McD.Intro Flashcards
Identify 4 federal areas of exclusive authority.
- Regulation of trade & commerce
- Taxation
- Banking
- Bankruptcy & insolvency
- Aliens & naturalization
- Criminal Law
Identify the 4 provincial areas of exclusive authority.
- Provincial taxes
- Civil property rights
- Hiring & supervising provincial employees
- Operating jails & hospitals
Briefly explain the term ‘intra-vires’
Within the powers of a particular government
Briefly explain the term ‘ultra-vires’.
Beyond the powers of a particular government.
Identify the 2 areas/matters under provincial insurance regulation.
- Contract matters
- Transaction matters
Identify 4 examples of contract matters under provincial insurance regulation.
- Policy contents
- Policy terms (includes effective date)
- Premium payment
- Insurable interest
- Reinstatement
- Designation of beneficiaries
Identify the 3 transaction matters under provincial insurance regulation. (Hint: AUC)
- Agent licensing
- Unfair practices
- Claims handling
- Brokage fees
True or False?
It would be feasible to replace provincial regulation of auto with federal regulation.
False:
- This would be ultra-vires for the federal government
- Insurance Reference Case says regulation of commerce doesn’t cover licensing a particular trade
What was the ‘Citizen’s v Parsons’ case about?
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
What were the issues in the ‘Citizen’s v Parsons’ case?
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
What was the rulings (2) of the ‘Citizen’s v Parsons’ case?
- The Ontario Fire Insurance Policy Act was deemed to be
intra‐vires
*Trade is inter‐provincial, not intra‐provincial -
Status & capacity unaffectedsince insurers are all treated equally, regardless of incorporation location
Briefly describe the Insurance Reference Case (AG Can v AG AB).
Federal government introduces law that requires insurer to be federally incorporated if it wants to operate in more than 1 province.
AG Alberta challenged constitutionality of that law.
What was the issue in the Insurance Reference Case (AG Can v AG AB)?
Is this version of the Federal Insurance Act intra-vires/ ultra-vires?
What was the ruling in the Insurance Reference Case (AG Can v AG AB)?
- Privy Council ordered this is
ultra vires for federal to interfere with licensing system. - The
provincial incorporatedinsurers havecapacity but not rightto operate in another provincewithout other provinces’ permission.Federally incorporatedinsurers havethe capacity and rightsto operate in multiple provinces. -
Foreign companiescan be required to be licensed federallyin order to operate in provinces,even if they only want to operate in one province.
In the Insurance Reference Case, what was the conclusion regarding an insurer’s right to operate in other provinces?
case: AG Can v AG AB
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.
In the Insurance Reference Case, what was the conclusion regarding a foreign insurer’s right to operate in Canada?
case : AG Can v AG AB
Federal government can require a federal license for a foreign insurer even if the foreign insurer is operating in only 1 province.
Briefly describe the ‘CIC v AG(BC)’ case
Elimination of private auto insurance in BC
- > BC legislature establishes compulsory public auto insurance plan
- > Legislature refuses license renewal of private insurers
- > Insurers sue
What was the issue in the CIC v AG(BC) case?
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
What was the Supreme Court ruling in the CIC v AG(BC) case?
BC legislature acted within its powers (legislation is INTRA VIRES)
Identify 5 areas under federal insurance regulation. (Hint: CIRC-P)
- Conditions for entering business
- Investments
- Reporting
- Calculation of assets & reserves
- Protection of policyholders
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)
- 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
Identify 3 reasons for insurance regulation in Canada.
- Prevent insolvencies
- Prevent undesirable business practices
- Consider economic impact on Canada
