(Consolidated up to 89/2006)

ALBERTA REGULATION 121/2001

Insurance Act

CLASSES OF INSURANCE REGULATION

Table of Contents

            1       Interpretation

                2       Classes of insurance

                3       Licences

                4       Repeal

                5       Expiry

                6       Coming into force

Interpretation

1(1)  In this Regulation,

                                 (a)    “accident insurance” means insurance by which the insurer undertakes, otherwise than incidentally to some other class of insurance under the Act, to pay insurance money in the event of accident to the person insured, but does not include insurance by which the insurer undertakes to pay insurance money both in the event of death by accident and in the event of death from another cause;

                                 (b)    “accident and sickness insurance” means a class of insurance consisting of accident insurance and sickness insurance;

                                 (c)    “accidental death insurance” means insurance undertaken by an insurer as part of a contract of life insurance, whereby the insurer undertakes to pay an additional amount of insurance money in the event of the death by accident of the person whose life is insured;

                                 (d)    “aircraft insurance” means insurance against loss of or damage to an aircraft and against liability for loss of or damage to property or injury to or death of persons caused by an aircraft or by the use or the operation of an aircraft;

                                 (e)    “automobile insurance” means insurance

                                           (i)    against liability arising out of

                                                 (A)    injury to or death of a person, or

                                                  (B)    loss of or damage to property,

                                                  caused by an automobile or the use or operation of an automobile, or

                                          (ii)    against loss of or damage to an automobile and the loss of use of an automobile,

                                          and includes insurance otherwise coming within the class of accident insurance if the accident is caused by an automobile or the use or operation of an automobile, whether liability exists or not, and the contract also includes insurance described in subclause (i);

                                  (f)    “boiler and machinery insurance” means insurance against loss of or damage to property and against liability for loss of or damage to property or injury to or death of persons through the explosion, collapse, rupture or breakdown of, or accident to, boilers or machinery of any kind;

                                 (g)    “burglary insurance” means insurance against loss or damage through burglary, housebreaking, robbery or theft;

                                 (h)    “credit insurance” means insurance against loss to the insured through the insolvency or default of a person to whom credit is given in respect of the provision of goods;

                                  (i)    “crop insurance” means insurance against loss of or damage to growing crops from risks or perils to which such crops may be exposed, but does not include hail insurance;

                                  (j)    “disability insurance” means insurance undertaken by an insurer as part of a contract of life insurance whereby the insurer undertakes to pay insurance money or to provide other benefits in the event that the person whose life is insured becomes disabled as a result of bodily injury or disease;

                                 (k)    “employers’ liability insurance” means insurance, not being insurance incidental to some other class of insurance under the Act, against loss to an employer through liability for accidental injury to or death of an employee arising out of or in the course of the employee’s employment, but does not include workers’ compensation insurance;

                              (k.1)    “equipment warranty insurance” means the sub‑class of boiler and machinery insurance that comprises insurance against loss of or damage to a motor vehicle or to recreational, marine, farm implement or construction equipment, arising from its mechanical failure, but does not include automobile insurance or insurance incidental to automobile insurance;

                                  (l)    “explosion insurance” means insurance against loss of or damage to property of any kind caused by explosion, bombardment, invasion, insurrection, riot, civil war or commotion or military or usurped power;

                                (m)    “fidelity insurance” means

                                           (i)    insurance against loss caused by a breach of trust, or

                                          (ii)    insurance against loss caused by the improper performance of the duties of an office;

                                 (n)    “fire insurance” means insurance, not being insurance incidental to some other class of insurance under the Act, against loss of or damage to property through fire, lightning or explosion due to ignition;

                                 (o)    “forgery insurance” means insurance against loss sustained by reason of forgery;

                                 (p)    “general liability insurance” means a class of insurance consisting of employers’ liability insurance, liability insurance, public liability insurance and workers’ compensation insurance;

                                 (q)    “guarantee insurance” means the undertaking

                                           (i)    to perform an agreement or contract or to discharge a trust, duty or obligation on the default of the person liable for the performance or discharge, or

