Constitution.
FACTS
- Company questioned the CONSTITUTION validity of the Ontario Fire Insurance Policy Act
- Act required certain statutory conditions for fire policy in ON
ISSUES
- Is ON fire Act Ultra vires?
- Argued that because COMMERCE is of federal authority, province cannot pass the Act.
- Insurer claims province can’t legislate to deprive federally incorporated insurer of status & capacity
RULING
- ON fire Act is Intra vires
- Federal gvmt can’t regulate an insurer operating in a single province
- Trade means Inter-provincial, not Intra-provincial
- Status & capacity unaffected and insurers are all treated equally, regardless of where they were incorporated
Privy Council confirmed that the Act is valid.
2
Q
McDonald
Discuss Insurance Reference Case (Attorney General for Canada v Attorney General for Alberta) (1916)
A
FACTS (1910)
- The Federal Insurance Act (FIA) required a Federal license of all insurers, except if:
- Incorporated by Province, AND
- Operating solely in Province
ISSUE
- Is this version of the FIA intra vires?
RULING
- Privy Council decided it is ULTRA VIRES of Federal Government because:
- Regulation of trade and commerce do not extend to a licensing system of a particular trade
- Federal power to legislate for PEACE, ORDER AND GOOD GOVT OF CANADA cannot trespass over Provincial power to legislate on CIVIL RIGHTS in the Province.
IMPLICATIONS
- A provincial insurer has the capacity, not right to operate in another province as long as that province has granted its permission, without having a federal license.
- A federal insurer has the capacity & right to do business outside its province
- A foreign insurer must obtain federal license to do business in any single province
3
Q
McDonald
Discuss Re the Insurance Act of Canada (1932)
A
- A tax is imposed on policyholders of British/foreign companies that are not licensed under Federal Insurance
- Act Privy Council invalidated this.
- Seen as an attempt to interfere with insurance which is provincial power.
4
Q
McDonald
Discuss Canadian Indemnity Company v Attorney-General of BC (1977)
A
FACTS
- BC created a compulsory public auto insurance plan
- BC legislature refused to renew the licenses of private insurers
- Insurers sue
ARGUMENTS
- Insurers claimed BC legislation is Ultra vires for 2 reasons
- It relates to regulation of trade, which is Federal
- Province can’t legislate to deprive federally incorporated insurer of status & capacity
RULING
- BC legislature acted within its powers (intra vires)
5
Q
McDonald
Discuss ICA (Insurance Company Act)
A
- Applies to all insurers under Federal Charter
- Provides a modern framework by which insurers are regulated
- Enlarge lending and investment powers of insurers
- Gives new powers to diversify
- Allows flexibility to raise money by issuing shares or borrowing
- Insurers should grow stronger and compete internationally
- Revised every 10 years
6
Q
McDonald
6 considerations from the Minister in order to decide whether to incorporate an insurance company under the Act.
A
- NATURE and SUFFICIENCY of financial resources
- SOUND BUSINESS PLAN
- BUSINESS RECORD of the applicant
- COMPETENCE and EXPERIENCE of those who operate the company
- Whether it is in the BEST INTEREST OF FINANCIAL SYSTEM in Canada
- That CANADIAN INSURERS are treated favorably in province where foreign insurers operates
7
Q
McDonald
Discuss: Reference re Reciprocal Insurance Legislation, Attorney-General for Ontario v Reciprocal Insurers (1924)
A
- In 1917, Parliament passed a new Federal Insurance Act
- Federal tried to amend Criminal Code to make it a offense to accept INSURANCE RISK if not licensed under Federal Insurance Act
- PRIVY COUNCIL decided that these amendments were invalid.
