Definition
1 In this Regulation, “Act”
means the Insurance Act.
AR 128/2001 s1;96/2006
Claims disclosure
2 Where there is a claim against the
insured under a contract of automobile insurance and in the insurer’s opinion
the insured is liable, the insurer who settles the claim must
(a) notify
the insured of the insured’s liability within 30 days of forming the opinion
that the insured is liable,
(a.1) if
the policy premium is a grid premium under the Automobile Insurance Premiums
Regulation (AR 124/2004), notify the insured that the insured has an
option to repay the amount of the claim within 90 days of the claim being paid,
and
(b) on
the request of the insured, disclose to the insured
(i) the dollar amount of any claim paid to a third party,
(ii) the date of the settlement,
(iii) the name of the third party, and
(iv) the nature or purpose of the settlement.
AR 128/2001 s2;96/2006
Disclosure of insured’s right to choose service provider
3 Where an insurer, insurance
agent or adjuster is notified by an insured of a loss respecting damage to
property and the insurer, insurance agent or adjuster recommends a particular
service provider to the insured, the insurer, insurance agent or adjuster must
advise the insured in writing, at the time of the recommendation, that the
insured may have the repairs estimated and completed by a service provider of
the insured’s choice, except where the insurer exercises its right to undertake
the repairs.
AR 128/2001 s3;96/2006
Prohibited tied
selling practices
4 For the purpose of section 509(1)(b) of
the Act, the following tied selling practices are prohibited:
(a) where
an insurer or insurance agent other than the holder of a restricted certificate
is asked to sell insurance to a person, informing the person that the person
must purchase another product or service, including an insurance policy, from
the insurer or insurance agent, as the case may be, before the insurance
requested will be undertaken;
(b) where
an insurer is asked to make a loan to a person, informing the person that the
person must purchase a product or service, including an insurance policy, from
the insurer before the loan will be made.
Right to rescind
contract of insurance
5(1) A person who buys a contract of life insurance
underwritten by an insurer may rescind the contract within 10 days after
receiving the insurance policy or within any longer period specified in the
contract.
(2) Subsection
(1) does not apply to a segregated fund or an annuity offered by the insurer.
(3) A
person who rescinds a contract under subsection (1) is entitled to receive from
the insurer a refund of the whole premium that has been paid.
Expiry
6 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 128/2001 s6;96/2006
Coming into force
7 This Regulation comes into force on the
coming into force of any section of the Act.
