McD.Intro

Question 1

Identify 4 federal areas of exclusive authority.

Answer 1

1. Regulation of trade & commerce
2. Taxation
3. Banking
4. Bankruptcy & insolvency
5. Aliens & naturalization
6. Criminal Law

Question 2

Identify the 4 provincial areas of exclusive authority.

Answer 2

1. Provincial taxes
2. Civil property rights
3. Hiring & supervising provincial employees
4. Operating jails & hospitals

Question 3

Briefly explain the term ‘intra-vires’

Answer 3

Within the powers of a particular government

Question 4

Briefly explain the term ‘ultra-vires’.

Answer 4

Beyond the powers of a particular government.

Question 5

Identify the 2 areas/matters under provincial insurance regulation.

Answer 5

1. Contract matters

2. Transaction matters

Question 6

Identify 4 examples of contract matters under provincial insurance regulation.

Answer 6

1. Policy contents
2. Policy terms (includes effective date)
3. Premium payment
4. Insurable interest
5. Reinstatement
6. Designation of beneficiaries

Question 7

Identify the 3 transaction matters under provincial insurance regulation. (Hint: AUC)

Answer 7

1. Agent licensing
2. Unfair practices
3. Claims handling

Question 8

True or False?

It would be feasible to replace provincial regulation of auto with federal regulation.

Answer 8

False:

• This would be ultra-vires for the federal government
• Insurance Reference Case says regulation of commerce doesn’t cover licensing a particular trade

Question 9

What was the ‘Citizen’s v Parsons’ case about?

Answer 9

Province ability to pass legislation that applies to a federally regulated insurer

Insurer disputes ON’s Fire Insurance Act

The Act is required certain statutory conditions for fire policies in ON

Question 10

What were the issues in the ‘Citizen’s v Parsons’ case?

Answer 10

Is ON Fire Act ultra-vires?
(relates to regulation of trade, which is federal)

Insurer claims province can’t legislate to deprive federally incorporated insurer of status & capacity

Question 11

What was the JCPC ruling of the ‘Citizen’s v Parsons’ case?

Answer 11

The Ontario Fire Insurance Policy Act was deemed to be intra‐vires
All insurers are treated equally
Trade is inter‐provincial, not intra‐provincial

Question 12

Briefly describe the Insurance Reference Case (AG Can v AG AB).

Answer 12

Ability of insurers to operate in more than 1 province

The Federal Insurance Act required a Federal license of all insurers except if incorporated by Province and operating solely in Province.

Question 13

What was the issue in the Insurance Reference Case (AG Can v AG AB)?

Answer 13

Is this version of the Federal Insurance Act intra-vires?

Question 14

What was the JCPC ruling in the Insurance Reference Case (AG Can v AG AB)?

Answer 14

Licensing provisions are ultra-vires.

Regulation of trade/commerce did not extend to a licensing system of a particular trade.

Trespasses on provincial authority in civil rights.

Question 15

In the Insurance Reference Case, what was the conclusion regarding an insurer’s right to operate in other provinces?

Answer 15

Provincial insurer has the capacity, but not the right to operate in another province if he has the permission to do so by the other province.

Federal insurer has both the capacity and right to operate in any province.

Question 16

In the Insurance Reference Case, what was the conclusion regarding a foreign insurer’s right to operate in Canada?

Answer 16

Federal government can require a federal license for a foreign insurer even if the foreign insurer is operating in only 1 province.

Question 17

What is the year of the creation of the Supreme Court of Canada?

Answer 17

1949

Question 18

Briefly describe the ‘CIC v AG(BC)’ case

Answer 18

Elimination of private auto insurance in BC

• > BC legislature establishes compulsory public auto insurance plan
• > Legislature refuses license renewal of private insurers
• > Insurers sue

Question 19

What was the issue in the CIC v AG(BC) case?

Answer 19

Insurers claimed BC legislation is ultra-vires because:

• It relates to regulation of trade, which is federal
• Province can’t legislate to deprive federally incorporated insurer of status & capacity

Question 20

What was the Supreme Court ruling in the CIC v AG(BC) case?

Answer 20

BC legislature acted within its powers (legislation is INTRA VIRES)

Question 21

Identify 5 areas under federal insurance regulation. (Hint: CIRC-P)

Answer 21

1. Conditions for entering business
2. Investments
3. Reporting
4. Calculation of assets & reserves
5. Protection of policyholders

Question 22

Identify 3 considerations OSFI look at in an insurer’s application for corporation?

(i.e. what does the Minister of Finance consider when deciding whether to issue a letters patent)

Answer 22

• financial resources (must be sufficient)
• business plan (detailed & realistic)
• business record of applicants (check for past bankruptcies)
• Character, Competence, Experience of management
• Positive effect on Canadian financial system (jobs, GDP growth)
• if owned by a foreign parent, OSFI must be satisfied that subsidiary will be treated fairly

Question 23

Identify 3 reasons for insurance regulation in Canada.

Answer 23

1. Prevent insolvencies
2. Prevent undesirable business practices
3. Consider economic impact on Canada

Question 24

Briefly describe the AG(ON) v reciprocal insurers case.

Answer 24

Parliament amended Federal Insurance Act: criminalized accepting risks without federal license.

Question 25

What was the issue in the AG(ON) v Reciprocal Insurers case?

Answer 25

Were Parliament’s 1917 amendements to the criminal code valid?

Question 26

What was the JCPC ruling in the AG(ON) v Reciprocal Insurers case?

Answer 26

Amendments are not valid: Fed does not have power to regulate insurance contracts.