McD.Intro Flashcards
identify FEDERAL areas of exclusive authority (this is not specific to insurance) (6)
- regulation of (trade, commerce)
- taxation
- banking
- (bankruptcy, insolvency)
- aliens & naturalization
- criminal law
identify PROVINCIAL areas of exclusive authority (this is not specific to insurance) (4)
- provincial taxes
- civil property rights
- hiring & supervising provincial employees
- operating jails & hospitals
define intra vires, ultra vires
INTRA VIRES: within the powers of a particular Govt
ULTRA VIRES: beyond the powers of a particular Govt
areas & matters under PROVINCIAL insurance legislation/regulation
[1] CONTRACT MATTERS: (ppp-ird)
- (policy contents), (policy terms), (premium payment), (insurable interest), (reinstatement), (designation of beneficiaries)..
[2] TRANSACTION MATTERS: (AUC)
- (Agent licensing), (Unfair practices), (Claims handling)
evaluate feasiability of replacing provincial regulation of auto with federal regulation
not feasible:
- this would be ultra-vires for the federal government
- Insurance Reference Case says regulation of commerce doesn’t cover licensing a particular trade
Insurance Reference Case: AG(Can) v AG(AB): Facts (1916)
(1910) The Federal Insurance Act required a Federal license of all insurers..
..EXCEPT IF (incorporated by Province) AND (operating solely in Province)
Insurance Reference Case: AG(Can) v AG(AB) - Issues
is this version of the Federal Insurance Act ‘intra vires’?
AG(Can) v AG(AB) - Ruling - JCPC (Judicial Committee of the Privy Council)
licensing provisions are ‘ultra vires’:
- regulation of trade/commerce didn’t extend to a licensing system of a particular trade
- trespasses on Provincial authority in civil rights
(not covered by Federal power to legislate for Peace, Order, Good Government)
Insurance Reference Case: AG(Can) v AG(AB) - Implication-Canada
- a provincial insurer has the capacity, but not the right to operate in another Province
(need permission from other province) - federal insurer has the capacity and the right to operate in another province
These are the 2 ways an insurer can operate in more than 1 province
Insurance Reference Case: AG(Can) v AG(AB) - Implication-Foreign
federal government can require a federal license for a foreign insurer
(even if the foreign insurer is operating in only 1 province)
Citizens Ins v Parsons: Facts (1881)
insurer disuptes ON’s Fire Insurance Act
- the Act required certain statutory conditions for fire policies in ON
Citizens Ins v Parsons: Issues (Recall: Citizen’s - ultra)
ISSUE 1:
- is ON Fire Act ULTRA VIRES? (relates to regulation of trade, which is federal)
ISSUE 2:
- insurer claims province can’t legislate to deprive federally incorporated insurer of status & capacity
Citizens Ins v Parsons: Ruling-JCPC on issue #1 (Judicial Committee of the Privy Concil)
Ruling (Issue 1):
- ON Fire Act is INTRA VIRES
Reason:
- federal government can’t regulate an insurer operating in a single province
- such insurance contracts are INTRA-provincial and are not covered by federal trade regulations
- trade means INTER-provincial (not INTRA-provincial)
Citizens Ins v Parsons: Ruling-JCPC on issue #2
Ruling (Issue 2)
- status & capacity UNAFFECTED
- insurers are all treated equally, regardless of where they were incorporated
