McDonald Flashcards
1
Q
Provincial Legislative Authority
A
- Property and civil rights
- All local and private matter in provinces
- Incorportation of caompines with provincial objects
- Example
- contract matter (ppp-ird)
- policy term
- prem payment
- policy contents
- insurable interest
- reinstatement
- designation of beneficiaries
- transaction matter (AUC)
- Agent licensing
- Unfair practice
- Claim handeling
- contract matter (ppp-ird)
2
Q
Federal Legislative Authority
A
- trade & commerence
- immigration
- criminal law
- banking
- taxation
- bankcruptcy & insolvency
- land in peace
3
Q
Areas under federal insurance regulation
Or
Federal legislation’s oversight responsibilities
A
Hint CIRC-P
- require Conditions for entering business
- require Regular reports re. company’s financial condition
- controls Investment
- Calculation of asset and policy reserves
- Protection of policyholder’s interests
4
Q
Citizen Ins vs Parson (1881)
A
- Fact
- In 1876, ON enacted Fire Insurance Policy Act, requiring ON fire insurance policy to include certain statutory considerations
- Insurer dispute ON’s Fire Insurance Act
- Issue/ Insurer’s argument:
- Is ON Fire Act Ultra Vires of province？
- subject matter realted to trade&commerce which is federal
- Province can’t legislate to deprive a federal incorporated company of its status and capacity
- Is ON Fire Act Ultra Vires of province？
- Ruling - Privy Council
- ON Fire Act is intra vires
- trade & commerce as inter-provincial trade & commerce rather than done in single province
- status & capacity is unaffected, all incorportated equally
- ON Fire Act is intra vires
5
Q
The Insurance Reference Case
Attorney-General (CA) vs Attorney-Genreal (AB)
A
Fact:
- 1910 - The Fedearl Insurance Act requiring all insurance companies to obtain a fereal license to operate in CA, excepting insurer incorporate and operate only in one province
Issue:
- is this version of Federal Insurance Act intra vires?
Ruling - Privy Council (JCPC)
- licensing is ultra vires of Federal Authority
- federal authority of trade & commerce didn’t extend to the regulation to a licensing system for a particular trade
- infringe province’s authority to make laws relating to civil rights in the province
Impacts:
- Provincially incorportated insurer could operate in other provinces with permission from theose provinces
- Provincially incorporated company had capacity but not right to operate outside province
- Federally incorporated comapny had capacity and right to operate in all procinces
- Foreign insurers are required a federal license by federal government, even if it’s only operate in 1 province
6
Q
2 Ways of an insurer operate in more than 1 provinces
A
- Federally regulated insurer
- A provincial regulated insurer regiestered with another province
7
Q
Canadian Indemnity Company vs AG (BC)
A
Facts:
- BC legislated establishes compulsory public auot plan
- legislature refuses license renew of all priviate insurers
Issues:
- Ultra vires of province - infringing federal authority on trade & commerce
- infringing rights of a federally incorporated company
Ruling - Privy Council
- intra vires
8
Q
Reasons for insurance regulation in CA
A
- Prevent inslovncies
- Prevent undersiable business practices
- Conisider economic impact on CA
9
Q
Role of OSFI
A
Regulate the financial safty & soundness of federally regulated institutions
10
Q
foreign company regulatory requirement to start a branch in Canada
A
- make a contribution to financial system in Canada
- Canadian insurers must be treated as favorably in the province where foreign insurer operates
- must appoint a Chief Agent
- must appoint an auditor and an actuary
- must have assets vested in trust and approved by SI
11
Q
Federal Minster of Finance’s consderation of insurance company appliant
A
- Financial nature and sufficiency
- Soundness of business plan
- Business reortd and experience
- Leader’s character, competence and experience
- Is it the best interest of financial system in CA