                                          (ii)    to pay money on default or in lieu of the performance or discharge or where there is loss or damage through the default,

                                          and includes insurance against loss or liability for loss due to the invalidity of the title to any property or of any instrument or to any defect in the title or instrument, but does not include credit insurance;

                                  (r)    “hail insurance” means insurance against loss of or damage to crops caused by hail;

                                 (s)    “inland marine insurance” means marine insurance in respect of subjects of insurance at risk above the harbour of Montreal;

                                  (t)    “inland transportation insurance” means insurance, other than marine insurance, against loss of or damage to property

                                           (i)    while in transit or during delay incidental to transit, or

                                          (ii)    when, in the opinion of the Superintendent, the risk is substantially a transit risk;

                                 (u)    “legal expense insurance” means

                                           (i)    insurance against the cost incurred by a person for legal services rendered to that person, including fees or other costs incurred relative to the provision of such services, or

                                          (ii)    any arrangement which provides, directly or indirectly, legal services to a person, but does not include such an arrangement made directly with an active member of the Law Society of Alberta;

                                 (v)    “liability insurance” means insurance against liability for loss of or damage to property or injury to or death of persons arising from an accidental cause and not provided for by any other class of insurance under the Act;

                                (w)    “life insurance” means an undertaking by an insurer to pay insurance money

                                           (i)    on death,

                                          (ii)    on the happening of an event or contingency dependent on human life,

                                         (iii)    at a fixed or determinable future time, or

                                         (iv)    for a term dependent on human life,

                                          and without limitation, includes

                                          (v)    accidental death insurance but not accident insurance,

                                         (vi)    disability insurance, and

                                        (vii)    an undertaking to provide an annuity, or what would be an annuity except for the fact that the periodic payments are unequal in amount, for a term dependent solely or partly on a human life;

                                 (x)    “livestock insurance” means insurance, not being insurance incidental to any other class of insurance under the Act, against loss through the death or sickness of or an accident to an animal;

                                 (y)    “loss of employment insurance” means insurance against the involuntary loss of employment by a person where the loss of employment benefit is limited to an amount equal to all or part of the debt of the person;

                                 (z)    “marine and inland marine insurance” means a class of insurance consisting of marine insurance and inland marine insurance;

                               (aa)    “marine insurance” means insurance against losses incidental to marine adventure and may include, by the express terms of a contract or by usage of trade, protection against losses on inland waters or by land or air that are incidental to any sea voyage;

                              (bb)    “mortgage insurance” means insurance against loss caused by default on the part of the borrower under a loan secured by a mortgage on real property, a hypothec on immovable property or an interest in real or immovable property;

                               (cc)    “plate glass insurance” means insurance, not being insurance incidental to some other class of insurance under the Act, against loss of or damage to plate, sheet or window glass, whether in place or in transit;

                              (dd)    “property damage insurance” means insurance against loss or of damage to property that is not included in or incidental to some other class of insurance under this Act;

                               (ee)    “property insurance” means a class of insurance against loss of or loss of use of or damage to real or personal property, and includes burglary insurance, explosion insurance, extended perils insurance under section 37 of the Act, fire insurance, forgery insurance, inland transportation insurance, livestock insurance, plate glass insurance, property damage insurance, sprinkler leakage insurance, theft insurance and weather insurance;

                                (ff)    “public liability insurance” means insurance against liability for loss of or damage to the property of others or injury to or death of persons that is not included in or incidental to some other class of insurance defined by or under this Act;

                              (gg)    “sickness insurance” means insurance by which the insurer undertakes to pay insurance money in the event of sickness of the person insured, but does not include disability insurance;

                              (hh)    “sprinkler leakage insurance” means insurance against loss of or damage to property through the breakage or leakage of sprinkler equipment or other fire protection systems, or of pumps, water pipes, or plumbing and its fixtures;

