Chapter 3

Question 1

How is Insurance in Canada governed?

Answer 1

The Insurance Companies Act-Federal

Provincial and Territorial Insurance Acts

Provincial/territorial highway/traffic Acts

Regulations made to various Acts

Question 2

What is the focus of federal and provincial governments in regards to insurance?

Answer 2

1-solvency- company is financially stable/healthy

2 market conduct

3- rating structures

4- insurance availability

Question 3

What 3 main areas does the Insurance Companies Act cover or focus on:

Answer 3

1- establishment of an Insurance company

2- prerequisites to operation

3- supervision during operations

Question 4

What do provincial/territorial regulators regulate in regards to insurance?

Answer 4

Provincial/territorial licensed insurance companies
Operations of insurance brokers and agents
Operations of adjusters
Contracts

Question 5

How does Provincial Highway/Traffic Acts impact insurance in Canada?

Answer 5

1- registration and licensure of motor vehicles

2- licensing of drivers

3- traffic control of vehicles on highway/rods

4- proof of insurance

5 - regulations made to various Acts

Question 6

What are statutory conditions?

Answer 6

These are provincial/territorially mandated and prescribed conditions that must be included in all policies

Question 7

What are statutory conditions known as in BC and Nova Scotia?

Answer 7

BC- prescribed conditions

NS- mandatory conditions

Question 8

List 3 examples of statutory conditions in Canada for accident and sickness

Answer 8

Material facts 
Changes in occupation
The contract
Notice and proof of claim
Failure to give notice or proof
Rights of examination
When loss of time ben fits payable 
Limitation of action

Question 9

List 3 examples of statutory conditions for automobile policies

Answer 9

Material change in risk 
Incorrect classification 
Prohibited use by insured
Examination of driver
New or aftermarket parts
Time for repairs 
Repair or replacement 
Inspection of automobile

Question 10

List 3 statutory conditions for fire insurance contracts

Answer 10

Misrepresentation 
Replacement
Fraud
Material change
Salvage
Who may give notice or proof loss 
Entry, control, abandonment
Appraisal
Action
Notice

Question 11

What are general conditions?

Answer 11

Conditions of a contract that set minimum requirements of the contractor and outline the rights and responsibilities of all parties involved

Question 12

Define OSFI and their role in insurance

Answer 12

Office of the superintendent of financial institutions.
They are responsible for regulating and monitoring
Federally chartered insurance companies
Foreign insurance companies who operate in Canada
Provincial/territorially chartered insurance companies
OSFI is there to ensure financial integrity of all insurers.
OSFI works in accordance with the Insurance Companies Act

Question 13

What is PIPEDA and explain

Answer 13

PIPEDA is the personal information protection and electronics documents Act.

It is a federal
Act

Governs the collection and use of personal I formation.

It states that all information collected will be relevant.
That all information that has been, is being or will be collected will be held in the strictest confidence.

Question 14

How do provincial insurance companies protect personal information?

Answer 14

They can use PIpEDA and each province or territory also have mix of privacy legislation for public and private sectors that is similise to PIPEDA

Question 15

Explain a privacy breach?

Answer 15

Privacy breach o cuts when personal info is collected/used or disclosed in violation of applicable privacy legislation

Question 16

How are statutory conditions outlined in Quebec?

Answer 16

Statutory conditions in Quebec are outlined in the Civil Code of Quebec

Question 17

Explain how self regulation of brokers work?

Answer 17

In jurisdictions where brokers self regulate- they form an an organization or association.
This association set qualification standards for their brokers
They set operational requirements of brokers
Registration to association or organization instead of licensing
They police their own association
Still answerable to government should issues arise

Question 18

Define solvency

Answer 18

Solvency is the ability of an organization or company to meet its long term financial goals.
Solvency= financially healthy

Question 19

What is PACICC

Answer 19

Property and Casualty Insurance compensation corporation

It is a non profit organization funded by P & C insurance companies. It is there to protect policyholders from financial collapse of an insurance company

Question 20

What is an order of commencement?

Answer 20

A document issued by the OSFI giving a company approval to commence and carry out the business if insurance