                                 (ii)    “steam boiler insurance” means insurance

                                           (i)    on steam boilers and pipes, engines and machinery connected with or operated by steam boilers, against explosion, rupture and accident, and

                                          (ii)    against personal injury, loss of life and destruction of or damage to property resulting from such explosions, ruptures and accidents;

                                 (jj)    “surety insurance” means insurance whereby an insurer guarantees

                                           (i)    to perform a contract or an undertaking on default of the person liable for the performance, or

                                          (ii)    to pay a penalty or to indemnify for any default in the performance of a contract or undertaking,

                                          but does not include credit insurance or mortgage insurance;

                               (kk)    “theft insurance” means insurance against loss or damage through theft, wrongful conversion, burglary, housebreaking, robbery or forgery;

                                 (ll)    “title insurance” means insurance against loss or damage resulting from

                                           (i)    a defect in the title to real property,

                                          (ii)    the existence of a lien, encumbrance or servitude on real property,

                                         (iii)    a defect in the execution of a mortgage, hypothec or deed of trust in respect of real property, or

                                         (iv)    any other matter affecting the title to real property or the right to use and enjoyment of real property;

                             (mm)    repealed AR 293/2002 s9;

                              (nn)    “weather insurance” means insurance against loss or damage through windstorm, cyclone, tornado, rain, hail, flood or frost, but does not include hail insurance;

                              (oo)    “workers’ compensation insurance” means insurance of an employer against the cost of compensation prescribed by statute for bodily injury, disability or death of a worker through accident or disease arising out of or in the course of the worker’s employment.

(2)  An undertaking referred to in subsection (1)(w)(vii) is deemed always to have been life insurance.

AR 121/2002 s1;293/2002

Classes of insurance

2(1)  The following are the classes of insurance for the purposes of the Act and the regulations:

                                 (a)    accident insurance;

                                 (b)    accident and sickness insurance;

                                 (c)    accidental death insurance;

                                 (d)    aircraft insurance;

                                 (e)    automobile insurance;

                                  (f)    boiler and machinery insurance;

                                 (g)    burglary insurance;

                                 (h)    credit insurance;

                                  (i)    crop insurance;

                                  (j)    disability insurance;

                                 (k)    employers’ liability insurance;

                                  (l)    explosion insurance;

                                (m)    fidelity insurance;

                                 (n)    fire insurance;

                                 (o)    forgery insurance;

                                 (p)    general liability insurance;

                                 (q)    guarantee insurance;

                                  (r)    hail insurance;

                                 (s)    inland marine insurance;

                                  (t)    inland transportation insurance;

                                 (u)    legal expense insurance;

                                 (v)    liability insurance;

                                (w)    life insurance;

                                 (x)    livestock insurance;

                                 (y)    loss of employment insurance;

                                 (z)    marine and inland marine insurance;

                               (aa)    marine insurance;

                              (bb)    mortgage insurance;

                               (cc)    plate glass insurance;

                              (dd)    property damage insurance;

                               (ee)    property insurance;

                                (ff)    public liability insurance;

                              (gg)    sickness insurance;

                              (hh)    sprinkler leakage insurance;

                                 (ii)    steam boiler insurance;

                                 (jj)    surety insurance;

                               (kk)    theft insurance;

                                 (ll)    title insurance;

                             (mm)    weather insurance;

                              (nn)    workers’ compensation insurance.

(2)  For the purposes of the Act and the regulations, equipment warranty insurance

                                 (a)    is a sub‑class of boiler and machinery insurance, and

                                 (b)    is deemed to be a class of insurance.

AR 121/2001 s2;293/2002

Licences

3   A licence may be granted to an insurer to carry on any of the classes of insurance referred to in section 2.

Repeal

4   The Classes of Insurance Regulation (AR 325/78) is repealed.

Expiry

5   For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on April 30, 2016.

AR 121/2001 s5;89/2006

Coming into force

6   This Regulation comes into force on the coming into force of any provision of the Insurance Act (SA 1999 cI‑5.1).